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im gonna assume you follow keynesian economics cause gold and silver is the same thing. they are both real money. gold is real wealth while silver will mostly be used for everyday purchases. silver is also a commodity and is consumed in a lot of places not just in jewelry. theres "peak" silver and this could be from EROI.Originally Posted by FrankMatthews
Originally Posted by cguy610
Are you aware of the country's budget deficits and increasing debt, and how this will impact the real value of the dollar?Originally Posted by FrankMatthews
Both oil and PM prices are a result of speculators searching for profit. There is no supply/demand mechanism supporting these prices outside of people demanding yield. If it was as easy to enter commodity markets as it is gold markets or say oil markets through the use of ETFs and derivatives you would see speculators running those prices up as well. Cotton, for example, may have looked like a bubble to some but there were concrete supply/demand constraints that caused that although institutional investors did a little speculating which no doubt amplified the price increase. As financial instruments evolve you will see more bubbles across all asset classes.
You say housing was a bubble. In some areas it was, in my area is wasn't and home prices are down between 5-10%. That has more to do with the economy than a real bubble.
Putting all of your money into any single asset class is very risky, whether it is stocks, your house, precious metals, etc. A house is still an asset, you still need a place to live, how much you decide to pay for it is your own responsibility.
What does budget deficits have to do with buying silver? srs
When was the last time home prices were down 5-10%? Prices are relative to the supply and demand, in most cases there is much more supply than demand for houses especially considering how hard it is to get a loan these days. How anyone can say housing wasn't/isn't a bubble is beyond me.
Difference is a house, as you pointed out, has a practical use. It is not strictly for turning a profit or storing your cash. Houses can also be an income generating investment. Metals have neither of those qualities which make it that much worse than investing in housing.
I still am waiting for a rational investment strategy for PMs. How about some technical or fundamental analysis or some valuation models? None of you have a clue what you are doing. You are just sinking money in this investment in the hope it will payoff. No one has a feasible entry or exit strategy. No one can even give me a target price that they didn't pull out of their butt. Everyone is just following the crowd, things will not end well for you all.