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Why silver price is going down when we have such inflation?


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52 minutes ago, GoldDiggerDave said:

Silver has not moved with inflation over a decade, and from what I’m seeing it’s looking like it hasn’t for a while.

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almost anything you  could have bought would have out performed silver.

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you need to hold mountains of it for any reasonable return and buy and sell at the optimum time. 

Bit it's so very pretty!

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5 hours ago, GoldDiggerDave said:

And while I’m on my high horse🤣

How many people have said “it’s pointless having cash in the bank”   I’ve been making a pitiful 2% on my cash isa that was fixed for 5 years.  
 

The 5 years before that it was around 4-5% return.  
 

Some  seam to bash cash and the run to silver.  No matter how you look at silver it is storing less wealth than cash in the bank and that’s depreciating to nothing. 
 

 

2018 silver was £10 in September, now is £16 on my calculation this is 60% more

More silver coins on my website

                dancu.co.uk

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16 minutes ago, theman73 said:

2018 silver was £10 in September, now is £16 on my calculation this is 60% more

Correct. I love silver too and to clarify, I'm not trying to bash silver or start a fight but....

What @GoldDiggerDave is saying though is 10 years even getting 1 or 2% on cash in the bank he is, for ease of maths 10% up. £100k is now £110k Whereas 100k into silver then is technically now 9.74% down so £90k and along with storage fees and so on (definitely a few hundred quid a year for a vault box big enough for 6000 Oz 13 monster boxes) could realistically be 20% down today.

You're correct too though @theman73 there are periods you could have bought and sold within this period, to make a tidy profit within this time period. Such as if you bought 7 years from today in 2015 you're roughly 50% up before fees

If you go to this chart and select silver then 10 year time period you can see.

https://www.bullionbypost.co.uk/silver-price/10-year-silver-price/

signal-2022-07-28-15-34-41-655.thumb.jpg.03fa7905a491412c0a305a3f3dd329de.jpg

signal-2022-07-28-15-34-54-287.thumb.jpg.be7f7b65ffdced5deb9cf0a7ff827cd4.jpg

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If you bought gold in 1980 it would have taken over 20 years to get your money back. Gold sucks balls. 😀

"It might make sense just to get some in case it catches on"  - Satoshi Nakamoto 2009

"Its going to Zero" - Peter Schiff 2013

"$1,000,000,000 by 2050"  - Fidelity 2024

 

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3 minutes ago, James32 said:

Calm the horses..we are heading to the moon

Well, I'm not a stacker but a trader, for me those fluctuations are wonderful, but I was expected the price to move on line with the inflation.

Regards

More silver coins on my website

                dancu.co.uk

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29 minutes ago, theman73 said:

Well, I'm not a stacker but a trader, for me those fluctuations are wonderful, but I was expected the price to move on line with the inflation.

Regards

4% up on the day is a great day for Ag 👍🏼

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6 hours ago, modofantasma said:

Correct. I love silver too and to clarify, I'm not trying to bash silver or start a fight but....

What @GoldDiggerDave is saying though is 10 years even getting 1 or 2% on cash in the bank he is, for ease of maths 10% up. £100k is now £110k Whereas 100k into silver then is technically now 9.74% down so £90k and along with storage fees and so on (definitely a few hundred quid a year for a vault box big enough for 6000 Oz 13 monster boxes) could realistically be 20% down today.

You're correct too though @theman73 there are periods you could have bought and sold within this period, to make a tidy profit within this time period. Such as if you bought 7 years from today in 2015 you're roughly 50% up before fees

 

If you go to this chart and select silver then 10 year time period you can see.

https://www.bullionbypost.co.uk/silver-price/10-year-silver-price/

signal-2022-07-28-15-34-41-655.thumb.jpg.03fa7905a491412c0a305a3f3dd329de.jpg

signal-2022-07-28-15-34-54-287.thumb.jpg.be7f7b65ffdced5deb9cf0a7ff827cd4.jpg

You love silver you say? 

As much as @ilovesilverireallydo?

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I'm not a silver heretic, or out to convince someone to make any sort of financial decision, I believe in having an open conversation and yes even if we disagree I can still see both points of view.  This thread has got me looking at silver price vs bank interest rates over the last 50 years and it's astounding.

if you bought £1000 of silver in 1972 you would have been able to buy around 1351oz at around 0.74p per oz.  Keep that for 50 years and today its worth 16.54p  so the original £1000 would be worth £22,345.54

(some would say I could sell it for more etc on TSF for sake of example I'm keeping at spot as i've averaged the interest rates to normal interest not allowed for higher returns in bonds etc)

In 1972 some leaves £1000 in the bank account for 50 years and the average interest over this time was 7.17% per year.  That today would be worth £31,890.52

over the last 50 years cash in the bank has out performed silver. 

The same £1000 would have bought around 36.5oz of gold in 1972 today that would be worth £52,815.50p

I am not out to argue or upset anyone, (I do like a laugh and a bit of banter even when it's at my own expense)  I'm looking with my own eyes and using a calculator and can not see over 10 or even over the last 50 years on average where silver has out performed having boring cash in the bank doing nothing.  We all know theres all sorts of added cost with silver dealer premium and vat  I did not calculate that into to mix or a percentage storage fees.  Over 50 storage fees at 1% +vat per year would have cost £1,815.00 alone. (this is well under as it needs to be 1% +vat of the value of the PM using RM storage as an example that will give me a headache working that out the final year would cost £268 alone)

We all know having cash is a very poor way to store your wealth and it performs worse than real world inflation it's still better than silver  over 10 or even 50 years. 

For smaller regular silver stackers when you apply 20% vat 17-21% dealer premium 50p for the capsule and postage doing this over the last decade would put you well into an effective negative interest rate scenario I'll work this out later on today......but even now its looking ugly.   Maybe be the ugly truth needs to come out? 

 

Edited by GoldDiggerDave
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11 minutes ago, modofantasma said:

Seriously though, some people are likely still better off holding silver as it stops them spanking cash on nonsense that would lose any value. 

Applying  that logic, don't buy silver buy a sand pit and play in the corner as you can't be trusted with money!😂😂

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27 minutes ago, modofantasma said:

Seriously though, some people are likely still better off holding silver as it stops them spanking cash on nonsense that would lose any value. 

Have to admit, that is the way I looked at it when I first started stacking - and it worked for me... have shifted towards the Yellow Shiny stuff now, as it takes up less space for the same value - but if budget is limited (as mine was when I first started, and may be again!) then a fistfull of Silver is 'less easily spendable' than a fistfull of notes 😉

 

14 minutes ago, GoldDiggerDave said:

Applying  that logic, don't buy silver buy a sand pit and play in the corner as you can't be trusted with money!😂😂

....  aaaaand that's probably true as well - anyone want to trade some silver for a sandpit? 😉

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1 hour ago, GoldDiggerDave said:

In 1972 some leaves £1000 in the bank account for 50 years and the average interest over this time was 7.17% per year.  That today would be worth £31,890.52

I wasn't convinced it would be a straightforward as doing 1000 * 1.0717^50, but it turns out it is about right if you model it with the bank base rates for each year.

But anyway, the interest rates in the 70s and 80s were particularly high compared to now. Your £1000 banked in 1972 would have doubled even before the 70s had ended, and quadrupled by 1985!

Conversely, if you stuck £1000 into a bank account in the year 2000, it wouldn't even have doubled by now, 22 years later (again, modelling with base rates - obviously the smart people would hunt for better rates). 

How depressing. I think we should all just admire the silver stuff for its shininess :D 

 

 

Edited by paulmerton
typo
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8 minutes ago, modofantasma said:

Can have it to you kerbside by end of the day? How many tons?

🤔 I don't have many tons of Silver bud... so probably not going to get much Sand! - Everything is getting soooo expensive these days isn't it? 🙄 😏

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