Gold and Silver

[Adam2023]

Hi all im Adam from Leicester 

New to stacking although very small at the minute. 9 x 1oz silver brtitanias. 

I had some key questions 

Does silver beat inflation?

Is it correct that silver is largely undervalued at the minute?

If buying silver as of 02-04-2023 how long is an average hold before it makes a profit, so I guess in the next 5 years what would guess the silver price to be per oz?

Is gold a better investment i know you need to buy like 1oz at the minute and buy the right to not get hit by premiums and make it difficult to invest in monthly in.

There is so much information out there it like a needle in a large silver stack.

[Zeuk]

22 minutes ago, Adam2023 said:

Hi all im Adam from Leicester 

New to stacking although very small at the minute. 9 x 1oz silver brtitanias. 

I had some key questions 

1. - Does silver beat inflation?

2. - Is it correct that silver is largely undervalued at the minute?

3. - If buying silver as of 02-04-2023 how long is an average hold before it makes a profit, so I guess in the next 5 years what would guess the silver price to be per oz?

4. - Is gold a better investment i know you need to buy like 1oz at the minute and buy the right to not get hit by premiums and make it difficult to invest in monthly in.

There is so much information out there it like a needle in a large silver stack.

 

1. If you check out a historic silver price chart and compare it to inflation measures i'd say it was a mitigant against inflation.  Volatile but depending on the time frame it hasnt eroded in value in the same way as currency.

2. Hope so

3. It may or may not make a profit, research historic price action as an indicator of how it behaves.  Long-term buy and hold i think you would and if you buy right you can do ok intra year.

4. Different behaviors, read up on the gold/silver price ratio.  It seems a lot of people (myself included) start small with silver and then work their way across into gold.  You dont need to buy an Oz of gold, 1g or 1/10th fractionals sell well. Sovs and 1/2 sovs are a nice size.

 

 

[ZRPMs]

Hi there, TBH, most of the info you come across will be hype. It's the view of several prominent people that silver is undervalued. A lot of them in the US. Sadly, a lot but not all, At best, especially on YouTube, could be regarded as influencers. Here in the UK we have VAT to contend with also. That's an extra cost of 20%. Now whilst the secondary market might not pass on the full 20% and it can be a bit cheaper, it still has some extra cost to the premium. So straight out of the gate in the UK, most of what is bought is over priced when compared to spot price. Couple that with how manipulated the spot price is and for what its worth. My humble opinion is that, in the UK silver is not really something to go in to lightly as an investment. For fun or the enjoyment of having shiny coins, rounds and bars, great. I have silver but to be honest never saw it as an investment. It has intrinsic value but varies wildly between that and the market value of the coin / round. If you had bought back in May 2011, You would still be at a massive loss 12 years on. Plus premium and VAT, Please look below. No where close to keeping up with inflation.

 

As always do your own research and take nobodies word for it. Gold is a better bet. Again, in my humble opinion.

Edited April 2, 2023 by ZRPMs

[Zeuk]

6 minutes ago, ZRPMs said:

Hi there, TBH, most of the info you come across will be hype. It's the view of several prominent people that silver is undervalued. A lot of them in the US. Sadly, a lot but not all, At best, especially on YouTube, could be regarded as influencers. Here in the UK we have VAT to contend with also. That's an extra cost of 20%. Now whilst the secondary market might not pass on the full 20% and it can be a bit cheaper, it still has some extra cost to the premium. So straight out of the gate in the UK, most of what is bought is over priced when compared to spot price. Couple that with how manipulated the spot price is and for what its worth. My humble opinion is that, in the UK silver is not really something to go in to lightly as an investment. For fun or the enjoyment of having shiny coins, rounds and bars, great. I have silver but to be honest never saw it as an investment. It has intrinsic value but varies wildly between that and the market value of the coin / round. If you had bought back in May 2011, You would still be at a massive loss 12 years on. Plus premium and VAT, Please look below. No where close to keeping up with inflation.

 

As always do your own research and take nobodies word for it. Gold is a better bet. Again, in my humble opinion.

Agree with everything said here, especially the research - there's a general all-time trend but across any window of time it swings far wider than gold

[Adam2023]

Thank for all your feedback 

I would love to see an indicator on this platform for what gold and silver is considered the right time and price to buy.  

[JamesH]

45 minutes ago, Adam2023 said:

Thank for all your feedback 

I would love to see an indicator on this platform for what gold and silver is considered the right time and price to buy.  

I think there’s quite a spread based on individual appetite. Many that are more skilled at this than I, suggest cost averaging (purchasing smaller amounts consistently over longer periods of time) as the best way forward as it’ll smooth out the highs and lows

[HonestMoneyGoldSilver]

There is lots of good info on this page and in this thread:

Silver Monitoring Thread £ (GBP) only. - Page 205 - Silver - The Silver Forum

You should understand what you are risking before you spend a lot of money. IMHO the floor for silver spot price is in the $18-20/oz range (£15.50-£17) and most likely closer to $20 (£17), if a new floor hasn't already been set at $22.50 (sterling prices are in spot not GBP/USD FX pair, which is slightly different but still important). You can read my explanation for this and future prices in the above link. Use charts to visualise the floor and peaks from the last 3 years and beyond in USD/GBP. Read technical analyses about supports and probabilities of price movements. You can make up your own mind about these and your personal appetite for risk.

I agree with what others have said in this thread and in the link given above. Most people are predicting volatility with the potential for a dip from the current price (£19.58) back towards £17 or even lower. That's certainly possible and I would love it as it would be a green light for me to buy more. I'm also happy if the price never dips to that price again, which is also a possibility depending on what the Fed, BoE, ECB, US States, BRICS and market sentiment do.

When the Fed, BoE and ECB pivot towards cutting rates, the price of PMs will explode and may never go below the floors they set during this period. The technical analysts may help you make up your mind but they may also get things badly wrong. People tend to go bullish or bearish on the flick of a switch these days. If PMs go up 2% the headlines are, "PM's are EXPLODING due to x,y,z". Same is true for cryptos like if they have a good week they start rolling out the, "BTC to $1,000,000", propaganda. When things go in the opposite direction it's the end of the world. 

Nobody has a crystal ball. Buying now is a risk and not buying now is also a risk. I have already stacked gold and silver so I can wait for a dip or buy more now or later and DCA (dollar cost average). If I didn't already have precious metals then yes, I would probably buy regardless of the price although I would still wait for a day/week to buy the dip rather than the peak. Note there is also a dip and peak for PREMIUMS as well as spot price. I am not buying to speculate but I still try to use discernment about prices. I intend to hold the core of my stack forever. Like I said though, it's a risk to wait and it's a risk to not wait. Choose your poison. 

[Bigmarc]

2 hours ago, Adam2023 said:

Hi all im Adam from Leicester 

New to stacking although very small at the minute. 9 x 1oz silver brtitanias. 

I had some key questions 

Does silver beat inflation?

Is it correct that silver is largely undervalued at the minute?

If buying silver as of 02-04-2023 how long is an average hold before it makes a profit, so I guess in the next 5 years what would guess the silver price to be per oz?

Is gold a better investment i know you need to buy like 1oz at the minute and buy the right to not get hit by premiums and make it difficult to invest in monthly in.

There is so much information out there it like a needle in a large silver stack.

Does silver beat inflation?

No mate but neither does gold (currently) but it does better than fiat. Silver s great for volatility if playing the gold to silver ratio. 

 

Is it correct that silver is largely undervalued at the minute?

Compared to gold then yes but in fiat terms it's hard to say. There are so many different ways of looking at it an one answer doesn't fit all. 

 

If buying silver as of 02-04-2023 how long is an average hold before it makes a profit, so I guess in the next 5 years what would guess the silver price to be per oz? 

Nobody knows, especially YouTubers. If you want to beat inflation then should be easy to work out when you need to sell your silver. Might be within the next 5 years. 

As a general rule I personally stack 15 Oz of silver per sovereign. 

 

[pricha]

Over time you'll need much more space for silver than gold. Storage conditions also need to given thought . Silver is susceptible to milk spots and tarnish which could possibly devalue your coins. Gold can just about be left anywhere. The VAT has already mentioned. I think silver is troublesome and can't see huge profits over time. 

Edited April 2, 2023 by pricha

[flyingveepixie]

6 hours ago, Adam2023 said:

Does silver beat inflation?

No   @GoldDiggerDave  😂

 

6 hours ago, Adam2023 said:

Is it correct that silver is largely undervalued at the minute?

Yes. Here is a link to an out of date article which states the paper to physical silver ratio is 256:1  That was in 2021. I believe it is now around 346:1  This is the primary reason for the price of silver remaining so low. 

https://www.bullionstar.com/blogs/bullionstar/infographic-paper-silver-vs-physical-silver/

 

6 hours ago, Adam2023 said:

Is gold a better investment

Yes

Edited April 2, 2023 by flyingveepixie

[Adam2023]

Thanks for the information in the uk i have been looking a 1oz britania its priced at £1650 including delivery not really sure if that is a fair price for it but is one of the cheapest i have seen from a reputable bullion company 

[GoldDiggerDave]

6 hours ago, Adam2023 said:

Hi all im Adam from Leicester 

New to stacking although very small at the minute. 9 x 1oz silver brtitanias. 

I had some key questions 

Does silver beat inflation?

Is it correct that silver is largely undervalued at the minute?

If buying silver as of 02-04-2023 how long is an average hold before it makes a profit, so I guess in the next 5 years what would guess the silver price to be per oz?

Is gold a better investment i know you need to buy like 1oz at the minute and buy the right to not get hit by premiums and make it difficult to invest in monthly in.

There is so much information out there it like a needle in a large silver stack.

Does silver beat inflation?..............My beans have gone up over 71% this year, rice 40%   Silver dose not keep up with inflation FACT! 

Silver is not an investment.  

Can you describe to me the difference between an investment and a liability?  

[Bigmarc]

14 minutes ago, GoldDiggerDave said:

Does silver beat inflation?..............My beans have gone up over 71% this year, rice 40%   Silver dose not keep up with inflation FACT! 

Silver is not an investment.  

Can you describe to me the difference between an investment and a liability?  

Rice and beans! Where do yo live? Cuba? 

London prices, rice has gone up 15%. Don't know about beans, never bought any but am thinking of buying a load and driving up north to make a few quid. 

@Adam2023 this member takes every opportunity to slate silver any chance he gets. You are new here so take your time and have a look around. There is loads of great information and most of the community is very welcoming.

[Adam2023]

thanks for the update