We have just seen a few weeks of silver prices dropping before our eyes.Having just looked at a dealers website that I buy from,silver is $28.67(us) down 8 cents.We saw the last week where silver went below $27 and some myself included thought that it may go to the low 20s or lower.If you had a strong stomach,you bought at good prices.I know that I bought more than my wife thought was prudent,throwing caution to the wind. So my question is not really asking where silver is going because no one knows,but rather where you personally go from here. My own answer is this:I am still a big fan of silver and will be buying again 5 ozs or so every week or two.I also have some crazy money put aside just in case prices drop again to the mid or lower 20s.I have no target price in my head as to selling part or all of my stackI am just happy to have had the opportunity to buy at lower prices.It taught me to be patient and wait for a really good price.I am just as happy for the others here who bought and especially the new people who posted about recognizing the chance to buy low and doing it even if they werent sure. So I would to hear what some of you think.
It's dropped, then risen some. Looking a lot like it might continue to rebound as buyers come back into the market. I'm thinking of the impact of the Greek shoe dropping or some other financial existential event and what that will mean for the AUD, price of housing and other assets. So I am thinking of picking up an ounce, maybe two. What I find interesting is that the rebound has occured while the AUD is getting progressively weaker. I think that says a lot actually. That's my 2 cents. ps. Anyone got a link to that spreadsheet charting Aussie asset values against gold and silver?
Mike I see where your thoughts lie and I am sure you are not alone. FWIW I believe that you should have a plan. That way when things come up you can re-assess and keep the plan active rather than passive. In saying that you can't always be changing the plan. So as a guide I think you have nutted out your thoughts, then now should be seen as a buy opportunity or a hold depending on where and what you strategy is. As example - - Do you have a target qty of Silver and Gold - Do you have a $ target to reach - What is your time frame for this investment - What is your buying strategy, weekly monthly, bi-annual etc... - Do you monitor the GSR - Is this cashed up or on credit - If so what is your outlay cost "v" current trend, potential return. - What is your sell strategy I am sure there are many others, if you answer those or your version then it should be follow the plan Good luck.
Good post Mike. FWIW, I think we may see $30 before it falls again. I'm not buying again until we break $26 and I kind of like support at around $22 as an eventual bottom but who knows. If it breaks quickly down there it's anyone's guess how many stops maybe triggered and it may plunge lower than $20?
Has it been rallying nearly every monday then slowly tapering off through the week for a while now or have I just developed a very very short term memory?
At the bottom end of the market you will still see the market manipulation at play which creates the usual pricing volatility for silver. Such a small market which is part of the reason silver takes such big hits. I'm thinking we are close to the bottom & even closer to some kind of rally which will see silver back around $40 by Christmas. It's a good time to buy physical.
G'Day All, I'm new to the silver market. By reading the posts above, am just wondering base on what do you guys forecast the market to dip rock bottom at $22 then rise to $40 by Christmas?
My thoughts...... Personally, I am happy to buy now, as I was last month, as I was 9 months ago. Silver is still well below its recent highs of $48 just over a year ago so I am happy to buy below this. I still believe that PMs give me the best security for my money and the best future chance of gain against other asset classes. I do not have the skills or confidence to be able to buy at the absolute low, plus if and when Silver does reach $22 there will be people on here saying it is going down to $15. I do not know anyone who bought any asset at its absolute low and sold at its absolute high and believe that to try and do this would just be wasted time and energy and cause a lot of frustration as the market goes against my analysis (I speak from experience). Seeing what is happening in the Eurozone, I imagine where I would be putting my money if I was a Greek / Italian / Spanish millionaire...... and it would not be in shares, bonds or property !
I've been buying every week. I have found difficulty selling some coins and maintaining the premiums that I purchased. Forexample. Kooks sell initially at 30percent premium. But on the secondary market it is difficult to offload in large voumes maintaining this premium and eat into your profit margin
Whilst the US is hell bent on printing dollars which essentially the benchmark currency for international trade representing 75% of the worlds consumer goods which in turn drives the Chinese economy people will be investing in PM's as a future "safe haven" investment. The other factor is physical "v" Paper silver. I've heard it said that for every ozt of silver there is 200/300 times as much on paper that doesn't actually exist. So it's very easy for the big players to manipulate the physical price & profit on paper when the demand for hard asset investment is proportionally low. If there's a large physical call against a trader & they can't supply then the price will go vertical. That & the historical Gold Silver Ratio of around 16:1 puts the current value of silver at about $100 ozt. Way higher than the artificial $30 we have now. I don't see silver below $25 as it's been holding around high $20's for too long now. Hope I'm wrong though. Traders would be more than happy to see it go way lower - then profit again on the upside.
see that's what gets me how they can trade silver paper that there is no silver for? how is that legal ? if everyone wanted the physical silver the prices would go through the roof/ceiling so if you want the price to go up buy all the paper and call it in ?
They aren't trading silver, they're trading promises for silver (ie lay-bys). As yet, none of these promises have been empty promises.
There are also some clear signs this latest correction is now finished. The main sign comes from the silver futures market. It is now cheaper to buy a silver futures contract than real, physical silver. Silver rallied more than 60% the last time we saw this happen towards the end of 2010. As I write this, physical silver is US$28.98 / ounce. A silver futures contract is $28.93 / ounce. This 5-cent difference may sound like small bickies but it is very important. Futures contracts are usually higher than the price of the commodity. Not so much as a price predictor but more to reflect the cost of storing the commodity and the opportunity cost of the capital. When the futures price dips below the commodity price like this, even by just 0.2%, it is a clear signal to expect higher prices. The market calls this 'backwardation'. http://www.moneymorning.com.au/20120110/silver-price-ready-to-explode.html
This was posted yesterday here: http://forums.silverstackers.com/topic-26614-gold-and-silver-futures-in-backwardation.html
