Warning: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in ..../includes/class_bootstrap.php(430) : eval()'d code on line 134

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19
Equities vs silver
Page 1 of 3 123 LastLast
Results 1 to 10 of 26

Thread: Equities vs silver

  1. #1
    Join Date
    Dec 2009
    Posts
    156

    Default Equities vs silver

    Here's a question..

    I have a modest equity plan, running for the last 5 years, and I lost over 40% of the total contribution last year during the crash.

    It's getting back on track (just) but with the talk of a double dip recession and falling value of the dollar (it's all in US$) I'm getting jittery.

    I recently invested in some silver bullion, and am contemplating encashing what I've got left of this policy and buying more silver bullion with it. From everything I've read about silver going to the moon in the future, there's some sense in it.

    It would mean my portfolio being 90% skewed to PM's (which makes me feel very uncomfortable), but then, who knows what the hell's going to happen to the dollar.

    Either I do this, leave it where it is to the ravages of the stock market, or pull it all out and re-invest in Chinese Yuan!

    The Euro as an alternative? Not sure about that one, and Sterling will soon be dead and swallowed by Europe (imho). Not to mention the UK's economy is as buggered as the US.

    Any thoughts?

    Cheers.

  2. #2
    akak Guest

    Default

    Quote Originally Posted by red snapper View Post
    Here's a question..

    I have a modest equity plan, running for the last 5 years, and I lost over 40% of the total contribution last year during the crash.

    It's getting back on track (just) but with the talk of a double dip recession and falling value of the dollar (it's all in US$) I'm getting jittery.

    I recently invested in some silver bullion, and am contemplating encashing what I've got left of this policy and buying more silver bullion with it. From everything I've read about silver going to the moon in the future, there's some sense in it.

    It would mean my portfolio being 90% skewed to PM's (which makes me feel very uncomfortable), but then, who knows what the hell's going to happen to the dollar.

    Either I do this, leave it where it is to the ravages of the stock market, or pull it all out and re-invest in Chinese Yuan!

    The Euro as an alternative? Not sure about that one, and Sterling will soon be dead and swallowed by Europe (imho). Not to mention the UK's economy is as buggered as the US.

    Any thoughts?

    Cheers.

    I think my thinking would parallel your thinking if I were in your shoes at this point. I was lucky enough to cash out of all my equity mutual funds in January of 2008 and convert them all into PM's just as you propose to do. Were I in your position today, I would be considering doing just as you suggest, with the modification of putting some percentage of your cashed-out equities into gold as well, especially if you are in the UK and considering the VAT that one must pay for silver, but not gold. But as for anything equity-related, my feelings would be to drop them like a hot potato.

  3. #3
    Join Date
    Dec 2009
    Posts
    156

    Default

    Thanks for the reply, and that's what I'm thinking.

    Silver more so at the moment and it has more potential upswing (?), as gold's too high right now (but I do already have some).

    I don't have access to coins, so bullion is my only real option through BullionVault in London.

    My only fear is the majority of my investment would be with one company, and that makes me nervous (despite how secure they say they are)

  4. #4
    Join Date
    Jan 2009
    Posts
    936

    Default

    Quote Originally Posted by red snapper View Post
    Thanks for the reply, and that's what I'm thinking.

    Silver more so at the moment and it has more potential upswing (?), as gold's too high right now (but I do already have some).

    I don't have access to coins, so bullion is my only real option through BullionVault in London.

    My only fear is the majority of my investment would be with one company, and that makes me nervous (despite how secure they say they are)
    Secure? You mean you are going to buy silver that they are going to hold for you? If you don't take physical possession of your silver, you don't own it.

  5. #5
    Join Date
    Dec 2009
    Posts
    156

    Default

    It's vaulted bullion in an allocated account, and although it's not physically in my hands, I do own it and have a legal entitlement to it.

    You must have heard of them through on the gold market right?

  6. #6
    akak Guest

    Default

    Quote Originally Posted by red snapper View Post
    It's vaulted bullion in an allocated account, and although it's not physically in my hands, I do own it and have a legal entitlement to it.

    You must have heard of them through on the gold market right?
    Yes, we have heard of them certainly, Red Snapper, and I for one have no particular reason to doubt their integrity or honesty. However, many people believe that if one does not own precious metals in their physical possession, then all one really owns is a paper claim to metals, a second-hand possession as it were, which cannot substitute for holding metals for oneself in the event of a major currency crisis or financial collapse. In such an event, it is all but guaranteed that BullionVault, GoldisMoney, and the PM ETF's would have their metals confiscated or nationalized, leaving one holding a worthless paper claim --- much as the collapse of a bank a la the 1930's left the depositor with a pretty checkbook and not much else.

    This is not to argue against ever holding precious metals in such depositories, as I believe that doing so can have merit as part of a diversified precious metals portfolio, but it is also no substitute for what many here see as fundamental: a core holding in one's own possession.

  7. #7
    Join Date
    Dec 2009
    Posts
    156

    Default

    I'm with you there.

    Governmental seizure of accounts is a real concern. What do I have then? Nothing.

    I do agree that having physical possession in your hands is the only way to really own it.

    My current situation is that I have no access to buying the physical stuff, and as I live in a fairly transient country, even if I could, I would be wary travelling with kilos of silver.

    A vaulted account, for me for the moment, seems like the only way of getting in on the action, although I am aware there is a risk in the case of absolute financial armageddon.

    A tricky situation to be in, but if I stay optimistic that the financial market won't melt down imminently, but that inflation and dollar weakness will increase the price of silver and lower the value of my equities, I'm still not sure whether to cash in and stick it all in BullionVault.
    Last edited by red snapper; 4th December 2009 at 03:57.

  8. #8
    Join Date
    Dec 2009
    Posts
    156

    Default

    What are your views on Swiss vaults for keeping bullion? They are supposedly the last bastion of banking integrity right?

    BullionVault have a Swiss vault.

  9. #9
    Join Date
    May 2009
    Posts
    421

    Default

    Quote Originally Posted by red snapper View Post
    What are your views on Swiss vaults for keeping bullion? They are supposedly the last bastion of banking integrity right?

    BullionVault have a Swiss vault.
    Like you said Red Snapper, you are nervous about keeping all your bullion in one place. So, find a way to get gold rounds. You say gold coins are unavailable? I don't know UK law, but it seems you should be able to find some Austrian Philharmonic Gold coins somehow.. They are very compact. They are denominated in euros.
    Ebay?
    I am nervous about all your bullion being held with any private institution. Especially in the US or UK. Switzerland used to be the last bastion of banking integrity, then they sold out all their clients to the USGovt (UBS did). So Switz is the USGovt's bitch now. I would diversify who has your gold, and try to get a lot of it in your own hands.

  10. #10
    Join Date
    Dec 2009
    Posts
    156

    Default

    Ok guys, you have spooked me, but then, maybe that's a good thing.

    I'm kind of coming round to the idea of selling my equities portfolio (it'll be at a loss - but then what will it be worth in a few years anyway?) and buying coins.

    I think the next time I'm back in the UK I'll get some from London.

    Any recommendations for gold? I read the Swiss 20 Franc coin is a good buy, or a US Liberty Double Eagle as a numismatic coin (being the coin to go for?)

    If I buy silver in the UK, I'll get hit with VAT, but I can at least claim that back on the way out. Any recommendations for coins?

    Do any of you buy via insured delivery, or prefer to buy directly at the dealer? I would have thought the 2nd option the better (although the idea of walking out of the store with a pocket full of coins like that hardly thrills me!)

    Cheers.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •