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 Replies: 23 / Views: 5,273 |
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Pillar of the Community
United States
5832 Posts |
Buy low, sell high! Its just like the stock market, the non-conformist don't panic when prices goes down for a time and they just accumulate even more precious metals. Of course, diversification is key, never put your eggs in one basket. No more than 15% of your gross investment should average person invest in metal. This is a hobby, I wont get rich unless I make a big discovery, but I do dream about it once in a while.  |
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Pillar of the Community
United States
667 Posts |
The first thing I always say is don't invest tomorrows grocery money in silver or gold. It should be a long term investment with money you are not going to need tomorrow. The second thing I don't do it watch the market every day figuring out my gains or losses.
Buy silver every month is only putting a small amount of your investment at risk. Buying it all at one time puts the full amount at risk.
For example I have bought the same amount of silver every month for 15 years. Some of it was bought very very low and some was but at the current high mark. For 10 years the price was $10 or less. The last 5 years has been a wider range but most of those years were still considerable lower than what the current spot price is. Of course the market could make a large correction just like any stock and I am back to square one or a little worse off.
Personally I am still buying silver. Yes it could fall back to $10 or worse but then again I feel it has some more room to keep going strong. Since it isn't tomorrows budget money and I am still young I have some time to plan on when I feel it is the right time to sell.
I probably would not toss all my available money into silver at this price but I certainly would not stop buying at the current price even if it drops some more. I like to spread my risk.
Silver is just a small part of my long range plans and adds the security part that I feel it is secure to have some money in a product that I feel would be worst more than a stock or greenback in a worse case event.
I don't know it works for me not saying it is the best investment strategy. Now I can only hope that silver falls below $10, I still have many years to buy and when it is low I can afford more.
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New Member
United States
11 Posts |
There are at least 2 reasons for buying silver. First is to make a profit, buy low and sell high and all of that. The second is if it is your opinion that our current fiat currency is going to enter a period of massive inflation, then buying things such as silver is a hedge against that inflation with the possible intent of never selling for fiat dollars, but instead to trade the silver directly for services. If the first is your goal, then pay very close attention to the ups and downs trying to maximize profit at each turn. If the second is your goal, then just keep putting every spare dollar into silver and create that hoard.
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Pillar of the Community
United States
1554 Posts |
I would say buy a lot of silver and in 5-10 or 20 years it will pay off. Are you concerned about a quick profit? Collecting doesn't generally work that way....Good luck.
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Pillar of the Community
United States
2335 Posts |
I could have told you silver was going to drop this week. I sent a batch to my refiner this week & get paid based on spot the day it's processed. Every time I do that there is at least a $1 drop in prices.
I really don't think that's a coincidence........IMO the real reason it drops at that point is that I always send metals in for processing after an unusually high/fast run up. Like any investment precious metals don't go in any direction in a strictly linear manner. The trend could be higher or lower but the price graph will always have ups & downs.
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Pillar of the Community
United States
508 Posts |
If your in this to turn a profit, wait for the price to go down before you buy in quantity. Until then I recommend buying a set amount each month so you are still "stocking up".
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Valued Member
United States
487 Posts |
The money I use to buy silver is play money, I make sure that all the bills are paid and use the rest to buy silver. The reason I buy silver is there will be something for both of my daughters when the time comes. Silver will always have value. Its just a way for a father to look out for his cubs.
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Bedrock of the Community
United States
14454 Posts |
Quote:
Hello Bryan!
I've thought about doing exactly what you mentioned but I got to thinking, doesn't the money that your actively investing (spending) on silver in current (higher) prices negate the profit that you would be making on the sale of previously purchased silver? Well I started buying silver when it was close to 6.00 a ounce. I would buy 100.00 worth a month every month (just about like I have done the whole time). So no matter what the price of silver is spend the same amount each month and mark it what you paid per ounce and once its doubled sell. Thats how I do it. At times I have had 500-600 ounces at a time because for a years the price never went up much, it went up and back down . But once it hit the 10.00 mark it kept rising pretty steadily until about 15.00, then it pulled back again a little. I also bought some gold with the profit every now and then just so I didn't have all my eggs in one basket Edit: I had a whole big paragraph typed out here but after re-reading it I thought it may be to hard to follow so I shortened it up a little |
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Pillar of the Community
United States
2734 Posts |
Quote:
Is silver ever going back up? When I saw the title of this post, I thought you meant "will it ever go back up to Hunt Brothers levels (1980 peak)?", because those of us who bought quantities of silver at $4-$5 an oz. aren't really asking ourselves if silver will ever "go back up".   That said, silver looks well poised for steady long-term growth. (which sure beats a sudden Hunt. Bros ramp-up and subsequent crash!) New types of batteries (think "hybrid cars"), medical applications, and I'm particularly excited about the research into silver-based catalytic converters. Platinum's spot price will drop like a rock if silver catalytic converters go into mass production. Right now, silver's at $23/oz., and platinum's $1671/oz., so the economic incentive to use silver is obvious. Silver could cost ten times what it does now and it would still be much cheaper to use in catalytic converters than (present-valued) platinum. Those with experience in precious metals eagerly await the periodic drops in prices, because that's when they buy. The whole reason why silver passed $20 this year is because the market expected the price to drop in September (as it usually has), but it didn't. The central banks were buying (paper) silver (futures) this Sept. instead of selling. This breaking of the usual "fall in the Fall" pattern enabled silver to cross the important "$20 barrier", and more importantly stay above it. Edited by DNA
10/23/2010 11:35 am
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Pillar of the Community
United States
511 Posts |
A strong run up in price followed by a moderate correction is the normal and predictable pattern in ANY market. As others have said, some people take profits, and it's perfectly logical for a bull market to catch a breather.
I buy silver because it's real, honest money that can't be printed in unlimited quantities like FRNs and other fiat currencies. It may sound radical to say that every American should hold some silver, but that's the way it was before 1965.
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New Member
United States
12 Posts |
I as well remember when silver was at the $4 to $5 range and thought I had struck it rich! I too buy an average of $100. a month in silver bullion and have since the early 80s. And no I didn't sell at the $8 or $9 price. I did buy a few rolls of Barber halves at 2 to 3 dollars each, and still have them. I'm looking at retirement in another 5 years, and did pay for 2 daughters weddings as well! if you can buy and put it away for 10 to 15 years the average price should really increase, you just have to leave it alone! |
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Pillar of the Community
United States
1554 Posts |
I'm going to a coin show tomorrow and will be buying at least $200 worth....Andrew, I think you are confused about coin and silver collecting...you just keep buying for the future, it WILL pay off! You have to hold on for some years...Unless you have multi thousands$$$$ and are playing the daily game, and then, what if it goes up a few days after you sell...you are setting yourself up for a major dissapointment
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Valued Member
United States
426 Posts |
That's awesome Bryan! I remember being a cheapskate and not wanting to buy silver when it was in the $13 - $14 dollar range, now I regret not buying more.
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Pillar of the Community
United States
958 Posts |
dna silver in catylitic converetrs does not work , does not hold enough heat to burn off the emmisions gases
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Moderator
 United States
189117 Posts |
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Replies: 23 / Views: 5,273 |
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Posted 10/22/2010 9:17 pm
