$17 silver is just too expensive

How many are in this same boat? You see silver spot at $17, and figure that the government-issued 1 ounce coin now costs almost $20 so you decide it is no longer "worth" buying?

This is the purely emotional and subjective side of investing, where for no particular reason the thing now seems more expensive than it should be in your mind, so you pass on it.

I have reached this point for silver. How about you?

It could all just be a feeling, but I suspect we will, unfortunately, see silver prices fall back down later in the year or at some other soonish date in the next few years.

 

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Be glad you didn't start collecting when silver was $40/oz like I did. I didn't jump on the bandwagon and start collecting because it was so high. I just happened to get into coin collecting when silver was that high. I bought plenty when it was $40/oz. I have purchased even more when it was between $14-$17/oz. I figure it all balances out in the end. I will buy what I like and not worry too much about it.

 

Furry, I hope it goes back up to $40 or even $50 so you can get your money back.

FWIW, I still have about 500 ounces in silver medals, but silver would have to rise to more than $100/oz. before I'd be tempted to sell them.

Chris

 

I've done some rough math, and if you average out my $40/oz purchases with my $14-$15/oz purchases, I will "break even" at about $18/oz. Honestly, it's not too bad. Most of the stuff I buy is because I like it, not because I think it is going to fund my retirement.

 

I bought silver at $12 dollars an ounce and sold at $18.......I made a few bucks and made a 'foray' into collecting classic commems........that's where I'm in danger of loosing money,

 

I sold all of my silver I bought between $5 and $8/oz. for $42/oz. in 2011. A friend bought it all at a coin show. He asked me why I was selling it "cheapc he spot (including ASEs), and I asked him why he was buying during a bubble. He didn't get it. I have bought a bit more, but I think Ag below $12/oz. will never happen again - the dollar continues to lose its purchasing power.

 

Uh uh, I just used one to buy a stamp.

 

Similar to FF, I started collecting buying back in 2011, so $17 doesn't seem unreasonable. Thank goodness all my money went to books for school back then to lessen my losses

I'll probably keep buying and working on my Lunar Series Set, and if silver gets back around $30 I'll focus more on a base metal set. So, no, $17 doesn't bother me.

Will

 

Humans always seem to normalize around what has happened for a year or two. I remember threads here where I said I thought silver is fairly valued at $20 and had people screaming at me it will never be that cheap again. What people think it "fair" is a result of the last 2 years for the most part.

 

What made you sure silver was in a "Bubble" at $42/oz ? For all you knew it could have hit $60/oz in the next year.

My question really is - how can we know if gold or silver is in a bubble or not?

 

Fortunately I started collecting long ago. I sold stock in a business in the 1990’s and went crazy buying all the gold I could find. I never could afford it before and I bought all I could find. Looking back thirty years that was probably the luckiest emotional purchase of my life

I learned how to make money and started buying silver around 2008. I too got caught in the fever around 2011 and bought up rolls of cull dollars and rolls of ASE’s. That was the lousiest emotional purchase of my life.

Now I am at a happy place with PM’s. I enjoy what I have and am satisfied. No, I won’t be buying at $17.00, nor will I be selling. I feel confident it will slide back as rapidly as it rose. At $15.00 I’ll start buying again.

 

I bought two rolls of silver 1oz rounds last week. Silver was at $17.25. Paid $.80 over. Doesn't phase me as I DCA my Silver up to $20. I do get into buying lower premium silver though. Gold is a different story as it's just to expensive when I got most of it at $1,250.

 

Back when silver was north of $40/Oz, I recall a scholarly post that laid out the case for silver being "fairly valued" at $134/Oz.

 

I still buying gold at 1500 and silver 17 right now , so it not expensive , i think it still good price to buy right now , befor gold hit over $2000 and silver hit $30 or up .

 

Hey, we could do a lot worse. A small amount of my silver was purchased in 2012-2013 when silver was averaging over $30 an ounce easily and sometimes came within a few dollars of hitting $40.

I don't think silver can possibly go lower than about $12 honestly, so $17 is not really expensive.

 

Too rich for my blood.
Call me when it is down to $14-$15 again.

 

For all we know it might go back into the 20's for the next year.

 

That is true.

 

That it could. Or it could drop below $12 in a global industrial slow-down. Or it could go back into the 20's because of a falling dollar, which wouldn't do anyone any good because everything else would be going up at the same time. Maybe there'll be a global epidemic of a newer and more virulent mad cow disease, and the real store of value will be a freezer full of pre-epidemic meat.

I'll probably hang on to most of my silver for now, though. It won't go bad if there's a power outage.

 

It just hurts me that I sold off a chunk of my stack at a loss since I needed the cash only a week before it went up; when it was still $16! It was only 22 oz but I lost about $3 per ounce. Another 14 oz I was able to break even on.