Hello SPIer'ers. Here we are at the end of another fantastic week for crypto, new all-times highs everywhere and HIVE is up over 100% from last Friday. I am not going to talk about crypto's today, check the trending posts and im sure everyone else has crypto news covered. Instead today im going to look in what we should be considering for when the bubble pops and we need to find a place to store a portion of our fund wealth.
what else? (gold?), absolutely but I already have these pictures taken and im lazy to dig up some gold, picture it, edit the pictures, etc. so today we talk silver.
Silver!!! We all know silver, it is golds poorer little bother but it acts the same as a type of investment. Silver and gold prices will rise and fall together with silver being the more volatile of the 2. If gold goes up 15% in a year, silver will go up 25%+. If gold falls 15%, silver will fall 25%+. I say investment but I dont actually consider owning precious metals an investment. I view them as a store of wealth. Some say BTC is a store of wealth but it's not. I mean it is because of the power it takes to produce a bitcoin but something that can 10x 1 year and drop 80% another is not a stable store of value so I guess bitcoin could be described as a store of value investment that is still in its infancy.
(steem ROUND 2017 - 0.999 SILVER, 1500 mintage)
When the time comes for SPI to unload some of it's crypto bags, we'll be on the market for some silver, not SLV, silver (AG). What's the difference?
- AG is silver silver. It is silver that you can hold in your hand, the silver that came from exploding stars and travelled tens of billions of miles to hit our planet and remain embedded in the crust of the earth for billions of year until man pulled it from the dirt over 5000 years ago and started using it as money. That's silver.
- SLV is paper silver. This is the silver that is traded on markets at a ratio of over 200 to 1 meaning 1 real oz of silver equals 200ozs of paper silver. This is not silver, maybe a retarded version of AG at best.
(steem ROUND 2018 - 0.999 SILVER, 1500 mintage)
Even among silver stackers, the debate for which type of silver to buy is a hot topic. Some will say generic rounds are bets because they are cheapest, others say government-issued bullion is best because it carry a premium that can increase, a few will say collector's pieces are best and then we have junk silver stackers to will only buy old coinage that contains silver. There's are many types of AG silver to invest in. Hell, if you own enough silver spoons, you could call yourself a silver stacker.
For us and when the time comes, the physical is best, no question. We could buy the paper but I would feel dirty. Allocation is the real concern in a shared fund. Being from the UK puts me personally in a bad spot to hold a big pile of silver for the fund because there is a 20% VAT added to silver so buying $1000 costs $1200. Someone from the States or Ozzyland would be best for us simply because both of these countries offer low to spot bullion and liquidity for exiting if required.
(steem ROUND 2019 - 0.999 SILVER, 1000 mintage)
Silver is super undervalued at the minute. The gold to silver ratio can be one of many ways to tell of silver is undervalued compared to gold. Currently, the ratio is 65 ozs of silver to 1 oz of gold. Last April the ratio was 120 to 1 so this shows that silver has outperformed gold at a ratio of 2 to 1 from last April. FYI, silver is pulled out of the ground at a 15 to 1 ratio with gold and this is the historical ratio. There is plenty of room for growth meaning silver is still undervalued compared historically to gold.
In a crypto world
I love crypto, I love HIVE and I love Bitcoin but I love PM's even more. Dont get caught in the hype of new projects, I mean go for it but remember to cash out some of the gains this year and put them somewhere safe for the long term. I understand PM's are boring, you buy them, they sit in a safe not earning interest and they are hard to resell. On the plus side, you hold something that is part of the universe, not a man-made series of zeros and ones. There's something beautiful about that, it's timeless. Pm's will always be worth something, this is almost a fact of life. Dont come at me saying space mining will kill the gold market in a decade are so, they been saying that shit from the '60s.
In the crypto world, billion-dollar market cap tokens can move 20-40% because of a tweet. Dont get greedy and remember what real money is. Many of you will not own any PM's and I would urge you to just 1 time this year while cryptos are hot to cash out a few hundred dollars and buy a piece of gold are some silver. Get yourself a 10oz silver bar are a 1/2oz gold coin if you're a baller. When you get that metal and you have it in hand, you'll make a connection with it. It's hard to explain but there is something very satisfying about holding any PM in your hand. It always tricks you into thinking its lighter than it really is so every time to pick a PM up, you always think, damn this is heavy for such a small thing. It's addictive and that's a good addition to have.
I could talk about silver forever but time is short. I forget how easy it is for me to write on this subject. I love silver so much.
Thank you for writing today's post, tomorrow is earning and holdings update day.
Posted Using LeoFinance Beta