Pounce or stalk?

With the current pullback of silver to 34 dollars per ozt do you think its time to end my long saving period and buy some silver or do you. Think it will pull baxk even further? -Ryan

 

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I think it'll go back slightly below the $20/oz mark.

 

A near 5% swing in silver since Friday says buy to me, but I'm on the fence. I think it could probably drop a little more. I doubt much lower than 30 if at all, but you never know. I'm guessing that sub $1500 gold and sub $34 silver will bring out the buyers.

 

This is the pullback you have been waiting for. Everyone looks at the price every day and wishes they could buy just a little bit cheaper, but the world doesn't usually work that way. If your goal is to buy at the exact bottom, I don't think you will ever do it. If the goal is to buy at a good price, this is a good price. My personal opinion is that eventually silver prices will revert to something close to the total cost of production, which is something in the $20-$25 range [probably], but for now it is still a bull market and it looks like silver prices will go a lot higher before they go a lot lower.

No guarantees.

 

In my opinion the two best strategies for acquiring silver for the long term are:
1) Dollar cost average (don't worry about the price swings, just gradually buy over a period of time).
2) Buy when no one else wants it. Right now, there are still too many buyers paying big premiums.

 

Wow thanks for all the opinions guys. I....think....ill...BUY!!!another quwstion since you guys seem so knowledgable. Do you guys think that investing in junk silver coins is bad because when the dollar is worthless people will only accept bullion rounds that say silver on it? I know this sounds crazy but ive seen a few people who only invest in rounds and bars cuz they think that junk silver wont be an accepted form of silver when the time comes. Same with foreign bullion. Since i live in america, do you think buying canadian maples and grizzlys and timberwoles will bite me in the butt cuz people only want american vullion like silver eagles?

 

I always am a multitasker. I would combine silvr investing with coin collecting myself. Buy widely accepted form of bullion but it a collectible state you like. I am thinking any .999 bullion that you pay just silver value for, but buy different dates or types to make a set. I don't think ANY .999 would be turned away when it comes to selling. US junk coins are not bad in the US since everyone knows their silver rate. You are right foreign silver is usually discounted because refiners have to deal with doing the math on silver purity. However, if you buy them at a discount, then you can afford to take one when you sell, right?

As to timing, unless you KNOW silver will go up or down then buying a lot now could possibly be risky or a great deal. This is why I like buying a little at a time, DCA. I know others here hate this, and thats ok, but if you truly are worried it could go down, buying some over a period of time would lower that risk.

 

I'm a big fan of junk silver unless you can get bullion coins or bars close to melt (watch for sales).
Junk US silver coins will always be acceptable in the US because they were minted by a trusted source.

 

The Canadian coins are .9999 fine which is the only purity used in solar panels, and may eventually be in higher demand than .999 fine. ASE's are .9993. Timberwolves and Grizzlies each only had 1 million minted, and are part of a series so I think they will be more desirable. Neither will have the name recognition of an ASE in the states, but people should accept them more readily than a no name .999 fine round, and I did just read in another thread that someone was having a hard time selling their junk silver. I like to have a variety of silver, but I prefer bullion. Junk silver is for my small change, not the bulk of my stash.

 

I have been thinking this same strategy, should I pounce or stalk for a few more days... But then the issue I have is that I want to purchase ASEs, but the mark up on them are so great. Coin Shops around here at charging up to $5 per ASE. Online shops are near $4 per ASE.

What would be the best strategy to get the best bang for my buck?

 

If u go into local coin shops try to bargain. Silver is at 33 so if they have eagles at like 40 try totalk em down to 38. If they are already at 38 try to go down to 37 or 36. Local shops will be more accepting of deals and barganing. And try to buy a lot at once for good deals. Say a shop has them marked at 38. Say something like, if i buy five of these can you bring it down to 36 per coin? Thats what i always do

 

One thing to remember is that it is more important to own a form of silver that can be easily resold for full value than to purchase the cheapest form of silver you can find. For highest resale value under both good and bad conditions, I think ASEs will do a great job for you.

 

Pulled the trigger on a roll of maple leaves today for $38.15 apiece, and picked up my first onza to round out my collection. If it goes down more I guess I'll buy more but not unless it hits 30.

 

Maple Leafs

Just wondering where you bought your Maple Leafs.

I got 100 2011 Maple Leafs from my bank 2 weeks ago and total cost was over $4000.00

This included $25 commision and a $30.00 delivery charge.They did not break down the cost, as I wanted to know how much over spot they were priced at.

I was also charged the conversion rate from U.S. dollars to Canadian dollars on the total.Coins have been received however, from the packaging, it looks like they had to get them from another bank to fill my order.

Do you know what the average cost over spot most dealers sell these for.

 

I just love silver!!! Dont you guys?

 

My next buy point is $30. I'm hoping by the end of this year.

 

My experience has been $2.99 over spot is usually obtainable for Maple Leafs. Silver Eagles and Philharmonics are a little more. Pandas usually have the highest premium of the common bullion coins; it's about $6.50 over right now. They do bring the best premium on resale, though, also. In terms of quality production, I have found Pandas and Silver Eagles usually good; Maple Leafs and Philharmonics are prone to milk spots and fingerprints very often. On the plus side, Maple Leafs have the highest legal tender value.

I really like the Canadian Grizzly, currently at $3.99 over spot, given its much lower mintage than the Maple Leaf.

 

I called every major coin shop within 30 miles of me and only found one that had rolls of maple leaves, and it just so happened to be the only one that charged a $4.50 premium for those and ASE's. The rest all charged $5, and had rolls of ASE's only. This is cash payment, otherwise the premium goes up. I picked it up myself, so no delivery charge, and no commission or conversion factor that I am aware of. The guy on the phone even told me they paid over $40/oz for them, so they took a loss. It pays to shop around, and do your homework. I don't usually buy online except for hard to find items or bulk orders of generic bullion. I've never bought from banks here, because they've never had any, but I wouldn't expect them to be competitively priced, and that's probably the reason for all your extenuating factors.

[edit]
I am in western Washington to give you some background. It looks like the premiums here are higher than some other places. I have picked up ASE's for only a $2 premium at coin shows before, but I haven't seen a shop cheaper than I've already mentioned except for maybe 6 months ago I could find these for $3 over. It looks like demand is outpacing supply to me.
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I was talking last week to the owner of a coin shop, he has always been bullish on gold and bearish on silver. His prediction was that silver will fall to 7 dollars by the end of the year, (but just try to buy at that price).

His reasoning was that Chinas economy is doing much worse than most realize and that the expected surge of silver sales to china will never occur.

Me, I thought the high would go closer to 70, and the pullback closer to 12 with the metal eventually stabilizing around 30. I based that prediction on just using the old silver charts from 1979 and 80 and doubling things because of the last 30 years inflation.

 

I think there's a good chance both gold and silver could still skyrocket this year. And it may be sooner rather than later, if the debt ceiling is not raised in August, it could lead to an enormous blow in the confidence of the US financial system, triggering a significant rise in the price of precious metals.
That would make this dip a great time to load up.