Is it time to buy silver?
Because of my experience over the decades with buying and selling silver, and some gold, I've been asked a lot over the last 12 months if I thought people should buy. I've always said that there is never a bad time to buy silver or gold. I also said that if I saw a prime time to buy, I would commit myself and tell people. A year has gone by and a lot of my friends, family, and readers continue to ask: "How about now?...... Should I buy?"
Well, before I give you my answer, you first must answer a question for yourself. "WHY do you want to buy silver and/or gold"? This is a very important question. Because when all is said and done, silver and gold by itself can not do anything for you other than "Look Pretty". It can't keep you warm. It can't fill your belly. It can't keep you dry and protected........ BUT, it IS MONEY. When you trade or sell it to another person, you can exchange it for the items that will keep you warm, fed, dry, etc... There are basically 4 types of individuals who buy silver/gold. I reiterate this in many of my posts, because it is very important. "WHY" you buy will determine how and when you should buy.
OK. Now that you've answered WHY you want to buy silver and/or gold, I'll tell you whether it's a good time to buy or not. 1 Caveat. I NEVER RECOMMEND buying "Paper Silver/gold". In other words, if you can't physically hold it, then I DON'T RECOMMEND BUYING IT!!! You can invest in some of the mining companies if you want to, but DO NOT BUY PAPER SILVER/GOLD!!!
OK. Here's my prediction. Silver and Gold, have reached a bottom. This is a great time to buy. Can it go a little lower? Yes. But in my opinion, from looking at all the indicators such as the economy, mining costs, projected industrial needs (Like china's surge in solar energy equipment), paper silver/gold not having anywhere near the physical silver/gold to back it up, JP Morgan and others at their lowest holdings, countries putting bans on gold, and a number of other reasons...... I forecast that silver and gold are going to start a massive move upward. It doesn't matter if that massive upward takes weeks or months; or even into 2014... The point is; this is pretty close to the bottom. If you're one of the 4 types of silver/gold buyers, you should definitely start making some massive buys.
1. Let's start with the easiest buyer. The "Survivalist". This is the individual who believes in an economic Armageddon. They believe in a total crash of the country's and possibly world's economy. These feel they will buy gold and silver and if the economy does crash, they will have "Real Money" that they will be able to use to purchase goods and services to stay alive. If this is you, then it's always a good time to buy silver and gold. Why? Because you don't know when that economic crash will come. It could be next week, next month, next year, or never. I won't argue with you on whether it will happen or not. But if this is why you buy silver/gold, then it doesn't matter what the price is. You should be buying whatever you can, at whatever price, until you feel comfortable. So that obviously brings up the question....... "How much is enough for an economic collapse?" If you look at the historical VALUE of silver; NOT THE PRICE; you can see that what you can buy with a certain amount of silver can tell you how much you need. If the VALUE of silver goes back to where it use to be when it was considered money and/or because of economic problems, 100 ounces of silver will make you well off. 500 ounces is retirement at age 35. 1000 ounces is retirement + a house + travelling the world. Anything more than 1000 ounces and you are looking at generational wealth. With the price of silver where it currently is; $19.65-$19.95, this is the perfect time to get at least 100 ounces of silver put away. You never know. Maybe the survivalists could be right. If they are, having at least 100-500 ounces of silver put away; that you NEVER TOUCH (And pass on to your kids with the same level of education), is actually a pretty smart idea. We're talking about $1,900 - $10,000 in today's dollars. Not a bad investment for the "WHAT IF".
2. OK. Let's get another buyer out of the way real quick. The person who buys silver and gold similar to a day trader. Someone who wants to flip it within days/weeks of buying it. Let me make this real simple. You can't speculate on silver and gold on that short of a time line. That's why the paper silver/gold investors are getting real nervous. There isn't enough physical silver/gold to cover the paper. And with the equivalence of day trading, the price is getting quite manipulated. So I won't even address those who are looking to buy and sell as a turn around investor. Nothing wrong with making money, but that's not the way to invest in silver and gold. So for you all; you're on your own.
3. So, is it the right time to buy silver/gold for those of you who buy it to protect your wealth? As a hedge against inflation? To offset your retirement? I believe the answer to this is yes. It is the perfect time. Actually, for this type of investor, you SHOULD HAVE BEEN BUYING ALL ALONG. It's called "DCA" or "Dollar Cost Averaging". If you buy a certain dollar amount every week or month over the last 12 months, you would have been buying silver at $36 per ounce, but you also would have been buying silver at $18 an ounce. Your average would have been in the $27 an ounce range. However; if you haven't been buying, and you've been waiting for a bottom; you may be about the luckiest person around. You most definitely should buy silver right now. Not just $100 or so. If you haven't been doing DCA, and you're looking to protect your investments and look after your future retirement, you should be buying at least $10,000 at today's prices. That's approximately 450-500 ounces. Depending on premiums from where you buy it from. Take my advice, yes it could go down some more in the future, but if you truly are buying to protect your wealth, against inflation, and for retirement..... Then you should have been buying with DCA in mind and buying each week. Buy all the dollar's worth you can right now, (That you would have bought using dollar cost averaging over the last 12 months), then continue buying that much each month. I.e. If you were going to buy $100 or $500 each month, but have put it off, then buy $1,200 or $6,000 (Whatever 12 months is for you). Buy it now. Then make sure you buy the monthly dollar amount; no matter WHAT the price is. This is your DCA. Do it, and you'll do well. Price of silver and gold have always stayed with inflation. What you could buy with an ounce of silver or gold 100 years ago, you can pretty much still buy today. E.g. an ounce of gold could buy you an acre of land. Well, you can buy an acre of land in some places for around $1300-$1500. That's an ounce of gold. Because of future inflation, and the government printing and spending money like crazy, the price of silver and gold are definitely going to go up. We are at a really good low.
4. The final buyer is someone who buys silver and/or gold, until they reach a certain "VALUE", then they sell it for the purpose of buying something or paying down debt. I myself do this regularly. Mind you, I buy silver and/or gold for reasons 1, 3, and 4 above. I wanted a new car for my wife. It cost $20,000. I sold $20,000 worth of silver, that only cost me $13,000 at the time I bought it. If time is on your side, and you don't need the money today, then this is a great reason to buy silver and gold. And today is a great time to buy silver and/or gold if you are looking to make a large purchase in the future or to pay down debt. Maybe you buy $5,000 worth of silver today (200 ounces), and you sit on it until the price is up to $60 an ounce, and you then have $15,000. Maybe you use this for a car. Maybe to pay off all your debt. Maybe to pay towards finishing up your mortgage. Maybe for a child's education. This is one of the best reasons to buy silver/gold. To buy at a discount or to reduce debt. But you must have time on your side. And today is definitely a good time to buy silver. If you buy for multiple reasons, then keep track of your silver/gold separately for each reason. Maybe you have 300 ounces towards a new car. Maybe another 500 set aside to make a balloon payments when it equals what's left on your mortgage. Some think they can save cash for a car. The problem with that is each year you save, the price of the car goes up. But you're saving the same amount each year. But with investing in silver/gold, and having time on your side that you can continue with normal payments while waiting, maybe you can knock off half of your car payment. Maybe you reduce your mortgage. Don't let anyone tell you that "Loans are cheap. You shouldn't pay them off". Those people are idiots. Unless you can guarantee that an investment will pay higher interest rates than a loan, (Which right now you can't guarantee that), then it's ALWAYS BETTER to pay off loans and debt. So yes, this is a really good time to buy silver for a future purchase or debt reduction.
So there you have it. If you're considering buying silver/gold, for whatever reason, (Except the day trader and the paper buyer), I think you are at a point where you should consider buying up quite a bit. Obviously, very few people have the cash to buy all in, and I never recommend credit cards or loans to buy silver/gold. But this would be the perfect time if you have that extra $1,000 or $5,000 or $10,000 sitting around that you wanted to do something with. When, I can't give you a firm date; but I believe silver is not to far away from going back up and reaching prices of $60 - $100 an ounce. I believe in time, that it could even go higher. Have fun. CYA: SE
Well, before I give you my answer, you first must answer a question for yourself. "WHY do you want to buy silver and/or gold"? This is a very important question. Because when all is said and done, silver and gold by itself can not do anything for you other than "Look Pretty". It can't keep you warm. It can't fill your belly. It can't keep you dry and protected........ BUT, it IS MONEY. When you trade or sell it to another person, you can exchange it for the items that will keep you warm, fed, dry, etc... There are basically 4 types of individuals who buy silver/gold. I reiterate this in many of my posts, because it is very important. "WHY" you buy will determine how and when you should buy.
OK. Now that you've answered WHY you want to buy silver and/or gold, I'll tell you whether it's a good time to buy or not. 1 Caveat. I NEVER RECOMMEND buying "Paper Silver/gold". In other words, if you can't physically hold it, then I DON'T RECOMMEND BUYING IT!!! You can invest in some of the mining companies if you want to, but DO NOT BUY PAPER SILVER/GOLD!!!
OK. Here's my prediction. Silver and Gold, have reached a bottom. This is a great time to buy. Can it go a little lower? Yes. But in my opinion, from looking at all the indicators such as the economy, mining costs, projected industrial needs (Like china's surge in solar energy equipment), paper silver/gold not having anywhere near the physical silver/gold to back it up, JP Morgan and others at their lowest holdings, countries putting bans on gold, and a number of other reasons...... I forecast that silver and gold are going to start a massive move upward. It doesn't matter if that massive upward takes weeks or months; or even into 2014... The point is; this is pretty close to the bottom. If you're one of the 4 types of silver/gold buyers, you should definitely start making some massive buys.
1. Let's start with the easiest buyer. The "Survivalist". This is the individual who believes in an economic Armageddon. They believe in a total crash of the country's and possibly world's economy. These feel they will buy gold and silver and if the economy does crash, they will have "Real Money" that they will be able to use to purchase goods and services to stay alive. If this is you, then it's always a good time to buy silver and gold. Why? Because you don't know when that economic crash will come. It could be next week, next month, next year, or never. I won't argue with you on whether it will happen or not. But if this is why you buy silver/gold, then it doesn't matter what the price is. You should be buying whatever you can, at whatever price, until you feel comfortable. So that obviously brings up the question....... "How much is enough for an economic collapse?" If you look at the historical VALUE of silver; NOT THE PRICE; you can see that what you can buy with a certain amount of silver can tell you how much you need. If the VALUE of silver goes back to where it use to be when it was considered money and/or because of economic problems, 100 ounces of silver will make you well off. 500 ounces is retirement at age 35. 1000 ounces is retirement + a house + travelling the world. Anything more than 1000 ounces and you are looking at generational wealth. With the price of silver where it currently is; $19.65-$19.95, this is the perfect time to get at least 100 ounces of silver put away. You never know. Maybe the survivalists could be right. If they are, having at least 100-500 ounces of silver put away; that you NEVER TOUCH (And pass on to your kids with the same level of education), is actually a pretty smart idea. We're talking about $1,900 - $10,000 in today's dollars. Not a bad investment for the "WHAT IF".
2. OK. Let's get another buyer out of the way real quick. The person who buys silver and gold similar to a day trader. Someone who wants to flip it within days/weeks of buying it. Let me make this real simple. You can't speculate on silver and gold on that short of a time line. That's why the paper silver/gold investors are getting real nervous. There isn't enough physical silver/gold to cover the paper. And with the equivalence of day trading, the price is getting quite manipulated. So I won't even address those who are looking to buy and sell as a turn around investor. Nothing wrong with making money, but that's not the way to invest in silver and gold. So for you all; you're on your own.
3. So, is it the right time to buy silver/gold for those of you who buy it to protect your wealth? As a hedge against inflation? To offset your retirement? I believe the answer to this is yes. It is the perfect time. Actually, for this type of investor, you SHOULD HAVE BEEN BUYING ALL ALONG. It's called "DCA" or "Dollar Cost Averaging". If you buy a certain dollar amount every week or month over the last 12 months, you would have been buying silver at $36 per ounce, but you also would have been buying silver at $18 an ounce. Your average would have been in the $27 an ounce range. However; if you haven't been buying, and you've been waiting for a bottom; you may be about the luckiest person around. You most definitely should buy silver right now. Not just $100 or so. If you haven't been doing DCA, and you're looking to protect your investments and look after your future retirement, you should be buying at least $10,000 at today's prices. That's approximately 450-500 ounces. Depending on premiums from where you buy it from. Take my advice, yes it could go down some more in the future, but if you truly are buying to protect your wealth, against inflation, and for retirement..... Then you should have been buying with DCA in mind and buying each week. Buy all the dollar's worth you can right now, (That you would have bought using dollar cost averaging over the last 12 months), then continue buying that much each month. I.e. If you were going to buy $100 or $500 each month, but have put it off, then buy $1,200 or $6,000 (Whatever 12 months is for you). Buy it now. Then make sure you buy the monthly dollar amount; no matter WHAT the price is. This is your DCA. Do it, and you'll do well. Price of silver and gold have always stayed with inflation. What you could buy with an ounce of silver or gold 100 years ago, you can pretty much still buy today. E.g. an ounce of gold could buy you an acre of land. Well, you can buy an acre of land in some places for around $1300-$1500. That's an ounce of gold. Because of future inflation, and the government printing and spending money like crazy, the price of silver and gold are definitely going to go up. We are at a really good low.
4. The final buyer is someone who buys silver and/or gold, until they reach a certain "VALUE", then they sell it for the purpose of buying something or paying down debt. I myself do this regularly. Mind you, I buy silver and/or gold for reasons 1, 3, and 4 above. I wanted a new car for my wife. It cost $20,000. I sold $20,000 worth of silver, that only cost me $13,000 at the time I bought it. If time is on your side, and you don't need the money today, then this is a great reason to buy silver and gold. And today is a great time to buy silver and/or gold if you are looking to make a large purchase in the future or to pay down debt. Maybe you buy $5,000 worth of silver today (200 ounces), and you sit on it until the price is up to $60 an ounce, and you then have $15,000. Maybe you use this for a car. Maybe to pay off all your debt. Maybe to pay towards finishing up your mortgage. Maybe for a child's education. This is one of the best reasons to buy silver/gold. To buy at a discount or to reduce debt. But you must have time on your side. And today is definitely a good time to buy silver. If you buy for multiple reasons, then keep track of your silver/gold separately for each reason. Maybe you have 300 ounces towards a new car. Maybe another 500 set aside to make a balloon payments when it equals what's left on your mortgage. Some think they can save cash for a car. The problem with that is each year you save, the price of the car goes up. But you're saving the same amount each year. But with investing in silver/gold, and having time on your side that you can continue with normal payments while waiting, maybe you can knock off half of your car payment. Maybe you reduce your mortgage. Don't let anyone tell you that "Loans are cheap. You shouldn't pay them off". Those people are idiots. Unless you can guarantee that an investment will pay higher interest rates than a loan, (Which right now you can't guarantee that), then it's ALWAYS BETTER to pay off loans and debt. So yes, this is a really good time to buy silver for a future purchase or debt reduction.
So there you have it. If you're considering buying silver/gold, for whatever reason, (Except the day trader and the paper buyer), I think you are at a point where you should consider buying up quite a bit. Obviously, very few people have the cash to buy all in, and I never recommend credit cards or loans to buy silver/gold. But this would be the perfect time if you have that extra $1,000 or $5,000 or $10,000 sitting around that you wanted to do something with. When, I can't give you a firm date; but I believe silver is not to far away from going back up and reaching prices of $60 - $100 an ounce. I believe in time, that it could even go higher. Have fun. CYA: SE
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