Gyroscopic Investing

Posted: **Sun Oct 23, 2016 12:48 pm**

I'm thinking about buying some 1oz silver coins, although not as an investment.
I want to give them out to the kiddies as part of a stocking stuffer this Christmas.

I am curious, though. Do you think silver will keep up with inflation over the next 10, 20, 30, 40 years? I'm bound to keep some for myself, if only for fondling them while lying in the fetal position on bad days.

Although I'm not explicitly asking about *past* performance, feel free to post about that if you like. Just trying to foment some conversation.

Posted: **Sun Oct 23, 2016 8:45 pm**

I find it interesting that silver is used for solar panels. What a nice gift.

Posted: **Sun Oct 23, 2016 8:52 pm**

Maybe 1/10th ounce of gold is better? Silver just doesn't have the same kind of romance.

Posted: **Mon Oct 24, 2016 8:18 am**

Second the vote for small gold coins instead of silver. What a great Christmas gift. Are the kids old enough to appreciate it?

Silver is an industrial metal, not a monetary one. Lots of uses besides solar panels. I would imagine that a scenario with high inflation and reduced industrial output, it would lose. In the 1970s, it didn't track inflation as well as gold:

http://www.silverinstitute.org/site/sil ... 1971-1978/

Posted: **Mon Oct 24, 2016 8:39 am**

They range in age from about 9-16.

I appreciate all the suggestions for fractional gold ounces, but I'm set on the silver philarmonics. Probably the same horrible markup, right?

If I wanted to invest in their future, I'd buy a savings bond or contribute to a college fund or something. This is just something pretty. And, since I've never bought silver before, I'm suddenly curious about its performance. (Silver sucks, though, right? It's not even a part of portfolio charts).

Posted: **Mon Oct 24, 2016 12:14 pm**

So you know very little about silver and yet you've settled on it? That doesn't make too much rational sense. Do you have like silver Chinese Panda coins in mind or something? That would be a cool gift. I would encourage you to get something cute like that otherwise the kids aren't gonna be too impressed.

Silver got demonetized back in the very early 1900's but wasn't quite out of the money supply until the mid 60's. It was the poor man's everyday use gold and it was a lot more volatile than gold. Nowadays it is largely an industrial metal as Sophie said.

** Note to self: See how gold and silver did together when risk normalized.

Posted: **Mon Oct 24, 2016 12:20 pm**

MachineGhost wrote:So you know very little about silver and yet you've settled on it?

Think of it this way. I am buying a few teddy bears for my nieces. I really don't care how they fare as an investment, but I know they will tickle the girls' collective fancy. Just out of curiosity, though, I have heard that some people buy and hold teddy bears. Do you think they will beat inflation?

I have *never* considered teddy bears to be a good investment. By the time I discovered the PP, Harry Browne had already sold his teddy bears and removed them from the portfolio mix. (At the top, although Harry admitted it was luck. Or maybe he was being modest, but I don't expect to duplicate his timing).

So while I'm curious about how people think silver will fare in the future, this is completely independent of my reason for buying a few.

No, MG, not pandas. Austrian Philharmonics, as mentioned above.

Posted: **Mon Oct 24, 2016 12:27 pm**

dualstow wrote:So while I'm curious about how people think silver will fare in the future, this is completely independent of my reason for buying a few.

No, MG, not pandas. Austrian Philharmonics, as mentioned above.

I'm bullish on silver so long as its in an uptrend because of solar panel usage. But not as a gold replacement.

Oh come on, you can do better than that! Those are pretty boring looking coins. Not cute teddy bear equivalent. At all. I'm trying to picture a bunch of girls squealing with delight at a philharmonic house instead of a panda. Just can't see it. Are you just too old and out of touch?

Posted: **Mon Oct 24, 2016 12:30 pm**

MachineGhost wrote:I'm bullish on silver so long as its in an uptrend because of solar panel usage. But not as a gold replacement.

Oh come on, you can do better than that! Those are pretty boring looking coins. Not cute teddy bear equivalent. At all. I'm trying to picture a bunch of girls squealing with delight at a Philharmonic house isntead of a panda. Can't see it.

Oh, they're gorgeous. When I give them cute stuff, it's not made of precious metals. It's made of fuzzier materials.
One has to diversify. ;-)

Thanks for your input. Yeah, it's a good conductor of electricity. The best in fact (I think).

Posted: **Mon Oct 24, 2016 12:31 pm**

dualstow wrote:Oh, they're gorgeous. When I give them cute stuff, it's not made of precious metals. It's made of fuzzier materials.
One has to diversify. ;-)

Well, it'll build character. Just don't expect them to be impressed or squeal or hug you.

And this is why I don't do gifting anymore.

Posted: **Mon Oct 24, 2016 12:34 pm**

Man your uncle must have had a hell of a time choosing gifts.

Posted: **Mon Oct 24, 2016 12:35 pm**

dualstow wrote:Man your uncle must have had a hell of a time choosing gifts.

I'm not tight with extended family, but it depends on which uncle. One gave money for a couple years then stopped. The other didn't put much effort into it (wife duty) before we decided to do away with gifting and just do donations to charity instead.

I do think money is the worst... no flavor, no character, no taste. I never liked being on the receieving end of gifts because of the fakeness involved in pretending you care. So no more holidays for me (I'm quitting Thanksgiving this year).

Bah humbug!

Posted: **Mon Oct 24, 2016 1:55 pm**

These are the coins that are made in Austria, correct Dualstow? They look cool! Plus, as a bonus for the kids, they have the word "Wiener" on them. Maybe hedge and buy them each a solar panel as well.

What I'd be concerned about giving kids cool coins is that they'd probably just rush onto the next present before I could lecture them on why they might be a good portfolio diversifier.

Posted: **Mon Oct 24, 2016 2:13 pm**

barrett wrote:These are the coins that are made in Austria, correct Dualstow?

Correcto. https://is.gd/nWehoB (see image at right)
It would be a boring world if we all had MG's high standards. Glad to see someone's down in the gutter with me.

They look cool! Plus, as a bonus for the kids, they have the word "Wiener" on them.

Speaking of which... They're mostly nieces, not nephews, but you never know.

Maybe hedge and buy them each a solar panel as well.

I believe they have those on their roof already. Early adopters.

What I'd be concerned about giving kids cool coins is that they'd probably just rush onto the next present before I could lecture them on why they might be a good portfolio diversifier.

My guess is that they care as much about investing as does Mrs Dualstow, which is to say, not at all.
I met Sophie once and she said that we need more female pp'ers. We do!

When I was a kid, my grandpa bought me a share of stock. Gave me the paper certificate.
These days, I wouldn't bother. And no more paper savings bonds.

I suppose it's up to their parents to get them into stocks.

Code: Select all

Edited to remove "I guess", which I used too many damn times.

Posted: **Mon Oct 24, 2016 2:16 pm**

MachineGhost wrote: So no more holidays for me (I'm quitting Thanksgiving this year).

Bah humbug!

Dude, lean protein.

Posted: **Tue Oct 25, 2016 8:27 am**

MG, say not so! Thanksgiving is the best. No gifts, no reason to rush off to church in the middle of the festivities, just a big meal that is very fun to cook.

Christmas, on the other hand, is a major PITA. If it weren't for the fact that I usually have hospital service around/during the holidays, I'd go someplace isolated and very far away.

Posted: **Tue Oct 25, 2016 10:16 am**

Funny story. I was out with some friends last night and one of them, a guy in his sixties, was getting ready to get rid of some proof coins (no silver or gold content). I asked him if he used to collect and he said that his dad used to give them as gifts. "Kind of a pain in the ass to deal with and {get rid of}", he said.

I sighed, told him about my plan for the silver coins for my nieces, and said, this is the future conversation that they're going to have with someone someday if I give them these coins.

Maybe I'll just buy them for myself, as I've been planning all along in the selfish back of my mind.

Posted: **Tue Oct 25, 2016 10:52 am**

Just give them Chinese Panda coins!!!

Posted: **Tue Oct 25, 2016 10:57 am**

MachineGhost wrote:Just give them Chinese Panda coins!!!

Well, I placed the order (Apmex). Whether or not they get any of my silver fiddles is up in the air.
But they will get some cute non-metal non-monetary gifts.

Posted: **Tue Oct 25, 2016 11:06 am**

dualstow wrote:
MachineGhost wrote:Just give them Chinese Panda coins!!!
Well, I placed the order (Apmex). Whether or not they get any of my silver fiddles is up in the air.
But they will get some cute non-metal non-monetary gifts.

How about both? Minimize the damage.

Posted: **Tue Oct 25, 2016 11:07 am**

They're good kids. We have a good time when we hang out, i.e. they're not adult-hating teenagers yet.

Posted: **Tue Oct 25, 2016 3:55 pm**

Dualstow,,

This might be a dumb question but I don't get why a coin that costs $29.50 has "100 Euro" on the back. Kinda like the American Eagles that say $50 on the back... only different.

On a related note, silver was up almost 1% today!

Posted: **Tue Oct 25, 2016 4:04 pm**

barrett wrote:Dualstow,,

This might be a dumb question but I don't get why a coin that costs $29.50 has "100 Euro" on the back. Kinda like the American Eagles that say $50 on the back... only different.

Yeah, it's weird. You should ignore the face value. It's funny, though: when I read that silver is legal tender in Utah or that the coins I bought can be used in Austria, I always wonder if they're used to buy chewing gum as I don't think the face value is more than €1.50. The 100 Euro coin is gold.

On a related note, silver was up almost 1% today!

I saw that. Since I was just buying a smaller amount, I didn't fret over it, but I certainly would have if I had been placing a sizable order. Reminds me of Microsoft stock escaping my limit order last week. I'm not going to chase it.

Posted: **Wed Oct 26, 2016 11:27 am**

dualstow wrote:They're good kids. We have a good time when we hang out, i.e. they're not adult-hating teenagers yet.

I still really like the idea of gifting them small gold coins. I gave a Kindle copy of the book "The Richest Man in Babylon" to my college-age niece, along with the offer to help her open a Roth IRA account. She was very enthusiastic. So you might be surprised at how well the budget & save message goes over.

And yes...need more women PPers!!!!

Posted: **Wed Oct 26, 2016 11:29 am**

College-aged, yes. :-) We'll see how it goes.
In the meantime, it was nice to be able to order online, i.e. to not have to use the phone, and then to drop a check in the mail. Dangerously easy, and might lead to future purchases. I have a blue box half a block from my front door.

I was always under the impression that online orders required a wire transfer & fee or a credit card and the expensive surcharge that comes with it. I'll report on delivery when it happens.

Gyroscopic Investing

Do you think silver will beat future inflation?

Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?

Re: Do you think silver will beat future inflation?