Quote from: explorer on February 25, 2018, 12:31:16 PM

Quote from: shizuska on February 25, 2018, 12:26:08 PM

Quote from: realr0ach on February 25, 2018, 11:05:01 AM

Quote from: Satania on February 25, 2018, 10:02:31 AM

A different question, now: how do you invest in precious metals? Do you actually buy silver and gold ingots to store, or do you purchase ETFs? I would like to include some general silver indexes in my portfolio.

It's 100% pointless to purchase metals if you don't buy physical. All the unallocated metals are rehypothecated so there's 500+ owners per ounce. They're just meaningless derivative contracts. When the Comex blows up, or when the govt has to revalue gold and silver exponentially higher to extinguish the debt bubble, you will either receive $0 for your contract, or they will cash out your contract at $20 an ounce of silver right before revaluing it to hundreds of dollars an ounce. In other words, paper owners miss out entirely on the once in a lifetime avalanche of profits.

What is the purpose of this paper hedge then? Nothing! It's an insurance policy that doesn't pay out. Paper metals are worthless. As for allocated metals instead of the unallocated variety, maybe you will get lucky, maybe not. If the organization has any type of serious weight like that Texas bullion depository, the govt will probably try to seize it. Things like the ETFs have a good chance of being seized, but I doubt they will attempt seizing private holder's metals again.

For one, they know zero people will give them up since nobody trusts the govt now. Secondly, they've already done a stealth confiscation by rigging the markets 10x more than usual post-2008 and having entities like JP Morgan take delivery of the physical as an agent of the US govt at the suppressed price. The only type of paper metals worth bothering with would be miners, but I have a feeling the govt will nationalize all assets in the ground as "deep storage" and leave anyone holding shares holding the bag.

TLDR: Buy either Canadian Maple Leafs, 10 oz Sunshine mint bars, or kilo bars

As a large holder of silver (about same ammont as crypto) i do not agree with your point of view. I looked into buying physical silver and compared the prices, even if i had bough a decent amount i would have paid about 7-8% extra and i live in a country where there is no VAT associated with buying silver as an investment. Other problem is that total ammount in kgs would have been around 300kg, so storing would have not been easy aswell.

Instead i chose to buy SIVR ETF which gives investors direct and pure exposure to silver by holding the physical metal in HSBC vaults. It has tracked the spot price of silver perfectly at a low cost for the precious metals segment.

I pay around 0.3% per year maintenance fee and could not be happier (well 40 $ pound would make me happier Cheesy

), i would have paid around 25 years of fees if i had bought physical.

HSBC? Good to have it stored with a trustworthy organization. I'm sure all is as it should be.

Well the ETF is audite annualy and all of my lawyers are sure if something radical happens with economy i can sue and get the physical silver as it is backed.
Anyway silver is around 10% of my portfolio and i see it being a great way to make some profit when next crises hits in 2-3 years or so.

shizuska

Posts

Merits