they say that after a long run of rise, there is likely a good sized drop. I am ready to buy a little more and have been watching hard but I just cant pull the trigger! hehehehe.
Think of your own mindset, 1000s of times over. JPM will hammer the price down, it'll drop for a few hours and those who are looking to buy the dips (such as yourself) rush to cash in and quickly bounce it back up. I wouldn't be holding my breath for $25 silver again anytime soon, or even $30 now which seems to be a solid floor price. My advice is to cost average your stack until you have a firm position, then gamble on the dips. Last thing you want is fiat sitting in a bank losing value whilst silver continues to propel upwards and you're sitting at $50 silver thinking 'I wish I bought at $35'. It's a bubbly mindset in some respects to think that way, but by the same token, I think it's prudent as well. Unless you're buying metal with debt, at least when you take delivery (at no matter what price) you have 100% ownership and sure as hell, I'd rather be holding physical silver and gold than colourful paper with pictures of dead people on them. That's just my take
But I question whether there has been the same level of investors waiting in the wings to smash the dips back then as there are now Hobo. Some serious money sitting out there nowadays waiting for any inkling of a dip to hit the market. Even a buck per ounce is worth a lot to the bigger players.
How are you going to 'buy the dip"? Retail physical prices arent going to fall Ebay premiums are going to continue Forum sales are already ++spot % If the spot price falls $2-3, do you really think you are going to be able to take advantage of it?
Source: silverprice.org This is the USD price chart for the last 12 months. Since November there's been two pullbacks in the order of ~$4 (one slightly under, one slightly over). From a pure charting perspective we look "overdue" for a similar size pullback. I wasn't aware silver was suddenly immune to price fluctuations. But given the size of the market and the apparent manipulation, trying to chart silver is like reading tea leaves. Starting to look like a cardiogram.... but it's different this time! Remember the 1980 spike was caused by manipulation as well. Silver has a VERY long price history at the $5 level.
Or the two $4 pullbacks were aberrations and not likely to happen again. Most pullbacks were in the $1 - $2 range (you could hardly call them pullbacks though). Now if there is another $4 pullback, then the mania is possibly building and we could very well see prices fluctuating on an even larger scale, although prices are more likely to jump in large increments than fall in large increments. I haven't got my fingers crossed expecting a big drop of say $4-$5, so I might as well go and buy some more. I'll let you know when I've made my purchase, you people can then buy the next day when it falls.
Exactly! How do you guys take advantage of daily $1 fluctuations? No dealer reflect this type of drop in their pricing.
meh... it's all zig-zag theory I wouldn't call $1 a pullback either - that's just normal trading volatility. There's two definite dips of ~$4 since November though.
Look at the latest spot prices for silver. $35 - $36 like a yo-yo. Either you take that to mean it's at a peak and barely able to hold a stable price. Or it's a sign of manipulation holding price back and when it breaks, it'll surge. Personally, i think the upside more than outweighs the risk. A drop back to $30, big whoop when you might be looking at a $50 spot if you hold.
Thanks. Thats what I thought. I bought in a fair bit during the jan/feb $28 dip. There just seems to be a lot of people making comments about taking advantage of the daily 'pull backs' and I found it hard to grasp. A lot of dealers seem to be trading well above spot now. BB about $5 above spot these days.
Each morning i receive the daily edition from GoldSeek.com which provides commentary from various authors. This morning's email seemed to focus on a pending pullback. While each is nice to know for information, i think that the reader needs to look at the agenda behind each article and the interest of the author. Despite the conflicting advice above, i agree with the underlying tone of all articles in that PM's will continue to go up in price and hence will continue to dollar average my purchases and continue buying regardless of pullback. If there is a pullback then great, i'll get more PMs for my money out of the next pay.
Can someone please explain cost averaging exactly? I just keep pulling up my $/oz average as I buy more. But then again I bought the majority of my stack under $30. So I'm not quite sure exactly how one cost averages other than making bigger purchases on dips?
There are market places in the US where you can buy at spot in realtime (or close to it). I personally cost average, so it's irrelevent in my strategy.
If you look at today's charts you would have to suspect something big is at large? is it up or down who knows? but I feel the big end of town are holding off till something breaks and when it breaks it's going to be big. Spot price is just crabbing along which is very, very unusal. My money is that it going to break upwards to $45-50
so hiho are you still buying or waiting? I have $5k to buy. Its long term so Im not worried. Im still somewhat young and can wait on it.
