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Posted 01/20/2012 6:25 pm
Quote:
I personally think it is prudent to look at the potential down side of an investment and take what steps I can to mitigate losses if that investment goes bad.
I personally think it is prudent to look at the potential down side of an investment and take what steps I can to mitigate losses if that investment goes bad.
All investors would be well served to consider the up and down sides of any investment. PMs can be pretty volatile, so perhaps this is even more useful with them.Additionally, they should have an exit strategy in mind. This would be in the form of the prices at which they would be willing to sell their PMs, or at least a share of them, and also at what price they would be willing to buy more.
As to silver prices returning to 2005 levels... sure, that's possible. Is it likely, though? Industry seems to be absorbing a fair amount of silver and at least some US silver mines are declining in output. Not sure if mines in other places are picking up that slack or not.
It will be interesting to see whether or not Eric Sprott has any trouble getting physical delivery of the $350M worth of silver he wants to add to his PSLV physical silver fund. If supplies are tight, this could be a real challenge. From what I have read, it took nearly 4 months for him to receive the $250M worth of physical silver for his last trust funding operation.
