A Quick Risk/Reward Analysis of Buying Silver Bullion
I touched on this in another post but I feel it merits its own thread.
Below is a 10 year chart of silver prices.
From this chart we can make several educated guesses as to where the price will go. Spot prices fluctuate from a low of about $10 in 2008 to a high of about $47 in 2011.
Downside
We can infer from this that we have support at the $10 dollar price range. Meaning that it is extremely unlikely that silver will fall below that $10 point. Historically we see this reflected in the chart. That means we are at a current price point only roughly $6 dollars away from the 10 year low!
Upside
$47 dollars! We know silver can go at least that high because we see that in the chart. So we have resistance at that rough $45 dollar mark.
Conclusion
Our chart tells us if silver follows its historical price pattern that a $16/ounce investment has the potential to loose us $6 dollars. If it crashes. But we stand to gain a $20 uptick if it spikes. $20 > $6 Following just the chart.
Now lets talk about our fiat currency for a minute. Most of you here on Steemit probably have a healthy distrust of fiat currency already. Or else you wouldn't be trading in cryptocurrency to begin with. I think most people have an intuition that our current system is broken.
I'm not telling you to put all your money into precious metals. But a betting man likes those odds of our dollar failing and precious metals going up. How much? Well that is a question for someone smarter than I.
Will silver shoot to the moon? Probably eventually inevitably. Just have some on hand so you can ride along too.
Peace, HM
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I like silver but I am only buying coins that I like as coins, I am not stacking weight. The silver and gold markets are controlled by the central banks.
You cant discount the numismatics of it. Thats what keeps it interesting. For me at least. I love Morgans and Walking Liberties! But keep stacking. The banks wont control it forever. Their greed will pop the fiat bubble and then the man who holds silver will be prepared. #followupvote
I have faith that silver will spike at some point, however, relying on that alone feels too much like gambling. I am storing wealth in silver, and if it happens to blow then its a bonus!
As a store of wealth or even a hedge against inflation it's great.