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 Replies: 12 / Views: 2,391 |
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Pillar of the Community
Canada
1751 Posts |
I came to the hobby in 2012, and this forum was very active and silver was still very high. Now that silver has been in the $20 CAD range for 2 yrs, have you bought more or less than your 2012 purchases? I only buy occasionally a couple coins of a new release I like. Reason being I'm following Yup's advice and following price action. I figure by limiting my purchases, I won't lose too much if silver drops to $10-$15 CAD. What are others doing now that prices are staying almost the same past couple of years? Edited by pocket change 50
11/01/2015 4:44 pm
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Valued Member
Australia
208 Posts |
A few years ago when silver dropped rapidly from $30 to $24, I considered it a buying opportunity. I looked for the best coin deals among online dealers and LCS's. I was reasonably well informed, but I paid the high premiums of that time, and then silver dropped even more. I thought of looking for deals on coins at garage and estate sales. I found some coins at sales, but far better, I have found a large amount of silver in the form of sterling flatware and jewelry. I am averaging paying around 60% of melt, and between scrapping the majority and selling some on ebay, and am getting maybe 10% over melt. So coins are now a much smaller percentage of my silver buys, plus I am making some money even as silver has declined in value. |
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Pillar of the Community
United States
3789 Posts |
I have greatly curtailed my purchases in the hobby.
I would rather buy higher PROVIDED the prices of silver and gold were rising. I know sounds crazy. But I have lived and died as a professional trader by the saying "buying rising assets, sell dropping assets". This same formula I carry into my coin collecting hobby.
There are a lot of coins that I personally want that I am making a major database to track prices.
I have greatly narrowed my collection purchases down for a while now, only looking Somalian elephant coins and then only buying them if they are at auction from a reputable dealer. Otherwise, I sit on my thumbs and wait. I do actively look at new issues of coins but I only look and am not buying the other ones.. for now.
There is no way I am interested in kilo somalians elephants or 1 oz gold somalian pieces until there is more clarity.
I have the patience to wait and that is what I continue to do until prices in the PM land give us more clarity.
One thing tho I refuse to do is get caught buying coins and then seeing them drop much lower on me months later. No thanks.
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New Member
United States
10 Posts |
Yup, I respect the strategy. Questions...
We've seen divergence in the spot price/premium price around $14.5o, where spot rises to the point total cost for bullion remains where it was at the mid 15's. Do you feel this hints at an effective bottom in price? One could make the argument that if spot went below $14, premiums would rise to nullify any perceived saving opportunity. Do you foresee any way we have the opportunity to get ASE/RCM/Perth below prices we've recently seen?
Since you aren't a buyer until clear upside is presented, are you, as Leon said, "stacking king dollar"? Do you plan on mass purchasing the coins you want when the turn is confirmed?
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Pillar of the Community
United States
3789 Posts |
@blueleader
Calling a bottom is tough work and really impossible. I think in time, once we have real clarity as to where prices are going premiums will settle out and stay consistent. However, here we are into the downtrend going on 3 plus years and we still have found a floor and any rallies that occur are just counter trend moves that are temporary.
I say only time will tell us where we are headed.
As far as the dollar, at this exact snapshot in time, I would be a buyer of dollars at a break of .9834. Until then, not interested.
I might add that correlations come and go. There can be dollar moving higher and PMs going higher. There can be lower dollar and higher PMs and conversely there can be lower PMs and dollars.
One thing is for sure, this PM market has been extremely volatile, which again, these volatile and violent moves do occur in downtrends.
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Pillar of the Community
United States
632 Posts |
Simple as this: Prices went down and I bought more.
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Pillar of the Community
United States
4333 Posts |
Have bought less, waiting for some kind of action.
I'm sure I've followed the spot market every day since 2007.
Like a slave.
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Pillar of the Community
United States
3843 Posts |
I sat out the highs and started to buy again in the low twenties. I've probably doubled the size of my small silver stack in the past two years.
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Pillar of the Community
1153 Posts |
I don't buy much in terms of bullion, but my junk silver box has significantly increased over the past 6 months.
Edited by CSOTUS
11/07/2015 07:43 am
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Pillar of the Community
United States
2130 Posts |
Thankfully I didn't get sucked into the high price silver craze a few years ago. I just started paying attention to silver prices when it made it into the high $40's. I did buy a little during this time but not enough to really matter. I'm talking probably close to 10 ounces. I have really added to my stack over the last year and a half. Once it dropped below $20 I really starting making an effort to buy more. I continue to follow Yup's post and I am waiting before I am all in but I must admit that the temptation does get to me every now and then. I will add 5 ounces here and 5 ounces there whenever I have a little diposable income.
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Pillar of the Community
United States
500 Posts |
I don't own much, but most of what I did have was bought in the $35 an ounce or so range, so I did purchase quite a bit in 2015 in the $20 or so range. I probably doubled what I had from maybe 50 oz. to 100 oz. but I "collect", not just buy silver for any other reason. It's not an "investment" for me or future "barter". I just collect things I like and have liked more silver from around the world in the last few years and a lot of new countries are putting out some pretty nice 1 oz coins. I just bought the new 1 oz. kangaroo today for 2016. Another first in a new series and my first coin for 2016. It was $19.50 at my LCS and I'm good with that. It won't matter to me personally if silver is $6.00 or $60.00 an ounce in the future. I bought it because I liked it and will continue to buy one each year going forward as long as I can afford to. But that's just me and the way I look at it  |
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Pillar of the Community
United States
2637 Posts |
When silver was in the 30s, I bought silver jewelry, as well as Franklin proofs and old commemorative halves for spot. Now I avoid silver that is more than $3 over spot (unless obtained through trade), still buy jewelry, and foreign silver for melt or near melt.
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Pillar of the Community
United States
589 Posts |
I have definitely cut back on my purchases due to financial constraints. Even with Silver at 14.40 atm premiums will continue to climb so sellers make some money on their PM's. The only future silver bullion coin I will be purchasing in December will be the 2016 Chinese Panda's.
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Replies: 12 / Views: 2,391 |
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Posted 11/02/2015 01:42 am
