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

[Scootermuppet]

3 minutes ago, modofantasma said:

What did you say? 🧐

Looks like you 'Fixed' it for me... 😅

[GoldDiggerDave]

27 minutes ago, paulmerton said:

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  

 

 

Upto 4 years ago I was getting 2% on my Isa fixed for 5 years. Today you can get around 3% I’m crossing my fingers for 10-15% rates, but would be happy to get round 5% I got only a decade ago. 
 

 

[theman73]

2 minutes ago, GoldDiggerDave said:

Upto 4 years ago I was getting 2% on my Isa fixed for 5 years. Today you can get around 3% I’m crossing my fingers for 10-15% rates, but would be happy to get round 5% I got only a decade ago. 
 

 

I must say again that you are right, but keeping money at banks for 2% that's amazing (for me).

This year they cut all card transactions in Rusia, in China they refuse any withdraws by saying that people's money are invested now.

I know we are not there, but simply fact that they can in 1 minute to leave you penniless is to much for me.

At least for me from this year all my savings are kept in silver.

Regards

Constantin 

[SlowFrog]

1 minute ago, theman73 said:

I must say again that you are right, but keeping money at banks for 2% that's amazing (for me).

This year they cut all card transactions in Rusia, in China they refuse any withdraws by saying that people's money are invested now.

I know we are not there, but simply fact that they can in 1 minute to leave you penniless is to much for me.

At least for me from this year all my savings are kept in silver.

Regards

Constantin 

Yep, I'm looking at it in a similar way right now. With the money printing that's gone on over the past few years, I think an epic crash/reset of the financial system is inevitable (next few years for me) and I don't want my wealth in any bank so I've bought metals as a store of value at this moment in time because I personally don't see anything better unless you can afford to buy land.

[theman73]

Just now, SlowFrog said:

Yep, I'm looking at it in a similar way right now. With the money printing that's gone on over the past few years, I think an epic crash/reset of the financial system is inevitable (next few years for me) and I don't want my wealth in any bank so I've bought metals as a store of value at this moment in time because I personally don't see anything better unless you can afford to buy land.

It's not about expecting a financial crash, I simply don't like the idea that someone else can decide on my money. 

Barclays counter ...Why you withdraw £2000? For what you need so much money? ... unbelievable 

[James32]

Just now, theman73 said:

It's not about expecting a financial crash, I simply don't like the idea that someone else can decide on my money. 

Barclays counter ...Why you withdraw £2000? For what you need so much money? ... unbelievable 

He was agreeing with you 😅

[James32]

I'm starting to think @GoldDiggerDave is trying to do a run on silver #hunt2.0

 

[GoldDiggerDave]

I’m am what most would describe as a prepper, and yes I have distrust in the government and the banks.

if you think a bit of silver or any PM will save you in a SHTF event then you are simply kidding yourself. Especially if you still have debt obligations. 
 

The banking system collapses, we see hyper inflation……at that point how can you liquidate your silver  stack and what for? £200 per oz in a scenario where the currency is depreciating  into nothing overnight the £200 might be worth 50p the morning when you wake up.  

in a SHTF event it’s very likely all digital means of money transfer will be stopped or rationed to very small daily amount. 

Some are almost wishing for a reset, I’m inclined to agree there will be one, but I can tell you you will not be allowed to buy a house for 2 grand.  The 99% will be cut out of the system and the 1% will mop everything up.  Some have a dream of holding a bit of PM and over night after the rest they will become rich………this is so moronically short sighted. 
 

folks the game was rigged before you were born and will continue to be rigged long after you are gone. 

Edited July 29, 2022 by GoldDiggerDave

[theman73]

8 minutes ago, GoldDiggerDave said:

at that point how can you liquidate your silver  stack and what for? £200 per oz in a scenario where the currency is depreciating  into nothing overnight the £200 might be worth 50p the morning when you wake up.  

I do not agree with this.

But hey, sun is out let's have a lovely day.

Regards 

[SlowFrog]

1 minute ago, GoldDiggerDave said:

I’m am what most would describe as a pepper, and yes I have distrust in the government and the banks.

if you think a bit of silver or any PM will save you in a SHTF event then you are simply kidding yourself. Especially if you still have debt obligations. 
 

The banking system collapses, we see hyper inflation……at that point how can you liquidate your silver  stack and what for? £200 per oz in a scenario where the currency is depreciating  into nothing overnight the £200 might be worth 50p the morning when you wake up.  

in a SHTF event it’s very likely all digital means of money transfer will be stopped or rationed to very small daily amount. 

Some are almost wishing for a reset, I’m inclined to agree there will be one, but I can tell you you will not be allowed to buy a house for 2 grand.  The 99% will be cut out of the system and the 1% will mop everything up.  Some have a dream of holding a bit of PM and over night after the rest they will become rich………this is so moronically short sighted. 
 

folks the game was rigged before you were born and will continue to be rigged long after you are gone. 

Agree about it having always been rigged. Also agree regarding debt obligations and thankfully, I have none. I don't necessarily think it'll be a SHTF event. It's often the case that these things are viewed in black and white but I reckon it'll be far more nuanced than that with some opportunities for those that have been diligent. It'll be as controlled as they can make it, and for those that aren't putting their eggs in one basket and have a store of metals, some cash, some land or other items of value then I reckon they'll be better positioned through any transition.

I do agree that should such an event happen that it'll be rigged in favour of those at the very top and they'll likely sweep in to buy up anything going. All guesswork but for me, it's a case of 'something really terrible is gonna happen' and what am I gonna do about it within my limited means. I'd rather do something.

[ArgentSmith]

2 hours ago, paulmerton said:

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). 

Ahem if I may. Interest rates on saving products are historically lower than BOE base rates. For the sake of argument let's shave 1% off the BOE rate and call the saving rate average 6.17%. returning £21695 over 50 years.

Most of the interest earned would have been taxed over that period particularly heavily during the 70s and early 80s but being a generous Chancellor lets assume 20% this would have effectively reduced the net savings rate to 4.93%. returning just £11,704 over 50 years.

In reality Silver has well out performed cash despite being at near all time lows in real terms. For me ATLs are a massive buy signal.

I rest my case.

Edited July 29, 2022 by ArgentSmith

[sixgun]

On 28/07/2022 at 10:39, GoldDiggerDave said:

Because silver is not a store of wealth, I’ve seen people saying “silver protects you from inflation” this  is spectacularly moronic as silver has not kept up with inflation over the last decade, the very thing some people says it’s supposed to protect you against. 
 

Even using the BOE inflation calculator it should have increase 1.7% per year over the last 10 years, and we all know this is well under real world inflation. 
 

the only positive at the moment, buying silver today is relatively cheaper than it was 10 years ago due to the pound being so devalued over the last 2 years.

i became a premium member on the Silver Forum on 3rd February 2016. This is my own reference point - i took out a premium membership solely to buy coins and bars on the forum.

What was happening a decade ago is of no interest to me.
The day before i joined, the spot price of silver was £9.88. https://www.bullionbypost.co.uk/silver-price/10-year-silver-price/

Today the spot price is £16.43.

According to https://www.hl.co.uk/tools/calculators/inflation-calculator the price of silver should be less than £13 if it kept up with 'inflation'.

Silver has more than kept up with inflation over this period. As with all these things it depends on the reference dates you choose. 

i have almost never paid 'VAT' on silver. My new silver was all bought in the EU from Estonia / Germany / Belgium. The rest was second hand. i have bided my time and pick up pieces when i liked them and the price appeared right. The other physical i hold is on the Kinesis exchange which i bought at less than a couple of percent above spot. 

i have never sold any silver and always knew it was for the long haul. A ten year+ investment. 

Everything is speculation except paper money; you don't need to speculate its purchasing power will diminish. 
Gold and silver coin are money - that is why we see £ on the coins. The paper notes are credit, they carry a promise to pay the bearer - except we know that promise is worthless.
Gold and silver are the real money - they are manipulated by the central banks and the exchange stabilisation entities. Physical silver is a very small market - there isn't enough to make all the coin these days. It is easy to manipulate with derivatives and that is just what has happened since it was withdrawn from circulating coinage. Really we will have to wait until the paper currency schemes break. We can see the BRICS is organising a physically backed currency in which silver ranks third after gold and oil/gas. When the present counterfeit system breaks it will be too late. You need to have your stack in place. i have had my stack for a few years now - that is why i joined in 2016. Now i wait. i do not worry about my stack and i have no regrets.

Edited July 29, 2022 by sixgun

[stefffana]

1 hour ago, theman73 said:

I must say again that you are right, but keeping money at banks for 2% that's amazing (for me).

This year they cut all card transactions in Rusia, in China they refuse any withdraws by saying that people's money are invested now.

I know we are not there, but simply fact that they can in 1 minute to leave you penniless is to much for me.

At least for me from this year all my savings are kept in silver.

Regards

Constantin 

I totally agree with you. Yes, it is UK, not Turkey, Russia, China, Zimbabwe or Argentina, so the economy is stronger and the regulations are more severe.

But happened the same situation in Greece few years ago, and Greece is EU country.

I do prefer silver any time.

 

[GoldDiggerDave]

@sixgun I’m not out to bang heads it’s great to see others people views and opinion even if we disagree. 
 

I just can’t see how silver is keeping up with inflation, my diesel is up 43% home energy bills 54% + 50% in October my loaf of bread has gone from 36p to 59p (63%)  

I’ve bought some more silver this week😂 
 

the only good thing at the moment if you have had any pay rise it’s cheaper now to buy silver in relative terms then a decade ago because it’s not kept up with real world inflation. 

 

[sixgun]

1 minute ago, GoldDiggerDave said:

@sixgun I’m not out to bang heads it’s great to see others people views and opinion even if we disagree. 
 

I just can’t see how silver is keeping up with inflation, my diesel is up 43% home energy bills 54% + 50% in October my loaf of bread has gone from 36p to 59p (63%)  

I’ve bought some more silver this week😂 
 

the only good thing at the moment if you have had any pay rise it’s cheaper now to buy silver in relative terms then a decade ago because it’s not kept up with real world inflation. 

There are members who do not see silver as anything but a loser. This has been the case since silver was taken into its bear market after 2011.
Their expectations haven't been met. My expectation was price would go up but it could take 10 years. 

i accept your fuel costs will have shot up. If you didn't, perhaps you should have got a few 1000 litre IBC bulk containers and filled them with derv. If you haven't, perhaps you should fill your cupboards with storage food - i have been suggesting this for years. 

Silver is going to catch up - as i have said time and again - it is not a matter of if, it is simply a matter of when. We are still in the accumulation phase - you are accumulating silver. It is on sale but some people are complaining. Perhaps later this year, perhaps next year, perhaps in 3 or 4 years time, they will be complaining it has gone and shot up and now they can't afford nearly as much. 

It is all about expectations.

[theman73]

3 hours ago, GoldDiggerDave said:

my diesel is up 43% home energy bills 54% + 50% in October

This is not inflation, this is our government robbing us blind.

In my opinion in Covid era the government test how much the population can take and is seem that we can take a lot, so no surprise the price on energy went through the roof, UK is not depended on Russia on energy but the government is dependent on robbing us and exactly this they are doing. What the people say? Nothing. They accept any lies from Torries.

[Bigmarc]

Just throwing it out there but most would consider prepping more of a waste of money than silver. 

(Not a prepper, do collect silver).

 

[ArgentSmith]

4 hours ago, GoldDiggerDave said:

 

I just can’t see how silver is keeping up with inflation, my diesel is up 43% home energy bills 54% + 50% in October my loaf of bread has gone from 36p to 59p (63%)  

I have identified a positive correlation between your shitposting and the spot price of silver. If you keep it up we might all be billionaires by the end of the year! 😆🍻

[TeaTime]

Why do we collect PMs ?

Quite frankly pretty much any other commodity would give better returns than gold and silver. The last 24 months have seen massive price rises in anything from butter to bricks whilst PMs stagger along like a drunk walking home from the pub.

I believe that underlying all other arguments is the conviction, for those who buy PMs, that gold and silver are real money and signify wealth. It is such a basic and historic belief that it has become ingrained in our collective DNA. It is used pretty much in all 'developed' countries to signify status - bronze, silver, gold anyone ?

O/P The reality is both gold and silver are metals like any other - when demand is low spot drops, when demand is high it rises. The demand (especially for silver) is based on industrial use over and above collecting. Maybe industrial demand is down at the moment... 

Dropping into the rabbit hole of paper silver, market manipulation, shooting to the moon, SHTF scenarios et al is just something that gives stackers and collectors something to talk about rather than - 'ooh it's shiny' 😁

 

[flyingveepixie]

18 hours ago, Bigmarc said:

Just throwing it out there but most would consider prepping more of a waste of money than silver. 

(Not a prepper, do collect silver).

 

So, you gonna eat your silver when the food riots start then..?  (I have silver too btw..😂)  Does it grind up into nice flour to put in the bread machine or make coffee with..?

In prepper land there is a saying which goes along the lines of  "better to have it and never need it than to need it and not have it"

[theman73]

1 hour ago, flyingveepixie said:

So, you gonna eat your silver when the food riots start then..?

No, but you will exchange it for food because nobody will accept worthless cash? (history?)

[Bigmarc]

1 hour ago, flyingveepixie said:

So, you gonna eat your silver when the food riots start then..?  (I have silver too btw..😂)  Does it grind up into nice flour to put in the bread machine or make coffee with..?

In prepper land there is a saying which goes along the lines of  "better to have it and never need it than to need it and not have it"

Nothing against preppers bud, I have mates that are and had a little go myself (not for me, too busy to whittle a spoon). Just saying that the chances of food riots put against the chances of making a few quid on silver differ. I am not ruling out food riots but can almost guarantee I will sell my silver at more of a profit than keeping my money in the bank. 

[flyingveepixie]

26 minutes ago, Bigmarc said:

Nothing against preppers bud, I have mates that are and had a little go myself (not for me, too busy to whittle a spoon). Just saying that the chances of food riots put against the chances of making a few quid on silver differ. I am not ruling out food riots but can almost guarantee I will sell my silver at more of a profit than keeping my money in the bank. 

Yeah I know I was just having a laugh with you..  I have a silver stack meself as well as a few other little stacks of potentially useful stuff, but I'm just not all that convinced if it (the silver) will do me any good if/when the time comes that everything around me starts to fall apart, but I'll hang onto it anyway on the off chance..🤔

[flyingveepixie]

32 minutes ago, theman73 said:

No, but you will exchange it for food because nobody will accept worthless cash? (history?)

Maybe,  but it seems to me a bottle of vodka or a packet of fags or a box of co-codamol would be more exchangeable than a silver Brit if it gets that bad...

Edited July 30, 2022 by flyingveepixie

[theman73]

1 minute ago, flyingveepixie said:

Maybe,  but it seems to me a bottle of vodka or a packet of fags would be more exchangeable than a silver Brit if it gets that bad...

Not for me, I do not drink or smoke