Win / GreatAwakening
GreatAwakening
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Reason: None provided.

I think of PMs as more of a savings account than an investment. It is real "money" I can store at my house, but it takes a little work to convert it back into paper currency (fiat), so it is not temping to spend. It is for long term storage.

The current spot price of silver is very manipulated and WAY low, so basically it is on sale right now. When I started buying 5-6 years ago, it was around 12-$15 with much lower premiums. So If I had put $1000 cash in my safe, it would be worth considerably less now (buying power) due to inflation robbing the "value". But, If I had purchased 70-80 ounces of silver, that would be worth a little bit more now, than what I paid for it. Gold is a better example right now, even though it has dropped quite a bit this year too. When I got a small inheritance in 2018, I purchased some gold 1 once bars. I paid less than $1250/once including the premium. Now that same gold is selling for over $1700/ounce (it was up around 2000 only a month ago). So instead of that money losing 15-20% to inflation if I had left it as cash, it has gone up almost 40%.

Just think of gold & silver as hedges against inflation. They tend to hold their "value" over time... and the dollar loses "value" over time. The story I hear a lot is... in 1964 a quarter (that contained real silver then) could buy you a gallon of gas. Today the equivalent of that silver (6.25 grams) is worth roughly $4.00... which is pretty close to the price of a gallon of gas today. So, that same silver quarter can still buy you a gallon of gas. This of course fluctuates from day to day, but you can see that PMs in general hold their "value"... which is not the same as "price". This is why PMs are great, they hold the value of your wealth, instead of holding cash that loses it's value overtime.

This is not something you are going to flip next week and double your money. It is just a savings account to store your wealth. And in general, over a year or two, you should make up the premium as the spot price steadily raises. When the spot price is really low like it is right now, that is a great time to buy.

1 year ago
1 score
Reason: Original

I think of PMs as more of a savings account than an investment. It is real "money" I can store at my house, but it takes a little work to convert it back into paper currency (fiat), so it is not temping to spend. It is for long term storage.

The current spot price of silver is very manipulated and WAY low, so basically it is on sale right now. When I started buying 5-6 years ago, it was around 12-$15 with much lower premiums. So If I had put $1000 cash in my safe, it would be worth considerably less now (buying power) due to inflation robbing the "value". But, If I had purchased 70-80 ounces of silver, that would be worth a little bit more now, than what I paid for it. Gold is a better example right now, even though it has dropped quite a bit this year too. When I got a small inheritance in 2018, I purchased some gold 1 once bars. I paid less than $1250/once including the premium. Now that same gold is selling for over $1700/ounce (it was up around 2000 only a month ago). So instead of that money losing 15-20% to inflation if I had left it as cash, it has gone up almost 40%.

Just think of gold & silver as hedges against inflation. They tend to hold their "value" over time... and the dollar loses "value" over time. The story I hear a lot is... in 1964 a quarter (that contained real silver then) could buy you a gallon of gas. Today the equivalent of that silver (6.25 grams) is worth roughly $4.00... which is pretty close to the price of a gallon of gas today. So, that same silver quarter can still buy you a gallon of gas. This of course fluctuates from day to day, buy you can see that PMs in general hold their "value"... which is not the same as "price". This is why PMs are great, they hold the value of your wealth, instead of holding cash that loses it's value overtime.

This is not something you are going to flip next week and double your money. It is just a savings account to store your wealth. And in general, over a year or two, you should make up the premium as the spot price steadily raises. When the spot price is really low like it is right now, that is a great time to buy.

1 year ago
1 score