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 Replies: 71 / Views: 6,010 |
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Valued Member
Canada
409 Posts |
As Silver keeps climbing I was curious to see what you guys do in terms of buying. Do you just stop buying and wait for silver to come down or do you still hoard if you can get $1 or $.50 pieces at less the current melt prices? Or just ignore the peaks and valleys and just focus on what you need for your collections?
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Valued Member
Canada
363 Posts |
I don't feel that anyone expects the price to tank or go lower in the future so buying at a deal at any time is always a sound thing to do.
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Pillar of the Community
United States
7273 Posts |
I'm not a stacker per se (the majority of what I buy has numismatic value) I still get some silver and gold when I have extra cash. The price generally affects what I buy but silver in total cost is cheaper now than in 2021, the premiums have down as the price has gone up. I picked up a few maple leafs ar $28 when in Covid they were $31 (higher premium). I'll keep buying unless it goes too high and then I'll sell. I've been thinking about selling silver and getting gold. If silver keeps going up I'll do that. But I'm not really a stacker.
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Pillar of the Community
 Canada
5584 Posts |
If you want to invest in silver, then buy the stock of silver mining companies. They know more than dealers when the price is to go up or down or when to reduce or increase mining efforts.
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Pillar of the Community
United States
2829 Posts |
IMO, from a technical perspective.... the $SLV aka silver tracking stock, the RSI (Relative Strength Index) appears overdue for a pullback. In the short term, I think there's very little left in the gas tank, there's the likelihood it retests the 52 week high of rougly ($24) into years end.
The market is anticipating a recession next year & the way metals behave, they'll follow suit w/ the rest of the overall market.... stocks go up, silver & gold will go up, markets go down, silver & gold will go down. That being said, I've been anticipating (for some time now) some type of catalyst that will propel silver back to 2011 levels of +$47/$48 per ounce. IMO.... buy/hold for the long term & don't worry about the short term volatility.
Edited by coin rejector
12/03/2023 11:56 am
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Pillar of the Community
United States
4233 Posts |
As a probably irrelevant data point, I don't pay any attention to the price of silver. It's minuscule in relation to collector value on anything I buy. It makes me curious though - over the past year if you bought at the trough on March 8 at about US$20/oz and sold today at US$25, in order to profit US$10k you'd have to have bought 125 pounds of silver, well over 2000 1oz coins. To me such a volume for so little profit doesn't seem worth bothering with.
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Pillar of the Community
United States
1747 Posts |
I don't agree with buying silver stocks. If you want silver buy it and hold it, not paper.
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Pillar of the Community
United States
4333 Posts |
Considering that silver's average price over the last ten years has only averaged $22, I've only been buying the dips below $20, and have had quite a few opportunities. I've come to realize silver won't be holding $25 or higher any time soon, if ever.
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
2049 Posts |
I buy a little here and there regardless of the spot price. A majority of my buying happens between January to April due to a couple of factors. One is the abundance of solid coin shows within a 2-hour drive that happen during those months. Two is I get my tax returns and annual company bonus during those months. I don't get caught up in the day-to-day, week-to-week, or month-to-month swings in the price because I still have the same amount of silver regardless of the spot price. And frankly, it's a waste of time and energy to be fixated on the price.
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Valued Member
United Kingdom
375 Posts |
Interesting stuff. And very true about numismatic value being less dependant on bullion price. Maria Theresa Talers tick both boxes. I've paid anything between £12 and £280 for examples. If you've got worn duplicates going spare now's the time to offload them.
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Valued Member
United Kingdom
375 Posts |
I've also found that the price of silver is far more volatile than gold in the short term, so we shouldn't be panicked by apparent huge swings in its price. Someone also told me once that the price of gold usually follows that of oil, but a couple of weeks later. Not sure how true that is cos I haven't got the resources to go into in that area.
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Bedrock of the Community
Australia
21786 Posts |
Bullion pricing should always be considered against the concurrent inflation rate, and not just the numerical dollar value.
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Moderator
 United States
54280 Posts |
There is no reliable formula you can use to determine when to buy silver. The volume of silver available to be purchased increases with the supply being added by miners and those divesting themselves of silver. This is offset by the amount being purchased by silver users and other buyers. You can not accurately predict what combination of factors will happen in the future. Will mines play out? Will manufacturing demand increase or decrease? Will investors, collectors or silver stackers decide to add to their holdings or sell? Will an entire mountain range of pure silver be discovered? Will someone come along again and try to corner the market? and...
what will the inflation rate be in the future?
Show your financial support of the Coin Community Family (click here)See my topic on Mexican Numismatic Medals (click here) |
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Pillar of the Community
United States
2829 Posts |
@nss-52.... I agree 100% w/ everything you stated, as all of your points are excellent things to consider/ponder. The only thing I would note regarding a "somewhat" reliable buying formula, is the utilization of a stock chart and tools. Considering this year the SLV has been in a trading range between $21 to $23, one could deduce, that will continue to be the trading channel it will stay in until it breaks significant support or resistance levels.
Since last Fridays close, the SLV price has retreated from a little over $23 w/ an overcooked RSI of roughly 80 suggesting an overbought scenario, to currently $21.90 and a mid-range RSI of 50, roughly -5% decrease.
Over the last year, there have been 6 instances when the RSI dips sub 50 and continues downward to an RSI of 35-40, indicating an oversold scenario w/ a support price level of $20.50 to $21. If I were a gambling man & I am, I'd bet the price has another -5% to the downside w/ a target price of $21. That's where I'd feel more comfortable buying a position, whether it be a bullion purchase, a paper-trader or even better, an ITM (in the money) Call Option paper-trade w/ an expiration of 3-6 months out (for time premium).
Does charting always work? No.... but it can be a helpful diagnostic tool at ones disposal for making a more educated buying decision.
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Pillar of the Community
United States
6448 Posts |
I personally think it's hazardous to speculate in commodities, particularly precious metals. The people who make the profits are the big traders with access to cheap leverage, insider knowledge, and reams of research analysts. In other words, the same people who make money on every other tradeable asset on planet Earth. Play their game at your own peril. A mouse can steal 99 crumbs and still get crushed by the giant on the 100th attempt.
However, I'd like to comment on nss-52's rhetorical question about inflation. I think it cannot go anywhere but up, at least in the United States. Now that we are addicted to debt, there is no way to wean the public off that habit. Any party who tries will simply be voted out of office. Also, there is a huge demographic of retirees in the U.S. who will need medical care and government payments, and you cannot ask the working taxpayers to both fund those obligations and pay down the national debt. Inflation is here to stay.
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Pillar of the Community
Portugal
655 Posts |
Industrial metal. Not much necessary. People passing it as investment are tricking others.
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Replies: 71 / Views: 6,010 |
Posted 12/03/2023 09:54 am
