OT: Silver

avatar for BabyDoc
BabyDoc
Wayfaring Stranger
TUSCL is well known as the go to place for financial insights so here I am. Silver has been on a bit of a tear recently. I’ve never been much of a fan but for convoluted reasons I bought a good amount a few years ago. Last week after seeing the recent price increase I took a small handful to my dealer to sell. Much to my surprise they were paying a one dollar per ounce over spot premium for physical silver which was a nice bonus.

My guy asked whether I thought the price would continue higher or reverse back to where it has been sitting forever. I told him that since I was selling it was a guarantee that the price would keep rising and if I started buying then he would know the price was headed lower. Well damn if the price isn’t going up and up.

I know all the “reasons” that commodity traders like to tell themselves but with the way the government is printing money (obscene amounts) and the way the dollar is dropping I’m facing a bit of a dilemma. As I said, I never really meant to own silver but I do. While I only sold a handful I have a bunch more. If I sold it now I would lock in a very respectable return but I don’t need the cash and those dollars are becoming worth less and less everyday so maybe I should just keep my stash of silver even though I don’t really want it.

So where is the price headed? Do I cash out, let it ride or do I climb up on a roof top and throw maple leafs at the terrorists rioting in the streets below? Yeah I'm bored.

15 comments

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avatar for SanchoRG
SanchoRG
4 years ago
I know a LOT of people that have a cost basis on their silver of like $40 an ounce, from 2011. They been bag holding for a long time. No doubt it will keep going up, but be careful.
avatar for sinclair
sinclair
4 years ago
I made this post on TUSCL back on 10/03/2018 when gold was 1198.30.

https://tuscl.net/discussion/61009/

Some people thought I was foolish to buy into gold.

Now, less than two years later on 07/27/2020, gold is 1,941.77.

That is a 62.04% gain in value in less than two years. I guess a dumb country bumpkin like me knows more than the TUSCL "financial gurus".
avatar for BabyDoc
BabyDoc
4 years ago
@Sinclair

I remember that. I am a fan of gold and plan to die with my holdings still in my safe so it’s all good. My average cost basis is about $1100. I stopped buying when the price went above $1250 waiting for it to go back below $1200. LOL
avatar for SanchoRG
SanchoRG
4 years ago
52 week return on:

AAPL: 96.93%
AMZN: 242.01%
FB: 70.31%
GOOGL: 51.6%
NFLX: 96.47%
MSFT: 55.87%
AMD: 151.4%

If you're bragging about returns on a single asset since 10/2018, you definitely underperformed. You definitely beat the S&P though so congrats.
avatar for sinclair
sinclair
4 years ago
Good for you Sancho, but most people have a mix of stocks not just AMZN and AAPL. Very few people's portfolios are returning 100%+ in just 22 months. Otherwise, you would see a lot more people retiring.
avatar for ime
ime
4 years ago
I've seen a few predictions of gold going to $10k in the next 10 years, mostly related to losing faith in dollar, and if it loses status as the reserve currency. Which could happen if Democrats can pass free healthcare for illegals, new green deal bs, and many of their other free stuff for everyone but those who actually pay taxes.
avatar for ime
ime
4 years ago
silver tends to follow gold and has more uses, seems smart to keep some money in them.
avatar for SanchoRG
SanchoRG
4 years ago
"Good for you Sancho, but most people have a mix of stocks not just AMZN and AAPL. Very few people's portfolios are returning 100%+ in just 22 months. Otherwise, you would see a lot more people retiring."

Yeah I get that. For every $10k you put into gold in 10/2018, you got ~$6, 204. You would have gained $4,809 if you put in the S&P. You would have gained ~$7,000 if you put it in the NASDAQ. You would have gained $24,201 if you put it in AMZN. So gold was definitely a good pick. I'd just recommend when you brag about it, leaving out the part about how you're smarter than all the other TUSCL financial geniuses lol.
avatar for jackslash
jackslash
4 years ago
Be like me and put all your money into strippers' thongs.
avatar for sinclair
sinclair
4 years ago
S+P 10/03/2018: 2,923.43

S+P 07/27/2020: 3,239.41

That is a 10.8% gain.

Nasdaq 10/03/18: 7,999.55

Nasdaq 07/27/20: 10,536.27

That is a 31.77% gain.

Dougster Version 948 = Sancho, where are you getting your bogus numbers from?
avatar for SanchoRG
SanchoRG
4 years ago
I did not calc the exact date ranges just did a lazy 52 week/2 year look cause I finished my shit before then.
avatar for SanchoRG
SanchoRG
4 years ago
Also I read the numbers wrong lol all that hit I posted earlier is way off and applies if you invested from March to now. You are definitely smarter than me right now god damn lol
avatar for Player11
Player11
4 years ago
Silver could hit $50 again. Covid will pound equity markets until off the field.
avatar for mark94
mark94
4 years ago
There are 2 valid reasons to own quantities of precious metal
1. You get a kick out of having it in your physical possession.
2. You are convinced the Mad Max Apocalypse is just around the corner.

There is two false reasons to own precious metals:
1. You believe it will outperform a diverse basket of stocks over the long term
2. You believe you can time the market and get in, and out, at just the right time.
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