Quantity vs Value

Discussion in 'Bullion Investing' started by Adam34falcon, Jan 26, 2019.

  1. Adam34falcon

    Adam34falcon Active Member

    Hey guys,

    What is your opinion on buying silver at your "midpoint" where the price isn't too high to sell but too low to buy but you still wan't to add some to your portfolio. What I'm asking is, do you guys care if you can buy 100 ounces for a set price or would you wait months to have the value go down just a few cents to buy for example, 110-120 ounces. You are putting in the same amount of money either way, so what do you guys think? Sorry if this question doesn't make much sense, I couldn't word it very well. Thanks.
     
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  3. brandon spiegel

    brandon spiegel Brandon Spiegel

    Personally, if I were you I would buy some now then wait to see what the price does in the future, so you could decrease your average cost if the price goes down but still be able to make a gain if prices go up. Websites like jmbullion.com If I were you I would also consider doing some research on an ETF that tracks the price of silver, so you might be able to make more money b/c not having to spend the money to physically move your silver. I personally use Robinhood to avoid the 5 dollar trading fees. I would imagine that silver would be down at least a few cents at some point within the next week or two, I almost with that jmbullion would let you place a bullion order as a limit order to make it easier to lock in better prixing like that lol. This is just my two cents though.
     
  4. Ana Silverbell

    Ana Silverbell Active Member

    Are you saying the "midpoint" is where the price of silver is not high enough where you are willing to sell your silver, nor low enough that you want to buy silver?

    If this is what you mean, I will admit that my midpoint has not been static over the years but the deviations were minor so I would say that I stand fairly firm on my threshold buy/sell price per ounce.

    Most PM investors do not consider it risky to buy silver in a declining market, "averaging down." It is the rising market that most get nervous with: "Do I buy into a rising market price?" "Has the price peaked or is there more?"
     
  5. Fallguy

    Fallguy Supporter! Supporter

    Let's do the math and then you an decide. Let's say you have $1,600 to invest and Silver is trading at $16/oz. So if you buy at that price point you'll get 100oz. But you think that price is a little high, so you wait . . . and the price drops to $15/oz. You say, "That's more like it!" so you invest your $1,600 at that price, so you end up with 106.7ozs (rounded). Later, the price goes back up to $16/oz and you decide to sell, so you end up getting $1,706.67 (again rounded). Now let's see how you did: you started with $1,600 and now have $1,706.67, or a $106.67 gain. In terms of a percentage gain, you're up 6.67% (excluding transaction & tax costs, if any). Not Bad! . . . Maybe . . . If your turnaround time was a month, then you'd have an annualized yield of 80%; really good! But if the time was 5 years, your annualized return would only be 1.33% a truly different outcome (as a note, I used a simple arithmetic return and no adjustment for potential gain on reinvestment of principal and initial return . . . nor an inflation offset. Using more refined approaches would give slightly different results. So since you would appear to be buying bullion instead of silver coins (where you could possibly also get a "collectible" premium), the answer to your question comes down to: How volatile will the price of silver be AND over what time period do you believe these price changes will occur.

    Semper Fidelis
     
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  6. Collecting Nut

    Collecting Nut Borderline Hoarder

    Billion silver is an investment, a long term hold. You either buy or sell it you'll go broke trying to flip it.

    So you want to sell. Simple, sell at the highest possible price.

    Buying is more complex. You buy and hold. The price goes up or it goes down. You buy more, adding to what you already have. Don't consider the midpoint that you speak of.

    Why would anyone want to sell when the price goes up daily? When the PM's increase the selling of them drops off but the buying goes up. Everyone wants to make a quick buck.

    So you buy an ounce of silver at $18.00 and the price drops to $16.00. You buy another ounce. Now you have 2 ounces at an average cost of $17.00. Silver only needs to go up one dollar to break even(fees not factored in). If you bought 1 ounce at $18.00 and it dropped to $16.00 you buy 4 more ounces. Your total investment is $82.00 or $16.40 per ounce.

    Forget the buying strategy you suggest as it will do nothing but cost you money in the long run.
     
    SLACKACTION likes this.
  7. RICHARD K

    RICHARD K MISTY & SASHA

    They say to dollar cost average, so sometimes you get more for your money or less but it averages out . If the economy crashes, and the dollar is not worth it's current 4 cents any longer you most likely will have some nice increases in silver.
     
  8. myownprivy

    myownprivy Well-Known Member

    Like any investment (because it sounds like you are trying to make money doing this) the best advice is to be consistent. Spend a consistent amount of money on a consistent basis buying silver (or gold, or stocks, etc.). It doesn't matter if silver is $15 per ounce or $30. Spend the same amount of money on it at the same intervals.

    You do not possess the ability to know the market, so trying to time your buys or sells is nothing but a gamble.

    How do you plan to exit? Perhaps decide on a long term plan: "I will sell and exit the pm market when silver reaches $50 per ounce." I will sell silver whenever I need extra money. I will sell my silver when I buy my first home. I will sell silver to help my kid pay for college. I will sell my silver only if all my other investments fail and I need money to survive. Whatever it might be.
     
  9. Prez2

    Prez2 Well-Known Member

    I'm of the opinion silver is vastly under priced and would buy all you could afford. I don't see how inflation keeps rising (and yes, it IS rising despite the 'official' position) yet silver remains stagnant. It makes no sense to me that my earned dollar buys me less and less, that things cost more and more and yet this particular commodity remains fixed (probably because it is 'fixed'). I think the bottom will be falling out soon and I'd personally take any 'disposable' income towards silver. Now I'm sure all the genius, economically professionally educated folks will undoubtedly disagree and they may be right but I'm a gambling man. I'm gambling the overseers are wrong in that 'supply and demand', blah, blah, blah, are wrong. Then again, I could be wrong. We'll see when the market collapses (and it most definitely will collapse). The paper house of cards can't keep going like this. Silver isn't the only answer but it's one of them, IMHO.
     
  10. myownprivy

    myownprivy Well-Known Member

    What the hell are you talking about? It's posts like yours that make me embarrassed to own precious metals because most of the non-metal owning population think all "stackers" are like you.

    What informs your opinion that silver is under priced? A "feeling"? Come on!

    Who says inflation is not rising? We know it is rising. Official inflation figures are available all over the papers and online. We KNOW inflation is increasing. It's around a couple percent annually for some time now. You act like someone is hiding this information from you. They are not. This information is not suppressed.

    From the rest of your post, it sounds like you truly detest expertise. Those "economically professionally educated" people sure are idiots, aren't they? Are you the type of person who lets a dentist repair your lawn mower and lets a mechanic treat your cancer? Or are you at LEAST smart enough that you consult experts when it comes to those other technical areas?

    This post is exactly why I fear for the future of our world. It is full of close-minded, anti-elites who think some cabal is out is out to manipulate them.

     
  11. Prez2

    Prez2 Well-Known Member

    Thank you for your input. I'm dumb and you're not. Got it.
     
  12. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    Probably not a good comment for this thread, but if you are flipping large amounts 500+ ounces, use paper options to straddle your trade, so you make some if it goes up or if it goes down in price. You lose the cost of such a option if it stays the same price. Then you can buy physical if you wish or if you still have faith it is going to change up or down, then roll over your paper option at a cost and wait again another period. The expense of buying or selling bullion and shipping is always going to eat up profits. IMO Jim
     
  13. Prez2

    Prez2 Well-Known Member

    Thank you as well. I'm not flipping any large amounts. I didn't realize 'good' comments were of a certain caliber or class. Geez. It's these kinds of comments from those 'super smart' folks that make me less and less interested in the hobby. I said 'IMHO'. It meant it was MY opinion. Sorry I offered any opinion and I'll refrain from it further. Attitudes like this make me want to disassociate myself with forums like this. It's amazing how many geniuses are here. What I wonder is why they waste their time here at all when they could be selling off their oodles and oodles of wisdom for even more profit. Why not just close the place off and label it 'geniuses only'? That way, you could get only those people that are worthy of your association. Seriously, why not charge a fee and do an elite 'members only' thing? God this place makes me nauseous sometimes. What next? A penalty of some sort? Go ahead. Geezus H. Sorry to offend the Holy with any opposing opinion. No wonder this country is in the near civil war state that it is in currently.
     
  14. Prez2

    Prez2 Well-Known Member

    No more 'opinions'? I was waiting and wanting to see the enormous amount of experienced and genius level advice, like I read earlier. None I guess. Shocking.
     
  15. Mr Roots

    Mr Roots Underneath The Bridge

    Silver is valued in USDs 3-4x what it was valued in the 90’s, seems like it has been keeping up with inflation just fine.
    It will probably easily be 15 more years before it triples again.
     
  16. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    if your only looking to buy only small quantity, it doesnt really matter
    As the gains vs losses would be hardly apparent, but a bulk purchase
    would probably wait for a buying trend in the market.
     
  17. CasualAg$

    CasualAg$ Corvid Minions Collecting

    “Excluding food and energy, consumer prices increased 2.2 percent over a year earlier, the same as in November and matching forecasts.”

    The above is from the latest inflation reports. Notice what isn’t included? Have the prices of food and electricity risen in the last year? I believe this is what @Prez2 was referring to. Just part of the “lies, damn lies, and statistics” paradigm that undermines the Consumer Price Index (and the approval rating of statisticians and economists).

    Applied to Silver, translates to: Buy low, buy mid-point, buy often. Be it Apocalypse or Paradise, you’ll still have silver.
     
    Prez2 likes this.
  18. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Its best keep it basic for simple minds...LOL, buy low sale high :)
     
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  19. SLACKACTION

    SLACKACTION UNION REPRESENTATIVE

    thank u much MPCUSA
     
  20. SLACKACTION

    SLACKACTION UNION REPRESENTATIVE

    don't give in PREZ... keep commenting they have beat me up on here the STAY the course... Because there is a Ton of informative people on here who can lend advice or perspectives... Its free..just half to put with discourse sometimes... They get me for Spelling, Captiol letters..
     
    Prez2 likes this.
  21. SilverSurfer415

    SilverSurfer415 Well-Known Member

    I would go for quantity. A bunch of generic rounds and bars would be an awesome sight to see on a table.
     
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