Next Level: GOLD $1,350.00

CURRENTLY:

GOLD: $1,277.50 -- High so far today $1,281.10
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Silver: $20.86 -- High so far today $20.92

Platinum: $1631
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Palladium: $551​

source: kitco.com/market
​

 

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The risk of the dip. Didn't silver dive down to below $10 not to far in the past? If you say silver goes up and will STAY UP, then of course you are right. My crystal ball isn't so clear on that, I wish it were.

 

I think you should sell slowly as it climbs and depending on the low, buying accordingly. If you can get your cost base as low as possible, you can ride the next upswing ?

But I sure ain't rich. lol It, like everything else is timing. But I think PM's should be a portion of everyone's portfolio, almost like a betting account with the book at a Casino.

Something that you try to make money at that is a fun thing to do. For investments, I prefer safer securities myself. But you really need the fun stuff, I think. Just don't put the rent money in it.

IMHO

 

Let's look at Silver's performance for the Month of September from 2000-2010:

2000:


2001:


2002:


2003:


2004:


2005:


2006:


2007:


2008:


2009:


2010:


source: kitco.com/charts

 

As you would expect the charts are all different...and the point is that over the last decade many things have changed.?????

 

Correct. Past performance is not an indicator of future performance.

 

Sorry, but based on your charts past performance IS an indicator of future performance. Your (Kitco's) ten charts go up, down and sideways. That is certainly an indicator of future performance. :>)

 

.

 

Sorry for what? I think that you are actually agreeing with me... the charts are all over the place and cannot/should not be looked to for predicting future performance. No one can say how something will perform in the future especially something as volatile as PMs. I merely attempted to show that in a month like September, "known" for PMs tending to look/perform stronger (exciting the bugs), that you still cannot rely upon that generality so I strongly caution upon reliance on historic charts by using those very charts for this month to see the volatility.

 

Silver has pulled back a touch, likely not going to be seeing $21 today even in intra day trade...

CURRENTLY:

GOLD: $1,276.20 -- Our high so far today $1,281.10/oz.
​

Silver: $20.77 -- Our high so far today $20.92/oz.

Platinum: $1621
​

Palladium: $547

source: kitco.com/market
​

​

 

And now for something different...

Unveiling of Golden Nugget from kdlt.com [9/17/10]

 

At these prices, there are a lot more people panning/searching for gold, mines being reconsidered to reopen, etc. In economics higher prices long term bring higher production. The industry is rife with boom/bust cycles, high prices bring on new projects then the additional supply floods the market depressing prices. Heck a few years ago they reopened the ancient mine the pharoahs used to get the gold they used for their tombs in Egypt. It hasn't been used in over 2000 years.

Just something to consider. Thanks for posting the article Krispy, I saw it but was too lazy I guess.

 

CURRENTLY: After the US market close for Friday, 9/17/10

GOLD: $1,275.70 -- Our high today $1,281.10/oz.
​

Silver: $20.79 -- Our high today $20.92/oz.

Platinum: $1623
​

Palladium: $547

source: kitco.com/market​

​

 

Here's another one...

Gold fever strikes mom and pop prospectors in the West from Reuters.com [9/14/10] via CoinUpdate.com [9/15/10]

 

I'm a little bit concerned about all these gold commercials I'm seeing. And now silver. I don't know, it just rubs me the wrong way. I still feel the general population do not own any bullion. I can bet all my neighbors around me have ZERO gold coins. Heck, my friends have ZERO coins and I've tried to preach to them about getting some.

But I don't know, if gold and silver really is going to go up, why do these companies want to sell them? Why not own the gold yourself and sit on it?

 

This is the time when the bullion dealers, who bought in much lower, are making their profits, when people who respond to their ads, buy into the message. When PM prices retreat, the dealers buy it back in much the same way, with a reversed message, at cash for gold pop ups in hotel venues, store fronts, or reacquire inventory from refiners collecting and redistributing cheap melt. The very act of advertising the message to buy likely has a positive effect overall for the bullion dealers as buying activity sustains the demand and high prices they can ask for PMs, enabling greater profit taking for longer periods of time, until inventory is depleted or buyers run out of cash need to resell lower than they paid, or refuse to sell themselves and demand slinks off. Just an idea of a scenario within the greater buy/sell cycle I feel occurs in light of the situation you mentioned.

 

Thanks. That does make sense. Especially for the poor chaps that are buying it now at these prices, then when it dips, they sell in fear. Dealers must love to eat up people like that. If you're going to buy any PM right now, you have to think of that money as a loss already, I know it's strange but that's how I look at it for myself. This way when they drop, I'm not so eager to sell and try to recoup any money....

 

This is the biggest problem with the public and investing of any kind. By the time most people hear about a stock/pm they jump in with both feet. Usually too late and you are right they sell in fear at the first dip. It seems that most people don't have the patience to wait out any investment anymore. You are right people who buy now will probably not make any money or very little, not neccesarily because silver/gold will not continue to rise, but more likely they will not have the dicipline to ride out a dip here and there.

 

Patience is virtue. Even I had a hard time holding onto some of my silver, as you can see from past posts there were MANY times I was going to sell some. Luckily, I haven't sold a single ounce. But I consider myself pretty disciplined and yet found it hard to hold onto them.

I wonder what the numbers are for those that are buying bullion. With so many unemployed, so many holding onto whatever they have left, so many foreclosures and bankruptcy, I honestly think it's a very very small group of people who are bullion buyers.

And just to add, even the ones that actually have a job, aren't likely to be bullion buyers!!!!

 

I have been reading this thread for quite a while, and have read alot of your "is it time" posts Just remember that there is another side to the coin. Some people myself included have overheld an investment and ended up just as bad off as if you sold early. Selling a portion of your total investment and actually taking a profit is something to consider as well. It doesn't have to be all in or all out. You can take profits and buy in again during dips or use the money to invest elswhere. You may limit your potential gains this way, but you are also limiting your exposure to potential loss if the market takes a rapid downturn.