Silver as an asset for investment diversification

[Doll2233]

Just as all other coins in the crypto market depend on Bitcoin for their price increase, so does the price of gold, including silver, depend on it. For example, as long as the price of gold was low and stable, the price of silver did not increase much. But suddenly, due to the high price of gold, people's interest in silver is increasing a lot. This is because the price of silver is not yet very expensive. Due to which there is enough time to buy and hold a large amount of silver. So suddenly the price of silver also starts increasing. And the price of silver will also increase a lot in the future. So silver can be a choice for investment.

Silver is best asset for diversification and people are doing investment in silver for long term . Most of the people heard the voice of pump of silver And people bought at the low price and now they are rich because they invested at best time. People should research when to invest in the market because many people invested at the price of 110 $ per ounce and we saw decrease it price in a day and daily investors And traders were in loss but long term investor are always in profit because that is commodity which is high in demand in industries and most of the countries are buying for the Industrial use which is best for them. Individuals are buying for the investment purpose but governments are buying for the Industrial use and business persons are also buying that

[Dogedegen]

1. We are currently observing precisely this: after the risks of appointing the “wrong candidate” to the position of Fed chair disappeared, the dollar began to regain its value, and those who switched to gold, Bitcoin, and other assets during the dollar's decline are now actively taking profits, selling their “reserve assets” at high prices.

Who were the "wrong candidates"? What are you talking about regaining value, how did you measure that? Surely you are not just looking at the price performance of some metals or Bitcoin to determine that a currency has regained its value, because that is not how that works. You need to make a much more comprehensive evaluation to be able to claim that a currency has lost or regained value. The USD/EUR chart for example hit a low on January 27 for a monthly overview and since then has gained some value but it is insignificant. Maybe we see things differently here and I expect a more significant change to proclaim something like regaining its value.

2. Gold and silver, i.e., physical assets, always have consumption in the physical market (jewelry, technology, medicine, financial systems, etc.). Cryptocurrencies do not have such value, and let's be honest, they are largely speculative assets.

There is no reason to differentiation consumption in a physical market over the consumption in the digital market, it seems completely arbitrary. Demand is demand and utility is utility, you can't randomly assign more value to some utility over other because you think something is more useful. Also, don't compare shitcoins to Bitcoin in the same group. Bitcoin has an wide range of use cases, and many people derive a lot more utility from it than from any metal, currency or whatever else. If you are not using it in significant ways or don't derive utility from it, that doesn't make it so for others.

[DrBeer]

1. We are currently observing precisely this: after the risks of appointing the “wrong candidate” to the position of Fed chair disappeared, the dollar began to regain its value, and those who switched to gold, Bitcoin, and other assets during the dollar's decline are now actively taking profits, selling their “reserve assets” at high prices.

Who were the "wrong candidates"? What are you talking about regaining value, how did you measure that? Surely you are not just looking at the price performance of some metals or Bitcoin to determine that a currency has regained its value, because that is not how that works. You need to make a much more comprehensive evaluation to be able to claim that a currency has lost or regained value. The USD/EUR chart for example hit a low on January 27 for a monthly overview and since then has gained some value but it is insignificant. Maybe we see things differently here and I expect a more significant change to proclaim something like regaining its value.

2. Gold and silver, i.e., physical assets, always have consumption in the physical market (jewelry, technology, medicine, financial systems, etc.). Cryptocurrencies do not have such value, and let's be honest, they are largely speculative assets.

There is no reason to differentiation consumption in a physical market over the consumption in the digital market, it seems completely arbitrary. Demand is demand and utility is utility, you can't randomly assign more value to some utility over other because you think something is more useful. Also, don't compare shitcoins to Bitcoin in the same group. Bitcoin has an wide range of use cases, and many people derive a lot more utility from it than from any metal, currency or whatever else. If you are not using it in significant ways or don't derive utility from it, that doesn't make it so for others.

1. No issues—here is the Euro/Dollar chart for the month.

In my opinion, the trend is clear. Regarding the “wrong candidate,” let me explain: according to market estimates, the person Trump wanted to promote could have simply become a dull executor of Trump's will and effectively turned the FPS into a “lapdog.” There was a risk that Trump would implement his idea of devaluing the dollar.
2. This is solely your personal opinion and your view of the situation. I believe that physical demand, in the absence of supply, leads to an increase in the price of this resource; that's how the market works

[STT]

Its a good idea to recognize each asset has its own values, FIAT is fractional and of no fixed value though in theory deflation is possible there is a stated inflation target of 2% I believe and that's compounding forever into a dynamic which makes the population poorer.
  The rich dont hold cash in the majority, they hold assets with the debts and wages they pay in this cheap FIAT cash.  The arbitrage effect makes the rich richer and the poor poorer, it is not truly capitalism imho.

Commodities like silver and gold are widely and diversely distributed around the world in a fairly even pattern.  Platinum conversely is concentrated in certain countries, it cannot be currency because of these natural limitations though anything might be better then cash at times.

Crypto as an asset is not fractional reserve, its a known fixed figure if we are referring to Bitcoin.  Even the supply is harshly regulated with only demand swaying either way according to much speculation.  These factors do make it very different.  We can say there is a small consumption effect, some BTC is lost but Im not sure its a deciding factor usually.

They are all varying in their base composition which means each asset has to be handled differently, silver being used in industry makes it far more complicated usually so the demand is less consistent on top of it being more easily recoverable.

[Dogedegen]

1. No issues—here is the Euro/Dollar chart for the month.

In my opinion, the trend is clear. Regarding the “wrong candidate,” let me explain: according to market estimates, the person Trump wanted to promote could have simply become a dull executor of Trump's will and effectively turned the FPS into a “lapdog.” There was a risk that Trump would implement his idea of devaluing the dollar.

A short term chart does not show anything, the dollar continues to devalue as planned. It is actually a good thing and aligns with what they want to do in terms of economy and trade. It is weird to single out Trump again for doing something that is a normal strategy, and when some other country does the same you don't talk about it in such a negative way. The FED is already a lapdog, Powell is extremely partisan and biased. The only difference in these things is whose lapdog the FED is currently, that is what changes from time to time.

2. This is solely your personal opinion and your view of the situation. I believe that physical demand, in the absence of supply, leads to an increase in the price of this resource; that's how the market works

That is not what you wrote. You wrote that some arbitrarily picked demand is more valuable than other types of demand because you think so. That is false in any case and has nothing to do with how markets work, or supply and demand. I can even make a claim that certain types of instruments here are in more demand than any of the physical assets that you have given. Most of the consumption of those that you gave is not by choice, it is through secondary means. People are only consuming them as a side effect of what they are actually consuming. Nobody is buying a piece of technology because silver was used to construct it by choice. On the other hand, the demand for Bitcoin and for stablecoins is direct and real. Those that are speculating on it are not part of the consideration, speculators speculate on everything.  

Its a good idea to recognize each asset has its own values, FIAT is fractional and of no fixed value though in theory deflation is possible there is a stated inflation target of 2% I believe and that's compounding forever into a dynamic which makes the population poorer. The rich dont hold cash in the majority, they hold assets with the debts and wages they pay in this cheap FIAT cash.  The arbitrage effect makes the rich richer and the poor poorer, it is not truly capitalism imho.

I don't think that whether the primary monetary means is the current FIAT or not has anything to do whether a system is capitalistic or not. You can argue that it is actually what confirms it is capitalism, those with skill or with means are able to utilize their own choice to create advantages for themselves in the economy.

Crypto as an asset is not fractional reserve, its a known fixed figure if we are referring to Bitcoin.  Even the supply is harshly regulated with only demand swaying either way according to much speculation.  These factors do make it very different.  We can say there is a small consumption effect, some BTC is lost but Im not sure its a deciding factor usually.

Bitcoin is the only crypto with a fixed supply, all others are directly inflationary as in their own chain or they are inflationary because they keep releasing other altcoins. Also, we are unable to confirm that there is no fractional reserve. It is not possible to do fractional reserve on chain because 1 Bitcoin will always be 1 Bitcoin. But you can do fractional reserve stuff with platforms and ETFs and stuff like that. We can never be completely sure that some exchange or ETF is not creating paper Bitcoin and selling more to users than is available on the platform. This risk is very real today. With silver and gold it is much worse though, a lot of it is fake and it is impossible to run any kind of mass scale audits. At least on Bitcoin we can confirm the supply on the chain.

[Dreadboost]

I will actually prefer to invest in gold when it comes to diversification,
Even tho it might be expensive, you can always use DCA strategy for investment in gold as well too, DCA strategy allows you to invest even from $10 consistently in a space of time, and after a period of time your investments will grow significantly.

[fuguebtc]

I will actually prefer to invest in gold when it comes to diversification,
Even tho it might be expensive, you can always use DCA strategy for investment in gold as well too, DCA strategy allows you to invest even from $10 consistently in a space of time, and after a period of time your investments will grow significantly.

This will depend on each person's investment preferences. Gold would be a safer diversification option with lower returns, while silver would be riskier but also offer the potential for higher return.

Additionally, it appears you are referring to investing in digital gold rather than physical gold. I do not think we can purchase a specified amount of physical gold with $10. In my opinion, for assets like gold or silver, investing directly by buying physical asset is safer than investing in digital assets.

[Dogedegen]

I will actually prefer to invest in gold when it comes to diversification,
Even tho it might be expensive, you can always use DCA strategy for investment in gold as well too, DCA strategy allows you to invest even from $10 consistently in a space of time, and after a period of time your investments will grow significantly.

I don't think that if you invested $10 monthly into gold and back-test it that you would have significant investment growth. It is actually pretty mediocre as a investment, and it is not supposed to give you fantastic returns. Gold is supposed to be a safe haven compared to fiat, and as such it does do a pretty good job historically. But as an investment vehicle it has delivered very low returns over longer time periods. Let's take a look at an example of where gold was 20 years ago. In march of 2006 the price was around $550 which means that in 20 years it has done almost a return of 10x. Sounds pretty good if you don't dig deeper, but it is not good at all.

• $550 in 2006 is the same as $895 in 2026 using official numbers, so the real numbers are worse.
• This reduces the real return to 6x over 20 years.

If you did DCA investing you would have better numbers, but the overall numbers is not something that I could consider great. Bitcoin does better even within 1 cycle and even in recent high prices.

This will depend on each person's investment preferences. Gold would be a safer diversification option with lower returns, while silver would be riskier but also offer the potential for higher return.

Additionally, it appears you are referring to investing in digital gold rather than physical gold. I do not think we can purchase a specified amount of physical gold with $10. In my opinion, for assets like gold or silver, investing directly by buying physical asset is safer than investing in digital assets.

Silver price in march 2006 was about $12 and today it is $88, so the return compared to today is 7.3x without the inflation numbers. If you add the inflation stuff too then the return on silver is only 4.5x. So actually you get more risk and worse return than with gold. I don't know why people keep repeating that the returns on silver are better when the data does not confirm it unless I calculated wrong?