When are you Going to Buy Precious Metals

Homies I says it once and I says it again, silver and gold are doomed in the short run. Gold will go back to 600 dollas and ounce and silver will go to 5 dollas an ounce in the next couple years. I will buy when silver becomes cheap again and sell during another recession!

 

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Is there a reason why you believe that?

 

Enquiring minds want to know, why do you think that?

 

What a prediction, where do you get this stuff?

 

Son... back it off, I have callus on my feet older than you, I've been in an out of this game since before you were born, you just sound frightened.
and don't call me homie.

 

When silver hit $20 an ounce I nibbled. When it got into the teens I nibbled some more. If/when it goes anywhere near $15 I'll chomp. If it goes to $5 will I be sad? No, I'll buy 4x as much...because I'm in my early 30's and don't plan on selling until I cash out for a boat when I retire. It may go down, it may go up...but it will undoubtedly bounce back to the $35-$40 range long before I cash out of the game. Trends don't lie, they repeat themselves. And I'll be sipping on a margarita while I'm sailing the coast either way. You don't get into PM's if your trying to make a quick buck. That's what a job is for.

 

You need to stop huffing paint thinner man.

 

No reason to buy gold and even less reason to buy silver as an investment. Look at the action in gold over the last week. The stock market cratered, gold barely moved. As long as the dollar is relatively strong (the best in a bad neighborhood of currencies). No compelling reason for precious metals.

I've started buying 1 oz silver coins but more for the aesthetics than any thought they'll ever actually be worth very much.

http://www.cnbc.com/id/102095265?trknav=homestack:topnews:18

 

Um, that is kind of the point. You buy pm as a hedge against other financial investments. If you were 100% in stocks you just lost 15% or more in a few weeks. If you had some in pm you are down less. Its called lessening volatility, lowering beta, etc.

 

Silver seems to be hanging in the $17 range right now, waiting to see what is going to happen. Will there be some QE? Who knows? I'm not making any predictions. There seem to be too many things going on to tell right now.

 

Not saying it couldn't happen, but in the next couple of years is a bit optimistic. Anyone who believes gold and silver could never fall to previous lows, or climb to previous highs, is delusional. It has happened for as long as there have been prices for such things, and will happen again and again.

 

If for some freak reason it goes that low, it won't last long. I would venture to guess that a market like that would destroy the miners completely. I mean destroy. Rotted boards over the doors, filming zombie movies at the abandoned headquarters.

The only gold and silver that would come out of the ground at those prices would be the co-products from a different primary resource mine.

The mines can operation below cost of production for a while, but they can't operate that far below break even. These prices are a gift. You have to remember the break even point is rising every year, so a linear chart analysis isn't a great place to start guessing. Before this decline kicked in, Caterpillar was getting beat up because mining equipment sales were already going down. There's your leading indicator.

 

Where are you getting the impression mining costs are going up every year? From what I have seen, their costs have dropped sizably in the last few years. Even wages, which historically have gone up, have come down as the huge demand for workers in the field has gone away, and tens of thousands of skilled miners and haulers are now looking for work.

Regarding the fact that "only" byproducts will be produced, isn't byproduct production by far the largest source of silver, and a huge source for gold? Millions of ounces of silver will be mined every years pretty much regardless of market prices.

 

One of the larger expenses for mining is fuel costs for the huge mining trucks. Fuel has come down approx. 20%. I am sure the mining companies are buying futures to lower their costs for years to come.

 

Hey I like paying low for 45-63 grade Morgan's!

 

As soon as you tell us it's a good time to buy. I always follow my homies, they save me dollas, dawg.

 

A diversified portfolio of stocks and intermediate and short term bonds is a safer bet than precious metals have been in the last couple years. I can't imagine having more than a few percent, maybe 5% PM in a portfolio, and that'd be gold. I've been researching the hell out of silver and I just don't see a good argument for ever owning it as an investment. Gold maybe. Just my 2 cents and would certainly expect disagreement.

 

Have I told you the time when I first started buying silver?

I see people mention POS all over the place on this website and I thought they meant Piece of ****. They kept repeating that word all over their post and I had no idea what was going on. POS actually meant PRICE OF SILVER.....my mind was BLOWN.

 

Normally people call you homie if you come from the same city, just sayin'. You ain't my homie, dog.

 

Surely you mean dawg?