How low will silver and gold go?

I'm thinking we're bouncing off the bottom now. I could be wrong...

 

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I am thinking it might be time to pick up some more silver...

 

I'd like to see single digit spot prices, but, for my purposes (buy & hold as hard asset), this current price range is close enough for small purchases of world bullion coins I want. Picked up some '14 Somalia Elephants and some '14 Kookaburra Horse Privy. Also, a few '14 Koalas & '14 Pandas.

 

I think it's safe again, but I could be wrong. I think I will start to stick my toes in the water if I can find any silver for sale.

 

I have yet to purchase silver bullion. The only silver I have is what I found in circulation. With the recent price drops I am thinking about finally purchasing an ASE or Maple. But I think I might wait a bit longer just to see if silver drops below $19. Last night I saw it get as low as $19.06. Although it won't matter because ASE's are still costing more than $25 from Apmex and Provident Metals. Is there anywhere that sells them cheaper?

 

I used my birth year (1958) as a comparison...perhaps I should have mentioned that!

When kids ask me how old the earth is, I tell them "55 years old".

(It's all a matter of perspective)

 

I think it likes to be around $20, because it has been doing that for a year or two.

 

Silver is on a tear this morning. Over $20 already.

 

It's over $20 this morning and holding, hopefully...

It would be nice if it would stay over $20, but who knows?

 

$20/ounce can be said to be a very strong level of support. Sure, silver can drop below that, and can even plunge way below that, but like an inflatable ball under water it has a tendency to pop up over that level pretty quickly. This proves, against the naysayers in my view, that the Fed's policy of monetary easing has been inflationary, even as commodities generally have been underperforming recently.

It is also an indicator of the market's skepticism over tapering.

I believe the silver bears are correct that inflation has not been generally high, but asset bubbles appear to be forming in the areas of real estate, the stock market, fine art, cryptocurrencies, and, despite corrections, commodities. Furthermore, the costs of health care and college appear to be highly inflationary if not hyperinflationary.

There are strong deflationary trends in the developed world, though, as nations and people attempt to deleverage their debts. I'm glad I have my bullion and numismatic silver just in case!

 

I like your idea of it being like a beach ball being pushed under $20 and bouncing back. It seems like $20 is the price the market wants. Today we are down under $20, but we'll see if it bounces back.

 

Apparently, retail numbers came out positive, so the silver price drop today and strengthening of the dollar are based on the premise that the odds of tapering are up. If you listen to Peter Schiff and believe what he says, like I do, then you know the price drop is temporary. I personally would not short silver below the $20 level.

 

To recap, recent price action is based on sentiment regarding whether or not the Fed will taper. I will admit that I was wrong and Peter Schiff was right. The Fed will not taper any time soon, and if it does, it will quickly increase QE due to the market's reaction. The Fed is thus more likely to increase than decrease QE over the long term.

 

Be careful about reading Peter Schiff. He has predicted many wackly things that never came to pass. In my opinion he is nothing more than a broken clock that is right twice a day

 

I just bought about $20 face at 15x face value. I figure I am a contrarian today. It had a few nice things, like 2 standing liberty quarters, a barber dime and 4 walkers, so I'm happy enough with my purchase. My purchases have a tendency to drive the market down, so watch out below! Whenever I buy the price seems to dip.

 

Since your post it dropped $1

 

"I'm not buying either gold or silver...but if I had to buy one today, I'd buy silver because it certainly has gone down more than gold"- Jim Rogers

http://www.financialsense.com/contr...dollars-i-d-rather-buy-silver-says-jim-rogers

Another wonderful little pearl of wisdom from a PM guru. Seriously, I have some buggy whip stocks I can sell him, since they have gone down more than other stocks, so by his thinking they must be the best stock to own.

Honestly, I view pm as a longer term hold. My timeline is 30 years, so I do not sweat small moves today. Its unknowable how low it can go, the major decision to make is whether you feel today's price will be a good deal long term versus other investment choices. I don't think pm's total return will be great, but it makes sense TO ME as a contra asset as part of my total assets.

That is the only intelligent way to analyze pm IMHO. That, and don't listen to the pm or popular press regarding pm.

 

It is like buying anything else. Make up your mind of what you are willing to pay before starting your shopping. Look and just wait if necessary. Keep one eye out for sales and consider buying used. You may have to wait awhile, but sooner or later something will emerge from the crowd.

Have I ever bought silver at 30+? Sure, but not very much of it. A few ASEs of that year for future collector value (a bad choice as I can and have since bought several of the same medallions cheaper on Ebay with silver down 1/3) not much else. Better to wait. Now that it is around 20 my purchase interest is greater. Much of my life was spent with silver below $10, so at $20 my investments made back then have done nicely IMO. If it drops to $15 I will buy as much as I can as I doubt it will stay that low for more than a year or two. Will we ever see $40? Probably not in my life time, maybe in the life time of my yet unborn grandkids possibly. Buy silver because it is pretty. If that isn't why you are buying it, you should possibly research buying oil futures.

 

Well the Fed announced the tiny taper of 10 bil. From $85 bil of nonsense buying down to $75. It freaked the silver market out a bit, but stocks went wild. Who knows what tomorrow may bring?

 

Currently in the investing world, stocks are in, and precious metals are out. Eventually that will shift, but for now, that's the way things are. Best to accumulate when prices are low. And guess what, prices are low!