Grandpa who kept two 1 kg silver bars hidden away for his grandchildren for decades as their inheritance has become an unlikely warning as precious metal prices surged recently. Silver prices experienced their strongest run ever before suddenly collapsing on Sunday evening.
Coincidently, one Australian man wrote to Scott Pape for help after discovering that his grandpa had purchased two 1 kg bars back in 1987 for $701 each as investments for them both and has kept them hidden since 1987 in his parents’ house! “He had them hidden there until now – silver’s gone nuts!” he explained “He had them hidden there ever since 1987 but I only recently discovered them today when I noticed they had increased so dramatically! I just discovered them now – silver has gone nuts.”
He wondered whether to “cash out now” and invest the proceeds in stocks for long-term growth or keep his precious metal for its potential long-term gains.Pape described silver as being one of the “hottest trades in the world”, noting it had gained over 50 percent this month as well as being up 145 per cent last year! Pape pointed out that in 39 years Gramps silver bars have gone from $701 to around $10,200 — giving a compound return rate of 7.1% per annum, according to his newsletters.
Pape cautioned the man selling silver to pay capital gains tax and consider “outrageous” buy-sell spreads charged by dealers; you would lose an even larger chunk to margins. By contrast, had Gramps invested his $701 into an Australian shares index fund with dividend reinvestment enabled, it would now be worth around $20,200 today and would yield tax-paid dividends of approximately $800 annually which they could either spend or reinvest as additional earnings to increase wealth exponentially; I know what I would do!”
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Millions of Australians are anticipating receiving an inheritance, according to research conducted by Finder. Nearly two out of five Australians believe they will experience an inheritance when one of their loved ones passes, with 15% expecting an inheritance within one to five years; 23% in six to 10 years and 26 per cent expecting one at least 10 years away.
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According to Pape, one man should take his grandpa out for dinner to thank him for investing his savings into him and his sister “a lifetime ago”, keeping it safely tucked away for future use. Pape advised the man take his grandpa out to thank him for investing his savings over time!