I bought some 5oz Horses for AU$124 when it dipped for an hour or so, went back up and hasn't been that low since. So if that was the bottom, at least I got something and can feel good about it.
A Strategy a lot of people use is to buy a little at a time, it evens out generally and you will still have fiat in your pocket if it dives or if it rises.
Depends on what you would define as a little at a time. 10oz? 50oz? Shipping costs will come back to bite you.
that's very true, I wonder how many people get hotm under the collar and when they can save $6 on 5oz and then spend $14 getting it sent to them. one of the advantages of having a cheap and reliable local dealer.
In my case I used the GoldStackers Mini Allocated service, so they are holding them until such time as I can order more and combine postage. http://www.goldstackers.com.au/store/mini-allocated
No matter what, if your buying it now it is at a significant discount to what many have paid including myself. If you really believe in this stuff then what has really changed. Not much, oh except the massive discount you can now buy the metal and miners for. The question you need to ask yourself is, if I was happy buying at $28 +/- bucks why would I now be so nervous about buying now. At the end of the day who the hell knows what way it will go, you've got to back yourself and your beliefs. If you still belief in the fundamentals then relax and see the opportunity for what it is. I dare say it may well drop more, so just dollar cost average...It's bloody cheap now no matter what, just don't go all in. Bail out now and you just managed to bail out at or near the bottom, i.e.the worst possible time to to get out if you have come this far and believe in cycles. This is the accumulation phase, not the sell phase! What ever you do, just don't put all your eggs into one basket, you still need a good career, somewhere to live and investments that earn an income. However, in my opinion now is the time to buy and continue to do so if it continues to fall. For what it worth, I see Gold/Silver as a form of diversification and insurance, and have a long term time horizon. There is so much noise out there about what to do and what not to do, but the one thing I come back to, and you don't need to go to a website for this - is that we have in no way fixed, rectified, proven we understand or have any idea other that the seat of the central bankers pants as to how in the hell we are going to get out of this financial farce we find ourself in.
the issue for me isn't that I'm nervous about buying because it will never go higher but if I buy now and it goes 10% lower that's 10% me silver I could have bought. If the price goes back to 2011 levels and triples that 10% is 30% I'm missing out on. I'm pretty happy with the fundamentals of silver and I'm backing myself but every 18 ounces I bought at 19 and change could have yielded me a free ounce of I bought it now instead. it's definitely a fire sale though.
Don't you think you would be way ahead if you work an extra 1 hour (1oz) a day and stop second guessing even cent movement in silver.
Your paper derivatives are shown here: http://finviz.com/futures_charts.ashx?t=SI&p=w1 The green or red+blue trendlines. At the moment a net total of 12408 contracts. 5000 ounces per contract. 62 Moz silver. Annual supply/demand: 900-1000 Moz. Multiyear: - Average peak net total position: 50000 - Average bottom net total position: 20000 Can't dump paper without acquiring it first. We are at the moment post paper dump, no pre paper dump. For ex, the recent price drop to $15 wasn't due to paper dumps. Why: because the previous position report (weekly released, week old) was 14155. Only 1747 contracts / 8.735 Moz silver, while it needs 70 Moz to move the price 1 dollar. So face it: people DO sell physical, and that's even obvious, since nobody throws the silver he buys in the ocean, but sells it again, to undo the price change it caused before. Those eternal stories paper versus physical aren't eternal. They are from time to time. And actually, that paper is just to avoid being inflicted losses by the physical guys. Producers etc versus speculators. If some speculators buy lotsa oil and drive oil price up with it, then some oil consumers will have to pay that higher price, and because they don't like that, they take a futures contract, that inflicts the speculators during their purchase a faster rising price. And those extra dollars then flow through the futures contracts account to the oil consumers, compensating for the losses due to the higher price share caused by the speculators stockpiling. Another thing to face is this: if a physical speculator guy buys from another physical speculator guy that sells, then they are speculating against eachother. When the price changes one will be the profit grabber and the other will be the losing sucker. So don't divide the silver market in paper / physical classes. That's just the same that the communists/fascist (including todays) try to do, with the same motivation: obfuscating the real cause.
I typically have been buying a little every decent drop... (.20-.30$) I only buy from places with free shipping and get generally 10oz at a time. I bought at 15.30, and that's why I raised this question ( did we hit bottom). I think it's just like a month ago when we touched 16.80 something and then it went back up for a couple weeks. I think if it doesn't go back down before getting to 16.50 I will buy more... Or if it goes low again (below 15) I will buy. I'm waiting right now because every time I've bought lately I've tend to lost money before I even had the silver in hand!
ones a lot more fun than the other. Plus I have some uni work due so I'm spending plenty of time watching the price anyway. plus I wouldn't call the difference in buying at 19.53 weekend before last to the last days low of 17.62 a few cents. I take your point though, flipping out over every 5 or 10 cents is wasted energy.
yes I hear what your saying $ 2 drop in 14 days, so what did you buy - 100oz, waiting you would have 120oz now, my point is price entry is more important with large volume purchases.
my purchase was big enough that i felt it. still, I've learned an important lesson about buying over time to even out market movements and having some liquidity to take advantage of bargains. These were concepts I knew about but now I've well and truly learned it.
A couple of years ago or so, plenty of stackers were kicking themselves when the price climbed a dollar from $33 to $34 USD thinking how terrible it was that they missed the bottom....the same self kicking happened when the price climbed a little from $32, $30, $26, $24, $22, $20, $19, $18, $17. Today some of these same stackers are kicking themselves a lot harder for believing that they missed the bottom all those other times. Read and learn from as many different smart people as you can because this may spare you in feeling badly that you missed the presumed bottom just because the price is higher today than it was yesterday. I'm not suggesting that you not buy (or that you ought to be buying), I'm just asserting that sometimes we don't even realize that our emotions (usually fear) sometimes cloud our judgment and it becomes those emotions that end up controlling or fueling our desire to purchase. and this usually leads to worse results than if we make purchases armed with a.m.i.a.p. (as much information as possible) and sans the emotionality / fear (like that we missed the bottom or like that we should have sold whatever gold we may have had to buy silver when the GSR was 45 or things like that). I haven't stopped buying silver altogether, but I am also not convinced that right now is the right time to back up the truck because I see better arguments for silver dropping further than I do for the bottom being in already ("the bottom is in" has been uttered countless times almost every dollar lower since silver was just shy of $50 USD). .
Good points mmissinglink although we all often tend to place precious metal all in the same category. To "not" buy at a specific time could prevent folk from buying a coin or coins that indeed have future numismatic value. Having said that, I take my hat-off to any folk that can pick the bottom of the market and load-up. Personally, I think it's a good idea for folk to buy the coins that they follow at a reasonable price and then, maybe buy a larger purchase of bullion (Bars or legal tender close to bar price) if the price becomes over-sold. There's nothing worse than following a potential semi-numismatic coin, to see the words... "Sold Out". :|
