Silver Eagles?

Having spent years in trading,and whether it being stocks, currencies, bonds etc one major mistake you want to avoid make if you are buying for investment is buying assets that are falling.

Even more deathly than that is buying commodities that are falling and in downtrends. No one makes money on that (unless you are selling short), and those who been dip buying silver and gold all these past two years, even this year, are in the red and underwater. Those who continue to buy these dips until the downtrend has confirmed that is broken, will also be under water with losses.

What you need to understand is that commodities are based solely on supply and demand. Nothing more, nothing less. Anyone else who tries to tell you otherwise doesn't understand how those markets work and has bias. Unlike stocks which have several metrics that can be measured on and valued by various market participants, commodities do not have that. They dont pay a divy, they are no "forward estimates" there is no "p/e" value. Why? Because again, they are about supply and demand, thats all.

Silver and gold are being dumped and pushed aside. Their time came and went. If anything, one should be selling silver and gold into any and all rallies and taking profits. Holding and going full circle is not a wise thing. There is nothing good about the price action in silver and gold. Furthermore, do not expect silver and gold to come back racing up in a short period of time. IT will be a long time before we see those historic highs.

Therefore, an individual who pays a higher price after getting confirmation that a downtrend is over is wiser, savvy, experienced and will not start off in the red compared to individuals who blindly buy because they incorrectly think something is "on sale".

So yes, paying a higher price is the best thing to do. As they say, buy high and sell higher. Might be a very hard concept for many to grasp but it does work, I do it all the time.

I have edited this post to include why commodities are dangerous to buy as they slide and in downtrends.

The last time silver was at 18.xx I bought about 270 ounces of one-ounce silver rounds. Its a great invetment, but its one you have to hold on to for quite some time. With a decent sized purchase, you make money based on the rise of silver. So if Silver rises one dollar per ounce, I make 270 bucks on that move. You can do calculations to see that in order to make a decent amount of money you need to invest and hold onto it until it peaks out. Lets say silver goes back up to $32 an ounce, I would make 14 bucks an ounce times 270...or over 3500.00 . THEN I would sell the silver and pocket the cash. That cash would be held onto until silver gets down to near where I first bought it, and I could buy close to 450 ounces with the cash in hand.


Now for rare coins, the word rarity still plugs into the equation. The coins will move some, but honestly, not enough to matter. Some of the common date coins may move significantly, but it all depends on how much capital you have to use, and how long you want to hold onto them.

An Investment is part of collecting...in a way, what your doing is using it to purchase more of the same product, and holding onto it. Now if your liquidating it all, and spending the all cash and NOT putting anything back into it, then, sure, its far from collecting.

Same applies to coin collecting, and basic sales and then upgrading to a higher graded coin. Its a basic investment fundamental, IMO.

There are all sorts of cool looking rounds that can be bought and held on to.

= )

YUP7676: Excellent comments and "spot" on.

..and Collector-Corner:




That would have been Jan-August 2010...since you never mentioned selling the 270 ounces and are pining for a $32 rebound I assume you are still holding...and now only show a gain of less than $2/ounce over those 3+ years. I guess that's better than a CD but nothing to brag about