Selling all my investment and retirement funds to buy silver 24 October 2022 at 1:31PM in Savings & investments 12 replies 1.6K views

older_and_no_wiser

Well of course the post title isn't true - apologies for the click-bait. ;-)

I listened to an interesting podcast earlier - Rich Dad Radio Show. It's a US based show. I've heard a few before and don't really agree with the host's opinions on investing and finance. However, he does discuss some interesting topics.

The latest show focussed on how the global economy is imploding (which he always bangs on about) and that money is decreasing in value so much due to QE and inflation. Silver is an asset that everyone can afford but very few invest in. It is undervalued and one day (whenever that is!), it will be a heavily increasing asset. Unlike gold, silver is useful in industry and is relied on for the manufacture of many products. 

I know that some people here do like the idea of diversifying in gold and silver - as a small percentage of one's portfolio - but just wondered what opinions would be on this argument about silver being the "asset of tomorrow". Personally, it seems like silver has never been the hedge that gold can be, so why would anything change....or has it. I don't keep up with the price of silver and gold, but I never hear people debate about diversifying into silver; it's always gold.

Maybe I'll revisit this post in 10 years and wish I'd done what the discussion title says!

pecunianonolet

I think it is not going anywhere. Gold for sure a usual one but more as very long term asset or collateral. But what about copper, aluminium if you'd like to invest in metal? Or more provocative, lithium?

tacpot12

Silver as a commodity has much to recommend it, but Gold will always be the safest haven for bad times. To my mind though, the time to sell all investments and retirements funds will never come. If it ever does, you can be sure that you will not get anything worth having by the time you sell - retail investors will be the last to hear about the end of the world. 

Albermarle

Platinum and Palladium are also precious metals that are traded. It is possible to buy an ETF of a mixed bag of gold, silver and these two metals.

aubergine99

In my opinion, there's no better time than the present to invest in gold or silver.  I DO believe all currencies are imploding and we are entering a major depression.  Gold and silver are real money and are set to make new highs in next few years.  I certainly would not touch the stock market at present so that's the way to go.  You can always convert gold/silver back to plough back into funds at rock bottom prices when the time is right.

masonic

Based on the inflation adjusted 100-year chart below, it is above its long-term average valuation, but about fair value based on prices since the last recession (grey shaded area). What happened to it as we entered the last recession? It fell in value, as has been the case for most of the recessions on the chart. Perhaps there will be similar buying opportunity during the recession we are just entering. As you can see from the chart, going all-in on silver would be a wild ride indeed.

https://www.macrotrends.net/1470/historical-silver-prices-100-year-chart

lohr500

Mixed views on the 5 year forecast for gold according to this webpage, depending on which analysts you choose : 

https://capital.com/gold-price-forecast-next-5-years

Probably lots of other analysts with differing views though, so who knows!!??

TheAble

It would have been about 10 years ago that I had a conversation with a then colleague who was very into his silver, buying bars of bullion and coins etc and saying "the case for silver has never been stronger".

Looking at the price today, it's up very marginally on the price it was then. And in the meantime he has incurred 10 years of insurance costs and foregone 10 years of dividends and retained earnings. 

Of course who knows what the next 10 will bring but this maybe gives a bit of perspective. "Investing" in any non-productive asset should probably be approached with caution - it may go up and it may go down but it won't earn you anything in the meantime.

Albermarle

You can always convert gold/silver back to plough back into funds at rock bottom prices when the time is right.

Yes you can do that if the markets move in the direction that you seem convinced that they will.

However if you are wrong, you could find yourself with your gold/silver down 25%, and missing the boat of any stock market recovery.

lohr500

Contrary to my earlier post, after a bit more Googling, there are some analysts (SAXO and Swiss Asia Capital) who are forecasting $3000 and even $4000 an oz in 2023.

Now thinking I should perhaps take a punt and add some more gold to my Royal Mint digigold a/c !! 

ColdIron

lohr500 said:

forecasting $3000 and even $4000 an oz in 2023

Happens regularly (some are talking their book), I guess they might be right one day