Gold & Silver: Is This It?

Just like children believe in Santa Claus. The people that stand to lose loads on silver actually believe it won't keep falling like a rock and stay there.

But thanks to the desperate silver hounds like the ones posting here and still buying at the over inflated price I have been making a fortune selling off.

Excellent! More for me!

This pretty much is the essence of collecting... finding something that does perk up our interest and then buying into it. Fortunately, there is plenty of variety out there to satisfy most any interest.

Lets get some things straight. This is a Precious Metals & Bullion forum it is not a coin collecting forum. There are more than a few great forums for that on this site.

You are speculating with a precious metal to hopefully earn a profit, not buying something you think is cool and carries a larger than needed premium - that would be coin collecting.

Of course you have a choice buy what you think is cool regardless of the spot silver price or buy something that is silver or what ever at the lowest price possible.

Numismatics is coin collecting, speculating in pms combined with numismatics carriers extreme risk and extreme profit. It also carries the greatest responsibility to learn about the numismatic market and just not the PM market.

Just like children believe in Santa Claus. The people that stand to lose loads on silver actually believe it won't keep falling like a rock and stay there.

But thanks to the desperate silver hounds like the ones posting here and still buying at the over inflated price I have been making a fortune selling off.

This certainly is a honest opinion and it certainly would apply to anyone who dumped large amounts of money into the silver market during it recent climb. However for those that are true speculators it is so far from the truth it hurts to see it in print. It just paints a very poor picture to anyone new to speculating.

Sure the market may drop more tonight in fact even more tomorrow and the next day. That is what every market does even those investment markets such as stocks.

So how do you speculate?

First if you cannot stand short term losses don't buy any type of PM's. Second if your just into coins and PM's you think are neat looking then PM speculation will eat you up alive. You will become a very big looser.

To be successful buy in small amounts over time and at each level. One year to three years is not enough time to be successful. You have to be smart there will be times to sell then hold the money only to buy more when the price falls. Few hit the full high or lows but most get close enough. This adds up to more oz for the same money.

I honestly believe some that have posted here should stick to general coin collecting. Buy what you like, enjoy it and don't worry about the market. Your just not going to make it speculating because you are buying the wrong silver and paying too much. That is my opinion but I believe it is a sound one.

As a PM speculator everything I have is subject to be sold when the time is right, no attachments to any of it pretty or not.

I remember when I was buying the bulk of my silver when it was under $10. The same type of people said it was over prices. However I kept buying and buying and buying. Everybody said I was going to loose everything. The fact was that I could have, I was speculating and this doesn't always run as well as investments do.

Over 35 years I was able to go through ups and downs, flat years and just plain pain as Pms did what they wanted to do. I have made money but I didn't try to do it all in one lump buy or all during a climbing market.

I can't tell you how to speculate for most don't have the will or stomach to be a speculator. To many people want a fast return and run at the first thing they do not understand.

What I can tell you is that Silver has the same opportunity to hit $18 as it does $50. I have really been hoping to see the $18 as I have made my moves when I needed to in this market year.

What I consider a poor silver speculation - Junk silver in BU - it is over priced and you really have to depend on a high rise in the price of silver to cover the premiums. That stuff can be very, very hard to sell close to the premiums you pay for it.

What I consider a good buy - any silver with a premium of under $3.00 per oz. You also have to look at the buy price and compared it to the sell price to get a good idea of the premium loss. For example an ASE may have more premium but you will get for it than you would a bar that you paid a lower premium on. Thus it may be a wash for both when it comes down to the premium spread.

Of course this is my opinion and it certainly may not meet every bullion speculators opinion. But what do I know I am only in it for the money.

Wow DOGCHOW, you figured out a way to turn a profit in this most unforgiving world, you should get a patent on that idea....

Nothing new, as the one thing that really turned Jesus to rage in his short life, was opportunist (shall we call them) trying to turn a profit on their silver coin monopoly right in the most sacred of grounds....

Tough when one needs a good ol fashion pat on the back, and nobody else is watching or even cares, other than God or the devil eh, jk dogchow and........

I'm curious...

At what price did you realize the price was overinflated and began to sell... $10, $20, $30... $40?

mkfarm: Buying silver with the lowest premium possible is great. Sometimes that lowest form is in coins, especially unpopular coins like modern silver proofs. Most of my silver is in US Mint silver proof sets that I purchased at on average of 1% above spot. They were selling for less than junk 90% silver and way less than ASE's. When I can buy a proof coin for spot and get some extra non-silver proof coins thrown in for free, I'll take that deal.

silvermaniac: Thanks for the tip on selling on the UK ebay site, I hadn't thought of that. I'll have to looking into shipping costs.

Absolutely. For any of us to buy, there MUST be a seller on the other side of that trade.

This reminds me of a conversation that I had with my son in early 2009. The market was way down and people were selling everything that wasn't nailed down. My son asked me if I was buying and I said "Yep, with BOTH hands!". Without people like me to sop up all the gravy that was being splashed around, people like them could not sell. I told my son that my job in the stock market was to make money and that the job of those who panic was to provide it!