Thinking about buying Silver

[97guns]

I took the route of buying a few mining companies instead of the actual metal.

I bought FCX at $35 and TC at $6.40. Both have low PE and run at a profit and are near 52 week lows. FCX even pays a dividend but TC is opening a new gold mine in the Klondike. TC makes most of its money in molybdium (probably spelled that wrong, but you don't have to be a spelling whiz to invest )

It is kind of fun owning a gold mine, heh heh.

alot of "experts" say the jr mining stocks will outperform physical metal, still not for me though. i am anti paper asset and pro tangible investments. my entire portfolio consists of physical real estate and physical metal, thats it. every month i put excess rents into metal. call me crazy but since 2009 my portfolio has nearly doubled from 280K to 420K through this system

[Kooshiball]

All the market forces and manipulations are definitely dominating in short term price of gold and silver. But, the reasons for holding gold and silver in the long term are pretty much intact including:

1. US national debt is over $15 trillion and if includes liability of other off-balance sheet, it will exceed $100 trillion and there is no way to pay them back except printing money or defaulting on their debt (Inflation).

2. European sovereign debt situation is getting worse and worse. Since US banking systems are hooked with sovereign debts from PIGGS nations, once those nations started to exit Euro, CDS will started to explode and will cause catastrophic damage to the US banking system. Fed's option is to bail those banks once this happens (Inflation).

3. Both gold and silver is extremely undervalued (Check the gold and silver ratio and Dow and gold ratio if you are interested in understanding how undervalue these commodities are compared to histrical average).

This year will be inflation year folks since there will be a war in Iran that will cause the price of oil and other commodities to skyrocket and Fed will initiate another dose of QE program (Called Notional GDP targeting). Let's see how high gold and silver goes...

[greenskeeper]

I took the route of buying a few mining companies instead of the actual metal.

I bought FCX at $35 and TC at $6.40. Both have low PE and run at a profit and are near 52 week lows. FCX even pays a dividend but TC is opening a new gold mine in the Klondike. TC makes most of its money in molybdium (probably spelled that wrong, but you don't have to be a spelling whiz to invest )

It is kind of fun owning a gold mine, heh heh.

you own a piece of paper, actually not even paper, a couple digits in a computer system that says you own shares in the company.

[greenskeeper]

All the market forces and manipulations are definitely dominating in short term price of gold and silver. But, the reasons for holding gold and silver in the long term are pretty much intact including:

1. US national debt is over $15 trillion and if includes liability of other off-balance sheet, it will exceed $100 trillion and there is no way to pay them back except printing money or defaulting on their debt (Inflation).

2. European sovereign debt situation is getting worse and worse. Since US banking systems are hooked with sovereign debts from PIGGS nations, once those nations started to exit Euro, CDS will started to explode and will cause catastrophic damage to the US banking system. Fed's option is to bail those banks once this happens (Inflation).

3. Both gold and silver is extremely undervalued (Check the gold and silver ratio and Dow and gold ratio if you are interested in understanding how undervalue these commodities are compared to histrical average).

This year will be inflation year folks since there will be a war in Iran that will cause the price of oil and other commodities to skyrocket and Fed will initiate another dose of QE program (Called Notional GDP targeting). Let's see how high gold and silver goes...

I recently watched a show on the gold in fort knox (if there really is any) and it was estimated to be valued in the 100 billions. I had to chuckle since our national debt is 15 TRILLION and rising.

Executive Order 6102 by FDR was the start of the mess we are in now.

[kv968]

I took the route of buying a few mining companies instead of the actual metal.

I bought FCX at $35 and TC at $6.40. Both have low PE and run at a profit and are near 52 week lows. FCX even pays a dividend but TC is opening a new gold mine in the Klondike. TC makes most of its money in molybdium (probably spelled that wrong, but you don't have to be a spelling whiz to invest )

It is kind of fun owning a gold mine, heh heh.

Actually FCX and TC aren't really true gold mining companies. FCX is about 13% gold mining and 78% copper and TC is mostly molybdeum (spelled right but try saying it )so they're really an industrial metal play. They've both had great YTD returns but that's due most likely to their heavily weighted industrial metal compostion and the fact that China seems to be easing a bit. However, a good return is a good return.

Their YTD returns haven't come close to FCX and TC, but if you want to own pure GOLD mining companies you should be looking more at NEM, ABX, AUY, etc... Or as 97guns said, more of the junior mining companies if you're willing to take the volatility. Although I'm sure you know, also realize that the returns from the mining companies don't correlate well to the spot price of gold a lot of times.

[aditi]

i was thinking about to take position in silver but there is no surity of market so i thought it really works

[vips]

Now a days all commodities prices are increasing so many people are investing these to get more returns. Gold is hot stock in market, then silver also rated on top level in stock market so I don't think there might be a maximum risk to buy silver.

[KTP]

For all of you silver bugs out there, here is a suggestion:

Helca Mining (symbol HL)


Market Cap (intraday)5: 1.52B
Enterprise Value (Feb 25, 2012)3: 1.29B
Trailing P/E (ttm, intraday): 10.65
Forward P/E (fye Dec 31, 2013)1: 9.53

They are mainly a silver miner, with gold, lead and zinc also. They have mines in Alaska and Idaho. 265 million net cash, about 17% of market cap. Pays a small dividend.

Depends if you think silver is going up or down I guess...

[97guns]

physical silver is the way to go and it is a hedge against everything. higher food/oil prices and rampant inflation, silver protects.

[aditi]

hii

this is an right time to invest money in gold/silver because marketing is getting bullish and most of the traders making profit after investing in MCX.


Thanks to discuss this thread

[amarowsky]

I have a few questions about buying silver, do you have to pay sales tax on silver ounces bought? Because I'm thinking about starting to buy an ounce a week for just an additional savings. And I'm trying to see if its worth paying the $2 above spot plus tax, or buying online with no sales tax but paying the shipping

[97guns]

I have a few questions about buying silver, do you have to pay sales tax on silver ounces bought? Because I'm thinking about starting to buy an ounce a week for just an additional savings. And I'm trying to see if its worth paying the $2 above spot plus tax, or buying online with no sales tax but paying the shipping

it depends on the dealer, some charge tax on less than $1500, thats if they are by the book.

[greenskeeper]

I buy from apmex.com and have never paid sales tax on purchases up to $2000

[UnknownXV]

Personally, I would go for gold. Silver isn't bad either though. But gold I feel will skyrocket, given how the USA is being so ridiculously stupid with their monetary policy. Yay, let's "print" 40 billion dollars a month and inject it into the market!

It will cause massive inflation, coupled with the debt of the fallback currency.. yep. I'm not a doomsayer, I'm not convinced the USA will crumble, but it most definitely is in for a hard road and gold will get stronger without a doubt.

Jennifer, it is technically diversification but is it good diversification?

Silver and precious metals in general are very volatile and if I understand it right if you buy now you would be buying at all time high. Sure, it's a good think you are buying for the long term but historically gold has proven to be a poor investment so I deduct that silver has too, but I could be wrong.

When you say put all your eggs in one basket what do you mean? Because savings and a 401 k could be very different investments. A savings account has nothing to do with the stock market and without knowing what is in your 401k you really cannot tell if you are diversified or not.

If you want a more historically proven diversification strategy you might want to consider real estate...

Historically gold is a bad investment?

Had I bought $10,000 in gold in 2005, I'd have $35,440 today. That's a massive gain. And again, the way things are going with unlimited Qe, I have no doubt it will skyrocket.

[kv968]

Had I bought $10,000 in gold in 2005, I'd have $35,440 today. That's a massive gain. And again, the way things are going with unlimited Qe, I have no doubt it will skyrocket.

Had I bought $10,000 of Apple in 2005, I'd have $215,877 today.

Had I bought $10,000 of Priceline in 2005, I'd have $268,078 today.

Had I bought $10,000 of Amazon in 2005, I'd have $57,215 today.

Had I bought $10,000 of Buffalo Wild Wings in 2005, I'd have $48,243 today.

All pretty massive gains also