Freaking Silver

[crhstreetwalker]

Silver is currently at $19.13 and going down. I swore that it would never go back under $20. Bought my monster box for $26.72 an ounce, and now I'm contemplating buying another half a monster box. It's depressing that our white cheddar is so undervalued. Is it a good time to buy or is silver going down to $10 an ounce?

 

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[ecoast]

buy now and average in your costs...

 

[jim4silver]

buy now and average in your costs...

Ecoast is right. But you should only depend on your own conclusions and not anyone else's. Remember that PMs are assets and not investments per se. People who simply hope for a 2 or 3 bagger investment would probably do better playing some of the volatile etf's or stocks.

It is clear that the super wealthy are seeking physical assets to park large amounts of cash. Diamonds, works of art, etc., have been bringing in record sums at auctions and such. Due to the success of whomever it is that is suppressing PM prices (for profit or some other motive), many people do not look favorably at PMs right now (even some diehard PM bulls have thrown in the towel and sold). Once the bull market takes off again the sheep (wealthy and average) will decide PMs are a good deal again, but will probably be paying $30 and probably far more by the time they decide to buy.

Mining companies are going to get slammed by these lower prices. Some here will tell you that mining companies are all liars about costs and they can magically pull PMs out of the ground for free, but don't believe that. For whatever reasons, many mining companies found it hard to make profits when prices were up, but when the prices are below or at the cost of production you can see where things are headed. I personally don't think supply disruptions of metal will be the catalyst for the resumption of the bull move, but it will be down the road if prices stay low for too long.

I say if you buy PMs, stash them and consider them your 401k or IRA that the gov cannot touch. Look at what a Judge ruled recently about Detroit, pensions are just like regular debt and CAN be reduced. So if you are a retiree counting on that pension, you just probably lost a good 1/3 or more depending on how the bankruptcy court proceedings go.

Anyone who thinks PMs are not really worth anything in this modern age should look at India right now. Basically the gov is treating gold like dope. I read this morning that gold smuggling has far eclipsed drug smuggling there recently and that snitches and whistleblowers are getting paid record rewards for ratting out gold smuggling. The premium on an ounce of gold there due to gov taxes and restrictions is over $125 from what I have read. This is in a country where buying gold is a custom and not for "investment" only purposes. You must ask yourself, why would the Indian gov do that to gold if it is simply a "barbarous relic"? It is because the people there are smart enough to know gold will protect them in the long run.

PS I will leave you with this educational video regarding what can happen to non physical assets you own. I believe this message is TreasurePirate approved! LOL.





All my opinion.

Jim

 

[skeeterd]

I buy a little all the time. But I buy a little more when the price seems to be down and I have some extra money to spend. I might pickup a roll of SAE's in the next week or two.
Hard to say where silver is going. My advice is buy what you can comfortably afford no matter the price. Or dollar cost averaging. Don't worry about the market untill it sky rockets and you want to sell!

 

[SilverHoarder07]

This time last year we were looking at about $30 an oz...I bought a solid 200 oz with about a $1 premium on generics...was I peeved when silver took a hit in April? Hell yea I was...what was my reaction? Sit and wait and buy some more for cost averaging and a prime time to buy which I consider now. I have added around 84 oz since then averaging about 20.50 per. Honestly, I hope we see these prices through March 2014 because I am definately picking some more up with my annual bonus and tax refund ...

Volatility and timing reap the rewards and we have seen a turn up of around .30 this morning

 

[CoinFetcher]

yeah, up about 65 cents as of now - I use these times to buy weird bullion that I normally wouldn't pay a 5 dollar OZ premium on. It's fun. I guess that's why it's a hobby, and a collection.

My bullion assets on the other hand would love the price of silver to take off :P