So, what should we think of silver?
As I stated in the very beginning of this blog; Silver is something you buy when time is on your side. And right now, time is good. With silver below $30, this is the perfect time to be buying. Whether it's because you believe in an economic collapse coming; investing for retirement; or like me, buying to reduce debt and purchase goods at a discount. This is indeed a good time to buy.
The problem with most people when they see silver and gold as an investment, is that they compare it to things like the stock market. They see the price going down, and they think it's like a stock. That possibly the stock could become worthless. But silver and gold have nothing in common with stocks or the stock market. Silver and gold are inversely proportionate with the dollar and other currencies. Also though, just like any economy, there is inflation and an increase in the cost of living. This is where silver and gold truly shine. They keep up with inflation. Basically; what you could buy with an ounce of gold or silver a hundred years ago, you can still buy today. The key obviously isn't to buy gold/silver and sit on it forever. Unless of course you are buying it mainly for your belief in a national or international economic/currency collapse. However; if you did just sit on your silver and gold, it would still be worth the same thing 20 years from now. Assuming the dollar and other currencies are still in tack. Meaning, what you can buy with an ounce today, you'll be able to buy with an ounce in 20 years. Unlike a stock, whereby the company could go under and the stock could be worth $0.00. Silver and gold can not do that.
But; because of more and more technological uses, silver will do better than just keeping pace with inflation. It will be ahead of it. Honestly; IF there was a way that I could liquidate my 401k and IRA's without paying taxes and penalties, I would move at LEAST 50% of all my wealth into gold and silver. When the stock market drops 25-50%, silver and gold won't drop like that. If anything, it will go up. When you have $10,000 worth of silver today, and inflation goes up and in a couple of years it will take $12,000 to buy what today costs $10,000; that silver will be worth the $12,000.
Ultimately though, you have to sell the silver in order for it to be useful to you. The local Safeway supermarket isn't going to take 3 ounces of silver for $100 worth of groceries. Neither will the back take silver for your mortgage payment; or the utility companies to pay your electric bill; etc... So, except for the person who is buying silver/gold because they believe in economic collapse, eventually you will need to sell your silver/gold in order to realize a gain. And that's where time on your side matters. When the dollar is at it's lowest; the stock market is fluctuating; silver/gold will be at their highest. Be ready to sell to buy products at a discount or to eliminate debt. Either way, silver and gold are a no lose bet. Too bad I can't invest most of my money in it. Til later. CYA: SE
As I stated in the very beginning of this blog; Silver is something you buy when time is on your side. And right now, time is good. With silver below $30, this is the perfect time to be buying. Whether it's because you believe in an economic collapse coming; investing for retirement; or like me, buying to reduce debt and purchase goods at a discount. This is indeed a good time to buy.
The problem with most people when they see silver and gold as an investment, is that they compare it to things like the stock market. They see the price going down, and they think it's like a stock. That possibly the stock could become worthless. But silver and gold have nothing in common with stocks or the stock market. Silver and gold are inversely proportionate with the dollar and other currencies. Also though, just like any economy, there is inflation and an increase in the cost of living. This is where silver and gold truly shine. They keep up with inflation. Basically; what you could buy with an ounce of gold or silver a hundred years ago, you can still buy today. The key obviously isn't to buy gold/silver and sit on it forever. Unless of course you are buying it mainly for your belief in a national or international economic/currency collapse. However; if you did just sit on your silver and gold, it would still be worth the same thing 20 years from now. Assuming the dollar and other currencies are still in tack. Meaning, what you can buy with an ounce today, you'll be able to buy with an ounce in 20 years. Unlike a stock, whereby the company could go under and the stock could be worth $0.00. Silver and gold can not do that.
But; because of more and more technological uses, silver will do better than just keeping pace with inflation. It will be ahead of it. Honestly; IF there was a way that I could liquidate my 401k and IRA's without paying taxes and penalties, I would move at LEAST 50% of all my wealth into gold and silver. When the stock market drops 25-50%, silver and gold won't drop like that. If anything, it will go up. When you have $10,000 worth of silver today, and inflation goes up and in a couple of years it will take $12,000 to buy what today costs $10,000; that silver will be worth the $12,000.
Ultimately though, you have to sell the silver in order for it to be useful to you. The local Safeway supermarket isn't going to take 3 ounces of silver for $100 worth of groceries. Neither will the back take silver for your mortgage payment; or the utility companies to pay your electric bill; etc... So, except for the person who is buying silver/gold because they believe in economic collapse, eventually you will need to sell your silver/gold in order to realize a gain. And that's where time on your side matters. When the dollar is at it's lowest; the stock market is fluctuating; silver/gold will be at their highest. Be ready to sell to buy products at a discount or to eliminate debt. Either way, silver and gold are a no lose bet. Too bad I can't invest most of my money in it. Til later. CYA: SE
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