Buy Signals for Silver.... All Systems Go!

i'll stick to silver and gold. apple may be sitting on a lot of cash but the way the US keeps printing money the effluent has to hit the fan sometime soon. when cash is worthless 70 billion won't be a lot. then it will be back to a proven money standard . gold and silver. jm .02 worth

 

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No, you said "People don't want to invest in a company that has 70 billion in cash which is earning 1.5% a year while it sits" -- after a week in which enough people "wanted to invest" in it to drive its price up more than 10%. That reminded me of Yogi Berra's famous quote, which was shorter, but seemed equally sensible.

 

They say buy the dips... certainly we're "dipping" here. But depending on what you read you'll hear/see peeps say gold is going to $2000 by year-end or we're dropping to 1420 before we get there. Silver will follow. We may or may not have bottomed yet but I think buying now is a great time.

The ECRI says we might double-dip... actually I think they said we will. They are just not sure how severe the second one will be. If that does happen prices may dip again. Another good time to buy. IMHO all the fundamental reasons for holding PM are still in place.

It's nice to see green in your account all the time, but if you're confident (through your own research) of what the longer term holds then seeing it "bleed" for brief periods isn't so painful. (Looking at my Roth where 3 years of gains we're wiped out in one week not so long ago w/ AGQ, DGP, GLDX, SIL, UNG... What did I do. Now own 2x the amount of AGQ, DGP )

Just my 2 cents.

 

There are some very good mutual funds such as FPA Capital that tend to hold cash. This is very appropriate for anybody who wants to hire a manager for the long run. Avoiding market losses by holding cash, and having the flexibility to put large amounts of cash to work at market bottoms can really help the long term compound rate of return and boost it above the market averages.

 

This is Buffet's tactic. Not saying he is a genius, but his firm refuses to spend unless they believe they are getting a good deal. He has apologized to shareholders more than once about his large cash position at times, but refuses to budge from the tactic, and makes outsized returns by having large, ready, cash positions exactly when they are needed most.

Personally its hard for me to ever do this, I about always want to "make my money work", but know cognitively it can be the wrong approach. I always keep 10-20k laying around for emergencies, but after that like to invest.

 

That was the mantra in the late 1990s. And people did very well buying the dips. It was the best strategy right up to the day when it stopped working completely and the NASDAQ fell apart. Of course, people had been trained to buy the dips, and in the beginning the crash certainly looked like another dip. So most people went right to the bottom holding the maximum level of equity they had to invest.

I'm not saying this is what is happening or will happen soon. But I wouldn't rule it out either.

 

I used to keep a higher percentage of my assets in equities. Now I just use a combination of value investing and Robert Lichello's AIM formula. Horrible name for a book because it keeps people from taking it seriously. But I've used this off and on since the late 1970s with good results.

http://www.amazon.com/How-Make-Stock-Market-Automatically/dp/0451204417
http://www.aim-users.com/