Hello all,
I am an avid reader of this forum and am busy learning as much as possible about property investing. I been busy trying to find myself a mentor. I have been saving a deposit and getting to understand the markets that I like and getting an understanding of what I am willing to pay (so far I am looking for neautral properties in my key areas which do not as yet exist however I feel they might over the next 12 months, our market is flat with prices coming back quite alot, just not far enough for me yet or maybe I dreaming)
A local fellow I know seems to always be ahead of the game. He studies recessions and market and economic situations regularly. He has correctly predicted the market condition in our area for a decade or two now. He is well know for being the only man in town that always seems to have his money in the right place at the right time.
Anyway I have been busy trying to befriend him. Today we met and he says put as much money as you can gather into silver bullion. I say what about my property investment strategy. He say forget it, thats what I do for a living and right now every spare penny I have is going into silver bullion.
So I am sooo tempted to just hop on line and spend my $10k on silver bullion.
Mistake or no Mistake?
Surely if i finally do find my suitable IP then I can sell my silver yer… so no risk unless silver goes down which is fairly unlikely yer?
Hello Intrigue, I am a big real estate AND a big silver fan (I have been stocking up on silver since 2008). My plan is to buy as much silver as possible till end of 2010 and sell end of 2011 to 2013 AND then buy alot of real estate.
Why not do both, I had a friend attend Steve Mcknight's market update last night in Sydney, Steve said to start preparing now to buy in February 2011 in Sydney. I don't know where you live or where you are looking.
Silver is volatile so is property, either way research. Research. Silver is easy, but it doesn't pay you income.
We live in exciting times!
the experts are buying silver….the ones that know what they are talking about….
what is your risk in buying silver?
if you buy 10,000 worth of it, whats the VERY worst that could happen?
you lose 50%-70%?….but what is the likleyhood of that happening? it could happen…but these experts keep saying they are not selling…if it falls they will but more
silver ran up to $21 and then fell to $8 in the crash of ’08
if there is another crash the same or worse may happen
the upside potential of silver is anywhere between $100 to $1000 oz ACCORDING to these experts….
you have to look at it logically, not emotionally
are you prepared to make the bet?…based on the evidence…
how would you feel if you lost say 7,000 in the event silver crashed again? .but these experts keep saying they are not selling…if it falls they will but more….
etc etc etc…..
at the present moment, silver has gone up in a straight line from $20 to now $28
it finally comes down to your own call….
when silver was $10 after it had crashed to $8, my thought was this:
silver might go down but it could go up and I may miss it….
if i buy now at $10, i’ll get in incase i miss the boat, but if falls even more, i’ll buy more
but if i don’t buy, i may miss it completely
silver then began to climb steadily to $20, at which point it began to climb the staircase one step at a time
now it’s $28…close to 3 times the entry price…
where to from here? we’ll see
when investing, good practice is to always write down your entry and exit points. for both good and bad scenarios.
so you have almost tripled your money, when do you sell and realize those gains? etc.So i basically have the same advice, if you believe that guys advice, go for it. just know when to sell if things start to decline, and buy again once it gets low. if you dont have a set sell point, you might end up with silver thats not worth what you paid for it.
No mistake.
I am young(ish), have a few properties and have started over the last 6 months diversifying, mostly into Silver. I have been a member of this forum for several years(mostly loitering) and can tell you that I have a heavy biaise towards property.
Silver however has changed this. I still hold my property and you have to understand that unless you go for shares or ETFs you arent able to leverage like real estate, however i have seen some incredible returns in the last 6 months – and am still buying.
It is a speculative move but my thoughts and research led me to this synopsis:
Silver value has generally increased at a rate above inflation for a couple of decades(with a few exceptions),
( Interest in your average bank account is lower than inflation ie your losing money).
Silver has industrial uses as well as a monetary value. Gold is only used in a small amount of industry and is more of a monetary standard (and heavily recycled- silver is rarely recycled).
– Some predictions place Silver as one of the first elements to disappear off the periodic table, potentially in the next decade.
– There is more gold above ground than there is silver….. apparently.Do your own research and be cautious, there is a small hype surrounding this invesment at the moment and it looks to be building very quickly. If you enter now, there may be a pullback(there may not be as well). Just research it and gain an independent perspective then make your own decision.
Finally, if you do choose to enter the silver market, dont purchase from online auction sites. People are paying well above the value of precious metals and you dont need that from the start. Ask your friend where he is purchasing his or PM me your location (city) and I can put you in touch with a distributor in your area (hopefully) otherwise shipping and insurance usually add a bit of a premium to your investment.
Cheers,
Mick
Hi Intrigue,
Like many others I am very BULLISH on Silver and have invested heavily in Silver mining stocks because I believe Silver is extremely undervalued. When I first decided to invest in mining shares, my intention was to hold them for at least 1 year to attain the 50% capital gains tax reduction, and try to sell at within 20% of the peak for a nice profit. I was looking more at long term (1-4yrs) gains rather than short term – I was surprised when I saw that my shares had increased 70% in less than 1 month! I believe Silver still has a long way to go, and will increase astronomically in the next few years.
As Patriotsoldier has mentioned, not only is Silver a monetary metal but it is also an industrial metal. When people lose faith in fiat currency because of too much currency printing, they rush back to Gold and Silver, which have been money for thousands of years. Silver is also a great investment because of its high demand for industrial uses, especially for electronics such as computers, cellphones http://www.silverinstitute.org/silver_uses.php It also has many emerging uses such as in solar energy and water purification.
Simply looking at Economics 101, Supply curve shifting to the left (decreasing supply), and demand curve shifting to the right (increasing demand), I am 100% confident that Silver will continue to increase in price… On the conservative side I predict a price of at LEAST $300 per ounces, and on a more speculative side a price of +$2,000
Regards,
Kong
Hello all, thank you for your feedback.
I did it!, I jumped right into that deep end (well deep for me, I am sure shallow for many) Do as the rich are doing (they say)
I took $10k out of my 'offset' and purchased silver. I may have made some mistakes already but sometimes you just gotta get in to learn (they say). I did purchase via one of those online sites (auction or not I dunno) prolly paid too much, dunno? this is the site I used.
https://www.ainsliebullion.com.au/Home/tabid/39/language/en-AU/Default.aspx
I can see it would have been better for me to buy in at $10 rather than the $28 I paid but hey, here's hoping it goes up and I know when to get out. If not I guess I just hold onto it until one day the value comes back.
My plan is to hold for 12 months while I study the property market as closely as possible and target my investment location. I can decide then. I thinking the risk is not that great. the money was saving me 7% interest in the offset but could make me more than that is people are right about silver (surely I havent missed the boat?)
One thing I can be sure of is its chances of earning me money are much greater than my first leap into investment… Some dodgy company (PLATINUM PROFESSIONALS) convinced me to enter into some scheme that was supposed to return heaps. As soon as they got my $2k they were never to be found again…. grrr (that was 10yrs ago and I am over it now.. not &*%$)
Hello Intrigue;
I have purchased gold bullion through my super fund from ainslie they are a reputable firm. You can also purchase gold/silver through the Perth mint.Back in 1978 I had a student loan of $600 that I was going to use to purchase silver futures until my father got wind of my scheme and put a stop to it. I watched in frustration as silver went from $5 an ounce to $50 when the Hunt family texas billionaires almost cornered the market. In defiance of my father I blew the entire $600 on a you beaut SLR camera and telephoto lens which I still own
Looking back my father was right and it was fortunate I didn't profit from my speculative punt as I was gambling with money I couldn't afford to lose.
A few years later 1982 I purchased some gold bullion and did well out of it because when Keating devalued the Austrlian dollar my gold which I had purchased with U.S. $ bought 20% more asussie $. We used that windfall as part of our deposit on the first
home.My advice is don't look at gold/silver as an investment but rather as a hedge to combine with your property investments. In our super fund our goal is to have 5% in gold bullion. It's an insurance policy if the fiat currencies collapse.
The head of the world bank yesterday let slip that he felt the world should move back to some form of gold backing. I prefer gold but you probably will see silver multiply more than gold,
Regards LR
watch this guy everyday to keep your sanity
Thanks Jason,
I am sure that link would be really helpful if I could understand a word of what he said. Its an all new language to me
as you keep watching each day you’ll learn more
he does 2 videos a day….one on metals and one on the markets:
just subscribe to his channel and you’ll see em pop each day
Hey,
can anyone recommend a safe to hold 10 x 1kg silver bars at home????? and where to buy it please.
things look to be turning…lets see what happens tonight in the US!
I hope there turning in a favourable direction for me!
Jason can you please tell me what you are looking at, at what you were referring to about 'tonight in the US'.
Sorry to be so ignorant, desperately trying to learn!i am looking at the usa stock market…..at this point in time the aud / usd currency pair, the usa stock market, gold and silver are linked…..they all go up together and they all go down together
the past few days, the usa stock market fell from 11490 to 11000 and so did the rest above…..yesterday the usa stock market made a turn around and went from 11050 to 11200…and so did the rest..they all followed and went up…
as these are all linked at this point in time, we watch the usa stock market….we want it to go UP
this linkage may change in the future….but for now all these above are linked.
an easy way to check in the morning in australia what happened in the USA is to check this page: http://finance.yahoo.com/
on the left you will see:
DOW
NASDAQ
OIL
GOLDyou want DOW > 11000…..and going up past 11400
I use http://www.buillionvault.com/#sapphire101 . They are the cheapest I have found and storage is organised in London & Zurich. Physical storage of silver bullion at home I wouldn't recommend although if you buy pre 1965 American silver coins then they are easier to store ( hide) and easier to trade, being smaller and transferable. The other thing to consider is that once bullion ( gold or silver) leaves the original source then it loses some value as it cannot be verfied to be 100% or 99.9 pure. To get this re-verified you have to send it back and get this done at your cost. Not really worth it.
Bullion Vault allow you to trade your bullion at real time prices at any time.
Also the Perth Mint have finally brought themselves up to speed with online purchase facilities and have always offered vault storage, but if not having the stuff in the same country doesn't bother you, then BVault is the go.
I agree with the previous post suggestions of using silver or gold investment as part of a diversifed portfolio with your property. Good luck with whatever you decide.
Hi,
You can also buy from http://www.bullionmoney.com.au
prices on here are very competitive and you can pick up if your in Sydney.
Looking back my father was right and it was fortunate I didn't profit from my speculative punt as I was gambling with money I couldn't afford to lose.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
