I'm looking to buy a significant amount of gold but i'm hesitant because i'm not sure what to expect going forward... Should i wait? If so, how low will it go??
Exactly! That's why i was asking... More for advice or opinion. You probably could have saved the comment for something or someone else. Thanks
You need to do a bit better investment planning and figure out what your goals are for this. Can you buy more and lower your DCA if gold goes lower? Do you have a way to sell it without paying tons of fees if it goes up? If the goal is "time the market and get rich quick with no homework" I think you are in for a big world of hurt. Good luck!
I'm purchasing more for a hedge. I'm sitting on some cash that i would like to turn in physical metals. I may likely never sell. I like the idea of having it there. Thanks for the response!
The precious metals markets are impossible to predict. It is important, however, that the gap between silver "spot" and silver "retail" has grown from around $1 to around $3+ over the summer. Those are "real" numbers. That should suggest that paper prices don't mean much anymore. I continue to buy when I have a little extra money. At the present time, what will matter in the end is how many ounces you have, not what you paid for it, give or take a buck.
Doug, come on. You were around just a couple of years ago when the EXACT SAME THING happened when PM declined. It ALWAYS happens. Right after the decline the premiums go up, and will stay up until supply forces them back down. I will bet anyone who wishes that in 6-10 months if markets stay the same the premium will be much more normal than today, assuming no surprise supply disruptions. Sorry if I am grouchy about this, but I simply have seen a dozen price corrections in my lifetime, and every single one of them led to short term premium raises, just to go back to normal after a short while. Saying "That should suggest that paper prices don't mean much anymore" is simply untrue. What it means is you should buy paper silver if you like this price level, and wait for physical bullion to go back to normal premiums. Another thing would be to get enough and buy a forward contract at the "paper" price.
Just time your purchases so that they don't align with mine. Whenever I buy the price goes down. I'll let you know. I bought a 1912 2 and 1/2 dollar "Quarter Eagle" It cost me $140, but when I got home it was supposedly worth $350 according to the red book. It doesn't happen often...
Oh, well, doesn't matter. You're not going to change, I'm not going to change. It's for my heirs anyway, not for me. One thing for sure, I don't try to "trade" PM's. I have been a steady buyer for 5 years.
I don't either sir. I am a buy and hold kind of person. I simply wished to clarify the current premiums in my view are not the start of a divergence of physical pm to paper pm, its a normal and expected phenomenon. However, it is a valid strategy when markets go down and you expect them to stay down to buy paper pm, and swap it out for physical pm when premiums drop. That way you are guaranteeing you are in the market at the price you want, and can change over to physical in the future buy selling the paper position and using the proceeds to buy physical pm. Paper pm should only be used long term for traders and industrial buyers, never small investors. Way too high carrying costs.
If I knew the answers to your questions, I'd be rich beyond belief. Having said that, you need to understand that PM's are a commodity and therefore, they can go to zero. That's not a concern as it's never happened and not likely to. They go up and they go down. Premiums for buying are higher than normal but then, so is the amount of demand. It's high. You need to ask yourself, why do I want to buy PM's. If for investment, no problem. Start buying now. If the price drops, buy more and lower your overall costs. Keep buying as much as you can until the price goes up. Stop buying when you feel the price is too high and enjoy the ride to profits. Sell when you think it's not going any higher. If it does, you still made money. Be happy, not greedy. You'll never time the markets. Trying to do so will only result in a loss and grave disappointment. Also, PM's are not for the faint of heart. It takes guts to buy and stick with them as they are extremely volatile. They react to any and everything. You might buy and then the price drops, big time. In a week, maybe 2 or a month, it'll be higher than when it dropped. Silver hit $48.00 per ounce 4 years ago (I'm rounding). When it hit $20.00 per ounce, I started buying knowing full well it would continue to drop. I'm still buying at it's current price $14.50 per ounce. My average cost is around $16.00 per ounce. I bought bullion, and junk silver coins, any coin with silver. And I'll continue to buy. I'm like my own little bank, hording as much as I can. Why? If the largest bank investment bank in America is buying and holding, why shouldn't I? Follow the big money. It's worked for me on the up and down sides. Buy and be patient. My best.
Aim small, miss small. There are many stories out there where guys pulled the trigger all at once only to watch it get halved twice. Meter it out a little at a time and take a smaller win if you get it. The moment I call the bottom, I seem to cause the bottom to blow out. I don't see us entering a bull run anytime soon. Boy I hope I blow that call.
This is another way of saying dollar cost average into the position. If you have $12,000 to invest in something, invest $1000 a month for a year, or $2000 a month for six months. You will not buy at the absolute lowest, but will be guaranteed to not buy at the highest in that timeframe. Its recommended by money managers for stock positions.
