Silver Squeeze?
- Thread starter andy dufresne
- Start date
CallSignBigRed
Sparrow
You dont own it if you don't have it. I have physical silver. How would you get the silver out of the ira during hyperinflation or other economic collapse circumstances.
I don't understand. Why would it be a problem to cash out during hyperinflation?
I don't think taking possession is going to be the issue. The issue is going going to be what kind of fees and penalties are you looking at if a loaf of bread is 10,000USD. There's no guarantee the price of silver will match inflation.
I own physical silver as well, and the price is not my only concern. It's whether you will be able to exchange it or not.
There were a couple of prominent members in the silver forum who are highly doubtful that precious metals could be of any use in the case of a hyperinflation scenario for two main reasons:
1) People are going to be too worried about food, water and a roof over their heads to even consider thinking about anything else
2) Silver and gold coins are just not popular enough to be recognized. The only evidence I have for this is anecdotal. None of my friends or their friends have ever seen a silver coin up close. I've shown them to 2 goldsmiths, and they claimed that they have never seen anything like it.
At this point, I am very worried about a hyperinflation scenario that struck Germany in the past. The EU is deindustrializing quickly, and they have printed even more trillions than before because of the scamdemic.
Does silver have any place in a scenario like this?
aeroektar
Pelican
In my mind, you aren't stacking silver and gold primarily to exchange it for goods during hyperinflation, but instead, after the dust has settled and you've survived, then it really plays a factor in getting you reestablished in the new economy/system.
Things you think you might need to exchange PM for during a currency collapse are things you should stockpile now or find a way to produce when the day comes, or yes you will be exchanging 1 oz of silver for a bag of rice because yeah no one needs silver to survive.
Things you think you might need to exchange PM for during a currency collapse are things you should stockpile now or find a way to produce when the day comes, or yes you will be exchanging 1 oz of silver for a bag of rice because yeah no one needs silver to survive.
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I said in another thread, twice within the last couple of months I have offered a 1oz silver round in lieu of my $30 share of pizza/beer type scenario. Both times my round was eagerly accepted, by non silver stackers. This is anecdotal, but people have a visceral reaction to God's money.
CallSignBigRed
Sparrow
This is a realistic and solid answer. Silver is for after economic collapse and when we have evolved beyond simple bartering. I have 6 months of food and water, candles, solar kit, few portable burners, medical and lethal equipment. I honestly want a solid year of food which we are acquiring. Your investments should be diversified in a way if world revives tomorrow the markets will take off but in the next few months if we start having problems you should have something in place. It's multi layer planning and depending how much % you want to allocate to stocks, currency, real estate, personal ( ammo, medical etc) you have to be mindful of the political climate you're in.
Physical silver will have increased value in an inflation scenario. When the currency is worth nothing, silver's use as a store of value will be what it is used for. By then general demand or understanding of silver/gold will be far different than it is now.
Gold was 10% of the typical portfolio through the 80s. I think the avg. portfolio is weighted appx 1.5% gold these days. When that moves to 3% of the average portfolio, gold will rise exponentially. And silver will follow gold.
Silver has industrial use so it is more likely to lag if they economy slows down significantly.
Gold was 10% of the typical portfolio through the 80s. I think the avg. portfolio is weighted appx 1.5% gold these days. When that moves to 3% of the average portfolio, gold will rise exponentially. And silver will follow gold.
Silver has industrial use so it is more likely to lag if they economy slows down significantly.
Concerning the buying of silver (or gold) stocks for that matter, or miners ... do you think that's worth the "risk"? Brian Kim of ClearValue interestingly is big on silver because of economic/productivity/utility, but he's generally recommending SLV. I think if SLV does well, the miners will be the better play since both are paper products. If paper doesn't work, it seems like you'll be a loser anyway, so go for the higher return of fiat clown money, should the system offer some off ramps in the time period between replacement of the USD or struggle for world currency alternatives.
I think if you are speculating on price, miners are a good buy.
I think if you are looking for security, insurance, savings, then you go with precious metals.
I prefer PSLV over SLV, it was explained to me very early in this thread that PSLV is physically stored in the Royal Canadian Mint, whereas SLV is based on derivative products so in an actual squeeze situation might not function as well. Risk on PSLV is it gets nationalized (Royal Canadian Mint).
Myself, I like a mix of Physical, Miners and ETFs.
