If you don't Silver Stack you will be left behind

I seen a ebay auction where someone was selling Rolls of Gold Eagles someone recently just bought $50,000 of them or two rolls I'm like Edited: Read the rules on language, abbreviations included I would like to have that guys money...

 

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haha It reminds me of this Edited: Read the rules on language, abbreviations included song...

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We all have a lot less money today, if you have some in silver! It's dropped below $14.50 and headed south. What is going on? When is the buying opportunity?

Should we wait until it goes below $14? 12? 10? 5? That's what it was back in the early 2000's when I bought some of mine. Ouch!

 

This would really only be true if you have 100% of your investment capital in silver.

I suspect the average, even among people who post here in the bullion section, is less than 10% of overall investments. The DJIA is up well over 100% in the period that silver is down by 50%. If you lost 50% of 10% of your investments, and gained 100% on the other 90%, then the net effect is a gain of 85%.

 

Of course, that would mean silver is now less than 3% of your overall, implying that it's time to rebalance.

 

Maybe the opportunity is to buy something else. Just something to consider.

 

Awful premiums right now.

A short history of buying junk 90% silver at Provident Metals ($1 FV x 10 quantity so not their best price but...fwiw)

1. 1/10/15: $1 Face Value (.715 oz) for $13.98 = $19.55/oz (Silver was at $16.56/oz) $2.99 premium per oz.
2. 3/15/15: $1 Face Value (.715 oz) for $13.37 = $18.70/oz (Silver was at $15.17/oz) $3.53 premium per oz.
3. 11/9/15: $1 Face Value (.715 oz) for $13.54 = $18.94/oz (Silver was at $14.64/oz) $4.29 premium per oz.

 

Therein lies the problem. Silver has dropped in market value, but not all dealers are not dropping their price at the same rate.

If you're looking to buy you should shop around.

 

JM Bullion has it now for as little as $1.72 over spot.

 

Wait long enough and you will miss your buying opportunity. It seems you don't have the confidence to pull the trigger.

 

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Your Answer is Yes buy now, just do not over buy.

We are now at Mid-$14 so sure I think so.

 

It would seem like a good time to buy now but all these people saying "buy, buy, buy" makes me want to wait.

 

I'm betting on silver prices going up with in the next 5 years. The uses of silver is growing in many industries and it's harder to mine silver that gold. I'm stacking up on one ounce rounds and morgans. As the worlds population grows there will be a new generation of collectors and I believe that morgans will become more desirable than ever.

 

There will be plenty of time to stock up on silver. Nobody has to buy right now but if you want that's up to you. I'll wait around for the next couple of significant drops before I start stacking again.

 

While the price of silver may very well increase, I don't know if Morgans will bring the best returns. The newer generations seem to be caught up in the bullion crowd and don't really care about numismatic value, for the most part. I see the young'uns buying all those silly zombucks with the skeletons and stuff. It's crap to me but that's what seems to be flying off the shelves with the young'uns. Maybe it will change as they mature but I don't know if they will make the cross from bullion to nunismatics in large part.

 

Very good point. I have enough for my purposes, but I'll probably pick up a little extra here and there whenever I stumble across a good deal. I already flip rolls of ASE whenever I get the chance, which helps me grow my stack a little and keep my overall cost of ownership down.

That's a good perspective. It sucks that silver has dropped almost $2 in eleven months, but their selling price has only came down $0.60.

 

I'd wait and buy when gold is below $800 and silver below $10.

 

In a falling market they'll sell closest to spot and in a rising market they'll buy closest to spot. It's when the market is fluttering that their buy and sell prices are all over the place.

 

It's more about premiums than spot price. If it drops much more premiums should shoot up by half to double again and it will actually cost you more to buy even though spot is lower. It's all about buying just after or even during a big drop but before they raise premiums which happens very quickly.