Silver and what I have learned from the past.
This may not be the most popular opinion but it's how I see things playing out. First off I want to say I'm 100% on board with holding physical gold and silver. Secondly I'd like to add that I am, and have been, buying silver from $5 to $50 and everywhere in between. Before everyone crucifies me, let me state my case.
Dot Com Bubble
Looking back to the dot com bubble you can see Silver in the $5 range from 99-00. Then as the bubble began to burst, silver took a hit back to the $4 dollar range until nearly 2004.
Silver
DOW
Silver was not a very good store of value during this period of time, though it didn't fall as much as the rest of the market, other assets performed better.
You can see if you would have bought at the bottom of the crash (mid 2003) for $4, by mid 2004 you would have doubled your money. Now let's take a look at what happened to silver during the last crash.
2008 Market Crash
This was much the same as the other market correction. Silver peaked, DOW peaked and then both crashed. Again if you would have bought silver at market low on the DOW in 08, you would have again nearly doubled your money in a year.
Silver
DOW
The Point I'm trying to make is this!
The market is again putting in record highs. A recession is long overdue and should have happened under the golden boy Obama. I'm not saying don't buy Silver by any means, just saying you may be able to pick up more at a discount. If you believe the market is due for a correction, believe silver will be right there along with it.
That being said, if you do wait until there is blood in the streets and the market tanks, know that the Silver you bought will more than likely repeat the same pattern and double within a year.
None of this is investment advice, just what I see that has happened in recent history. Here is a chart from Kitco that I added some boxes to. I think we are in the same pattern you see from 2005-2007. You can see it started low, nice little price spike, sideways to down for a while, then comes a nice spike.
I'm guessing we are to the point where we see a spike in silver prices, everyone rushes to it (FOMO) like in 2008-2009 and then they pull out the rug and both silver and DOW crash. For you new guys this can be discouraging but stick with it. Take a look at those gains from the beginning of 2009 up to mid-2011!
As I said above, this is not investing advice, I'm no chart reader or analyst. This just seems like the most plausible scenario that has played out the last few down turns. I hope you found this thought provoking and thanks for not ripping my head off. :)
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That’s what I’ve been waiting for but somehow they keep it going...
I don't get it either, but one day it will break and we will all be smiling.
Easy to do when they control our perception of how much it's really worth.
And @vgholdingllc, I think it'll break on the charts when they're ready, but it'll break in real life when we stop watching the charts.
And that'll be a hard time.
It goes back to why are you buying silver??? I don't buy it to sell it when it doubles. Sure I will sell some of it, but I am drawn towards the anonymous wealth storage it provides...
I do buy some to flip, or trade when the G/S recovers. If it goes down, I will need to start buying bigger bars.
That is the beauty of it. No capital gains tax, no death tax, no tax. I would love to see it back at the $11-12 range for some extra cheap stacking. Only problem with it going that low is availability and a spike in premiums. Either way I'll be stacking more!
The Present bears Witness of the Past, and the Future shall make all things Clear... Look for 15 Cent Silver and 15 Dollar Gold... I know that sounds like a bargain, but I'm basing it on today's dollar prices, converted into tomorrow's, after reset, into the U.S. Crypto-Dollars and Cents, prices... What I'm trying to tell you is that if you're holding Physical U.S. Coinage after the Reset, you're going to be very pleased with the Prices of Gold and Silver...
I would love to see your PC theory come true as I would be an overnight Zillionaire. I've have growlers filled with spare change and have been collecting it for years. All we can do is wait and see what happens.
Thanks for keeping an Open Mind... I realize, all I have is a Theory, but it sure gives me something to think about... I consider it "another option"... Who can really see into the Future...??? I have the Precious Metals and I also have U.S. Coinage... What's wrong with that...???
Hey, you could be right! History does have a way of repeating itself. I don't think I'll be upset if the price drops more. It just means more I can buy more for less! :D
The problem last crash was everything dried up and you couldn't find any. And what you did find, the premium was so high it was almost cheaper to buy when the price was higher. It was much like the crypto craze last year. People were paying crazy prices for just about anything silver they could find.....including me. I've learned this time around.
You took the words out of my mouth. People think they will just wait for the bottom and walk to their LCS and buy what they want, people thinking they can use a Credit Card, HaHa. When including the higher premium, the price will be well north of $18 PER OUNCE. Maybe this time is different, stocks have been falling, and PMs can't be broken below the trading range it is in now.
Good to know, @rollingthunder. If I have fiat that I'm looking to offload, I won't try waiting until the last second.
I look at it more as trading one form of money toward another, but when the time comes, people will lose trust in fiat and turn to real money. Cyrpto had their chance last year as a store of wealth, but lessons learned, they always turn to Gold & Silver.
Interesting. That makes sense though. When the prices get really low, it creates more demand by nature of the low price. Although the LCS has had stock of something every time I've gone it, it hasn't always been what I wanted. There have been a few times over the last year that I've gone in expecting to get a few coins and walking out with one or none. That's just because I'm picky though. Live and (hopefully) learn!
Please put a HOLD on the price spike, I'm not done Stacking PMs yet.
Hi, @vgholdingsllc!
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