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pyperb

If silver goes to £28 per ounce like 2011

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23 minutes ago, GoldElliott said:

I hope your right :)Ill happily part with my silver if it goes to £28 per oz or higher

Then pound sterling collapses and you wish you hadn’t unloaded it

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1 hour ago, GoldElliott said:

not when I swap it for a massive house ;)

Property will be falling for a long time, if the banks collapse there are no mortgage and how much will property be worth then?

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2 hours ago, Rocky2000 said:

Property will be falling for a long time, if the banks collapse there are no mortgage and how much will property be worth then?

I've got a price set in my mind of when I'm going to sell most of my silver and buy a house, luckily I live in the grim north, so I could probably buy a 4 bed detached for 3oz of silver.

Property will always be worth something, it's a basic necessity, humans have evolved to live with a roof over their heads, and if loads of banks start failing the government is hardly going to let millions of home be repossessed.

It's about been in the right market at the right time to maximise gains, I've bought some silver in a low cycle to exchange for property when that's in a low cycle, I buy gold to protect myself from inflation and an insurance policy should fiat currency fail

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The gold silver ratio is out of proportion and some will say silver is far too cheap ( and I agree ) whereas others might argue the opposite that gold is overpriced.
It is worth comparing also the gold to platinum ratio as an indicator perhaps to the gold being overpriced.
Platinum not so long ago was deemed even more precious than gold so maybe there is some skullduggery in the metals market and once the bubble bursts there will be winners and losers.
Just don't put all your eggs in one basket.

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4 hours ago, zhoutonged said:

I don't understand why so many people think Gold is better long term. All things in life are cyclical, when the GSR returns somewhere closer to mean Silver will have out performed Gold by at least 100%. Gold has lower costs (fabrication, tax, shipping, storage) very important for short term holding, but Gold is simply leading the way. When all this plays out and Gold is $6k Silver is likely to be closer to $150.

Absolutely 

when the rush to safety starts many can’t afford gold

 

silver will be a frenzy, it’s going viral

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Posted (edited)
8 hours ago, zhoutonged said:

All things in life are cyclical, when the GSR returns somewhere closer to mean

Why does gold have any correlation to silver? why should gold have any correlation to silver

https://www.investopedia.com/articles/investing/080316/historical-guide-goldsilver-ratio.asp

"Historically, the gold-silver ratio has only evidenced substantial fluctuation since just before the beginning of the 20th century. For hundreds of years prior to that time, the ratio, often set by governments for purposes of monetary stability"

Gold and silver are no longer arbitrarily set by an authority

They have no tether 

 

Edited by Kman

Help thread for members new to silver/gold stacking/collecting

I don't know anything about stocks or investing

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15 hours ago, Rocky2000 said:

Property will be falling for a long time, if the banks collapse there are no mortgage and how much will property be worth then?

What's your plan with precious metals? to sit on them all your life and do nothing with them 

If you can swap them for a property you wouldn't have been able to afford had you just sat on cash then what a wonderful exchange? any price drop will only  be short term 


Help thread for members new to silver/gold stacking/collecting

I don't know anything about stocks or investing

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On 13/05/2020 at 22:57, pyperb said:

If silver goes to £28 per ounce like 2011 that would be great but who is going to buy it off you at high prices like that ? I wonder the higher the price gets for silver the harder it is to sell.

Price rises with demand

I don't think bullion dealers have had any problem selling gold at current spot price

Will never be an issue with selling, much more likely to be a problem with demand outstripping supply 

 


Help thread for members new to silver/gold stacking/collecting

I don't know anything about stocks or investing

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1 hour ago, Kman said:

What's your plan with precious metals? to sit on them all your life and do nothing with them 

If you can swap them for a property you wouldn't have been able to afford had you just sat on cash then what a wonderful exchange? any price drop will only  be short term 

I suspect property will be falling and PMs rising for years yet

 

the silver to house price ratio is ten of thousands of ounces to one mean average house, I can see it falling to a few thousand ounces and I will slowly start to transition out of silver into property 

 

in 1980 it went down to about 500:1 but this time I can see it going lower if the banking system collapses

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Can anybody find a long term silver to house price chart?
 

i guess it area specific and you have to take a medium average house over time.

 

i remember Mike Maloney saying it got down to 500:1 in USA in 1980
 

what is it today in the UK?

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1 hour ago, zhoutonged said:

I take your point but Some people think of gold as money. It can’t be inflated so it is useful to price other assets using gold to gauge if they are historically cheap or expensive.

silver just hit a 5000 year low.

If we do return to a gold standard, I believe we will. Central banks will be buying silver, IMO.

To me ratios are more useful when they aren’t set by an authority.

It would take a HUGE increase and prolonged increase in the price of silver for central banks to think about storing it. At a ratio of 100:1 the physical costs of storage/guarding of silver in any meaningful quantity vastly outweigh its value as a reserve.

I would like to see a return to some form of PM standard (how likely that is remains to be seen), but even a return to the Gold standard is unlikely to affect the value of silver hugely as it no longer features in our coinage! (unless you are advocating for a return to silver in our coinage in a redeemable proportion to gold with the central bank which would be even more unlikely!)

1 hour ago, Kman said:

What's your plan with precious metals? to sit on them all your life and do nothing with them 

If you can swap them for a property you wouldn't have been able to afford had you just sat on cash then what a wonderful exchange? any price drop will only  be short term 

If I can swap PMs for a house I will! One looks nice and is shiny, the other provides me with shelter for me and my family!

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1 minute ago, Rocky2000 said:

Can anybody find a long term silver to house price chart?
 

i guess it area specific and you have to take a medium average house over time.

 

i remember Mike Maloney saying it got down to 500:1 in USA in 1980
 

what is it today in the UK?

Not sure how useful it is to compare the uncorrelated price of two very different assets! the toilet roll to house price ratio is currently at an all time low! maybe we should be divesting ourselves of paper towels

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You can see how it dipped below 6000oz in 2010, I'm betting on it dipping lower in a year or two, that doesn't mean I'm going to pay for a house with silver bullion but I'm going to liquidate a large chunk of my silver for a larger deposit, I'm not looking to buy a house in the next year anyways because of a stupid default I have against my name.

 

But like BYB always preaches on his channel, theirs no point stacking PM's if you don't have a exit strategy

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2 hours ago, GoldElliott said:

It would take a HUGE increase and prolonged increase in the price of silver for central banks to think about storing it. At a ratio of 100:1 the physical costs of storage/guarding of silver in any meaningful quantity vastly outweigh its value as a reserve.

I would like to see a return to some form of PM standard (how likely that is remains to be seen), but even a return to the Gold standard is unlikely to affect the value of silver hugely as it no longer features in our coinage! (unless you are advocating for a return to silver in our coinage in a redeemable proportion to gold with the central bank which would be even more unlikely!)

If I can swap PMs for a house I will! One looks nice and is shiny, the other provides me with shelter for me and my family!

JPM have a huge amount of silver in a vault in London

 

altogether they have around a billion ounces

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2 hours ago, GoldElliott said:

Not sure how useful it is to compare the uncorrelated price of two very different assets! the toilet roll to house price ratio is currently at an all time low! maybe we should be divesting ourselves of paper towels

Comparing anything with anything else long term is a very good way to see if something is overvalued or undervalued 

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On 14/05/2020 at 15:24, joejingojack said:

You guys are Silver stackers and you don't even know how to stack Silver properly☺️

Please tell, how do i stack silver properly. Would love the help.

Other people say why buy now . Well, you've got to start somewhere.

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3 hours ago, OriginalS said:

You can see how it dipped below 6000oz in 2010, I'm betting on it dipping lower in a year or two, that doesn't mean I'm going to pay for a house with silver bullion but I'm going to liquidate a large chunk of my silver for a larger deposit, I'm not looking to buy a house in the next year anyways because of a stupid default I have against my name.

 

But like BYB always preaches on his channel, theirs no point stacking PM's if you don't have a exit strategy

Yes I think it will go much lower than 6000oz in a year or so and then even lower the next few years

 

we are headed into the next Great Depression 

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4 minutes ago, zhoutonged said:

Ive been thinking about this and you have a point, Silver is way too inexpensive and cumbersome to buy. Its almost a liability at this price!. If Gold dropped to $50 dollars same thing, Id rather take it down the dump than have $50 Gold laying around all over the place creating a tripping hazard.

Im not buying an ounce more silver until the price is such that it doesn't create a storage problem. Platinum to... far more bulky compared to Gold.

 

Not sure if this is sarcastic or not 😂 but at a GSR of 1:100 and a density nearly twice that of gold thats nearly 200x the storage space required as for current gold reserves!

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Posted (edited)
3 hours ago, Rocky2000 said:

Comparing anything with anything else long term is a very good way to see if something is overvalued or undervalued 

That's not always true. Sugar, pepper and Aluminium to name but a few commodities that were at one point very expensive but are now cheap and widely available.

With regards to silver. I think one of the factors keeping the price down is it's often a by-product of say a nickel, gold or copper mines primary output.

So one would have to presume if there was broad downturn in the demand for commodity metals like during a global recession the silver supply would decrease rapidly. The question is does the fall in demand for silver in industrial use fall as fast as the supply does? If not I would expect prices to rise. 

Edited by freefall

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22 minutes ago, freefall said:

That's not always true. Sugar, pepper and Aluminium to name but a few commodities that were at one point very expensive but are now cheap and widely available.

With regards to silver. I think one of the factors keeping the price down is it's often a by-product of say a nickel, gold or copper mines primary output.

So one would have to presume if there was broad downturn in the demand for commodity metals like during a global recession the silver supply would decrease rapidly. The question is does the fall in demand for silver in industrial use fall as fast as the supply does? If not I would expect prices to rise. 

It’s always a good idea to compare stuff with stuff rather than fiat currency values over time. Yes there are exceptions like the ones you mentioned 

 

take currency out of it and measure how much of this was worth the same as this over the last few hundred years, you see what is overvalued and what is undervalued 

 

right now property is overvalued compared with everything

 

silver is extremely undervalued compared with anything you look at for the last few thousand years.

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36 minutes ago, freefall said:

That's not always true. Sugar, pepper and Aluminium to name but a few commodities that were at one point very expensive but are now cheap and widely available.

With regards to silver. I think one of the factors keeping the price down is it's often a by-product of say a nickel, gold or copper mines primary output.

So one would have to presume if there was broad downturn in the demand for commodity metals like during a global recession the silver supply would decrease rapidly. The question is does the fall in demand for silver in industrial use fall as fast as the supply does? If not I would expect prices to rise. 

Yes silver supply will be reduced far more than the small reductions in industrial demand 

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