Will you still purchase when prices are high?

Considering we're still sitting at several year lows (especially for Silver), I'll buy. Anything under $25 for me is not expensive. Though I will try to keep my average purchases around the $17-18 range.

$1,236 / oz is hardly expensive. If I could afford gold, I'd be buying gold right now.

 

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Howdy,

I guess it depends upon your goals and objectives, but if you wish to acquire a stash of bullion, you buy regularly and twice as much when it's on sale.

I once had an expression that under $5, you buy as much silver as you can. I remember buying a tube of ASE's for just under $90 including S&H. Yeah, I'm older but . . . I felt the same whenever the POS was under $10.

They have a term in investing called Dollar Cost Averaging (DCA) for buying stocks. You buy a fixed dollar amount at some regular interval, say one a month. This means that sometimes the price for each stock is higher, in which case your fixed dollar amount will buy fewer shares. Other times the stock will be cheaper, in which case you buy more shares. The presumption is that over the long run, you will pay the optimal average price for they shares.

This, of course, is opposite going out and buying everything when you THINK it's on sale. In the former, you don't have to worry about being wrong in your timing of the market. In the latter, you do.

Me? I do a little of both in that I make my annual purchase when the new issues come out - panda, ASE's, leaf, 'tads, Phillies, britanias, etc. I also buy extra stuff when the price seems too low [read: silver is 'on sale'].

and so it goes,

peace,

rono

 

Watching CNBC this morning - Even Jim Cramer is now hawking gold. He said "Gold is going up, and Randgold is the best play" - or something to that effect (disclaimer - do your own research to verify!)

People are jumping on the bandwagon - plan accordingly.

 

Here's the actual story.

"What does that tell you?" Cramer asked. "That stock is going higher."

Gold prices aren't done going up, Cramer added.

"I think gold is a trade out of China pulling money out of their own country and not wanting to put it in dollars, not wanting to put it in yen, not wanting to put it in euros -- putting it in gold," he said. "And Randgold is the best gold miner."

http://www.thestreet.com/story/13485117/1/jim-cramer-buy-randgold-on-any-weakness.html

 

I wanted to resurrect this thread because I am on the sidelines for purchasing PM's for the next few months due to some financial issues. Wanted to know other's buying strategies right now. When I bought silver for the first time 1/7/2016 Silver was at $14.20. Today, 5/16/2016 it closed at $17.17. It has flirted with $18.00 recently too. So any buying strategies right now or are you just sitting tight and see what happens?

 

I will continue to buy in small increments ($40-50) each month as I usually do...which is usually junk US silver.

 

Sounds good. I was planning on buying a 10z silver bar a month. Will get back to that soon.

 

I was out treasure hunting at an estate auction this weekend. I scored big time. Lots of foreign silver for 70% of melt value, a bunch of sterling silverware, I picked up a gold sovereign for $250 including premium. I picked up a bunch of jewelry too - one nice diamond ring that I just flipped to my jeweler for 3x the money.

The one thing I saw that was really awkward was that after all my great coin deals, jewelry deals, etc....

People were overpaying for Krugerrands. They had 3 sell. $1400 for 2 and $1500 for the last one. All were 1978/1980 which are common date and little to no numismatic value.

Add on 12% buyer's premium and 8% sales tax- people were paying $1600 and up for these things! Cash price on Ebay is $1300 or so. Crazy!

They were a bit ignorant too - the auctioneer said the weight was 1.2 ounces - which is ~34 grams. Technically they're 1.09 ounces troy - and then the purity comes into play - where it's actually "exactly" 1 ounce of pure gold - with alloys added to create metal hardness - totaling the 33.94 grams.

The More You Know!

My best score of the day was a 1 carat diamond in an 18k gold setting. Paid $500, just flipped to jeweler for $1500 this morning.

Building my war chest for Long Beach!

 

Keep in mind that that's the exact opposite of "dollar-cost averaging". You'll be spending less money to buy silver when it's cheaper, and spending more on it when it's more expensive, which is the opposite of "buy low, sell high".

If you instead budget (say) $200 a month, you'll buy more silver when it's cheaper, and less when it's more expensive.

 

Thank you for the advice. So save and then buy low is what you are saying?

 

That's outstanding, what a score! Congrats.

 

No, because you can't tell when "low" is. (If silver drops 10%, is it about to go back up to its previous level, or is it about to fall 20% further?)

If you're interested in accumulating silver (or a stock, or any other asset), DCA means spending a (more or less) constant dollar amount at regular intervals. So, like I said, $200/month (or whatever you can afford). If silver goes down 10%, you get to buy 11% more. If it goes up 20%, you'll buy 17% less. Like @Rono said, with an asset that goes up and down, DCA "optimizes" your spending over time.

I've run into people here who are violently opposed to DCA, but so far, the only approach I've seen that's better involves predicting the future. That's what markets are for; you might guess better than the market over time, but more likely you're fooling yourself if you think so.

 

Just Googled DCA and it's exactly what you said. Understand now. I will consider it as a strategy when I get back in the game.

 

I continue to buy, but with less enthusiasim and more selectivity

 

When I save up 100.00 on the side that is when I purchase my silver from Apmex, JM or Provident. Which is usually monthly.

 

I can't buy anymore. Regardless of price. I'm at my 5-8% of metal investing per my financial advisor. I'll just watch. I wish you all well.

 

So 14 x times face the going rate now or will it drop back down with silver market That's the best I can find.

 

I'm seeing 90% at 13.43x face on Provident Metals website.

 

What financial crisis?

 

Silver is for those who want a learning experience. Unless you can tell me you are buying at a minimum 500 ounce clip or more, your not a strong investor in the market. At that level you will become savvy enough to switch to other investments. No one is going to get rich on silver but you will take the information and experience you have learned to a higher level. That's not a negative but a plus.