Buyers During a Price Spike

I'll answer your post one sentence and a time, and if you really do leave I can't say I'll miss you one bit.

I almost always do.

I will admit that I gave him a jab based on about 50% of his posts but he escalated it in a big way.

If you take a good look, you'll notice that I actually posted some real experience when metals make a run. I didn't need a hypothetical, it was real life experience.

I doubt you'll no longer be a part of it, I don't think you can help yourself.

I'm not bitter at all. If you leave, it'll only move me up the ladder one rung on the championship of stupidity, and I highly doubt you've ever seen me in your life.

You and a few others constantly and consistently insist you know who I am, what I am and my lot in life. You're trying way to hard to discredit somebody on a message board that you don't know very much about. In fact, about the only thing you know for sure is I very much distrust banks, Wall Street, the Fed and the people in our government.

I'd wish you luck on your future stock pumping, but that wouldn't be true and I don't lie.

 

Log in or Sign up to hide this ad.

You gave one data point. I gave repeated history of what happens to spreads in changing markets. I said I buy long term and hold, and you had to bring up an argument from other threads. That is why I responded why I did, your post served no purpose other than troll. Believe or not, some people actually come here to learn.

 

I gave the OP one example. I don't think he wanted or needs a list of every PM transaction I've ever made.

If you take a look at precious metal, when it goes up or spikes in a big way, investors rush in to take advantage of the run up. Then they sell when it goes in the tank. Not all, just the herd, and there are as many examples of that in other investment instruments as there are investment instruments that have had spikes.

Selling it isn't an issue, when to sell is. Trying to time the top or bottom is something many try to do, and very few do. Just taking available profit that is comfortable is a good way to go about it. Lamenting missing a couple % is a waste of time.

 

In people's opinion, what is a good spot price to pay for mint silver coins?

 

All companies buy at every point during the highs and lows.

 

Short term trends are for traders, long term trends are for investors. A trader cares about where an asset (stock, PM, real estate or anything else for that matter) is going to be tomorrow. An investor cares about where it will be in ten years.

 

Maybe, but not at the same premiums. In my experience, premiums go down when prices reach a certain point. More importantly for coin/bullion collectors to remember is many numismatic premiums disappear at certain levels. Most coins you paid $5-10 premium for you will be ofeed melt for if silver spikes to $40 short term.

 

I sell coins at flea markets and I have noticed with much amusement many of the people who were buying .999 and 90% silver coins in large quantities for long term as the spot price of silver kept rising completely stopped buying once the spot price started to decrease. No matter how I tried to explain to them that they should continue to buy at the lower levels and buy more so the cost average of their holding will also decrease they were not buying. At some time in the future if they need or want to sell their silver they could sell at a lower spot price level to be profitable.

 

Very common. I see the same with nearly every investment. Retail, or inexperienced, investors time and time again buy high and sell low. I am not saying it's easy to buy when the market has gone down strongly, it's very hard on the stomach, but most good investment decisions I have ever made I made with my head, and my stomach hated.

 

Seems like much of the PM market, at least among the YouTube crowd, etc. is all driven by people who actually sell silver and gold, even Peter Schiff. Anytime I have asked someone about metals who does not sell them, they simply say there are far better places for your money, even if they concede that a 5% diversification into gold (not silver) could be wise in a major crisis.

 

I asked a coin dealer one time about the risk of buying through a spike and being stuck long when the price falls and he said if he wanted a boring job he would sell shoes. I think us individuals like to think about it one trade at a time but they look at it in the aggregate or maybe one year at a time. The spread they earn over spot over time offsets losses. It also depends on how fast they can sell what they buy.