Visualizing Silver As An Investment

Tyler Durden's picture




 

Silver is like gold in many ways; both are precious metals with long histories as currencies. They are malleable, lustrous, ductile, resilient, and rare. However, as Visual Capitalist illustrates in this spectacular infographic, silver investors should be aware of the three main differences between silver and gold. From silver's relative volatility and correlation to industrial demand, track record, diversification benefits, and the three ways to get exposure to silver, this colossal image provides everything you need to know in one place.

Click image for massive (legible version).

 

Source: Visual Capitalist

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Sun, 01/20/2013 - 19:33 | 3171358 Cathartes Aura
Cathartes Aura's picture

psssst: grrrls play guitars too, Aurora's link'd, & one of my current faves.

oh noooooes, we've lost hold of the reins!!!

proof?

Jack White covers Dolly Parton's Jolene, brilliantly.

Sat, 01/19/2013 - 23:32 | 3170057 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Put it this way: the largest growth sector in the toy industry, apart from lego, last year was males aged 18 - 30 buying "My Little Pony" merchandise.

You have no idea how fucked your culture is :)

Well, yeah, that's pretty fuckin' fucked. No other way to put it...

Sat, 01/19/2013 - 23:36 | 3170064 Canadian Dirtlump
Canadian Dirtlump's picture

Speaking of bronies, you come off as a major clopper  - one who masturbates to my little pony in between feeding their ego ( for legitimate reasons or otherwise ) by playing an intellectual goliath arguing with strangers on the Internet.

Sat, 01/19/2013 - 23:59 | 3170075 Aurora Ex Machina
Aurora Ex Machina's picture

If I wanted to masturbate a horse, I'm well off enough and connected enough to do it physically. But thanks for that rather... damp attempt at trolling.

Oh wait: Did I hear someone stating that arguing with strangers on the internet was "wanky" while reading it on the internet?

 

Oh, shit. /chan/ irony cannons engaged! We've got a fucking woman on the internet with us!

 

And, of course: Tits, or GTFO. [newfag]

 

 

p.s. Your avatar is about 5 years out of date; go run and cry to the SA forums, or I'll set SRS on you.

Sun, 01/20/2013 - 00:32 | 3170131 Cathartes Aura
Cathartes Aura's picture

pssh, everyone knows there are no women on the internets!!

 

just G.I.R.Ls (guys in real life).

 

((doing a helluva job keeping the thread alive on a saturday night there A, heheh. . . very, cheeky ^^))

Sun, 01/20/2013 - 02:53 | 3170222 Cosimo de Medici
Cosimo de Medici's picture

Bronies?  Damn, yet one more thing about which I had no idea and cannot comprehend.  I'm so...out of touch.  For example, I don't understand the need for Viagra, but find it somewhat amusing that the top US cities for prescribing it are Tulsa, Oklahoma City, Fort Worth, Lubbock and Arlington (TX not VA).  And the lowest?  Boston.  Apparently Tex can fill a hat, but can't climb into the saddle unassisted, while all the liberals at Hah-vard can cowboy up as needed.  Ivy League, baby.  Oh, then there's the why of Adam Sandler being famous.  Never understood.  And buying pre-ripped bluejeans.  And tattoos, as if any of us will be proud of the skull and crossbones on our butt when age makes it droop low enough to sweep the kitchen floor.  And why people worship guns, rather than just seeing them as a sometimes useful tool.  I mean, do we prattle endlessly about our routers and awls?  Even sushi.  Let's be honest...it doesn't really taste that good, and with the risk of bacteria that comes along with it, it seems...overpriced.  I believe it's an affectation, at least in the West.  Prometheus paid a dear price, by the way, and we owe it to him to use what he sacrificed so much to give us.  I know Japan very well.  They sell used schoolgirl panties out of vending machines, and men read Manga on the subway that shows virile salarymen schtupping yet more schoolgirls, but thankfully we did not feel it necessary to copy those. Why sushi?  Send it back!  I ordered medium rare!  Oh yea, and I honestly believe nobody in the world really finds futbol, or soccer, the least bit interesting, but the world collectively has been taking the piss out of Americans for years.

Okay, so all that's off topic, but after some seven hundred thousand articles about silver, is there really anything that hasn't already been said?

Sun, 01/20/2013 - 22:48 | 3171750 Almost Solvent
Almost Solvent's picture

When the comet slams into our terra, nothing will matter except that it only ends once. 

 

Everything else is progress. 

Sun, 01/20/2013 - 07:11 | 3170326 WTFx10
WTFx10's picture

In the USSA they are unable to register all guns, but they KNOW exactly who purchases "My Little Pony" merchandise?

If your Cuntry knows this then it is a bigger police state than ours.

Unless there is photo proof of those males why would you believe it?

How do they separate the fathers buying for their daughters?

 

 

Sun, 01/20/2013 - 19:42 | 3171377 Cathartes Aura
Cathartes Aura's picture
Military Bronies React to Teens React To My Little Pony

no really, watch it.  there's a whole world out there you've yet to sample.

and more.

Sun, 01/20/2013 - 08:00 | 3170355 MeelionDollerBogus
MeelionDollerBogus's picture

What you're selling is snake-oil.

Individually we can, and are, trading commodities. No syndicate required. When getting bigger we can work as communities & that's fine - it's just us neighbours keeping out the bad-folk.

Sat, 01/19/2013 - 21:21 | 3169842 Magnum
Magnum's picture

Why do you want people to believe 1 oz coins are just too insignificant to invest in?  

Anyone can go buy 200 one oz silver coins and enjoy strong profit without the syndicate nonsense you speak of.  Two or three years ago Apmex was selling silver ounces for $22 and that included shipping to your door.  The same silver oz now can be taken into any dealer and sold for about $32.  Today's purchase of silver coins will likely generate at least the same rate of return two years from now.

I know an older couple who had the wherewithall to accumulate silver coins when they were younger.  You can see the joy in their eyes when they walk into the neighborhood coin shop and exhange one silver dollar for paper money, then go have a heck of a lunch.  

Sat, 01/19/2013 - 22:21 | 3169941 ptolemy_newit
ptolemy_newit's picture

where do they live?

if the world doesnt crash then the silver price will be stable to lower?

if it does crash do you think your family is safe the day after you start sellling silver / gold?

Sat, 01/19/2013 - 22:57 | 3170003 Room 101
Room 101's picture

If the world crashes, your family isn't safe if they're found in possession of a baloney sandwich.  

Sun, 01/20/2013 - 07:54 | 3170350 MeelionDollerBogus
MeelionDollerBogus's picture

Already unsafe - in America you have EBT's but in Canada while we have equal healthcare we have sparse soup-kitchens, food-banks with severe limits & shrinking donations, welfare that won't pay for rent+food (not even rent alone many times, in the most dangerous + cheap parts of town) and no EBT. That's right, no such thing as food-stamps.

So you know what?

"rich" is all relative - a fiver or a sandwich the other guy wants, and you're a target.

Now. Today. Forget "collapse tomorrow"

Sun, 01/20/2013 - 08:06 | 3170363 lakecity55
lakecity55's picture

I collected only for numismatic reasons and Trade for Other Goods.

Sat, 01/19/2013 - 21:31 | 3169853 joego1
joego1's picture

I think you miss the point. Most people are not holding silver as an investment but a store of value for after the economic collapse. If I trusted the system at this point of the game I would be fully invested in it. There is simply too much evidence the system is corrupt and rigged. The main point is the market will not exist in its current form in the next ten years.

Sat, 01/19/2013 - 21:39 | 3169867 Sean7k
Sean7k's picture

These are the only two alternatives? What arrogance.

Your assumptions show a lack of imagination.

No black markets? No community organizations around simple exchange? No use of silver and/or gold as a reserve mechanism for a new currency system? 

Capitalism wasn't formed, it is a process, a method of encouraging production through the pursuit of profit. 

I have yet to meet anyone that is 100% correct and you have failed miserably. 

No one here is forcing you to buy silver. They have opinions and the future will be borne out. Deal with it, little man.

 

Sun, 01/20/2013 - 08:05 | 3170359 lakecity55
lakecity55's picture

A lot of gun show guys will give you a better trade for silver than paying fiat.

I got a suppressor at 12% off using Ag of which I used to have a lot.

The suppressor and silver were stolen recently.

Sun, 01/20/2013 - 02:01 | 3170206 IridiumRebel
IridiumRebel's picture

Your post was about as cohesive as a set of thighs on a lard ass.

Sun, 01/20/2013 - 07:53 | 3170347 MeelionDollerBogus
MeelionDollerBogus's picture

Nothing honest about it. I'm already bartering silver by the coin for food & that's what it's for.

Sun, 01/20/2013 - 12:12 | 3170564 Manipuflation
Manipuflation's picture

Wow!  What vitriol Aurora.  I have to ask, what the fuck is the matter with you?  Hey, you don't see me posting on AAPL or ES threads do you?  What the fuck is it any of your business where we choose to invest our capital?  You know, after 15 years on the Interweb and getting chased from innumerable financial boards, I am really starting get sick and tired of your ilk.  Are you in the employ of JP Morgan or what?  Why does it bother you so goddamned much that some of us like silver or any other PM's for that matter?  What, we should all start daytrading e-mini's so we can get fucking algo'd into poverty?  Is that what you are suggesting we should be doing with our capital?  If so, then FUCK YOU!

I have an idea; how about you mind your own fucking business and we will mind ours.  Is that reasonable?  You and your ilk are NOT taking our PM's or our guns by diktat or any other way.  Got it?  Is that sparkling clear to you yet?  And just so you know, one day you will end up working for one of us.

Recall what Tyler Durden said in Fight Club:

  http://www.youtube.com/watch?v=wEdgzndKuog

Sat, 01/19/2013 - 21:42 | 3169870 A Humble Man
A Humble Man's picture

I hope they keep the price suppressed for a few more years so I can accumulate more......

I dont have enough yet.

Sat, 01/19/2013 - 21:59 | 3169899 Dr. Sandi
Dr. Sandi's picture

Buy silver, don't buy silver. Run with scissors, don't run with scissors. I don't give half a rat's ass what other people do, or their rationalizations for their choices. They get to enjoy the results for themselves.

I love the shiny, jingly stuff and will keep buying silver whenever clumps of cash find their way into my hands. Silver has done quite well by me so far just in the feeling of security it provides to have quick access to an increasingly valuable asset.

And even though it has come in stits and farts, I can trade it in for about 3 times as many bogusbux as I spent on it.

Yeah, I've been doing it for a few years now. I'm happy with the decision and my family's eager support. Each of us has bought at least a few hundred ounces for the 'fund.' It takes time to acquire and it takes determination to hold onto it.

If one of us finds out we need a new hip or a couple of metal knees, we can do it with the help of our silvery friends. They keep going up in value while our meat depreciates.

Sat, 01/19/2013 - 22:03 | 3169911 Insideher Trading
Insideher Trading's picture

In terms of electrical conductivity silver is the creme de la creme.

However, unlike gold, silver tends to oxidize in oxygen rich environment and is rigid. 

A better and common alternative is an alloy of niobium and tin.

With electricity being the one thing that separates us from the 3rd world, neither gold/silver are worthy.

Sat, 01/19/2013 - 22:11 | 3169923 espirit
espirit's picture

Tin is good. It makes my boolits hard.

Sun, 01/20/2013 - 07:51 | 3170346 MeelionDollerBogus
MeelionDollerBogus's picture

Graphene trumps it all.

Sun, 01/20/2013 - 07:56 | 3170353 jmcadg
jmcadg's picture

In about 20 years maybe.

Wed, 01/23/2013 - 22:37 | 3181591 MeelionDollerBogus
MeelionDollerBogus's picture

We're pretty much there already. It's just a question of scaling up production of nanowires & pore-filters and suddenly purification of water is bazillions of times cheaper & faster than ever before. But why settle for bazillions when you can have Meelions?

Silver will remain useful but easily inside of 5 years graphene will displace that. Same for electronics. It's REALLY not hard to make sheets of graphene which is why it won't be hard to make tubes either. One of these days someone's gonna get tired of the nonsense that's failed so far & probably layer it onto something else that just bends under a charge or thermal change & snap - you've got a series of tubes and you're done.

Sat, 01/19/2013 - 22:06 | 3169914 zerotohero
zerotohero's picture

I was downtown today going into different shops watching what peeps were buying - expensive jackets, shoes and tourist crap (its a tourism mecca here). I went into a shop in China town that sells tools, jewellery, native art and collectibles - I go here once in awhile to buy gold - today picked up 2 quarter ounce maples - thats what I call shopping - bought something nice and shiny and felt good about  it.

Sun, 01/20/2013 - 03:15 | 3170249 Dr. Sandi
Dr. Sandi's picture

'Peep' show eh? I love those.

Sat, 01/19/2013 - 22:09 | 3169919 Atomizer
Atomizer's picture

I just finalized my green algae recipe.  Green investment funds are working with me to become listed on NASQ. I’m so excited, my ticker will be DKWD. We have so many revenue streams to pick from. My guys are telling me the IPO is going to hit 1 trillion dollars at opening day.

We have Oprah pimping the algae pill & liquid weight loss program. Michelle will also be featuring our exclusive WH algae hair straightener.  This special blend of algae will take any brillo hairdo and turn it into straight silky hair. Our special formula will keep your umbrella at home. Never worry about high humidity or a sudden downpour again.

Sat, 01/19/2013 - 22:13 | 3169927 espirit
espirit's picture

Will it double as a bio-fuel? Could be on to something there.

Sat, 01/19/2013 - 22:23 | 3169944 Atomizer
Atomizer's picture

AlgaeWay™ will save the day. New Infomercial TV ad fill in coming your way..

Sat, 01/19/2013 - 22:31 | 3169962 espirit
espirit's picture

I like the idea of "lizard lady" up in flames... or with gas.

Hint: The politically correct term is "nappy".

Sun, 01/20/2013 - 11:03 | 3170497 Atomizer
Atomizer's picture

Hint: The politically correct term is "nappy".

That's what Don Imus thought as well.

 

Sat, 01/19/2013 - 22:23 | 3169929 Cabreado
Cabreado's picture

I just read it...

There are people here who predict silver at $100+ in the next year or so.

There are the same people here who suggest that silver will rise towards the moon when "society collapses."

So then, there are predictions here of society collapsing in the next year or so....

 

Where are the predictions that, in admission of manipulation (control) of silver now,

manipulation (control) of silver will become Less, on our current trajectory -- to support their guesswork at silver price?

Sat, 01/19/2013 - 22:23 | 3169948 icanhasbailout
icanhasbailout's picture

Visualizing silver as a cat: http://www.youtube.com/watch?v=GN6za4hyELg

Sat, 01/19/2013 - 22:24 | 3169952 Dr. Sandi
Dr. Sandi's picture

Gee, I hope society collapses this year so I can have silver that no money can afford.

Sat, 01/19/2013 - 22:42 | 3169979 hairball48
hairball48's picture

Since I'm poor, I buy "junk silver" as well as some gold. I'm confident that when the dollar and the other fiat currencies collapse, silver and gold will once again, be used as real money for trade amongst us hoi polloi :)

Sat, 01/19/2013 - 22:58 | 3170004 alfbell
alfbell's picture

Thanks for the few responses. Improving my understanding of the whole PM viewpoint.

Re: "fanatics". I apologize for that. What I was really referring to was the incessant, short but sweet, finality of... "GOLD BITCHEZ!!!" that seems to emanate from the mouths of so many on this blog.

Hey Aurora Ex Machina! Maybe you should change your name to Arroganta Ex Nice Guy or some such. Lighten up guy. We're all friends here. We're here to learn and teach. No need to be rude and over-bearing (obviously it worked for you at some point in the past but it ain't working now hotshot). Try a little honey instead of so much vinegar and you'll increase the level of communication and edification... if that is in fact what your purpose is.

Sun, 01/20/2013 - 12:32 | 3170596 Manipuflation
Manipuflation's picture

Hi alfbell.  Thank you for your post.  I think you are spot on.  I had to read further down the thread to see what got you pissed off.  When I found what Aurora said it really pissed me off too so I had to get out my light sabre and go Gagnam Jedi style.  Sorry.  I do enjoy honey more than vinegar but that Festivus pole that is Aurora Ex Machina needed some basic lighting.  I do realize I missed this edition of fight club but fights will go on as long as they have to.

"A deus ex machina is generally deemed undesirable in writing and often implies a lack of creativity on the part of the author. The reasons for this are that it does not pay due regard to the story's internal logic"

http://en.wikipedia.org/wiki/Deus_ex_machina

 

 

Sat, 01/19/2013 - 23:10 | 3170021 mt paul
mt paul's picture

don't really care about the price of silver any more....

all that concerns me lately

are those heavy little packages the fed ex girl 

delivers most mornings .

 more boat ballast..

 

long silver

nov 2008

Sat, 01/19/2013 - 23:24 | 3170048 H E D G E H O G
H E D G E H O G's picture

i've found that pre '64 silver US coinage is by far the way to go(for me anyway). It's 90% silver, it's legal tender when the shit hits the fan, it has intrinsic value, ie. 1 1916D mercury dime can fetch you hundreds of dollars, they are easy to store in rolls and/or tubes, collectible, and always appreciate in value. Two mercury dimes could by you a gallon of gas back in the fifties. Two mercury dimes can buy you a gallon of gas today, and you'll get change. Pawn shops are a great place to buy the dip when silver goes down, or at least the ones I hit on. Ebay is another place if you watch for the "desporados" selling. Apmex has a great selection but the premiums are a little steep. Love Gold, but silver is easier on the ole wallet. Invest in a safe too, it's worth the peace of mind, just like my guns.

Sat, 01/19/2013 - 23:49 | 3170087 ShrNfr
ShrNfr's picture

Engaging in numismatic stuff can be fun, but is hardly a real play on the metal value. There are quarter eagles out there that go for multiple thousands of dollars and have a melt value of all of $200 at the moment. Nothing against them, but they are not a bullion play. Silver dollars have a melt of $24.66 at the moment. You would pay $30.74 today for culls from Provident. Get up into the higher grades and the price goes a lot higher. Get into graded stuff by PCGS and you are talking double+ the melt value. For the unwashed who are not coin dealers, PCGS costs $20 bucks a coin at the lowest end + postage to and from. Nothing against coin collecting, nothing against silver coins, but silver coins for bullion are not the same as silver coins for collecting. Same for gold coins. Again, all of the above can be an option. Just make sure you understand what you picked and why you picked it. If I had an 1841 quarter eagle in any grade, the price would be totally insensitive to the price of gold. If I had a 1851 quarter eagle, the price would be heavily governed by the cost of gold in the lower grades, and modestly so in the higher grades.

Sun, 01/20/2013 - 00:51 | 3170152 hairball48
hairball48's picture

I don't buy numismatic silver. Just the plain old "junk silver" 90% halves, quarters, dimes. I buy at a local coin shop in very small lots compared to what most of you guys buy. The price is based on "spot" at the moment of sale. Premium over spot is very small <2% last time I bought just before christmas when it was at $30.04/oz

Sun, 01/20/2013 - 02:03 | 3170209 moroots
moroots's picture

Just bought some junk quarters today for $5.77/each which I thought was a great price. Unfortunately my boat sank on the way home and all the coins were lost.

Sun, 01/20/2013 - 09:51 | 3170442 Winston of Oceania
Winston of Oceania's picture

You know the exact same thing happened to ALL my silver and when my guns and ammo mounted a daring rescue attempt they too sadly were lost...

Sun, 01/20/2013 - 11:19 | 3170511 Manipuflation
Manipuflation's picture

"Engaging in numismatic stuff can be fun, but is hardly a real play on the metal value."

 

It's a play on scarcity.  Numismatics is also a monetary educational experience.  It leads one to buy the Krause publications which then leads one to start reading and wondering what the fuck happened to this or that currency.  The answer is usually the same:  The central bank of xyz fucking ruined the economy and stole the wealth of the citizens by switching to paper and printing.  For those that care to observe the finer details, you can really see that shit paper printing accelerated in the 1960's all over the world. 

Numismatics is the study of the monetary history of the world.  You can make plays on low mintages that are undervalued if you so choose.  Numismatists also tend to be bullion buyers as well and also form relationships with other numismatists thereby creating a liquid market that is invisable to most people.  To borrow from LC55's succint statement, I have never met a numismatist who is a "low info voter".

Maybe today should be "coin appreciation day" for my children.  Again.

 

http://www.krausebooks.com/coins-papermoney

Sat, 01/19/2013 - 23:34 | 3170060 ShrNfr
ShrNfr's picture

Silver used to be inelastic supply. inelastic demand. Most silver is "mined" as a byproduct of copper and not mined as silver per se. Recovered silver is recovered silver. A lot less of it now that silver halide photography has shit the bed. Inelastic demand is now more elastic with silver halide film gone. The last heavy users were xrays and now those are totally digital almost everywhere. The property of silver that is exploited is its high conductivity even when oxydized. For that purpose it is inelastic. It is elastic for ornimentation such as silverware, jewelry, etc. The only coins that are made now are the ornimental "medals" struck by the mint. Personally, I like silver, but that is just me. Lower cost of entry, markup is less. More to store for equivalent value over gold and pt. Perhaps all of the above is a good way to play the game.

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