Silver getting crushed today

If text leaks of the Inaugural Address start coming out, look for PM volatility. If he goes all "policy wonk", markets WILL move and WILL overdo whatever move they make. I'm no believer in the "efficient market" theory. I believe the market virtually always has the WRONG price - it ALWAYS over-reacts to EVERYTHING.

 

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I want to invest in silver and gold PM. I intend to use dollar cost averaging/buying on the dip purchase strategy. To buy as close to spot I've been looking at 1 oz gold and 10 oz silver bars on APMEX and Mint State Gold web sites. I've been told I (the eventual seller) have the responsibility to prove the purity and weight when I sell. Should I pay the premium for the slabbed bars? Any other advice for me the novice?

 

My advice is always the same: DON'T DO IT. The vast majority of people who dabble in metals get their clocks cleaned.

You have to ask someone else more bullish on bullion than I am. It's not hard; there's a million of them here.

 

Thanks Kurt. I appreciate your advice.

 

If you're going to invest in precious metals, you have to be prepared to hold long. Trying to buy when there's a dip and then sell when it goes up is really hard to do, and don't forget, you'll always pay a premium, so you'll have to take that into account when you're ready to sell. I bought silver a $5 and ounce and gold at $350 an ounce, I could sell that metal today, but I'm in it for the long haul.

I don't have any information that anyone else doesn't have, but I have a feeling, as long as the Fed cooperates, that this is going to be a good year for Precious metals.

 

anyone who tells you to put 50 percent or more of your money into physical silver and gold is a fool.

 

I agree, the most that anyone, in my opinion, should put into Precious Metals is 20%. That's 20% of their investment strategy, not 20% of their income. As you get older, and hopefully your income rises, you can increase your investment/retirement amount, but PMs should still not be more than 20% of the total put aside.

I, personally like to put that into coins instead of just rounds or bars, but you do what fits your style.

 

You're being too generous. They might be fools -- but, depending on how directly they're interacting with you, and how involved they expect to be in the transaction, they may be targeting you as the fool. Or, as they say, the "mark".

 

Here's my advice for any novice investor -- be it stocks, bonds or PMs: Your first step should be cleaning out as much debt as you can, including credit cards, student loans and car payments. Otherwise, the returns you get on your investments -- provided they are successful -- will be chewed up by debt payments.

I'm not including home mortgages since most of us have to use those to get into home ownership, at least initially.

Get rid of debt and you will have more to invest, as well as being able to enjoy the returns and sleep better at night.

 

Ok, here we go today, let's see what the Silver Gods are at! Bid Price is $17.05 as I type right now.

 

The interesting thing is that almost everyone has a favorite buying plan(s), but they almost never devise a selling/releasing plan before hand, and they hold way too long and then it is another 20 years for the next cycle. complete or update your selling plan as condition changes.

 

sure, but who really WANTS to sell? not gold bugs.

 

I bought a Metric ton of iron at $55.62 last March.
Now it's just sitting in my backyard rusting away, literally.
j/k
iron ore prices have been going up, and up, and up but only since falling from 3/2012 @ 150/metric ton to Dec 2015 @ $37 / metric ton, now on it's way back up.

oh, and "Precious" Metals But any commodity/stocks etc can go through long slides, including silver and gold. Short hourly spikes, crashes, tweets can affect it, stock market, political unrest, Greek banks, the weather, etc.

If you are a short term flipper you have to obtain silver at close to spot as possible on downward bounces. Then hope it bounces up a bit. You'll have to find buyers that will pay a premium (normally not dealers, but individuals) to maximize your profit/time. Sometimes you can flip it fairly quickly to less informed private buyers. The faster the flip, the more likely you use a dealer from what little I know.

If you are buying for longer term then you can afford to buy more on "down turns". Assuming the market doesn't turn down some more for a long time, nd you have to determine what you define as "high, and not buy" mark. Reference 2016 run up from $14/oz to $20+/oz, or a few years ago run up to $50/oz. As long as you buy on the way up you are fine, then sell at an appropriate time.

Hopefully, $16ish and oz for Silver is the low and it will stay above and rise, but that all dependent upon all the factors.

One of the key thing for any investment of this type is to have a plan of when to buy, hold and sell. For Example, for stocks I have a sell 7% rule. If stock drops 7% (excluding market whacks) from an identified point, I sell to minimize potential losses. Then dependent upon the stock I may have a sell plan, where if it rises 10% I sell. Now keep in mind you also have Capital Gains taxes on this of upwards to 30%, and dependent upon the platform you buy sell it in you have fees associated with that thus you quantities have to support a good profit - fees and taxes.

you may create a plan to cap your gains, but minimizes your losses. If you follow the market and track certain indicators you can roll with the punches more.

If you are buying to asset wealth accumulation then there are different methodologies all dependent upon what you want.

Do you want to hold the silver/gold after acquisition. Or paper PMs.
Or store in one of those vault places for quick resell back to the same vendor and
Play the buy/sell with the vendor?

so many variables that can drain profitability or time to sell.

 

There are two parts to any investment: knowing when to buy and, probably more importantly, when to SELL (with a profit or not).

 

Also, if you're buying silver because you think the dollar will undergo some sort of catastrophic collapse, you're already a sap who is beyond hope pretty much.

Before your silver would become a medium of exchange, so much dystopian garbage would have to precede it that life would have become unbearable long before. Your need of lead mounted in brass will FAAAAAR precede your need of silver.

 

I wouldn't be surprised if half the people here buy into this. "ya gotta have mercury dimes ya know, to buy a loaf of bread". It's insipid. And as far as lead and brass, people have vivid fantasies of how many firefights they'll survive and how safe a wooden house is.

 

If our economy failed, precious metals may become a medium of exchange, but I believe that would be down the line. Things that would be of immediate value (barter) would be ammunition, canned food, cigarettes, and other similar items. Even bottled water would have value.

IMHO the only circumstance I can envision Precious Metals becoming a quick form of exchange is if massive inflation of our currency occurred. I not buying Precious Metals because I think the above will happen, I'm buying them because I think they're a good addition to my investment portfolio. I said it before, I started buying silver at $4 and ounce and gold at $350 an ounce. I'm in it for the long haul, and I think they've appreciated at as good, if not better than my more traditional investments.

 

One of the way silver and gold are nice is that you CAN't readily spend them. kind of forces you to have a nest egg for emergencies. I wonder what is happening or is going to happen to all the gold huckster like Glenn Beck and William Devane sold to folks who have no idea what to do with it now.

 

Don't look now ...

 

Don't forget Pat Boone, or as my late father used to call him, Bat Poone.