Still a good time to buy gold and silver?

[devil21]

Im apprehensive after gold and silver's moon shot a year or so ago. Remember when silver was $21/oz and gold was $1000/oz? I do. Then what happened? $10/oz silver and $800/oz gold. Ballpark figures off the top of the head but you get my point.

Is this still a good time to buy in further? Or a repeat of last year? Jump in or wait for a pullback that may never come? They keep going up but the history bugs me.

[Dr.3D]

Well, when the price starts going up, it is usually a bad time to think about buying.
One should think about buying when the price wasn't doing much.

If you believe there will be a lot of inflation down the road, then you would also believe it is still a good time to buy precious metals, just not as good a time as when they were lower in price.

[theoakman]

Everyone on this board kept talking about timing the market and they've been telling people to wait for a better entry point. They've been saying the same thing since November. Meanwhile, Gold is up $250 since then. My suggestion is, buy Silver. You obviously are looking for advice on timing the market. My stance? That opportunity waived bye bye long ago. The real time to buy it was 8 years ago. Just set some money aside each month and buy Silver. I try to buy 200 oz. a month. It's worked just fine.

[tmosley]

Yup. A lot of people are going to miss the boat. China's on board, and there isn't anyone else strong enough to keep it from sailing at this point.

[theoakman]

Yup. A lot of people are going to miss the boat. China's on board, and there isn't anyone else strong enough to keep it from sailing at this point.

People already missed the boat. Silver has seen nothing but consistent price increases for almost a year now. Every time it went down slightly, people were on this board nearly making fun of those who were buying. The time to go all in as a market timer was in November. Anyone looking to protect their savings needs to stop treating the gold/silver market like a casino and just place their bets. The risk of a currency crisis trumps the attractiveness to get in on a dollar rally bar far. Besides, we haven't had the currency crisis yet and both metals are way up anyway. It really makes no sense to wait it out anymore. Bernanke has already laid down his chips and he's got no choice but to go all in. Buy gold and silver now.

[Dr.3D]

People already missed the boat. Silver has seen nothing but consistent price increases for almost a year now. Every time it went down slightly, people were on this board nearly making fun of those who were buying. The time to go all in as a market timer was in November. Anyone looking to protect their savings needs to stop treating the gold/silver market like a casino and just place their bets. The risk of a currency crisis trumps the attractiveness to get in on a dollar rally bar far. Besides, we haven't had the currency crisis yet and both metals are way up anyway. It really makes no sense to wait it out anymore. Bernanke has already laid down his chips and he's got no choice but to go all in. Buy gold and silver now.

Yep, I like to think of it more like a train leaving the station, rather than a boat.
You still have time to get on the caboose. You may not have saved as much of your money getting on board late, but it's still better to save what you have left by getting on board before you can't.

[Working Poor]

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[ctiger2]

When Silvers at $100 and Golds at $3000 I don't think you'd care if you got in at $20 or $12 or $1000 or $800.

[Bruno]

I'd wait for the next dip, which might be as soon as next month.

[FreedomFighter8008]

Yes. This thing is just getting revved up.

http://blogs.uncommonwisdomdaily.com...12-month-lows/

[Original_Intent]

I think a dip is likely but the biggest thing is YOU NEVER know. I have heard that a good thing to do (I never follow it) is to buya certain dollar amount each month no matter the price (if you are accumulating) That way you buy twice as much when it is at $10 than when it is at $20/oz. That way instead of an average price of $15 your average is actually $13.33/oz.

If you just have a lump sum and are considering making a one-time purchase, I have no recomendation. Timing dips is too tricky. I personally would be hesitant to buy into the current euphoria, because then I always end up buying high. But if you don;t have any right now I would try to determine a monthly dollar amount that you are going to sink into gold or silver and start doing it. Then if there is a drop you would still have money to lower your average price/oz.

[Cowlesy]

I think a dip is likely but the biggest thing is YOU NEVER know. I have heard that a good thing to do (I never follow it) is to buya certain dollar amount each month no matter the price (if you are accumulating) That way you buy twice as much when it is at $10 than when it is at $20/oz. That way instead of an average price of $15 your average is actually $13.33/oz.

If you just have a lump sum and are considering making a one-time purchase, I have no recomendation. Timing dips is too tricky. I personally would be hesitant to buy into the current euphoria, because then I always end up buying high. But if you don;t have any right now I would try to determine a monthly dollar amount that you are going to sink into gold or silver and start doing it. Then if there is a drop you would still have money to lower your average price/oz.

Average in, sage advice.

If you ultimately believe the U.S. Dollar is doomed, and that the Federal Reserve is not going to mop up the liquidity or that they will lose control of the economy, the best way to buy is to do it incrementally over time. The downside is freight costs are high on PM's, so you have to buy enough not to kill your cost basis.

No matter what happens, people will always say "I think it goes higher from here" as the price goes up, and people will say "I'm going to wait until I see a bottom" when it is falling.

If Jimmy Rogers can't time the market, I certainly cannot time the market.

[brandon]

Always remember the old cliche "Buy low, Sell high"

Though sometimes it can be tempting to buy something when the price seems to be shooting through the roof, it's generally not a good idea. If I were you I would wait until a few months from now when the forum is littered with threads with titles like "The PPT is manipulating the price of gold!" and "These markets are controlled, gold should never have gone this low!"

That's a good time to buy.

[theoakman]

Silver is going much higher regardless of what happens to the dollar.

[Dr.3D]

Silver is going much higher regardless of what happens to the dollar.

For sure, above ground supplies of silver are much less than for gold.

[tmosley]

Always remember the old cliche "Buy low, Sell high"

Though sometimes it can be tempting to buy something when the price seems to be shooting through the roof, it's generally not a good idea. If I were you I would wait until a few months from now when the forum is littered with threads with titles like "The PPT is manipulating the price of gold!" and "These markets are controlled, gold should never have gone this low!"

That's a good time to buy.

I take it you didn't see the thread where it was revealed that China is now buying gold and silver in massive quantities, and is advising their citizens to do so as well, where until recently it was ILLEGAL for them to do so?

1 Billion more customers, plus a government with a trillion+ dollars looking to get rid of them. I wonder what's gonna happen?

If you want to cost average, fine, but start NOW. You should have started at $12. I myself went almost all in at $14. I am very happy right now, as you can imagine.

[devil21]

Thanks for the thoughts. I definitely agree that things have ramped up in the last year, fundamentally, more than they were during last year's climb. This upward move appears based more on fundamentals of a weakening dollar, China's buying spree, and other factors than last year's which seemed more like panic buying and speculation.

[ShowMeLiberty]

I think a dip is likely but the biggest thing is YOU NEVER know. I have heard that a good thing to do (I never follow it) is to buya certain dollar amount each month no matter the price (if you are accumulating) That way you buy twice as much when it is at $10 than when it is at $20/oz. That way instead of an average price of $15 your average is actually $13.33/oz.

Great idea - thanks!

I bought some silver last year when it was $10 - $11/oz. so I'm pretty happy about the current price. Still, I haven't bought any in a while and was thinking I ought to get some more.

[stag15]

Who cares when you buy? If you are holding for the long term, what does $1 matter? I think silver will at least hit $30 in a few years. After that, who knows. If there is a bubble in precious metals, which is highly possible, silver will go into the 100s.

[stag15]

I take it you didn't see the thread where it was revealed that China is now buying gold and silver in massive quantities, and is advising their citizens to do so as well, where until recently it was ILLEGAL for them to do so?

1 Billion more customers, plus a government with a trillion+ dollars looking to get rid of them. I wonder what's gonna happen?

If you want to cost average, fine, but start NOW. You should have started at $12. I myself went almost all in at $14. I am very happy right now, as you can imagine.

Tmosely, people don't get it. Don't try to explain it to them. The information is there, but they don't want to believe. Let them try an time it. I have bought at 12, 14, and 16. The times that I bought, everyone was screaming that prices were going to 10, 12, and 13.

[brandon]

Tmosely, people don't get it. Don't try to explain it to them. The information is there, but they don't want to believe. Let them try an time it. I have bought at 12, 14, and 16. The times that I bought, everyone was screaming that prices were going to 10, 12, and 13.

The prices go up and down all the time. Last year when gold was at 1000/ounce no one thought it would drop to 700/ounce a month later, but it did.

Right now there is an upward trend for pretty much any time frame, and long term it will likely continue to be an up trend. But there will be plenty of buying opportunities that are much better than right now.

[devil21]

The prices go up and down a the time. Last year when god was at 1000/ounce no one thought it would drop to 700/ounce a month later, but it did.

Right now there is an upward trend for pretty much any time frame, and long term it will likely continue to be an up trend. But there will be plenty of buying opportunities that are much better than right now.

Exactly. Im not really concerned about "timing" the market for profit purposes as much as I'm concered about getting the most gold and silver possible for a finite amount of paper money. I don't see why it's so hard for some people to grasp that.

[stag15]

The prices go up and down a the time. Last year when god was at 1000/ounce no one thought it would drop to 700/ounce a month later, but it did.

Right now there is an upward trend for pretty much any time frame, and long term it will likely continue to be an up trend. But there will be plenty of buying opportunities that are much better than right now.

Can you gaurantee this? I don't doubt there will be dips, but how do you or any of us know what will happen? If the dollar drops over night say 5%, gold/silver could gap up. They may retrace a little, but maybe not to these levels.

[devil21]

Can you gaurantee this? I don't doubt there will be dips, but how do you or any of us know what will happen? If the dollar drops over night say 5%, gold/silver could gap up. They may retrace a little, but maybe not to these levels.

The scary part is that I remember these exact same thread talking points last year. I didn't buy at the high end and was rewarded with more purchasing power when it came back down and was able to start my collection.

[specsaregood]

Silver is up another +$.10 since you posted this.....
I go with the buy every month plan, I buy an even amount of gold and silver (frn-wise, not oz-wise). I put in my monthly order today. The little price changes don't really affect me much; but the current state looks extremely bullish to me.

[devil21]

I think the cost averaging plan is probably my best bet. If I can find $200 a month to spend on ammo then I guess I can push at least some of that toward PMs.

[stag15]

The scary part is that I remember these exact same thread talking points last year. I didn't buy at the high end and was rewarded with more purchasing power when it came back down and was able to start my collection.

Yes, but the dollar climbed 25% from all the liquidation/Fed currency swaps. It appears the dollar trend has reversed, and might not repeat in another stock market crash.

[Brian4Liberty]

It's always best to buy during the summer lows. You may have missed the boat. If it breaks through 1033, we may go to a higher trading range. Maybe between 1000 and 1100 or 1200. It will come back down below 1000 in the next 12 monthes. Buy low, sell high.

[Dr.3D]

For those who are interested, here is gold and silver for the past two years.



I collect the closing data every day from Kitco so it is their data.

[Dr.3D]

While I'm at it, here is an updated chart showing the Gold/Silver ratio vs. the U.S. Dollar Index.
I find this chart to be very interesting.