Silver Seems To Be Taking A Dive

Don't know, a lot of people smarter than me are urging caution right now. Even the FED is defending its QE2 policy and that's one of the biggest reasons for the surge in all metals. It all depends on the Lame Duck Congress. GOP economists are starting to balk at the FED plan but have no real one themselves other than "King Dollar". I think the lower dollar gets our goods to other markets quicker but also believe those markets might start using tariffs if they believe we're manipulating the currency. In any case, I think all metals will go higher as we further get into QE2.

Yeah, I saw that. I still think $24 and change by years end and then higher next year. Its down 80 cents already to $25.20

Cool article SD, the guy that wrote that owns a coin shop 25 miles from me. ffd

I was glad to see the correction. Too much more gaining would have made me really nervous. Healthy growth tends to equal natural bumps and valleys. A lot of people are comparing silver prices to the silver cornering attempt back in '82. I don't understand this reasoning. I get the psychological points behind it, but I don't understand how a cornering attempt and a result of bad monetary policy are supposed to be the same thing.

Likewise, however, it is irrational to claim the 82' peak as the price silver can reach adjusted for inflation, which I've seen some salesmen do.

my wife and I have been discussing recently what to do with the $$ we make. for one, we have bills, like death and taxes,

we have our loans, mortgage etc. some people tell us that we are in no position to invest because any debt you have should be cleared first - I agree.

not sure how many of you are Glenn Beck fans or not, but I have watched a few of his recent shows and they are pretty interesting to say the least in regards to what has happened in our economy, in regards to the FED, gold, inflation etc...

i bring up these points because as a fellow tax paying American, my American dream seems to be hanging be a thread. watching the USD continue to slide and watch mercilessly as my President encourages this decline of our dollar and in the same breath encourages China to prosper, I am a bit rattled...

i dont have "extra money" to invest, I barely have enough to pay my bills, let alone buy coins lol...

but all this talk about silver and gold has me wondering and on the edge of my seat wondering if I should risk some of my hard earned "paper" and move it to something that HAS VALUE... sounds pretty logical right?

but again, I'm trying to base my decisions on the decisions that my government, nation, investors, and other countries are making... right? it sure would suck to be that guy who puts 20-30$ a week of his hard earned paper into silver when silver is at $26/oz, only to see things crash the next day back down to $10...

if we knew what silver or gold was going to do, and when it was going to do it, then we all would be rich..

the best thing I think I can do is continue to watch the factors that move these things up and down and make my move, right? sometimes it feels like I'm blindfolded and told to stick my hand out and catch the dollar bill when it falls...hoping I catch it...but hoping that its a $100 not just $1... lol

so I ask you this - with everything that is going on in our world today, what things are you looking at to base your decision on investing in silver/gold? kinda broad, but I have a lot of questions.. lol..

I think "some" investment in Silver & Gold ALWAYS has a place, but do not go crazy with it. History is history....and a lot of people have lost their shirts doing too large of a portion of their investment capitol.
I think your available monies, should be diversified as much as possible, no matter what level of money you have available.

You don't wanna be a Titanic victim !! .......shiny, new, promising, hopeful, industrious, exciting, adventurous, sometimes only results in you residing at the bottom of the ocean wondering what happened !

Near record highs of precious metals has A LOT of folks thinkin'......

SD, feel for ya, man.

personally, I try and buy my silver at the cheapest price possible, because I'm in a similar situation. the cheapest price possible can only be got by coin roll hunting. that's the safest way for you to make a little safeguard. on top of that, maybe buy a silver eagle a month or something. in a year or so, you'll have a nice little pile.

if you get your silver for next to nothing, it won't kill you if the ship starts to sink. on the other hand, if the dollar goes down, you've got a free and very profitable investment.

I think the order of priority for extra money should be (1) build up an emergency fund to keep in cash, (2) pay down any high interest debt, (3) contribute to your 401k or IRA/Roth particularly if you get a match, and only after those are taken care of start building up a portfolio of collectibles. That said, there is a difference between building a portfolio of coins and just having fun. $10 here or there buying some silver coins for fun is very reasonable even if you are loaded with debt elsewhere; better than spending the money at Starbucks (!)

I would not recommend putting extra money toward a mortgage unless you have a very bad rate. If you put an extra $50k into your home and run into trouble, no guarantee you'll ever get it back in a sale or loan. If you have it in cash, you can always walk away from your mortgage and rent a nice place. Many folks are doing that out of necessity and, really, it isn't a bad play when you consider how much money those banks got from Congress.