I continue to accumulate - not in large amounts though. Mostly <$100 transactions into my allocated account, when there is a drop in price. Pushing more into silver than gold right now.
I do not want to sound harsh but when i read "when there is a drop" it reminds me of the American forums where they were buying the dips at $1700 and $1650 and $1600 and $1550 and all the way down. Australia has been some what insulated (as has NZ ) with our currencies , but the day may very well come where gold drops ad we gain against the USD. Or either one of them, the 2 together would be tragic , but very very possible. Is buying the dips at $1150 really a good tactic if the end result is a price of $1000? I am pro goldish and definitely big pro silver but do not see any grand returns on gold buying at spot or close at these prices. I do accumulate gold, but i may pay $3-400 an oz opposed to the $1100 odd many here do. I know that many people here will not have the time to go to garage sales and make friends at thrift stores but that is a sure way to hedge your bets buying very very low. I could force myself to buy large amounts of silver at these prices as a moon shot could see me double my money and not be CLOSE to historical highs. With gold on the other hand, buying at spot would require a NEW ALL TIME high in order for me to double up.
I'm actually selling a bit of silver right now, now that in the US, premiums are a little escalated. The premiums have been easing recently which kinda sucks for me!
I got an email today from a forum i used to visit before i found our wonderful site here. It was from a guy (just a member like us) who posted his latest prediction for gold and silver. He does not post often , but i follow him as he has an uncanny ability to hit the money. Well to make a long story short he is predicting gold $1050 and silver $11.50 in the next 3 month , but in the next 2 WEEKS silver will lose $1+ then small bounce and down down down. I am not sure of his methods but they are good. on the 17/1/2015 he made his last comment and that was "short silver as we heading down to $15 in the coming months and will bottom out at $12" I call that insightful. Take it for what it is worth and i guess the good thing about this is we only have 2 weeks to see if he is right or just crazy like some of us
this is may little bit off the topic but i been buy&sell bullions for decades. when gold goes up, it is not unusual to see that ppl say gold will crash in next couple of months, same when gold drops. the spot price like a yo-yo, up and down all the time. i would not say buying bullions is a good choice for investment or a bad choice. at lease you have some valuable metals in your hand. Some ppl also believe there will be a day when SHTF so gold and silver will shoot to the moon but i don't care whether it will happen and when will. i buy them for hobby : )
Spot price really means nothing to me as any gold i hold is very very cheap or free. Any gold i have that has cost me a lot of money (subjective) gets sold just as quick. Just thought id post that prediction and if he happens to be right i can post his next one in the weeks or months that it takes for him to post again if desired.
It's very interesting to see these predictions that give specific timeframes. I just wonder what the AUD will do at the same time. Hopefully it won't move in the opposite direction and negate any spot price swings. .
That was my thinking as well SilverPete. No waiting months or years, if he is right or wrong we shall know in a fortnight.
I prefer those kinda predictions at the moment. We already know there is a long-term down trend. I've converted quite a bit of silver to fractional graded gold pandas. Hopefully, that will insulate some of the punishment. So, I'm still trying to liquidate a bit more but we'll see how much and if my rebalancing was worthy
Not harsh at all. I am an accumulator so I buy at least a couple of ounces of allocated silver a week, sometimes more depending on cashflow - possibly some bits of gold here and there. I look for the intra-day drops in AUD terms - and strike when I can. Gold has hit an intra-day USD low and the AUD is going up - good time to grab some gold. Silver is going up in USD but the AUD is also rising making the price go sideways. If I see a heavy 10-15c drop in Silver in AUD terms then I might throw a couple of ounces worth into my allocated account. Do not disagree. Hence keep an eye on the market and strike when you see the movements that are beneficial to you. If you are trying to buy an appreciating asset, no. That said I have a much longer-term view of my holdings. To be honest, I think the guy who gave those predictions is on the money. A quick look at the shorts over longs would show you that is where this is going to go. I have slowed my buying as a result but I have not stopped.... Even if silver does go down to that $11.50 level then the premiums are going to be sky high as a result, hence in a falling market I always buy allocated or unallocated and convert to physical when the premiums come back to something sane. My allocated has a 4% premium at purchase which covers unlimited length of storage - no yearly fees and I can walk in and collect it from Sydney CBD with 48 hours notice. AG in ABC kilobars and gold in 1oz ABC cast buttons. I really hope silver goes hit USD$12 and I will back up the truck. Sub-$1k gold and I will do the same.
So how can you possibly know these things? for sure. No one can be sure of the future. Thats why gold is good. For everyone of these predictions, someone else os predicting the opposite.
It's about having a plan to move as the market moves, or to turn around and change direction if the market does an about face. Become informed, study what is going on, form your own conclusions and plan accordingly. I've shared some of my contingencies. What do you do?
Owning physical PM's makes it hard to change direction. That's why I like having allocated and pool stuff.
Of course, but most of us own it as a store of wealth for the future rather than an investment. If we can turn a dollar or two profit at times, great. I feel it is most important to identify the premiums you are paying and try to minimise them overall. So yes, pool or allocated is great when the market is falling and premiums tend to stay high. If silver hits $12 and we are seeing AUD spot under $16.5x (current AUD/USD rate) then premiums will be hovering around 35% or more on even the lowest premium metal. My allocated is 4% premium at purchase only. So at that point, my allocated account is best. For me, it's only a problem if I over-invest then need to convert some of my physical holdings to cash. While I do not plan on that, by keeping some cash in the bank I can alleviate that risk and try to hold metal as long as I can.
Depends if your stacking or investing. Very big difference. If your gambling on gold or anything else, its the right approach. If your stacking because of a very uncertain fut.....ure
Exactly. And I suggest the membership is is broadly stacking more than investing. Hence I use accumulation into accounts first, then convert at low premium when the market conditions are favourable. That said I do buy physical outright also - a tube of Roo's here, a couple of 10oz Scottsdales there, and occasionally fractional gold goins. But even the most religious stacker will cut something loose at times if there is a decent profit to be taken and something they want to buy to replace it. The sale of the more 'collectable' silver bars lately show this, proceeds can be ploughed back into a larger amount of silver than was sold, or possibly into other metals like gold.
i can image this is what goes on in Leons head when he makes charts. "pow pow boom crash" time for my next gold crash warning.
I told you Banksters will pull up to 1,200 area, before shooting it down. I have been waiting for the tape and ready to short some GLD shares
