60% of net worth invested in silver

Discussion in 'Economics' started by turkeyneck, May 12, 2011.

  1. Some smaller investors are holding on, too. Donna Badach, a 55-year-old retiree, started buying silver in 2003 at an average cost of $25 an ounce. She now has a cache of silver coins and bullion, which she says are stored in a "private depositary" and account for 60% of her net worth. She buys silver "for insurance purpose," because "it's so shaky to see what's going on all over the world."

    "I don't believe the correction will last long. Silver will hit $100 before the end of this year," says Ms. Badach, who had worked in the mortgage-banking industry in Hillsboro, Fla. "I have never felt so sure in my life about something."

    http://online.wsj.com/article/SB20001424052748703859304576307380172271272.html
     
  2. Larson

    Larson Guest

    Must be a typo. Silver was below 10 in 2003.
     
  3. They probably mean all the silver she has now has an average buying price of 25$ an ounce.
     
  4. Donna Badach = Peilthetraveler

    Sherlock Shortie Out :cool:
     
  5. A mortgage bubble MILF betting on silver to goto $100 to bail her out. The "If it only went to XYZ Dollars then I'm rich" script never gets old.
     
  6. Insane lack of diversification.
     
  7. It's all kind of stupid. People think precious metals are a hedge to inflation and world uncertainty, but in the last few years, it seems that they are a lot more correlated to equities. Being long gold and silver aren't defensive trades anymore. They are risk on trades.

    When this whole insanity ends and her coins are worth a lot less, she will blame some wall street analyst and perhaps the service that sold her the coins.
     
  8. They already crashed 30% and she says she is fine with it.
     
  9. What will happen after the second 30% crash (whenever that will happen). All bubbles burst and it's never "this time is different"
     
  10. to get an average cost of 25$ she must have bough the vast majority of her silver in the last 6 weeks.... buying starting in 2003...
     
    #10     May 12, 2011