Basically, people who really know the true reason to buy silver is
NOT for investment purposes.
Definition of invest: to put (money) to use, by purchase or expenditure, in something offering potential profitable returns, as interest, income, or appreciation in value.
For me, I buy silver not to hope that it will bring me profit, but to hedge against inflation.
We hear people complaining this price increase, that price increase but salary didn't increase.
What we experience - inflation, is reducing our buying power.
Your RM100 today cannot buy you the same amount of things you could buy 5 years ago with the same amount of money.
So now, people buy silver to "peg" their money with commodities.
250g silver costs RM1201 now (using public gold price) which can buy you 100 Mcd Big Mac set (count as RM12/set for easy calculation)
5 years later, maybe the Big Mac set increase price to RM17. your RM1201 could only buy you only 70 sets. meaning the value of the same amount of money you have has decrease!!
but if you have 250g of silver at that time, the price would have increased 5 years later and you will still be able to buy 100 Mcd Big Mac set for the same amount of money you spent buying that 250g of silver.
Is it too confusing?
hahahaha!!!
anyways do ask if you have questions. we'll all try our best to help. hehe
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As suggested in your example of Big Mac(not a big fan of B. Mac though :S), the optimisitic of looking at is to have 100 of B. Mac. But we might get more than 100 of B. Mac, is this true?
gold increase 100USD in 4 days..silver still stuck at same place. perhaps ppl focusing and buying more gold instead of other PM such as silver?
That's true. Most people saw the gold rush and heading for it.
But one thing I found it interesting, value of USD is inverse with the price of silver at most of the time.