Anyone else hoping prices keep falling?

I've been watching silver prices since the run up to the last silver price peak. I didn't start buying until I could get silver in my hand for less then $16 per ounce. I would like to keep buying athe these or lower prices. I prefer silver over gold due to what I perceive as a higher upside percentage wise. Silver has twice been over 300% over current value while gold has only been about 75% over current value. The potential downside seems about equal. I am looking at long term windows of 10 or more years. Seems like a simplistic way of looking at it but I find all those colorful charts completely baseless as someone with a statistics background. Unfortunately I do not have a working crystal ball but I am certain silver will rise again. I am uncertain if that will be tomorrow, next year or 2030.

 

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I agree with you. I have never invested in precious metals but I think I'm going to start pulling the trigger on some silver. Since I'm fairly young and have plenty of time to wait I don't see any harm in stocking up at the current prices.

 

I remember around 2003 walking into coin shops and buying 10oz silver bars at $45-$50 USD. Dealers would laugh and say, "what do you want that stuff for, paperweight?". No one was interested in silver that much back then.

If prices get to around $10 an ounce, and I think they might, I may have to pay those old dealers a visit and buy some more. I stopped buying when prices went past $12 and never looked back. I started to worry I was no longer getting a good deal and buying into a bubble. So I welcome the lower prices.

 

There is a school that says investors should have 5 percent of their holdings in gold as an insurance policy in case of major problems in stock and bond markets. I currently do not, though it bears watching amid these shaken markets.

 

I have heard that line of thinking frequently, keep 5-10% of the portfolio in pm. None of my investments are performing at the moment. My stock market returns have been worse then cash in the bank over the past 12 months, and cash in the bank has been equivalent to keeping it in your cash in the mattress since the savings rates are essentially zero. I keep parking most of my investment funds into stock funds. Am I confident in this plan? No.

On the bright side, I haven't had to pay my credit union for the privilege of holding my money for me yet.

 

Never anything wrong with parking your investment money in cash during times when no one knows what the markets are going to do. I have a considerable amount of dry ammo for when I decide things are on my side.

 

The experts were saying that there was nothing wrong with the stock market 2 months ago and that they saw a Santa Claus Rally on the way again.

Sheep will follow anyone right to the slaughterhouse.

 

Stocks have not been performing but they have not been worse then silver and gold.

 

Since the peak in May, stocks are down over 10%. Dow was at 18,400 and now at 16,400.

Gold was at 1200 and is now at 1100. That's slightly less than 10%

On Jan 1st 2015, the DOW opened around 17,700 and gold around 1180. Both lost around 9% since the beginning of the year.

In mathematical terms - the losses were about even, give or take a percentage or two.

The difference is that gold is nearer to the lows and the stock market closer to it's high - and it has been on a terror of "irrational exuberance" as Greenspan would say for the last 4-5 years.

The difference to me is that I moved out of stocks/mutual funds in May and started moving into gold and silver investments.

Moving out of the stocks at the high and moving into PM towards the low is the technical definition of "buy low - sell high."

Time will tell, but I'm positioned strongly in cash and acquiring PM throughout the summer.

If you look at macro trends, PM has a better chance to run and recover.

Election year, lame duck president, inflation, etc... Perfect storm.

 

In reality, the markets' performance has been worse than the indexes indicate. A huge number of issues are down 20 percent or more from their 52 week highs -- a bear market. The indexes have been propped up by a disproportionately small number of companies that are now losing their moxy.

 

When I sell my stocks....Uncle Sam pays me a visit......when I sell some PM's....Uncle Sam is none the wiser.

 

I hope it drops more as I like getting more for my money. But whether its high or low, I buy all the time. I'm filling up my pool so when I retire I can swim in style like Scrooge McDuck.

 

Uncle Sam only cares when you have made money. Not paying taxes on profits from pm sales can be tax evasion. To each his own.

 

I haven't decided if I will spend retirement fishing or heckling college women from my porch with a cold one in hand. Probably some of both.

 

Im aware that you only pay when you make a profit on stocks...been trading for 30 years....Im sure that everyone pays tax on their profit on the coin they sold on Ebay.

 

yes, to me that would be a buying opportunity under $12.00

 

We do - unfortunately. Although I rarely sell coins. Usually it's everything else in order to buy coins.

 

Well "hoping" is a sound financial strategy sonny boy...

The key to your success will be in your constant buying and accumulation. Dollar Cost Averaging. If you have the budget and time horizon, you can accumulate and wait for it to go up. And when it does, you leverage your assets and reap the profits.

I harken back to my days of education with the Underpants Gnomes. They taught me everything I know. Collect, ?, Profit!

 

Phase 2 is Hold (although it should be "wash" in their business lol)

 

So when did "investments" become short-term vehicles? That's the root problem; if you're investing in stocks with a term of less than a decade in mind, you're asking for it. Same goes for coins, bullion, real estate or anything short of large-scale marijuana buys.