Falling Silver prices

Discussion in 'Bullion Investing' started by rugerr1, Dec 14, 2015.

  1. rugerr1

    rugerr1 New Member

    I havent been collecting silver as long as some here, only about 2 years and as always Im still learning. My questions are when the market crashed in 08 was Silver hard to find in 1 oz rounds to 10 oz bars? And how quick did they all start going? Also if prices keep falling,what would be someones opinion to start buying at?
    Thanks
     
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  3. Collecting Nut

    Collecting Nut Borderline Hoarder

    Never try to time the market. Just buy and continue buying as the market dips. Stop buying when it goes up. I have set the price for me at $15.00. I don't buy over that amount but I do buy when it drops under. I'll continue to buy as is goes back up but stop when it reaches that price. It may go up for a bit but I expect it to drop in the longer run before the bull hits.
     
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  4. rugerr1

    rugerr1 New Member

    What do you think it might drop to? And what price do you think it might become a buying frenzy?
     
  5. cpm9ball

    cpm9ball CANNOT RE-MEMBER

    Crystal balls for rent.......$20 per day
     
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  6. AndrewDS1

    AndrewDS1 New Member

    Buy silver for the long-term (assume 10 years). Silver prices seem to fluctuate in cycles. Last big price was in 2011 (about $48/oz). So just buy low like some smart people mention and just bid your time. Best part is silver never goes out out style. And think of it of your post-apocalytic zombie piggy bank.
     
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  7. saltysam-1

    saltysam-1 Junior Member

    Procrastinators never buy at the right or lowest price.
     
  8. tigerthecat

    tigerthecat New Member

    I believe that silver prices will skyrocket with in the next 5 years. I'm stocking as much of the shinny stuff as I can. I don't believe that it will drop too much lower that it is now. It's very under valued right now, the mine production is struggling to break even and oil prices are at such a low price that comparing inflation, it is the same price as it was back in 1935. Silver up those Christmas stockings!
     
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  9. green18

    green18 Unknown member Sweet on Commemorative Coins Supporter

    I don't know about those two items but I had no problem getting ASE's back then......
     
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  10. Mat

    Mat Ancient Coincoholic

  11. Collecting Nut

    Collecting Nut Borderline Hoarder

    If I knew the answer to that question I'd buy all I can before I shared that information with anyone, including CT. Sorry guys and gals.

    Seriously, I think we're in a buying frenzy right now. Most of the online dealers I use are out of stock in some form of silver on any given day. The US Mint is recording record sales on the Silver Eagles and dealers have raised their premiums. It's still available but the spread of spot verses retail has grown. Miners are mining below production costs just trying to stay in business. Market demand is high but the big money controls the price. Then factor in inflation. $100.00 in the $80's buy $20.00 today.

    Silver is a long term investment. You can lose your shirt trying to time the market, or buy at the lowest and sell at the highest. It's a game you don't want to play. You can't win. Buy different types of silver, 1, 2, 5, and 10 ounce bars and/or rounds. Buy junk coins, pre 1964 or buy 40% Kennedy's. Silver is silver in any form but some forms of silver are cheaper than others per ounce.
     
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  12. derkerlegand

    derkerlegand Well-Known Member

    I certainly hope that you're right. My precious metals IRA will have to be cashed in and turned over into something more stable before very long.
     
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  13. iPen

    iPen Well-Known Member

    For bear market resistance of my silver collection, I buy when silver is "low" like I suspect it is now, while specifically purchasing high(er) grade government issue coins for their numismatic value. I'm probably in the minority with this, but I tend to stay away from private mint issued silver bullion since they won't do as well as "collectible" gov't issued coins when the economy's bullish or in an upswing. I may get some world government issued bars if they're priced "low" (reasonably near spot compared to the 1 oz's rates). I also try to stay away from gold since silver seems to be more practical, given its impetus from (more) industrial applications, but that's straying a bit from your question.

    If your strategy, however, is to hedge against an economic collapse or the likes, then obviously you should stick with your own method to purchase the lowest priced silver bullion or cull coins you can get your hands on, among other purchases.

    Per my general observations and IMHO:

    + If the economy does well, then people tend to afford and purchase more luxury options such as high grade "collectible" coins (e.g. Morgans, Sovereigns, US commemorative halves/dollars, etc.), and relatively forgo private issue bullion purchasing (dollar is usually stronger and silver is relatively weaker, ceteris paribus).

    + If the economy tanks, then people tend to hoard silver thereby causing silver and silver coin prices to rise (again, in general - all things constant). I wouldn't say silver is more rare, but it's more expensive (silver mining production and output has increased year after year). Even though folks in general may not be able to afford higher grade silver coins, the counter-intuitive appears to result where nicer grade numismatic-minded coins are still being purchased. Maybe they're seen as a safer investment, maybe those at or near the top of the economic food chain get richer and have more to splurge on, etc.

    ++ All in all, this strategy affords me the ability to sell my silver pieces and collection in most any market condition without worrying too much. I may not do particularly as well as some of you who purchased large quantities of private mint silver bullion to flip during an economic crisis, but I can set it and forget it. Plus, I get to collect from a wider range of different types / designs of silver coins to make the hobby more interesting.

    Civilized criticism and comments are welcome. I'm always open to hear ways to improve upon my strategy.
     
    Last edited: Dec 14, 2015
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  14. Gilbert

    Gilbert Part time collector Supporter

    I would not be a buyer unless silver breaks the ten dollar mark. Silver rounds and bars are not as recognizable as 90% junk silver coins, so IMHO avoid them. The premium might be greater for 90% but why take the chance that what you are buying is not really what it says it is?
     
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  15. fish4uinmd

    fish4uinmd Well-Known Member

    Oh, if only we could answer that question...we would ALL be rich!
     
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  16. Phil Ham

    Phil Ham Hamster

    I've been buying over the past two years but losing value. As I'm in no hurry to sell, I'm buying low and hope that it will raise in value sometime in the next 10 years. If you have a short time horizon (less than 3 years), I would stay way way away from precious metals.
     
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  17. V. Kurt Bellman

    V. Kurt Bellman Yes, I'm blunt! Get over your "feeeeelings".

    How do you know that where we are now counts as "low"? I have severe doubts about that. Yes, if all you look at is from summer 2011 on, then this is low. But what about before that? In a "normal American economy" even $13.70 is stratospheric, isn't it? Couple of points:
    1) nothing that has happened since 2011 is normal or can be relied on to repeat.
    2) every indicator says we are SLOWLY getting back to normal, if only because the old school underemployed are soon going to be dying off.
    3) most of the reason metals are THIS high are fears of inflation, which AIN'T coming, sorry, it's just not. Confiscatory marginal taxation rates might come back, but not serious inflation. That is based on demographic urban/rural proportion trends which argue for higher taxes as noses are counted.

    Bottom line: I see NOTHING trending metals upward from here based on anything but irrational fears. And no, I do NOT see an impending debt crisis, nor do I see how anyone else sees one.
     
    Last edited: Dec 14, 2015
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  18. ToppCatt

    ToppCatt ToppCatt

    You don't mind if I continue to average down during the dip?
     
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  19. Sean5150

    Sean5150 Well-Known Member

  20. Sean5150

    Sean5150 Well-Known Member

    "Normal American economy" lol
     
  21. techwriter

    techwriter Supporter! Supporter

    Well, you've received just about the whole gambit of options, so what is one to do?
    Take your $100 a month and spend it wisely:a few American Eagles one month; a few 90% silver coins next month; and so on. Good advice, I believe, to stay away from non-government issued "stuff"; especially if you have to liquidate quickly. Remember this: silver coins can always be spent as money.
     
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