Are You Buying?

Here is where you go wrong with buying PM's on a small speculations scale.

1.) Buy large amounts at one time - according to your budget.
2.) Focusing on the price or markets ups and downs.
3.) Getting worried to the point you no longer buy. - you can't have an opportunity to have a good profit on a cost average basis.
4.) Spending money you may need in a short time.
5.) Coming into the market only to stop because of the flux in the market.
6.) Spending too much per oz because you wanted a certain type of silver.

You have to have a very large tolerance of failure to speculate in PM's. If you get upset over your 410K results then PM's are not for you.

From a couple of pages back I just had 1,600 lb safe delivered The delivery guys thought I was Crazy when I told them I wanted it bolted to the slab Especially since it was installed in our Hurricane bolt room which has re-bar reinforced walls But even if I filled it I figure I could have levered it up with a 6 foot pry bar enough to get a pallet jack under it. The gentleman who sold me the safe showed me just how easy it was. So my advice is no matter the weight or size of your safe bolt it down!
If you have a good monitored alarm system it only has to hold out until the police arrive about 8 mins in my area. one of the advantages of living in a higher crime neighborhood.
Now all I need to do is buy enough silver to fill it..
At around 200oz a year I figure 40 years from now I'll have a good start..

I called my dealer today. He will sell me junk silver at 19-1/2 times face delivered. Told him I will make a decision by Monday once I know how much I have to spend and whether it would be better spent somewhere else.

Wish I had the time where I could buy it off CL. I can get it there for 16 times face if I keep my eyes open.

HOW!?

I have not committed to buy yet, so the price is not firm, so the price could go either up or down in the meantime.

Once I commit to buy, my dealer will sell to me at that price no matter whether the price goes up or down between the time of the commitment and the time of delivery. Likewise, once I commit to buy, I will buy at that price even if the price goes down before I take delivery.

I use 0.71 when I calculate because of wear and tear on the coins. My dealer uses 0.72 which allows for some wear and tear, but not all. That said, I get a lot of near proof coins when I buy junk silver from him, so 0.72 is probably a reasonable figure in that case.

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As an aside, cash Aluminum has not crashed like Aluminum futures have on the LME. Cash AL here is 65 cents today, down only 10 cents (14%) from its recent high whereas the LME is down 30 cents (25%). Does not sound like much, but when you sell several tons every month, it does add up.

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As I tell customers: If you want to do the dealer's job, plus the added time and expense, sure you ca get more or buy for less. Surely those aren't dealers on CL.

Basically, I tell people that any time they do someone else's job, they generally lose in the long run.

I can buy more silver by doing my job and paying the spot price than I can buy when doing a dealer's job while neglecting my own job and paying 20% under spot.

That is the reason I don't work on my own cars except in emergencies. I can make more money by paying an automotive shop to fix them.

Excellent list, MK. Well done with spreading the word.



When I had a 401K plan I used to never think about its value, just the number of shares I owned. While the value jumped all over the place, the number of shares rose steadily. When share prices were high, I was happy to have made some money. When they were low, I was happy to be adding more shares at a lower price. It's the same now with my silver collection. It's all about the ounces unless you have to / need to / or want to sell.