Is It Time To GIVE UP On Silver???

Discussion in 'Bullion Investing' started by fretboard, Sep 19, 2021.

  1. Gam3rBlake

    Gam3rBlake Well-Known Member


    I always see a big drop in price as a buying opportunity. That’s how dollar cost averaging works.
     
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  3. Gam3rBlake

    Gam3rBlake Well-Known Member

    Yeah probably because of COVID the government just mass printed money and that leads to inflation so $1 today is worth much less than $1 a few years ago.

    I think $20/oz is the lowest we will ever see silver go.
     
  4. masterswimmer

    masterswimmer Well-Known Member

    I'm a big proponent of dollar cost averaging.
    Your statement above is not correct. It is not how dollar cost averaging works.

    "I always see a big drop in price as a buying opportunity" is actually trying to time the market.
    The concept of dollar cost averaging is to buy on a regular schedule no matter what the price is.
     
    fretboard and -jeffB like this.
  5. -jeffB

    -jeffB Greshams LEO Supporter

    "Much"? I see grocery prices having gone up by 10% or so. They'll go up more, but silver price fluctuations are in another league.
     
  6. fretboard

    fretboard Defender of Old Coinage!

    Definitely not a buying opportunity for me at all, first of all, we're talking about silver which doesn't interest me that much and second of all, the premiums are still way too high for me! I'll pass, more for you! :D
     
    crazyd and masterswimmer like this.
  7. Gam3rBlake

    Gam3rBlake Well-Known Member

    That is a lot for the time period it took place in.

    Not to mention the full impact of inflation hasn’t hit yet.

    I was reading an article by Barron’s and it was talking about how a lot of people had been saving their money since most places were shutdown during the worst of the pandemic and that once that money starts to be spent in earnest the inflation will rise with it.

    The more dollars there are in circulation the less each dollar is worth.

    That’s why in the 1860s it was possible to take an entire family out to dinner at a decent restaurant for a dollar whereas today a dollar won’t even buy you a basic hamburger at McDonalds.

    56518F19-CBEE-4B9C-B307-C4703211CB81.jpeg

    Because there were a lot less dollars in circulation back then and so a dollar was worth much more than today.
     
  8. Gam3rBlake

    Gam3rBlake Well-Known Member

    To each their own. ^_^

    I like to buy at least 1/10th oz of gold & 10 oz of silver per month regardless of price and in the end it all averages out.

    Sometimes the price is high sometimes it’s low. But I never have to worry about buying at the wrong time & price.
     
  9. Gam3rBlake

    Gam3rBlake Well-Known Member

    Yeah I know how it works. I never said buying when it’s low is what it is. I was saying continuing to buy regardless of price is DCA.

    I buy the same amount of silver every month regardless of price.

    I do the same with stocks.
     
  10. masterswimmer

    masterswimmer Well-Known Member

    That is NOT what you said. Here's YOUR quote:

    That is 100% incorrect. And you said nothing in that quote that resembles DCA.
    You want to backtrack your quote? That's a whole different story.
     
  11. Gam3rBlake

    Gam3rBlake Well-Known Member

    I’m not backtracking. I admit I did say that but what I meant was that I was buying previously when it’s high and still buying when it’s low too. I didn’t stop buying when the price rises or drops significantly. That is what DCA is.
     
  12. masterswimmer

    masterswimmer Well-Known Member

    What you say and what you mean when you put it in writing on a public forum can negatively influence someone less knowledgeable in investing. I only corrected your statement so that a novice investor doesn't read your statement, as written, 'that a big drop in price is a buying opportunity'. That is correct. 100% spot on. The next sentence is where you went totally off base. You said, 'That's how dollar cost averaging works'.

    Those two sentences included within a much further in depth explanation can work properly. That's not how you structured your post though. I just wanted others less familiar with finance to understand DCA accurately.

    All good though ;)
     
    fretboard likes this.
  13. FryDaddyJr

    FryDaddyJr Junior Member


    actually it doesn't all average out.

    better to wait and stack cash til you see an opening
     
  14. -jeffB

    -jeffB Greshams LEO Supporter

    Buying the same AMOUNT (in ounces) each month is the exact opposite of dollar cost averaging.

    Buying the same dollar amount every month is DCA. It has you buy more (by weight) when the price is lower, and less when the price is higher.
     
    leAurenard likes this.
  15. Gam3rBlake

    Gam3rBlake Well-Known Member

    Yeah I buy the same dollar amount every month. Regardless of silver price.
     
  16. rte

    rte Well-Known Member

    If you get real bored, PM me when your stash of vintage items come up in the forsale section at 50cents on the dollar :p

    First Golden rule (er Silver rule) still applies...buy what you like at a price point you like.
     
  17. Mr. Flute

    Mr. Flute Well-Known Member

    Actually, the dollar is still worth a dollar, but it's purchasing power is less.

    This is an important semantical distinction.

    meme_technically_correct.png
     
  18. FryDaddyJr

    FryDaddyJr Junior Member


    you must buy a lot of dust or silver shot
     
  19. Gam3rBlake

    Gam3rBlake Well-Known Member

    Nah usually I buy American Silver Eagles but sometimes I buy stuff I just think looks cool like the Australian Wedgetail or the Queen’s Beast and such. It all depends.

    I’ve read silver shot isn’t meant for investing anyway and that it’s intended for things like jewelry repair.
     
  20. FryDaddyJr

    FryDaddyJr Junior Member


    or pouring your own ingots
     
  21. -jeffB

    -jeffB Greshams LEO Supporter

    Okay, that's DCA. But you can see how I got confused when you said:
     
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