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How Much Would You Buy?

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odentheviking's Avatar
United States
425 Posts
 Posted 08/15/2012  12:37 am  Show Profile   Bookmark this reply Add odentheviking to your friends list Get a Link to this Reply
OK, this is a fun one. But I have a problem or two with this question............

Yes, if it was a "Time-Machine" deal it would be very tempting to not buy all the PMs you could get your cash around, but what about the butterfly effect? The idea that ever thing you do in the past affects and effects the future you plan to return too. What if you buying PMs like mad sparks others to buy and that some how does not allow for the big up-turn we have seen over the past 10 years?

As for an over-nite drop in PM prices...... you may not want to buy, buy, buy, for fear of it not going up again. Oh you may say you would......... but would you really? Back about 12 years ago I had never bought a single PM in my life, I only had the old coins my family had given me here and there. I woke up to the fact that Gold was at about $270 an oz. and it had never really been that low. I told my wife, my father in law, my family, my friends, "Buy GOld NOW!". No one listened to me, said I was crazy, Gold is not gonna go up. I bought all that I could, anything I could sell and buy Gold with, and stopped buying it at about $350 an oz. (I know, I know, don't say it!). When it hit $875 an oz. I was sure that was the top and sold most of it off. It went on to double that mark and that is why I say if PMs crashed tomorrow to what they were 10 years ago, we would not buy..... we would try and sell...... or be too busy kicking ourselves for buying so high!
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Ed_B's Avatar
United States
4008 Posts
 Posted 08/16/2012  8:54 pm  Show Profile   Bookmark this reply Add Ed_B to your friends list Get a Link to this Reply

Quote:
In 2008, when the PM market tanked, I took out a home loan for $18K and invested it all in silver. I easily doubled, if not tripled, my money in under three years. I'd take the same risk again, no doubt.

Gutsy move, T. VERY well done!


Quote:
...but what about the butterfly effect?

My thought would be, "Well, what about it?". Seems to me that if one worries about such things, they would be paralyzed and unable to do anything. Besides, who is to say that the world as it is now is all that perfect that we must do nothing to change it in any way? It could very well be that the small changes caused by time travelers would really not be all that significant. Changing BIG events upon which history has turned, however, would not fall into this class.

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silvercoinrn's Avatar
United States
863 Posts
 Posted 08/20/2012  11:45 am  Show Profile   Bookmark this reply Add silvercoinrn to your friends list Get a Link to this Reply
If it did end up going that low I think there would be a big premium on the PM's. there is already a shortage on the 90%. Companies are having hard times filling orders.
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traevin's Avatar
United States
1454 Posts
 Posted 08/20/2012  3:11 pm  Show Profile   Bookmark this reply Add traevin to your friends list Get a Link to this Reply

Quote:

If it did end up going that low I think there would be a big premium on the PM's.


You're right. Dealers wouldn't sell. PMs would have to stay that low for a few weeks before sellers adjusted to the lower market value of precious metals. But they eventually, grudgingly will accept the new paradigm- or find a new job.
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Ed_B's Avatar
United States
4008 Posts
 Posted 08/20/2012  7:39 pm  Show Profile   Bookmark this reply Add Ed_B to your friends list Get a Link to this Reply

Quote:
But they eventually, grudgingly will accept the new paradigm- or find a new job.

Reality does have a nasty habit of intruding upon closely held beliefs.
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silvercoinrn's Avatar
United States
863 Posts
 Posted 08/20/2012  9:28 pm  Show Profile   Bookmark this reply Add silvercoinrn to your friends list Get a Link to this Reply
just before Y2K silver had 150% premiums. I think it would have the same effect now. and because so many people would end up buying it it would not be able to stay low.
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