Investing in silver bullion (1 Viewer)

[greenchip]

I’ve been investing in silver bullion for more than a decade and realized its performance isn’t as good as 2020-21. I no longer buy silver because index stocks like QQQ and major cryptocurrency are performing much better (speaking of long term, 5+ years, late 2010s vs 2022 for example). Also, nice rare silver coins have gone up in value, so I’m not speaking of them. Purely on bullions with minimal collector value.

Indeed, the price of silver is almost like back 5-7 years ago and disappoints so much as I’ll be losing money by inflation in the long run. $20 in 2016 and $20 in 2022 aren’t equal in value... I call selling at cost after 5+ years is a loss when I’m investing.

I’ll be selling them when they reach $25+/oz. I sold 50% of what I’ve got when it was $25-28/oz in 2020. What’s your thoughts if anyone here invests in silver? Is it a good investment to hold long term? If not, what do you invest?

 

[mipevi]

The problem I have with silver bullions is the high premiums, gold seems like a better proposition almost always. I don’t think of owning precious metals as an investment really, but an insurance policy. If looking to invest in that sector, I’d prefer miner stocks/ETFs.

 

[Highli99]

The only metals I invest in are copper, brass and lead. They have more utility if S really HTF.

 

[khp]

What was your investment thesis when you first bought silver?

 

[bernielomax]

I like Jack Bogle approach to investing. I used to really like hard assets like silver and gold, but one time I heard him say something that really that resonated with me: “Buy and hold the US stock market. You will grow with America”. But certainly this approach is not for everyone.

 

[greenchip]

The problem I have with silver bullions is the high premiums

Mine do too and trying to dump them when silver goes up. Back then, I didn't know anything about stocks or crypto, and ended up investing in precious metals. Gold performed better until end of 2021 and sold them off.

 

[Stufflymcstuff]

the best advice, and the advice that most financial professionals who aren’t trying to sell you something will offer, is for beginner investors is to stick it in some well established etf like a vanguard fund.

 

[greenchip]

@Stufflymcstuff I have some index stock QQQ, but I bought bunch of silver way before that.

Economy is shit now as everyone agrees, index went down 15% in a month, just keep holding.

 

[DrStrange]

Please get qualified tax advice before buying physical precious metals. Same thing when selling.

Many forms of silver, gold and platinum can be considered "collectables" and be treated very harshly under the tax code. You are taxed as regular income - not as a capital gain. And you might not be able to offset losses vs gains.

This might not be a major issue for small amounts of money. It is a serious problem for significant investors.

As a really rough rule of thumb - if you can hold it in your hand, it is a collectable not an investment. Note the reverse of this is not true. Get professional advice to be sure.

DrStrange

 

[greenchip]

Thanks for the advice, I’ll definitely reach out to my accountant for tax advice if I’m going to be big at it. The good new is: it’s small and I’m not buying more at all, regardless of the price. Just too much hassle, I’d rather have an index stock.