Welcome all. Just starting this blog. There's been a lot of interest in Silver since the 2008 economic crash, but most people think buying silver is complicated. It's not complicated at all. I wanted to start a blog that does mention the current cost of silver and it's projected value, but also why you can or should buy silver.
There are 3 main reasons people buy silver.
1. Long Term Investment: It's even becoming popular to have silver and gold as part of your IRA and retirement plan. Let me start this subject off by saying: "If you can't HOLD the silver in your hand when you buy it, then it doesn't exist". Basically, if I don't possess it, I don't trust those I'm buying it from to hold it for me. Not saying you can't or shouldn't have silver or gold in your retirement IRA or similar paper fund, but I wouldn't do it. Silver and Gold are a hedge against a weak dollar and when the stock market doesn't feel safe. Having silver in an IRA which is traded on the exchange just seems counter to the purpose of buying silver. Why would you put your silver in the venue that you're trying to protect your money from?
2. Survivalist & Protection against a failed currency: This is a very popular reason some people buy silver. Many think that currencies like the dollar are heading for a total crash. Similar to what the German Deutschmark did during WWII. Basically, it wasn't worth anything. Many who think the Dollar, Euro, Yen, etc... are heading for this catastrophe, believe that silver and gold have been "money" for thousands of years and can and will again if traditional currencies go under. I partially believe in this theory. I do believe that the so called "Fiat Currencies" are headed for a bad fall. I also believe however that because of our global and even national method of purchase and trade, that another form of currency will have to take the place of the dollar or whatever might crash. But I do believe that there may be an interim period after a currency crash where silver and gold will come in very handy. So for that reason, I do hold a small amount of silver for that purpose. Usually in very small denominations like what can be found in pre-1965 U.S. quarters, dimes, halves, and dollars. $30.00 in face value of silver pre-1965 coins is worth about $1,000 in today's dollars. We'll talk more about that in my next post.
3. Pay Off Debt and Buy Items at a discount: This is the main reason I buy silver. Like I said, I keep some for the purpose I stated in #2 above, but that's not my main reason for buying silver. I use silver as a means to pay off debt and to purchase items at a discount; let me explain. The first thing you must realize is that Silver and Gold DON'T GO UP AND DOWN in value. Nope, they don't. The DOLLAR is what goes up and down in value. For instance; a 1933 $5 Gold coin; weighs about 1/4 ounce, could buy you a really nice men's suit back then. Today; 1/4 ounce of gold is worth about $400-$450 and again, can buy you a really nice men's suit. So as you see, silver and gold maintain their value. It's the value of the dollar and what it can buy that changes. And I use that to my advantage. But this only works if "Time is on YOUR SIDE". Meaning; you can't buy silver today, hoping the price will go up because you need to pay off a loan or must buy something in a short period of time. The value of silver will definitely hedge against inflation; but if you're trying to purchase silver and gold like you do stocks, bonds, etc... in the hope of making a big profit; then you need to be able to wait weeks, months, and possibly years. I bought a new car for my wife a couple years ago. When I traded my silver back for dollars, I had more than twice as many dollars as I spent to buy the silver. Which means I bought the car for about half price. But I did all this when the time was right. Not based on a preset timeline that I had to buy the item.
Anyway; that's enough for today. I wanted to start off mentioning the main 3 reasons people buy silver. I plan on updating this blog regularly. I'm new to blogs, so in time, I'll figure out how to link to some very useful sites. But I'll try to keep this blog as a place where I can explain how to buy; where to buy; when to buy; financial strategies; and get people to buy silver to help them with their future. CYA: SE
There are 3 main reasons people buy silver.
1. Long Term Investment: It's even becoming popular to have silver and gold as part of your IRA and retirement plan. Let me start this subject off by saying: "If you can't HOLD the silver in your hand when you buy it, then it doesn't exist". Basically, if I don't possess it, I don't trust those I'm buying it from to hold it for me. Not saying you can't or shouldn't have silver or gold in your retirement IRA or similar paper fund, but I wouldn't do it. Silver and Gold are a hedge against a weak dollar and when the stock market doesn't feel safe. Having silver in an IRA which is traded on the exchange just seems counter to the purpose of buying silver. Why would you put your silver in the venue that you're trying to protect your money from?
2. Survivalist & Protection against a failed currency: This is a very popular reason some people buy silver. Many think that currencies like the dollar are heading for a total crash. Similar to what the German Deutschmark did during WWII. Basically, it wasn't worth anything. Many who think the Dollar, Euro, Yen, etc... are heading for this catastrophe, believe that silver and gold have been "money" for thousands of years and can and will again if traditional currencies go under. I partially believe in this theory. I do believe that the so called "Fiat Currencies" are headed for a bad fall. I also believe however that because of our global and even national method of purchase and trade, that another form of currency will have to take the place of the dollar or whatever might crash. But I do believe that there may be an interim period after a currency crash where silver and gold will come in very handy. So for that reason, I do hold a small amount of silver for that purpose. Usually in very small denominations like what can be found in pre-1965 U.S. quarters, dimes, halves, and dollars. $30.00 in face value of silver pre-1965 coins is worth about $1,000 in today's dollars. We'll talk more about that in my next post.
3. Pay Off Debt and Buy Items at a discount: This is the main reason I buy silver. Like I said, I keep some for the purpose I stated in #2 above, but that's not my main reason for buying silver. I use silver as a means to pay off debt and to purchase items at a discount; let me explain. The first thing you must realize is that Silver and Gold DON'T GO UP AND DOWN in value. Nope, they don't. The DOLLAR is what goes up and down in value. For instance; a 1933 $5 Gold coin; weighs about 1/4 ounce, could buy you a really nice men's suit back then. Today; 1/4 ounce of gold is worth about $400-$450 and again, can buy you a really nice men's suit. So as you see, silver and gold maintain their value. It's the value of the dollar and what it can buy that changes. And I use that to my advantage. But this only works if "Time is on YOUR SIDE". Meaning; you can't buy silver today, hoping the price will go up because you need to pay off a loan or must buy something in a short period of time. The value of silver will definitely hedge against inflation; but if you're trying to purchase silver and gold like you do stocks, bonds, etc... in the hope of making a big profit; then you need to be able to wait weeks, months, and possibly years. I bought a new car for my wife a couple years ago. When I traded my silver back for dollars, I had more than twice as many dollars as I spent to buy the silver. Which means I bought the car for about half price. But I did all this when the time was right. Not based on a preset timeline that I had to buy the item.
Anyway; that's enough for today. I wanted to start off mentioning the main 3 reasons people buy silver. I plan on updating this blog regularly. I'm new to blogs, so in time, I'll figure out how to link to some very useful sites. But I'll try to keep this blog as a place where I can explain how to buy; where to buy; when to buy; financial strategies; and get people to buy silver to help them with their future. CYA: SE
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