Message:

<p>[QUOTE=&quot;medoraman, post: 1931844, member: 26302&quot;]Another point about the benefits of buying evenly through a downward cycle would be availability. When a market is slowly trending down you can actually buy physical pm. You have to be very careful about premiums, and not let the dealer get in your pocket trying to get you to pay last weeks price, but physical pm will be available. So, lets say it goes down to $16 in this market swoon, (but of course you never know how low it will go until after it is over). If I was buying on the way down, I might feel bad when I bought for $19 and then it went to $18, then $17, etc. However, I could buy product. When it hits the low of $16 and starts slowly climbing back up, and people start to latch onto the idea that $16 was the low, guess what happens to supply/premiums? All of the sudden, the junk silver I could buy in a $17 market on the way down at 12.5-13 times face now is 14-15 times face if you can find it because everyone wants to buy on the way up. </p><p><br /></p><p>So, this is the other part of it. You can physically acquire the pm on the way down, but it dries up pretty quickly when everyone recognizes its going up. So its a double whammy trying to catch a bottom, not only will you most likely miss it, you will be paying high premiums and have limited ability to buy on the way back up. ASE&#039;s might be better as to availability, but trust me the premiums balloon when dealers are believing the market is increasing, so same net effect.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in