Price of silver is down: Now you understand Dollar Cost Averaging.
The most difficult thing about investing in anything, is the though that if what you bought starts going down, that it will never come back up. This is what separates the "Playas" from the "Posers". It's easy to buy at $32 an ounce, watch it go up to $32.50. Buy more. Watch it go to $33. Buy more. etc...The only regrets you have are: "I really wish I bought some more when the price was lower".
Well, when I started this blog, the price of silver was in the $33.50 range. So, it's gone down a little more than 10%. This morning, it's in the $29.85 range. This makes a lot of people antsie. You shouldn't be. You should consider this a really nice "Christmas Present".
Let's assume you did what I suggested, and you spread out you buying in the last 4-5 weeks. That means, that while you bought some when Spot price was $33.50, you also bought some when it was $33. Some more at $32.75, some more at $32.25, some more at $32, some more at $31.50, some more at $31, more at $30.50, more at $30, and now some at around $29.85. You would now be averaging in the $31 area. So, when the prices start going back up, your profits will be seen earlier and bigger.
Yes, it's difficult to watch the price go down, and for you to get excited. Yes, it would be easier if the price stayed at $33 every day for the next 2 years, then RIGHT BEFORE SELLING IT, the price jumped to $66 dollars and you doubled your money. But that's not life.Can I guarantee that the price of silver is going to make it to $50, $60 - $100 an ounce? No, I can't. But I can guarantee you that unlike stocks in a company, it can't "Go out of business" and be worth $0.00. Silver will always have intrinsic value. And when you consider industrial uses; the fiscal cliff; people not investing because of christmas; the value of the dollar; etc... the potential for silver to go up a lot is very strong. I still feel that silver will be in the $50-$60 range by next summer. It's just a gut feeling. I think the dollar will continue to be printed and that's going to increase inflation. Anyway; this is the time to buy. CYA: SE
The most difficult thing about investing in anything, is the though that if what you bought starts going down, that it will never come back up. This is what separates the "Playas" from the "Posers". It's easy to buy at $32 an ounce, watch it go up to $32.50. Buy more. Watch it go to $33. Buy more. etc...The only regrets you have are: "I really wish I bought some more when the price was lower".
Well, when I started this blog, the price of silver was in the $33.50 range. So, it's gone down a little more than 10%. This morning, it's in the $29.85 range. This makes a lot of people antsie. You shouldn't be. You should consider this a really nice "Christmas Present".
Let's assume you did what I suggested, and you spread out you buying in the last 4-5 weeks. That means, that while you bought some when Spot price was $33.50, you also bought some when it was $33. Some more at $32.75, some more at $32.25, some more at $32, some more at $31.50, some more at $31, more at $30.50, more at $30, and now some at around $29.85. You would now be averaging in the $31 area. So, when the prices start going back up, your profits will be seen earlier and bigger.
Yes, it's difficult to watch the price go down, and for you to get excited. Yes, it would be easier if the price stayed at $33 every day for the next 2 years, then RIGHT BEFORE SELLING IT, the price jumped to $66 dollars and you doubled your money. But that's not life.Can I guarantee that the price of silver is going to make it to $50, $60 - $100 an ounce? No, I can't. But I can guarantee you that unlike stocks in a company, it can't "Go out of business" and be worth $0.00. Silver will always have intrinsic value. And when you consider industrial uses; the fiscal cliff; people not investing because of christmas; the value of the dollar; etc... the potential for silver to go up a lot is very strong. I still feel that silver will be in the $50-$60 range by next summer. It's just a gut feeling. I think the dollar will continue to be printed and that's going to increase inflation. Anyway; this is the time to buy. CYA: SE
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