Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Poll: Now a time to buy or sell???
>
Reply to Thread
Message:
<p>[QUOTE="myownprivy, post: 3228357, member: 84588"]I doubt you'll get a very good result from your poll, because most people who buy PMs do so to supplement traditional investments, and their plan is to keep those precious metals for an extended period of time. They are buying at the same pace regardless of how the market is doing in any particular year. </p><p><br /></p><p>Why are people unlikely to modify their purchasing:</p><p><br /></p><p>Precious metals carry a much larger cost to purchase than stocks or bonds, so there is a great incentive to hang on to them longer than you would paper investments that have lower premiums. Therefore, people are unlikely to buy and sell constantly, because it's too expensive to do so.</p><p><br /></p><p>It's also just a hunch, but I would imagine precious metals buyers are way more likely to experience the so-called "endowment effect" than are buyers of paper investment. This is the psychological flaw to attach more value to something you already own than the thing is actually worth. So gold and silver own is worth more to you than its actual value. Consequently, those who have given in to the endowment effect will be less likely to sell PMs. </p><p><br /></p><p>Having said all of that, my answer to your question is that it doesn't really matter what the PM market looks like, most PM buyers will not change their behavior. People who buy PMs do so for the long term. If they do that wisely, they will buy at almost the same rate no matter what the market looks like in any given short period of time. And they are unlikely to ever sell in the short term, because their PM acquisition is about slow and steady accumulation, not short term gain.[/QUOTE]</p><p><br /></p>
[QUOTE="myownprivy, post: 3228357, member: 84588"]I doubt you'll get a very good result from your poll, because most people who buy PMs do so to supplement traditional investments, and their plan is to keep those precious metals for an extended period of time. They are buying at the same pace regardless of how the market is doing in any particular year. Why are people unlikely to modify their purchasing: Precious metals carry a much larger cost to purchase than stocks or bonds, so there is a great incentive to hang on to them longer than you would paper investments that have lower premiums. Therefore, people are unlikely to buy and sell constantly, because it's too expensive to do so. It's also just a hunch, but I would imagine precious metals buyers are way more likely to experience the so-called "endowment effect" than are buyers of paper investment. This is the psychological flaw to attach more value to something you already own than the thing is actually worth. So gold and silver own is worth more to you than its actual value. Consequently, those who have given in to the endowment effect will be less likely to sell PMs. Having said all of that, my answer to your question is that it doesn't really matter what the PM market looks like, most PM buyers will not change their behavior. People who buy PMs do so for the long term. If they do that wisely, they will buy at almost the same rate no matter what the market looks like in any given short period of time. And they are unlikely to ever sell in the short term, because their PM acquisition is about slow and steady accumulation, not short term gain.[/QUOTE]
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
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Poll: Now a time to buy or sell???
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...