I bought some very early this a.m. and am expecting it to drop by the time I wake up. If you're a buyer this week, you should be very happy.
If silver stays below $50 or even $100 an oz, its still a good buy in my opinion, however, the lower the better!! I was urging average Joe shmoes to invest in silver and gold when they dropped to $9 and $650 an oz and everyone criticized me saying "they're dropping, don't buy". That's your average investor, buying with the crowds, even though everyone knows "buy low, sell high". Either way, I hope it drops less than $10 again, that would be awesome!
If silver dropped back to $10 (or less) again, the question will be this......Will premiums also drop? Somehow I doubt it but I could very well be wrong on this. If silver dropped to $10 (or less) and did not stay there for a very long, then premiums will probably not go down and it would be hard to take advantage of $10 silver if there is none available or if there is a big premium such as $5 over spot premium. If silver dropped to $10 (or less) and silver stayed in that level for a long time, then the premiums will at some point eventually fall. It all depends on how long spot silver stays at $10 (or less) when it comes to what premiums will do. I remember that in 2008 when silver fell to $9, I was buying a few silver art bars during that time but the lowest price that I paid was $5 over spot during that time at my local dealer and at coin shows.
I personally think commodities should be used as long term investments (7+ years) rather than short term investments which are too volatile and subject to market manipulation. But that's just me.
I am thinking that if a person wanted to use gold and silver as a short term investment or wanted to do short-term trading of gold and silver, then they should buy shares of the gold etf (GLD) and/or shares of the silver etf (SLV). Just my 0.02.
1970 Silver Art, I agree, Im in for the long haul. I think right now, anytime is a good time to buy. They are very busy printing money right now, and all other uses aside, just based on the inflation I see coming silver is going to go way up. And it wont be long I believe. I am hording physical silver. Just my take on whats coming. Thanks, Steve
Yep more money printing, more out-of-control U.S. gov't spending, Trillion deficits and a declining U.S. $ makes for an atmosphere that is perfect for gold and silver to continue to go up.
When do you guys think silver will break $20 a ounce? They are reporting that we will be in the "down" again(the economy being bad again) before 2011 from everything that is going on.
'There's a thread for that...' Next step silver - over $20.00 Note the thread has been running since September 2009 and silver has yet to break $20/oz.
Dollar cost averaging is a good move for the long term investor. Actually, a fixed dollar amount rather than a fixed quantity is best. That way you buy more of the commodity on the dips and less on the peaks.
Silver's time will come and when it does, then it will take out the March 2008 high and it will keep going. It will happen and it will happen this year. Believe it.
I don't think we will see $10 silver in the next decade. Too much doom and gloom. Sooner or later there will be people pouring into all precious metals for safety.
This is more about lump sum vs fixed price investing with mutual funds, but seems it would apply to pms as well. Here's an example. Say you decide to invest your $10,000 gift all at once in one fund while your cousin, who also received a $10,000 windfall, invests $2,000 per month in the same fund over the next five months. The fund consistently rises in value during that time. The chart below illustrates what would happen to the two investments. Fund Value IncreasesMonthYour Investment Your Cousin's Investment1 5,556 shares at $1.80 per share 1 ,111 shares at $1.80 per share2 1,099 shares at $1.82 per share 3 1,081 shares at $1.85 per share 4 1,070 shares at $1.87 per share 5 1,053 shares at $1.90 per share Total Shares 5,556/ 5,414Ending Value$10,556 $10,287 You would end up ahead, because you own more shares at the end of the five-month period. And you own more shares because, due to the consistently rising value of the fund, your cousin couldn't afford to purchase as many shares as you had purchased originally. But what happens if the value of your fund fluctuates dramatically during those five months? Fund Value FluctuatesMonthYour InvestmentYour Cousin's Investment15,556 shares at $1.80 per share 1,111 shares at $1.80 per share2 1,667 shares at $1.20 per share 3 1,081 shares at $1.85 per share 4 1,481 shares at $1.35 per share 5 1,053 shares at $1.90 per share Total Shares5,556 6,393Ending Value$10,556/$12,147 In this case, your cousin ends up in the lead. By investing a fixed-dollar amount in the fund every month, your cousin bought more shares when the price was low, fewer shares when the price was high, and ended up with more shares after five months
