US Silver, a good place to put money?

Discussion in 'Finance, Property, Law' started by bloodgroup_o+, Apr 26, 2010.

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  1. I have recently been given a gift of several 2010 US eagle silver ounce dollars and I've recently become determined to leave the Army in a positive financial position . I'm aware that these coins' value depends on the price of silver at any given time and so it can rise or fall like shares in a company. For long term gain, is silver/metals in general, a good investment compared to a standard savings account/shares? I am appaling when it comes to finance and it's like a minefield to me, but I'm very keen to turn that around, so any information/education is massively appreciated.
  2. I'd keep them, commodities are largely inflation proof and with interest rates as low as they are it's difficult to think of something else that's as good.
  3. I would not put any money into the British Gold reserves, as broon the loon flogged it in the pound store!

  4. Even with 17.5 % VAT still good value compared to Gold. Pound cost average your investment.
  5. Silver has been one of the worst performing metals in recent history.

    There is simply too much of it about.

    To make money on a commodity such as silver, gold, platinum, ec you have to be able to buy it as close to the supplier as possible: every time it goes through another set of hands the price increases and the chance of you making money recedes.

    If you are really (stupidly) keen on having an investment you can put your hands on, then my advice would be:

    1. Land with planning permission (property in the UK or elsewhere is currently "cheap" at the moment).
    2. Diamonds: DeBeers have announced a reduction in output to preserve their stocks. No new source of diamonds has been found in recent years, thus the price of diamonds are expected to increase by a minimum of 5% per annum. Danger: if someone finally perfects a method of making flawless artificial diamonds of decent size then the price will drop dramatically.
    3. Platinum. There simply isn't enough in the world to meet demands.
    4. Gold. High risk as price is already at historic highs: as financial markets recover and corporate investments appear stable get ready for a flight from Gold to higher yielding products. People don't buy gold to make massive returns - they buy it to protect their money in times of uncertainty. When that uncertainty leaves (ie companies stop going bankrupt all over the shop) then people sell gold and reinvest in companies.

    and near the bottom of my list:
    Number 6,700,900. Silver. A worthless junk metal which is nice for statues and presentation cups and cutlery. Bügger all use for anything else. There are only a few exceptions, namely historical artefacts. This can include coins, but only of historical interest. I suspect a modern coin will (at best) maintain face value or the value of the weight of the metal. Real value is in a coin from a notable year (e.g. from year of Declaration of Independance) or a coin with a franking error. However unless you have a private income/own half of London (and not the south half) then I suspect these will be beyond your budget.
  6. A close friend of mine was ill advised/pressured to invest in silver about 8 years ago, the taxation on the market renders it a thoroughly stupid idea, he's actually not made very little money once tax and inflation is taken into account even though, the cost of silver had more than doubled when he sold it.