Buy, Sell or Hold

They are very well thought out ramblings and everyone should pay attention.

 

Log in or Sign up to hide this ad.

Rono, and Cloudsweeper. I greatly appreciate your knowledge and wisdom throughout this forum.

 

Just because a person believes the price is somewhat high does not negate the reason they may have bought in the first place. I bought originally because of 1, believing silver was fundamentally undervalued, but have held it as a hedge to my other holding. Even if silver goes does its not a lot of my portfolio, but having it there does diminish my risk ratio.

The other thing you are not taking into account by solely concentrating on the PM price is the dollar value. Silver can stay all day at 20 Euros per ounce, but that does not mean it might go up dramatically in dollar terms. Having som PM holdings helps currency risk in a portfolio as well. I do not want to be just a millionaire if it takes $500 to buy a loaf of bread, right? This wouldn't be a "calamity", as many currency have dramatic revaluations, but I just protect some of my holdings against that. I also invest in foreign equities for the same reason. Never put everything just in one currency basket.

 

A rise in interest can have a negative impact on bullion or PM prices.
From what I have read, there will be a significant correction in gold and this is to be taken as a buy signal.
Silver will follow suit although not experience as broad of a swing. Within a few years we will all be saying why did'nt I buy more when the price was lower?
My answer is because I do not have any excess money to spend now. My weapon of personal protection for the coming storm ate up all my savings.
So hiho hiho it's off to work I go, it's fast it's fun I love my gun hiho hiho.

 

Thanks for the reply. Let me say that I was addressing people who are currently 1'rs. If people have changed from 1 to something else, they are now holding for some other reason so my question does not apply. I think this switch happens a lot. I'm trying to understand what the sell signal is for the type 1's but it is hard information to get. I think a lot of people who claim to be a 1'r are really closet 2'rs... I also think it is perfectly logical for people to be holding PM's at this time - I am.

BTW if we reach a level of price instability where a loaf of bread sells for $500 we will be in the middle of a full-on economic disaster! I do see inflation coming but I really do not picture an environment that dire.

 

Wow. Zeplyn. What exactly are you saying in your reply above? I'm confused. Seriously. I have been following your posts and replies to posts for some time now. I thought you supported silver investing. Now it "seems" like you have the attitude that all is lost and there is no hope for survival other than martial law and war and death. Notice I said "seems." Not trying to start a fight with you, just trying to figure out where you are "at". I feel I know so much about silver and numismatics in general, but there is so, so, so much more that I do not know or understand. Talk to me.

 

Tunisia, Egypt, and now Yemen are experiencing riots. What if say, Saudi Arabia, follows the same trend? Oil prices may fluctuate, and cause the price for manufacture and transportation of goods to climb in all sectors? I sure hope other countries wont follow suit, but I can't wait to see what country will be the fourth to revolt against its long standing royal family and/or dictatorship.

 

Hold your tangible assets, and swing trade futures contracts.

 

As stated above, there is so, so, so much I do not know. So what does "swing trade futures contracts" mean?

 

As for futures contracts:

http://en.wikipedia.org/wiki/Futures_contract

Swing trading is simply short term investing buying or selling with price swings. These trades are longer than a day(day trading) but shorter than longer term investment trading. My trades are nomally a few days to a couple of weeks.

 

Please do not look at it that way at all. What I am saying is that the powers to be are in process of manipulating the correction.
As stated before, when the Euro begins it's fall the inflationary times will descend upon us like locust from the skies.
Be prepared with purchases that are on the down side of the correction. Of recent, when silver went below $27 was a good time to add a little.

Be well prepared with silver and gold on the dips. Have a weapon to protect yourself and family. Store dry food water and ammo.
I have not changed my line of thinking at all. I am just saying there will be corrections before the storm and thats your opportunity to move in. Well thats how I see it and that is my game plan. I am sticking to my original thought processes.

 

Doomsday

As far as doomsday scenarios, it seems most people envision rampant inflation comparable to the Weimar Republic.

But for me the doomsday scenario is bit different. Here's an article in the Atlantic that more reflects my doomsday scenario:

http://www.theatlantic.com/magazine/archive/2011/01/the-rise-of-the-new-global-elite/8343/

A relevant quote:

"The U.S.-based CEO of one of the world’s largest hedge funds told me that his firm’s investment committee often discusses the question of who wins and who loses in today’s economy. In a recent internal debate, he said, one of his senior colleagues had argued that the hollowing-out of the American middle class didn’t really matter. “His point was that if the transformation of the world economy lifts four people in China and India out of poverty and into the middle class, and meanwhile means one American drops out of the middle class, that’s not such a bad trade,” the CEO recalled."

 

Inflationary times will descend upon whom? The US, Eurozone countries?

 

Hey, Thanks Zeplyn. Now I understand what you are saying. Thanks for the reply.

 

Jallengomez: Thank you for the explanation. Learned something today. Thanks again!

 

You're welcome!

 

Buy Sell hold I do all 3- I also have traded some

 

Along with my silver (multiple rolls), a small amount of gold, my Benelli M-2 I also have this knife that is pure gusto!
Planning for the worst is something no one really likes to do but it never really hurts to be prepared.

Whats in your survival pack other than silver, gold and guns?

http://www.coldsteel.com/trmashica.html

 

Survival pack.

 

Howdy folks,

I don't really see some sort of financial meltdown happening. Sure, it's a possibility we'll see hyper inflation, but I'd give it a 15-20% probability. I'd also give the same chance to them fixing the economy with their current policies and gov't. That leaves 60-70% chances we'll muddle along for another 10+ years in a sort of stagflation. We'll have significant inflation but not hyper. Unemployment will stay high until the baby boomers start dying (I'm a 62 yo boomer). Stock market will do well as long as Uncle Ben keeps injecting liquidity. JimRogers once said, give me a trillion dollars and I'll throw a great party too.

I don't even attempt to trade the bullion market. I've been long since '02 and ever pullback has been severe and over so quickly, it's almost impossible to avoid being whipsawed. [selling with the intention of buying back cheaper only to have the investment quickly reverse while you're sitting in cash and missing out on the gains]. Nopers, I'm fundamentally bullish on gold and even more so on silver, so I'm sitting tight on any reversals. I am shopping for some silver mining plays to hit when I'm sure this correction is over. It looks like it today, but we'll see. I want the market heading in the right direction before I add. But, for physical bullion, there's a great sale going on if you're buying.

As for the personal security/survivalist approach by those fearing the EOTWAWKI [end of the world as we know it]. Chances are very slim. BUT, the consequences to friends and family so dire should we have a meltdown that it's only prudent to have some safeguards and protections in place. It's your basic risk/reward matrix. A lotto ticket costs $1 so my risk is fixed at $1. The possible reward is millions. Good bet. How about the reward of that 3rd beer in the bar after work? Compared to the risk of getting pulled over? Not a good bet.

We'll the chances of an economic meltdown are very slim but it would be so nasty that it doesn't hurt to prepare a bit. A little land with a garden. No debt. Investments and wealth well diversified with a lot of 'real stuff'. Some gold and silver. I like an 870 Rem but everyone has their choice of home protection. Emergency funds. Etc. What many leave off their list is being involved in the community and with neighbors and friends. Shopping local farmers markets. Getting your butt back to school to sharpen your skills. Staying engaged and in touch. None of this is crazy and if we don't have a meltdown - none of it will hurt you.

peace,

rono