You want ppl to speculate? Plenty of ppl will say buy buy, its going to the moon. Goldman says sell so a bigger dip could come.
You can tell who the short term speculators are and who the long term physical players are. Hint : the long physical investors mock dip discussions.
I'm long term, and don't worry about the $ value, but do care about the number of ounces i can afford at any one time, and that is directly related to the $ value. Dips can be really good
Dips can be good if you can find a dealer who will follow spot quickly. Dealers have margins to cover as well. They buy at X and sell at X+Y% for their profits. If spot revalues X to X-Z% then even if they add Y%, they will sell at a loss or break even at best. Most dealers get around this two ways. 1 - Overshoot asking prices by a lot (ie Downies). They buy at $38 per oz, sell at $49 per oz to ensure rapid spot movements don't undermine them. 2 - Take the metal off the market under the guise of shortage. You cannot blame a dealer for not wanting to sell stock less than what they pay for it. So unless the dealer is a very frequent buyer of new stock and/or has so much stock that they can flatten out asking prices to absorb the peaks and troughs of spot movement, you'll find that sourcing metal on dips can be difficult. I look for a win/win situation in my trading endeavours. Hence I cost average and get my metal whilst the dealer still maintains a profit. Yes, it means long term I get less metal for my dollar, but in reality, spot price itself will ensure that anyway. For the same fiat dollars I can only buy HALF what I could even 6 months ago. That's nothing to do with dealer margins either, that's just market movements. Given that, I'd rather buy 20 ounces today at $X than wait and hope for a dip to get 22oz for $X when it's likely in another 6 months $X will only buy you 10 ounces thanks to spot movement. Does that make sense? I count my investment by ounces in hand and flatten the risk by progressive buying over the long term. Cost average is the best stacking strategy for us small timers. Dip buying is best for the big boys where a buck per ounce means thousands saved.
The only dip you need to worry about is the one you want to sell before it happens (if that's your plan). Even if there is a big dip coming, metals will correct so fkn quickly it won't matter if you got caught out. By the sounds of things we are in for a very strong rally in May. $50 by end of May?
Dips should only concern the paper traders who are trading hundred of thousands upwards in paper ag. All about dollar cost average.
Oh, I don't know. I hate buying something and then watching it drop in relative value, it just means I could have acquired more of it if I had waited a little. It is impossible to time absolutely, but is certainly the time to buy, as opposed to when it is on a strong run. And a dip is not a collapse. I remember buying at A$21 back in 2008 and then watching it plummet all the way down to circa A$15, a major "heart in throat" event. That was a collapse, not a dip and not likely to be repeated any time soon. Buying in the dip just maximises the number of ounces you get and is good practice, IMO.
Yes, I went thru that thinking "WTF" So I feel a little bit seasoned to the ebb & flow. I have a GREAT core stack to ride it. Went to AEJ today & got 6x 66 50c (2oz) in my lunchtime. Felt weird paying the current price, but had the fiat in the wallet. Felt good to hear the tinkle of the coins hitting each other. Got something to play with.
