If silver goes to £28 per ounce like 2011

[GoldElliott]

If the price of silver is primarily driven by industrial demand as you're suggesting then it will never make you rich- a doubling of entire global industrial output (unthinkable in the short-medium term) would only correspond to a proportionate increase in demand for silver. Added with the fact that it is not a particularly scarce metal (global mining production is huge) and you dont have the exponential price explosion you are suggesting. That is unless the price is driven by other factors... ones not underpinned by (industrial) demand and supply

[GoldElliott]

BTW im not disagreeing with anyone here about the price of silver rising- I think it will jsut as much as everyone else. What im diasagreeing is the reason WHY it will rise. I dont think it is a rational rise but rather a speculative flash like weve seen before in 2011 and the 80s.

[joejingojack]

12 minutes ago, GoldElliott said:

If the price of silver is primarily driven by industrial demand as you're suggesting then it will never make you rich- a doubling of entire global industrial output (unthinkable in the short-medium term) would only correspond to a proportionate increase in demand for silver. Added with the fact that it is not a particularly scarce metal (global mining production is huge) and you dont have the exponential price explosion you are suggesting. That is unless the price is driven by other factors... ones not underpinned by (industrial) demand and supply

You must remember.

Today's world is entirely different monster unseen of it's kind.

The government is working against you around the clock and Silver is the only way to freedom yourself again from all the fakery around you.

You matter more than you think you do.

Take care if yourself and god bless.

Edited May 19, 2020 by joejingojack

[bluemoon]

I remember people were buying hand over fist in 2011 because they thought it was going to the moon and had fear of missing out. Same thing happened more recently with Bitcoin. Both were in a bubble and it was only those in the know who kept cooler heads. I don't think you'll be short of buyers.

[OriginalS]

Investing in silver is purely speculative, if you bought an ounce of silver in May 1970 (for £0.72) and sold it today for spot price £14.21 you'd have made a grand total of £3 profit factoring in inflation, that's 0.06% return per year, if you got lucky and sold it as it's all time high price of £29.26 you'd have made a profit of £20.12 (0.49% return per year).

 

Don't get me wrong I like silver but it isn't a long term investment for me, it's something to buy when prices are low and other assets are doing well and flipping it when it's doing well

[OriginalS]

You'd have lost £623 with inflation, 21 years isn't really a long term investment though is it, shall I cherry pick some more dates and figures to make my point as well? Just like with any investment you can loose just as much as you make, shall I calculate the gold returns for a purchase in 1970? 

[seasidestacker]

45 minutes ago, OriginalS said:

Investing in silver is purely speculative, if you bought an ounce of silver in May 1970 (for £0.72) and sold it today for spot price £14.21 you'd have made a grand total of £3 profit factoring in inflation, that's 0.06% return per year, if you got lucky and sold it as it's all time high price of £29.26 you'd have made a profit of £20.12 (0.49% return per year).

let us travel back in time to May 1970 and place in a safe...

£720

and

1000 oz of silver.

we go back today and open it up, the cash is valued at £720.00  whilst the silver is valued at £14200.00.

the cash will never appreciate in value ever, yet the silver will.

I feel your glass is half empty.

 

[OriginalS]

33 minutes ago, seasidestacker said:

let us travel back in time to May 1970 and place in a safe...

£720

and

1000 oz of silver.

we go back today and open it up, the cash is valued at £720.00  whilst the silver is valued at £14200.00.

the cash will never appreciate in value ever, yet the silver will.

I feel your glass is half empty.

 

Yeah and then minus the £11,211 you've lost in value to inflation, you've made about £3000 over 50 years, 

 

My glass certainly isn't half empty, I'm just been a realist and basing my decisions on figures not feelings

[Russell]

I have heard all these conversations before when I was trading in Equities but I will share this story.  I bought a load of ASOS shares in 2001 and held them for a few months someting like 58p a share and dumped them at 92p thinking they would not get over a quid.  I stopped crying at the chart when they went over £30...  Although I only bought a few thousand pounds worth, if I had kept holding them instead os selling for a fast profit I would have been an extremely wealthy man today 😞  Now then where is my Silver price crystal ball...

Edited May 20, 2020 by Russell

[OriginalS]

26 minutes ago, zhoutonged said:

People fell out of love with Silver just when they should have been backing up the truck, some things never change.

 

I haven't fell out of love with silver, I've added about 70oz just in the last 3 months, but it isn't going to make me rich in the long term, it's just a good place to park my money at the minute.

 

If it does "shoot the moon" then good luck to whoever I sold my silver too at a reasonable price

[Russell]

40 minutes ago, zhoutonged said:

People fell out of love with Silver just when they should have been backing up the truck, some things never change.

 

If only they did their research there has never been anything wrong with silver or the mines or the market.  It has been shorted to hell and back since 2011 by the hole on the wall st gang J P Morgan HSBC Scotia etc. and they have surpressed the price while attaining large amounts of the metal.  If the people dumoing their silver and getting demoralised just bothered to look into it deeper they will see they are making one huge mistake selling now.  This is my own opinion an dI know nothing so do your own research 🙂

[Russell]

By the way it made me laugh out loud when I heard HSBC got caught in the short squeeze and lost 200m in one trade 🙂

 

https://www.bloomberg.com/news/articles/2020-05-13/hsbc-lost-about-200-million-in-one-day-on-gold-market-turmoil

[Silverman1985]

On 13/05/2020 at 23:37, silverdocket said:

Me personally I'll always keep a base amount of gold and silver regardless of price. 

Precious metals to me is long-term rainy day fund and protection of a bit of wealth. So when he hits the magic number for me I will sell half.

This is exactly how I think. I want to look at the silver, hold it and appreciate it. Never want to sell it. Times are bad if that day comes. 

[vand]

£28 will seem cheap by the time the FOMO phase of this cycle is upon us. 

[Silverman1985]

All that money from the printers has to land somewhere. And in a world of inflation, negative yielding bonds will seem a bad play me thinks. 

[joejingojack]

On 19/05/2020 at 17:58, bluemoon said:

I remember people were buying hand over fist in 2011 because they thought it was going to the moon and had fear of missing out. Same thing happened more recently with Bitcoin. Both were in a bubble and it was only those in the know who kept cooler heads. I don't think you'll be short of buyers.

Whoever sells Silver at this environment of massive debt issuance, needs to have their head examined. I am that serious.

[OriginalS]

6 minutes ago, joejingojack said:

Whoever sells Silver at this environment of massive debt issuance, needs to have their head examined. I am that serious.

We're all free to make our choices when it comes to buying, holding and selling silver, I think the very fact that we are here on this forum makes us more financially savvy than 95% of the population, I've got gold to cover my back if the economy really does tank

[Troy77]

1 hour ago, Silverman1985 said:

All that money from the printers has to land somewhere. And in a world of inflation, negative yielding bonds will seem a bad play me thinks. 

The ink is worth more than the money I'm struggling to find decent price cartridges at the moment, cheaper to buy a printer.

[Spyder]

 

On 19/05/2020 at 22:46, OriginalS said:

Yeah and then minus the £11,211 you've lost in value to inflation, you've made about £3000 over 50 years, 

 

My glass certainly isn't half empty, I'm just been a realist and basing my decisions on figures not feelings

You are valuing it completely wrong. What you have to ask yourself is what would 1000 oz of silver have bought you in 1970 and what does 1000 oz buy you now. if you can buy the same or more then silver has done it's job. 

Anyway three years later, silver never got anywhere near £28 an oz.

[Bigmarc]

7 hours ago, Spyder said:

 

You are valuing it completely wrong. What you have to ask yourself is what would 1000 oz of silver have bought you in 1970 and what does 1000 oz buy you now. if you can buy the same or more then silver has done it's job. 

Anyway three years later, silver never got anywhere near £28 an oz.

No matter where I travel in the world, I like to work things out in the cost of a pint. Easier to work out in my head. 

In 1970 at 68p per ounce would buy you roughly 3 and 1/2 pints. 

Today at 19.50 per ounce would buy you 3 and 1/2 pints. 

If you left 68p in the bank I doubt you would be able to buy half a pint. 

 

Price from chards website

 

Talking of chards, what's happened to Lawrence, hope he is ok.

[Paul]

1 hour ago, Bigmarc said:

No matter where I travel in the world, I like to work things out in the cost of a pint. Easier to work out in my head. 

In 1970 at 68p per ounce would buy you roughly 3 and 1/2 pints. 

Today at 19.50 per ounce would buy you 3 and 1/2 pints. 

If you left 68p in the bank I doubt you would be able to buy half a pint

Finally ! Economic comparisons we can't relate to !! 

[SidS]

On 19/05/2020 at 21:44, seasidestacker said:

let us travel back in time to May 1970 and place in a safe...

£720

 

It's actually worse than you paint. If you had put £720 into a safe in 1970 then I'm afraid that none of the notes (or even coins) would be legal tender now.

The florins, shillings, sixpences, threepences, pennies, 50p, 10p and 5p coins have all long since been withdrawn. The £20, £10, £5, £1 and 10/- notes likewise, however, the notes that are £1 plus can be exchanged at the BOE for modern notes to the same face value. Which of course, as others have stated, inflation has robbed.

So fiat currency is often replaced in cycles meaning that holding it requires frequent swapping out for newer notes and coins.

[MonkeysUncle]

Well if it does fancy wandering to £28 an ounce I'll be busy off loading...

...then buying it back when it merrily heads down again.

Always in cycles...

[Brassic]

it still wont be high enough for todays premiums