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The average silver investor is stupid.
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Thread: The average silver investor is stupid.

  1. #1
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    Default The average silver investor is stupid.

    I've only had a small sample to go off of.. but holy crap.

    I had a client come in a week ago an hour before the fed statements came out, who said he wanted to use all of his assets to buy silver and he had about a quarter of a million dollars in his portfolio. My boss knows that I am quite familiar with silver and so I should try and talk him out of it.. I'm just a portfolio manager so I don't deal with clients on a regular basis, so he brought me into the meeting to basically talk him out of it. The conversation went something like this:

    Me: So why do you want to liquidate all of your assets to buy silver?
    Him: I want to own something that is stable. All of these bonds and stocks aren't stable. And I read some stuff about silver being able to do that.
    Me: No actually silver is quite volatile. If you want stability in your portfolio, then silver is not going to provide it.
    Him: Really?
    Me: Yeah, silver was at around $50 in 2011, and today its down to $15 and change.
    Him: Oh then the price is cheap, so I can buy in now.
    Me: Yeah it is cheap (and I wipped out my bars of silver). I too am a silver investor and I'm wildly optimistic, but it doesn't seem like this fits your goals. You say you want stability, and the price of silver fluctuates wildly compared to stock indicies and bonds. I don't recommend you going in 100% on your silver. And on top of that, I don't think the price will go up soon. It probably has more room to the downside. I am forecasting gold to go down to about $1000, so if that happens, silver will go down with it.
    Him: That doesn't matter to me. You said you think it will go up in the future, so I am buying something cheap now. And plus, they will raise interest rates this year.
    Me: Umm... no... Raising interest rates generally has a negative effect on precious metal prices. The stronger the Dollar gets, the more precious metal prices fall. But that is irrelevant. Yes, I think the price of silver will increase down the road, but I've been wrong too before. Just because I think it's going up doesn't mean it will go up. To be putting a quarter of a million dollars in silver is not going to provide stability which is why you said you wanted silver. I don't recommend putting more than 20% in silver.

    Seriously what the ****? This guy doesn't even know the price of silver or the trends, let alone the fundamentals of what drives the precious metals market, and thinks he can provide stability to his portfolio by going 100% in silver, because he read 4 articles or some **** on silver. I was able to talk him out of it in the end and have him invest 20% in silver.. but that is just a microcosm of what's going on in the silver market. Maybe he got in at the bottom? I dunno.. But the way markets work is they have a tendency to flush out weak longs. He is the weakest long I've ever seen in my life, and so unfortunately.. we got a little while of this sideways to downwards correction to continue until the idiots realize.."oh no.. equities have gone up and silver has gone down. I should have bought equities"

  2. #2
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    Quote Originally Posted by chroNick View Post
    I've only had a small sample to go off of.. but holy crap.

    I had a client come in a week ago an hour before the fed statements came out, who said he wanted to use all of his assets to buy silver and he had about a quarter of a million dollars in his portfolio. My boss knows that I am quite familiar with silver and so I should try and talk him out of it.. I'm just a portfolio manager so I don't deal with clients on a regular basis, so he brought me into the meeting to basically talk him out of it. The conversation went something like this:

    Me: So why do you want to liquidate all of your assets to buy silver?
    Him: I want to own something that is stable. All of these bonds and stocks aren't stable. And I read some stuff about silver being able to do that.
    Me: No actually silver is quite volatile. If you want stability in your portfolio, then silver is not going to provide it.
    Him: Really?
    Me: Yeah, silver was at around $50 in 2011, and today its down to $15 and change.
    Him: Oh then the price is cheap, so I can buy in now.
    Me: Yeah it is cheap (and I wipped out my bars of silver). I too am a silver investor and I'm wildly optimistic, but it doesn't seem like this fits your goals. You say you want stability, and the price of silver fluctuates wildly compared to stock indicies and bonds. I don't recommend you going in 100% on your silver. And on top of that, I don't think the price will go up soon. It probably has more room to the downside. I am forecasting gold to go down to about $1000, so if that happens, silver will go down with it.
    Him: That doesn't matter to me. You said you think it will go up in the future, so I am buying something cheap now. And plus, they will raise interest rates this year.
    Me: Umm... no... Raising interest rates generally has a negative effect on precious metal prices. The stronger the Dollar gets, the more precious metal prices fall. But that is irrelevant. Yes, I think the price of silver will increase down the road, but I've been wrong too before. Just because I think it's going up doesn't mean it will go up. To be putting a quarter of a million dollars in silver is not going to provide stability which is why you said you wanted silver. I don't recommend putting more than 20% in silver.

    Seriously what the ****? This guy doesn't even know the price of silver or the trends, let alone the fundamentals of what drives the precious metals market, and thinks he can provide stability to his portfolio by going 100% in silver, because he read 4 articles or some **** on silver. I was able to talk him out of it in the end and have him invest 20% in silver.. but that is just a microcosm of what's going on in the silver market. Maybe he got in at the bottom? I dunno.. But the way markets work is they have a tendency to flush out weak longs. He is the weakest long I've ever seen in my life, and so unfortunately.. we got a little while of this sideways to downwards correction to continue until the idiots realize.."oh no.. equities have gone up and silver has gone down. I should have bought equities"
    chroNick, even with your small sample you almost have it correct.

    The average investor that uses your financial services is stupid.
    "I foresee little future in 'the price of silver', I see a huge future for 'the price in silver'." - heartbone
    "The truth is called hate by those who hate the truth." - K

  3. #3
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    Default

    Quote Originally Posted by silverheartbone View Post
    chroNick, even with your small sample you almost have it correct.

    The average investor that uses your financial services is stupid.
    Take a clue from SHB, he's mopping up the floor finically, he's got all kinds of assets

  4. #4
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    Quote Originally Posted by silverheartbone View Post
    chroNick, even with your small sample you almost have it correct.

    The average investor that uses your financial services is stupid.
    Everyone on here bashed warren buffet when he sold his silver shares in the 40's, guess who's laughing now? It's not john travolta.....

  5. #5
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    Quote Originally Posted by Robert FGoens View Post
    Everyone on here bashed warren buffet when he sold his silver shares in the 40's, guess who's laughing now? It's not john travolta.....


    It's not who's laughing now, it's who's talking now

  6. #6
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    Quote Originally Posted by Robert FGoens View Post
    It's not who's laughing now, it's who's talking now

    Where's rodger when you need him? I hear might moose and Rodger had a wedding in The great and free state of CA

  7. #7
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    Quote Originally Posted by Robert FGoens View Post
    Take a clue from SHB, he's mopping up the floor finically, he's got all kinds of assets
    1) I haven't gone fishing this year.
    2) I usually clean my catch outside, on newspaper.
    3) Bobbie you are quite incorrect. I'm an American that does not knowingly support Satan, for example I've turned down lucrative contract work on a project at a weapons manufacturer. Because most of the legitimate and honest civilian product design and manufacturing jobs have been exported, there's pretty much only murder machine support left here in America. As a result I'm quite poor with very little in Earthly assets, but I'm OK with that as I can't take them where I'm going anyhow. That's the best clue I have for you.
    "I foresee little future in 'the price of silver', I see a huge future for 'the price in silver'." - heartbone
    "The truth is called hate by those who hate the truth." - K

  8. #8
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    Quote Originally Posted by silverheartbone View Post
    chroNick, even with your small sample you almost have it correct.

    The average investor that uses your financial services is stupid.
    I thought I said the average silver investor is stupid. Actually I did say that.. Wait you are a silver investor too aren't you?

    Our clients are people who are retired or entering retirement. He is retired. So what if silver goes down another 50% and he has to draw money out to support his retirement when silver is down? That half million dollars is suddenly worth only a quarter (I know I said a quarter earlier.. but I checked his account and its half). Thats enough money for 5 years at $50,000 a year. Silver produces no dividends or interest or income. He will have to go back to work. There are other assets that are producing over 10% dividends. I have one REIT that is producing 14% dividends now in our portfolio. With the $500,000, @ 10%, you could be living a good chunk of your life off your dividends.

    Silver is just a good insurance policy against "in case **** happens". I think **** will happen unfortunately but nobody knows when. It might not happen for the rest of his lifetime. And your dumbass certainly was saying that **** would happen years ago, but nothing ever did, and the stock market keeps marching up. You've been dead wrong for years. If any of our clients followed your advice 4 years ago would be in serious **** if they have to draw income from their assets. Drawing on an asset that is down 65% is no laughing matter. It is slashing their retirement years and forcing people to go back to work.

  9. #9
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    Jeeeezus Chriiist! You talked the guy out of how many monster boxes? 20? 25?

    I think I just puked!

  10. #10
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    '"All those boxes sank my boat, Boss! Honest Boss!".

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