Investing in Siliver

Lexus1976

Anyone out there investing in Silver? Have never thought about it before, but now considering this as a serious investment.


One of the most incredible truths about silver is that up until now, demand has outstripped supply for fifteen straight years. Annual silver supply deficits have run as high as 200 million ounces in boom years, and as low as 70 million ounces in years of recession like we are in now. It is important to realise that even in years of decreased silver demand the mining supply on an annual basis did NOT meet demand. There is nothing more bullish for a commodity than such a deficit condition.

There is actually less silver bullion available for investment than gold! This one fact alone should alert any intelligent investor into thinking that some silver must be held as part of one's precious metals allocation.

MrMatisse

Silver price is very volatile. tends to move between 6$ and 14$. Its primary demand drivers are industrial. If it goes any higher people just switch materials. In addition its main industrial uses are in decline (www.minco.ie)

silverharp

I owned quite alot of silver bullion until last year when I sold it. Its a great trading vehicle but I think gold is a safer bet longer term as silver would get crushed in a deflation. It has some interesting supply dynamics but its difficult to turn that into a useful price predictor.

MrMatisse

silverharp wrote: »

It has some interesting supply dynamics but its difficult to turn that into a useful price predictor.

How about if no one wants it the price will fall.

silverharp

Really-Stressed wrote: »

How about if no one wants it the price will fall.

, its an industrial commodity with some marginal investment demand. Everytime you buy a car or washing machine you are consuming silver. But its performance will be highly correllated to Copper.

Lexus1976

• Only about 200 million ounces of above ground silver are available.
  
• Major sources of supply are disappearing.
  
• China is now an importer and is in the process of putting restrictions on the export of silver.
  
• Out of all the potential metals silver has the higest potential.

Although some point out that silivers primary use in industry (photography is shrinking due to the growing poplularity of digital photography) siliver demand has been growing significantly in health care, electronics and military equipment.

Healthcare - mega trend - ageing poplutaion around the world.
Military - mega trend - national security will always be a top agenda of the superpowers.
Electronics - megatrend speaks for itself.

If silver is of interest check out the following sites

www.silver-investor.com

www.silverstrategies.com

MrMatisse

Thats just bunkum!

• The main demand for silver is old fashioned print photography. The quantites used were huge. no comparison between that an the tiny amount used in electronic components.

• China is 'in the process' of putting restrictions on silver'?. There is no process in China. These things are announced overnight. If it was then the silver price would have behaved accordingly-Unprecedented sipke. Sounds like something pulled off a random website from a google search.

• Above ground silver? what does that even mean?.

• Major sources of supply are dissapearing- and others are being found......

• Of all the precious metals silver has the highest potential?- Why? Its main market is gone. Surely gold which also serves as a de facto currency is.

• Healthcare - mega trend - ageing poplutaion around the world.
  Military - mega trend - national security will always be a top agenda of the superpowers.
  Electronics - megatrend speaks for itself.

The silver demanded by theses sectors is tiny and silver has many substitutes. Its used because is currently cheap.

Its demand in many of these sectors is based on its conductivity, nothing else. If it gets too expensive people will switch.

Chrysostomos

Silver is it ?



I have been bullish on this all year, I reckon any potential bulls should definately hold their fire until we get a retrace, the trend is clearly up but it's currently way way way way way WAY overbought and due a decent retrace.

I definately would not be buying it now, if anything I would be bearish on it.

Chrysostomos

Lexus1976

Chrysostomos wrote: »

Silver is it ?



I have been bullish on this all year, I reckon any potential bulls should definately hold their fire until we get a retrace, the trend is clearly up but it's currently way way way way way WAY overbought and due a decent retrace.

I definately would not be buying it now, if anything I would be bearish on it.

Chrysostomos

Cheers Chrysostomos, thanks for the advice. Will probably hold off on investing in it for the moment.

Chrysostomos

Lexus1976 wrote: »

Cheers Chrysostomos, thanks for the advice. Will probably hold off on investing in it for the moment.

Hey no probs,

But I mean I don't want to sway anybody I am just giving my own opinion on it. That chart is silver vs. USD, I was longing it back in July when it was at 13.00 or so but it's way overbought at the moment, not saying I am 100% certain (nobody is) but the likelihood of it retracing/chopping around is far far higher than it going up more.

Gold is altogether a more interesting looking play, I will be be looking to long it depending of course on it's preices reaction to the 1000 level.

Chrysostomos

Bullish

I agree that silver is in an uptrend. The trend lines shown in the above graph I have been watching for breakdown in this leg up I am currently invested in ZSL which is a bearish ETF play on silver

Lexus1976

Telegraph
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/6082464/World-faces-hi-tech-crunch-as-China-eyes-ban-on-rare-metal-exports.html

Yahoo Finance
http://uk.biz.yahoo.com/08092009/404/untold-story-behind-golden-breakout.html

Thought this might be of interest to rare metal investors.

silverharp

it can be worth keeping an eye on the gold/silver ratio , its in a big old range of 75 to 55. As its coming into resistance here I'm on the side that silver and the commodities are going to turn in or around this point

macshadow

I'm looking to buy silver coins in the cheapest and easiest way possible about 700e worth, all advice appreciated.
I have seen coins smaller than an ounce on the net in germany, are these smaller coins common?
I can find only one place in ireland to buy silver but the minimum order is 8,000.
also i can't seem to get a straight answer on vat, sales tax, postage, insurance ect.

silverharp

macshadow wrote: »

I'm looking to buy silver coins in the cheapest and easiest way possible about 700e worth, all advice appreciated.
I have seen coins smaller than an ounce on the net in germany, are these smaller coins common?
I can find only one place in ireland to buy silver but the minimum order is 8,000.
also i can't seem to get a straight answer on vat, sales tax, postage, insurance ect.

I dont know the full ins and outs but junk silver (US) does not have VAT , otherwiase generally silver does, bars etc

littleSnitch

macshadow wrote: »

I'm looking to buy silver coins in the cheapest and easiest way possible about 700e worth, all advice appreciated.
I have seen coins smaller than an ounce on the net in germany, are these smaller coins common?
I can find only one place in ireland to buy silver but the minimum order is 8,000.
also i can't seem to get a straight answer on vat, sales tax, postage, insurance ect.

the vat position is far from clear here in Ireland, checking out the revenue.ie site it says that coins are exempt if they are or have been legal tender in their country of origin, but another section says that metal coins sold for investment are standard rated. That can't be so because gold is exempt. I've emailed the central bank and asked them if their silver coins are subject to vat so i'll post their response when it arrives

tryhttp://angloirishgold.ie/ website, a new company in the market that will oblige with any quantity

kerfuffle

littleSnitch wrote: »

t
tryhttp://angloirishgold.ie/ website, a new company in the market that will oblige with any quantity

Had a look at the above site. Something weird about it. The information is very vague and missing in some cases (Questions with no answers in FAQs!). They won't take credit cards, just bank transfers. The only silver coin mentioned is Austrian Philharmonics. There is no detail as to who owns the company. Looks dodgy. Anyone else know about this?

littleSnitch

well, central bank did reply and confirmed that the silver coins they sell are not subject to VAT, but they would not say anything more about other silver when pressed. My guess is that if the central bank is selling silver coins without VAT then that is the legal position.

Anyone got more solid info on this?

Looks like that site www.angloirishgold.ie has been updated, it's probably 'under construction'