Silver getting crushed today

Why not invest your money as you see fit. I bet most stackers won't trouble you about it, right?

 

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The long-overdue normalization of US interest rates will be tough on PM prices, IMHO. In addition to the increase this month, one or two more will be likely this year unless the economy sails south.

 

It could get worse if fears of an EU/Euro collapse send the USD to the moon.

 

The thing I could see strengthening the dollar the most would be if the Republican House tax reform passes. Not giving a COGS deduction for imported items would boost the USD very strongly, so strong the main argument against it might be the deflationary pressure it could exude.

Right now I am holding USD a little more than usual. Not sure about stocks at these levels, not sure if the USD might go up and be able to buy more PM later. Not selling any PM, I am not a buy and sell kind of guy, just not adding to the pile of pm right now.

 

I mostly agree but I'm going to play devils advocate for a moment here...

You could have been purchasing dips since high $40's and have a low DCA. It's called having lots of money and discipline. Now between $7 and $12 I would say impossible since it hasn't been below $14 in ages (and if you did buy when it was below $12 why on earth didn't you sell at $30+??), but low $20's DCA is realistically possible within the range from $49 to $14. And low $20's I would say has a good chance of someday getting "close to even". You would have had to buy a disproportionate amount more (in dollars) below $20 than you did above $30, but it's mathematically possible.

Of course this martingale approach can really put you in a deep hole that could take a long time to get out of should price continue to drop or stay flat, but as long as you do it without over leveraging your cash you could always stay within striking distance of getting even.

EDIT: If you never cut losses and take a DCA approach I highly advise to not have to pay "maintenance" or "swap" fees on your position.

 

It is most definitely possible. Not sure what my DCA is but it is definitely below $20. I don't have a lot of silver but I did buy some when the price last dipped below $10 and I actually sold some for $48 last time it peaked. I even have ASEs I bought for less than $14. I don't buy much anymore, but I am not going to sell at these prices either.

 

Well I know 'paper' bullion investing is not as popular as physical, but I did start this series of investments( or similar to card counting gambling) so will update, as mentioned I might in #1069, I sold the PUT portion of the straddle option toay for over 30% gain after fees, but since I feel the POG is consolidating, I do expect it ( and silver by association) to backtrack about half of the loss recently, I kept the CALL portion of the straddle and purchased additional CALL contracts @ GDX23.00 ( in middle of dip), so Now I have passed from a "STRADDLE the fence" to a "Bull". So buy, buy, and send the price momentum up

 

Monday morning silver. Where are we going to go today?

 

With interest rate fever out there, I suspect PM prices will be weak. Fed expected widely to do the deed next week.

 

What do you think PM's would do if that happened?

 

I think PM's would get weaker from a stronger dollar. Then there are things that could work against the dollar and in favor of PM's such as the South China Sea turning into a zoo.

 

It's looking ... down today

 

Silver is getting CRUSHED today!!

 

The big boys are taking some profit!

 

And its headed back up!

 

Are we talking week of the 13th?

 

Yes. The question is how much of a decline gets "baked in" before the actual interest rate event.

 

I'm delaying making any silver purchases for awhile then. Why when it keeps dropping like it has the last few days.

 

Anyone want to take a guess how low it goes and how fast it goes back to 18.00? I say 2 weeks.

 

I say it keeps bleeding till $16.50. That's just a shot in the dark though.