Comments on: Should You Invest in Silver? http://thinktankinvesting.com/should-you-invest-in-silver/ Investment News and Resources Wed, 28 Jul 2010 09:35:30 +0000 hourly 1 http://wordpress.org/?v=3.0 By: admin http://thinktankinvesting.com/should-you-invest-in-silver/comment-page-1/#comment-80 admin Sat, 11 Oct 2008 21:07:44 +0000 http://thinktankinvesting.com/?p=235#comment-80 Sorry for the delay in my response...it was a Friday night. What are ETFs? I am ignorant about silver trading, I just have bullion. Any addtl insight on this topic is appreciated. By the way, you have a great blog on this subject. Can't wait to have a little time to dig into some of the content. ( http://blog.goldassets.co.uk/ ) Also, on another note. What are your thoughts on the conspiracy theories I touched on? Tbird Sorry for the delay in my response…it was a Friday night.
What are ETFs? I am ignorant about silver trading, I just have bullion. Any addtl insight on this topic is appreciated.

By the way, you have a great blog on this subject. Can’t wait to have a little time to dig into some of the content. ( http://blog.goldassets.co.uk/ )

Also, on another note. What are your thoughts on the conspiracy theories I touched on?
Tbird

]]> By: edzillion http://thinktankinvesting.com/should-you-invest-in-silver/comment-page-1/#comment-79 edzillion Sat, 11 Oct 2008 13:13:02 +0000 http://thinktankinvesting.com/?p=235#comment-79 IMO there are very strong reasons to be bullish about Silver. Especially after the 'demand destruction' phase of the financial crisis passes and the inflationary stage hits. There is a (very comprehensive) article here about Silver's fundamentals: <a href="http://blog.goldassets.co.uk/2008/05/28/why-the-silver-price-will-continue-to-soar/" rel="nofollow">http://blog.goldassets.co.uk/2008/05/28/why-the-silver-price-will-continue-to-soar</a> In terms of investing in Silver, you have a range of options. ETFs are a popular method but I don't think that people realise the counterparty risk that is involved. Recently when AIG was in trouble all the commodity-based ETFs (or ETCs) trading was suspended. So in a real financial panic you would lose one of the main reasons that gold/silver is popular: If you own bullion, there is zero counterparty risk, its yours and short of govt banning gold/silver ownership it will stay that way. At the moment there is a massive shortage in the physichal market, and premiums are very high (up to 40% on some coins such as silver dollars) - either wait for the price to rise so that some sellers can enter the market, or perhaps <a href="http://www.goldassets.co.uk/perth_mint_certificate_programme.php" rel="nofollow">the perth mint certificate programme</a> which a very efficient way to get into Silver, since there are minimal storage costs but you also own physichal bullion so the counterparty risk is minimised (though not eradicated, you would have to take personal possesion for that!) IMO there are very strong reasons to be bullish about Silver. Especially after the ‘demand destruction’ phase of the financial crisis passes and the inflationary stage hits.
There is a (very comprehensive) article here about Silver’s fundamentals:

http://blog.goldassets.co.uk/2008/05/28/why-the-silver-price-will-continue-to-soar

In terms of investing in Silver, you have a range of options. ETFs are a popular method but I don’t think that people realise the counterparty risk that is involved. Recently when AIG was in trouble all the commodity-based ETFs (or ETCs) trading was suspended.
So in a real financial panic you would lose one of the main reasons that gold/silver is popular: If you own bullion, there is zero counterparty risk, its yours and short of govt banning gold/silver ownership it will stay that way.

At the moment there is a massive shortage in the physichal market, and premiums are very high (up to 40% on some coins such as silver dollars) – either wait for the price to rise so that some sellers can enter the market, or perhaps the perth mint certificate programme which a very efficient way to get into Silver, since there are minimal storage costs but you also own physichal bullion so the counterparty risk is minimised (though not eradicated, you would have to take personal possesion for that!)

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