Whose on the Silver Train?

Notice, however, that if you were to try to SELL ASEs, you ain't gonna get much more than spot for them (Kitco notice aside) from your local guy. That's 'cause he's GOT to get more in at the much lower silver price in order to keep selling without taking a bath on all that expensive stuff back in the vault he bought at $20 each.!!

 

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Aaarghh! You guys are why I can't find enough silver near spot!! C'mon! Sell, you rascals!! Throw in the towel. It's going to $2 any time now. Panic, dammit!! I'm dying to swoop in and buy more, but I'm too confounded cheap to pay such a big spread over spot, so I need more people to RUN to their nearest dealer to sell everything they've got.

 

There is an old adage in investing... "Never try to catch a falling knife!" If you look at the price of silver it is still in free-fall mode, and trying to call a bottom is nearly impossible.


It looked like ~13 might have been a bottom, but it was still too soon to call it... and then the price plummeted again. Another saying in investment is "You will never buy at the bottom, you will never sell at the peak." While there is that one guy who will by shear luck catch the bottom or the top, it is virtually impossible to do that intentionally.

These are true not just with silver, but with any investment vehicle, look at Fannie May and Freddie Mac, people were buying them when they went to 10% of their value a year ago because they were "too cheap", then they dropped 90% AGAIN after that.

If you want to hold silver and cost average down, a much better plan is to wait for the bottom, where historically things tend to stabilize for a while before moving again after a sharp fall, and buy at that point.

~Droid

 

JP Morgan was once asked how he was able to get so rich. His response? "I always sold too soon."

 

Ain't nobody jumping out of windows yet......

 

it has reared itself many times before all you have to do is unignore spock