is silver cheap

[craig12]

I know its been flogged to death in threads , but I am new so bear with me  £12.25  is that cheap or expensive , seems pretty cheap for a heavy coin , but are we paying too much  should we be at £10   is "22 the right price, surely we cant just bob along  picking up coins on the dips  , what if the dips are still too dear. I look at the bullion by post chart over the last 10 yrs and I think these coins should be about £8  the last few years seem a bit high for me , and then throw in the vat and hey presto,

 

is £12.25  the right price , and I know some will answer   who knows the right price craig   , but do you guys feel that the coins and bars are good value  or do you feel that you should be getting more ounces per £100

should a tube of 20 coins be £200  is that more reasonable

[Agpanda]

I see it like this, GSR are historicle about 40:1.

Atm it is 62ish, either are silver cheap or gold very expensive.

Thats why i keep buying silvwer for now,

maybe i will sell off some silver and get some gold when GSR are below 40:1

But for now i stick to silver.

[Ares]

I wouldn't be holding any hopes of buying 20 coins for 200 if I were you. £10 coins will never happen again.

£12.25 is fine, sometimes it's cheaper and sometimes it isn't. There is no number we can say which is "too much" because at the end of the day it's something *you* need to work out for yourself! about how much *you* are willing to pay.

If the dips are too dear then don't buy. Simple as that.

[silversword]

It's cheaper than it has been in the past, not only compared to the all-time historical highs of around £29/oz, but also still cheaper than this year's high of £13.20/oz (to date). I'd say it was good value at the moment.

[Ares]

It's just keeping an eye on it, over time you end up getting a gut feeling if spot is cheap/average/high anyway.

[garthy]

I believe last year demand out stripped supply also the above ground available silver decreased, then the silver to gold ratio is over 60 to 1, as far as I'm concerned the only thing keeping the silver price down is the paper market.

So yes I believe silver's cheap right now.

[ChrisSilver]

If you think it's too cheap, buy some gold

Personally, I do think silver is currently undervalued.

[SilverPirate]

When i started stacking i was buying at £33 and the forums where saying if only we got into silver last year or a while ago we would of been laughing.

We are at those prices now,if you can afford it and have the inclination to stack right now,Now is a good time to stack,it is a preservation of wealth a metal bank account. When the demand for industrial silver increases it will go up, in the mean time stackers of various degrees of buying power have been hoarding metal and some will off load ASAP.So it will dip again till that metal gets stacked again then it will slowly rise again till the next manipulation .The good time to buy is cheaper than you will sell for if you buy at £33 and sell at £44 great, if you buy at £12 sell at £22 its the same profit. 

[Cornishfarmer]

If spot price of silver is £12.30/oz, what does that mean? If it's 1oz in a melting pot £15.50 is good value for a coin, I wouldn't like it to get it processed, transtorted, minted, transported, sold by STG transported one final time for £3.30

[HighlandTiger]

I take then longer term view. If you look at the 5 year chart for Silver, you can see at a glance that at the moment Silver prices are in a very good place if you are wanting to buy. I'm ignoring the price fluctuations and just buying what I can, when I can afford it.

 

 

 

[Pipers]

Living in the UK there are 2 charts to note the Silver charts and the exchange rate.  

[a_a]

I think that it's pretty cheap and unlikely to drop very much further, I am hopeful there will be one more nice dip within the next year but still I think it will be on this side of £10 an oz.

 

£10 a coin would be sweet, I would be smashing the overdraft and then back-fill it with 0% credit cards

[jason1977]

I just bought this not 2 minutes ago at auction for $23.10.

[jason1977]

Bought this an hour ago for $26

[jason1977]

Cheap is a matter of perspective. The premium or decrease in"cheapness" denotes or suggest faith & trust in the mint's quality and assures both buyer and seller alike that the bullion piece in question are trusted to the point of being renowned based on long standing. Ohio Precious Metals (OPM) on the other hand, is a newer mint and hasn't the recorded long standing of something like Johnson Matthey or APMEX, etc, therefore that mint doesn't command as high a premium as the other big dogs, yet to date is reliable. If you're looking for cheaper silver, take a look at newer but we'll known mints shy of having that "renowned" status.

Premiums reflect desirability.

[jason1977]

An example of an ounce that would not be cheap would be Engelhard. That mint no longer produces silver bullion and is a highly sought after piece of silver, carrying with it a higher premium. If I were a richer man, I'd seek those bars like it was my job. I wonder though if those little beauties retain their value like coins would if the price of silver plunges?

[jason1977]

In the end, I liken premiums to sitting at a blackjack table. When you put your chips on the table, you are speculating that this time you will be dealt a hand sufficient to beat the house. Your chips represent the cost/ spot price of silver.

If the dealer shows an ace, (ie; budget vs how bad you want to buy silver right now) you can further speculate that he/she has a blackjack. You then have the option of buying insurance.

What this means is you have to decide if your bet (however much you're spending on however many ounces) is worth protecting. If you decide to dig a little deeper into your pile of chips, you are deciding to insure your bet on the table ie; decided a premium is a small price to pay to add desirability to what it is you're buying.

That insurance represents the premium. You are assuring yourself and your buyer as well as insuring your investment by knowing that you as the buyer that you have something that is to some degree, desirable to whomever you sell to. You can buy the insurance from the dealer or you can further speculate that the cards are safe as they are.

Speculation is what encompasses this field of investing. Every stacker has their chips on the table and have at times either decided to "buy insurance" (be at ease with a higher premium with the knowledge that they are obtaining a quality piece) or forego the option.

Either way, at the heart of it is speculation. The better one understands what a speculative investment is and means, the more tools they have in mind in going about making their money grow and/ or protecting wealth.