Ahh so the inevitable happened, and silver failed to trade above its new high.If I am not mistaken Simon posted a article a few months ago with the author saying silver is still a buy.I wonder if he feels it still is?Well $26 reached.Shame bwahahhha
Gold and silver are sill buys. Short term I think this little "correction" is going to give a fantastic buy opportunity just like when it dipped under 9 in 2008. From a longer perspective the fundamental reasons for owning gold and silver havnt changed. I personally didnt see silver getting thumped THAT hard but hey means I can buy more oz's. Simon you must be devistated about the value of that 1oz :)
Paul fundamentally silver is a buy?you must be joking things have changed, silver didn't have a little correction it was a crash!If you have money to burn and like playing with knives hey who am I to call you bluff all i can say is good luck
devastated not even close to how I feel .. completely gutted and betrayed .. emotionally ruined, here was the one chance for a precious metal to reward me, and it bailed .. gonna toss it into the Jukskei and never touch a silver again ..
silver is a tiny market. Round about 1 billion oz are available. And of course not all for sale. But lets assume they are thats 30billion USD. Its a tiny market and as such is likley to be volitile. Silver like gold (to a lesser degree) has historically been a monetary metal. Currently people dont see it they way they see it like gold. Its still industrial to most people. But silver, like gold is a monetary metal. Its is a story of value like gold. This I know is not a commonly held view (yet) I say its a buy becuase like gold there is no counterparty with the physical metal. As more people realise this more people will be drawn into the tiny silver market (look how fast it went up to 50, totally unsustainable but thats what happens when money flows into a small market) Its been sold off from 50 to 32, to 42 to 28. Could it go lower, sure just look at 2008 for how big silver can move. But going forward its got industrial uses as well as investment demand. I think its got better upside potential than gold. Can it go lower? Of course. I saw 35 as the downside target and 1600 for gold. Was way off there. However lets talk in 3-6 months and once the panic has susbided and the margin calls dealt with the uptrend will resume. Simon, USD 8? I say unlikely but I said that about gold under 1600. If you want the universe to laugh tell it your plans and all that. The key here is the lack of counterparty risk with holding gold/silver. When banks start failing and govs start to default what would you rather hold. Thats my reasoning.
How can you say you don't have counter party risk with Gold? Maybe Kruger rands sure, but most gold and silver contracts are ETN's, massive counter party risk, since these are unsecured, uprotected debt securities that are traded on the exchange, but who's fortunes are pegged to the creditworthiness of the institution launching them, according to my understanding?
Physical. I buy silver bars and mainly krugerrands. ETNs I totally agree with you unsecured and not in your posession. I use them as trading vehicles. By Panic I mean panic selling. Then people will move back in on the long side. Govs cant pay at the end of the day. The financial crisis is morphing into a soverign debt crisis. Thats the counterparty risk I was refering to. Why do asians buy so much physical metal? They dont trust their banks / gov. The west still does tho I think a lot of people are questioning the system these days. Its of course personal pref but Ive been accumulating physical since 2005 and Im sure I will for years to come. Its a long term view not a trade. I view this like the post lehman episode. A big buying opportinuty
SORRY about the fellow on the $50.00 - you have to know when to fold. If you want to make a PROPER investment in silver then go to the straussart auction- not too late for a phone bid - some good examples there - and this silver is not subject to market bubbles - just changes in taste - and it always comes round. Oh and you get to enjoy it....Another Oh - no CGT...
No CGT because you put tea in it, or wine, or flowers or whatever and all your friends admire it : it is a "personal-use asset" - ie "used mainly for purposes other than the carrying on of a trade....."( note gold or platinum coins cannot be "personal-use assets") But this is starting to border on financial advice - a no go area.