propped up by government stimulus projects and have yet to crash: buy silver instead

MrEnglish

propped up by government stimulus projects and have yet to crash:


Real estate has become much more overvalued and silver has become extremely undervalued. Measured against silver, the median price, single-family home in the hit it's peak in 2002, at a price of 38,123 ounces of silver, some two and half times higher than at the beginning of the last precious market in 1971.

When silver hit its peak of $52.80 in 1980, it was not rare. Today as we've already discussed in detail, identifiable above-ground silver stockpiles have been drawn down to a tiny fraction of their size in 1980.

Remember, in 1980 it only took 814 ounces of silver to purchase one home, and silver wasn't rare then.

IveSeenTheLight

Are you comparing one investment directly to another?
I didn;t realise that you can live in a house of silver.
How much do they cost?

Generali

Just because the price of something is well below what is what on another date, doesn't make it cheap now. Many an investor has had his fingers burnt thinking that.

Gorgeous_George

Absolutely right Gen.

Equally, just because something is more expensive than it was on anther date, doesn't make it expensive now.

Past performance is not necessarily indicative of future results.

I still think that house prices are too high. Unfortunately, the option to allow house prices to fall dramatically is far too painful for many Brits to handle i.e., those who are buying their homes. For this reason alone, the Government's actions are wholly justifiable.

GG

kennyboy66_2

If Nelson Bunker Hunt eventually went bankrupt trying to ramp the price of silver up, what chance do you think you have ?

Never mind, they only lost $4 billion (and that in the early 80's!) - the perils of speculating on commodities.

nollag2006

IveSeenTheLight wrote: »

Are you comparing one investment directly to another?
I didn;t realise that you can live in a house of silver.
How much do they cost?

You can if you are six inches tall !!

:rotfl:


Why anyone would "invest" in a zero yield volatile asset with no intrinsic value is beyond me !!

Still -there's one born every minute

chucknorris

Don't you have to pay VAT on silver? I wouldn't be prepared to write off 17.5% at the start of any investment. I certainly would not wnat to buy into one of these 'certificate only' schemes where you avoid VAT but take a risk on the silver not actually existing.

Generali

chucknorris wrote: »

Don't you have to pay VAT on silver? I wouldn't be prepared to write off 17.5% at the start of any investment. I certainly would not wnat to buy into one of these 'certificate only' schemes where you avoid VAT but take a risk on the silver not actually existing.

From memory it's like gold - it depends what you buy. Some silver is zero rated and some attracts VAT.

Davesnave

.....And then there's the cost of Brasso to consider, not to mention the drudgery of actually using it.:(

Generali

Davesnave wrote: »

.....And then there's the cost of Brasso to consider, not to mention the drudgery of actually using it.:(

You don't want to use Brasso! It's an abrasive cleaner so literally reduces your investment.

Really2

Silver vanishes on it's own. I think one of the official weight and measures held in archives had to bee added to as it was no longer the weight it was.
Why do people think silver is undervalued?
We have gone over this before and it was more under threat by new technologies than ever before.
If silver did vanish altogether what would suffer that could not be replaced by another metal or technology?