Need to be careful
Hey there my friends. Well, we've gotten to the point where silver and gold are definitely on the move. There are a few things I want to warn you about. These are things that I've been asked about and though everyone should know. I will write them as bullet statements to help you keep a check list.
1. Remember WHY you bought Silver and Gold. If you bought it as an investment mainly, then this blog isn't for you. If you bought it as a form of "INSURANCE"; to help cover inflation, a falling dollar,economic collapse, etc. then REMEMBER THAT. That means if you see the price start to DIVE again and go down..... DON'T PANIC and start selling. This is insurance and it's there for a reason. Likewise; if you see the price rise a lot more, and above what you paid for it, DON'T SELL and try and "Make a Buck". You didn't buy this for an investment.
2. We want to see the price of Silver and Gold go up, but we WANT to see a saw wave type of increase. Meaning, up a little one day, down a little the next. Maybe even 2 days up and downs. And obviously we want the DOWNS to be LESS than the ups. E.g. UP $0.15 and DOWN $0.08. Then up $0.12 and down $0.05. etc. If we see an uptick that is TOO FAST and TOO MUCH, that is telling you that there's going to be problems. Either with the stock market, bonds, or cash.
3. What you're seeing recently with the rise in the silver and gold; as well as the rise in the stock market, is similar to the 2008 period. RIGHT BEFORE THE BIG CRASH. Now, for us INSURANCE buyers, we're ok with a big crash. It makes the price really low and we can buy more silver and gold.
4. The long term prices have been rising. BEFORE the 2008 cluster phuck, the lows were around $9-$10 for silver. Then the peak of around $48-$49. Then, it started coming down fast. But it only cam back down to a bottom of around $14. So, if we have another 2011 where the silver and gold, along with the stock market goes high again before a major drop, the BOTTOM will probably be around where it is NOW. In the $17-$18 range. What that means is, TODAY is about the WORST you'll have to worry about. That's not to say that there won't be some minor negative spikes; just that I don't see a NORMAL low back into the $10 range again.
5. This is an ELECTION YEAR in the United States. If Hillary Clinton gets elected, the country will continue on economically the way Obama has lead for the last 7 years. That means MORE DEBT, Unwanted Dollar; Over-Inflated Stock Market, high unemployment, (No, it's NOT 5%; it's closer to 12% in REAL numbers). That could lead to a recession or depression. In other words, the silver/gold prices could fluctuate a lot. On the other hand, if Donald Trump is elected, he will be spending money on the border, security, jobs, etc. This means an initial increase in debt, but it will lead to more income/surplus to the government. The question then is; does the government use the excess to pay down the debt, or spend it on other things and keep a high debt. If the debt goes down, the dollar will INCREASE in value and confidence. This is good and bad. A strong dollar may mean lower silver and gold prices. However, we're talking about a couple of years from now. But, if the spending creates more jobs, more income, and expansion, then the industrial market with Solar, Medical, and other areas will increase. This will increase the demand for silver for the industrial purposes. So the price could go up. (This is why I LOVE SILVER). Silver isn't JUST for investing; like most gold is for. If the economy and dollar are strong, the NORMAL price of silver could go down, but the world industry will move forward and will need it; so the price stays good. It's low now because of manipulation.
6. FINALLY: Once the price point of Silver/Gold reaches you DOUBLE break even point; then consider possibly selling some. Only a LITTLE at a time. If you are buying silver/gold for the "Reduce Debt" or "Buy something cheap that you're saving for"; then this is a good time to consider that. But, if you have no debt or buying anything, and you are selling, keep that cash AT HOME, and hold onto it to SUPPLEMENT your income if needed; or to use later when the price goes way down again and you want to buy back. So; how/when to sell. Example: My break even point is around $20 an ounce. If/When it gets to around $40 an ounce, obviously selling HALF would let me BREAK EVEN and leave me with silver/gold left over that is FREE AND CLEAR. But I don't recommend selling the HALF all at once. Let's say to make numbers easy, I had a break even at $20, and I had 1000 ounces of silver. At the $40 mark, I would start looking at the 500 ounces. I'd probably sell 100 ounces. Then, I'd watch the prices. If it is on a steady climb, I'd probably sell another 100 ounces when the price got close to $50 an ounce. I'd keep my eye on the prices, and sell another 100 ounces at $70 an ounce. That 300 ounces would get me back about $16,000. That's close enough to the $20,000 that I spent. I'd put that money in a safe; NOT THE BANK. Now; the 700 ounces you have left, is almost free and clear. Actually, your break even price on what's left, is $5.71 an ounce. So you're in good shape. BUT, if the price starts falling, then you wait until it's UNDER $40 again. Maybe around $35, you buy back 100 ounces. At $25 you buy another 100 ounces. Below $20, you buy the last 100 ounces. That's a total cost of $8000. You had $16,000. You have your 1000 ounces back, and $8000 left over to spend, pay debt, save, or spend on more silver. (Depending, some say you can never have enough). This is true, IF, and ONLY IF, you have everything else in your life you need. E.g. Debt free, house paid, cars, clothes, food, job, insurance, prepper stuff, etc. If you have everything, then you can always buy more silver/gold. If not, you can use the $8000 for other things.
Bottom line is: My blog is NOT for the traditional INVESTOR. Not that you can't make money buying and selling physical silver gold. Just that it's not the MAIN reason me and my readers buy Silver and gold. "Personally", I have the silver and gold that I NEED; just like I recommend. But I also have SOME for "Prepper Purposes". I also have some for Investment purposes. I happen to be able to do that. Not everyone can. But I mainly speak to my blog friends about the insurance, inflation, debt, protection, purposes of buying silver/gold. For these reasons, the silver and gold you have, is to protect you. And, the best part is, if you get to your "Senior" years, where you're retired, and you no longer need to worry about the silver and gold being used to PROTECT yourself in case of inflation, economic crash, crashed dollar, etc. And assuming you've set up your retirement well;... then you have this silver and gold that you can supplement your income with. Use it to enjoy the later years of your life. Use it to travel. Visit grand kids. Buy something that you always wanted but didn't need. Maybe if you are well off, use it to help a grand kid's college fund. Whatever. That's the good thing about silver and gold. It's INSURANCE..... But if you DON'T NEED IT, you get your PREMIUMS BACK!!! Tell me any insurance; car, house, fire, flood, etc. that you get your premiums back if you don't use the insurance. Only certain types of Life Insurance will do that. And that's pretty expensive life insurance.
Anyway; STAY EXCITED about the rise in silver and gold. But remember that it can and will go down; but it can and WILL go up. Just don't BUY or SELL out of that excitement. If you are buying a certain amount each month right now; CONTINUE to do it. DON'T take out your savings and buy a large amount because you're afraid the price is going up. What if it goes down???? What if you needed that money for a broken car, refrigerator, etc. Stay on course.
CYA:
SE:
1. Remember WHY you bought Silver and Gold. If you bought it as an investment mainly, then this blog isn't for you. If you bought it as a form of "INSURANCE"; to help cover inflation, a falling dollar,economic collapse, etc. then REMEMBER THAT. That means if you see the price start to DIVE again and go down..... DON'T PANIC and start selling. This is insurance and it's there for a reason. Likewise; if you see the price rise a lot more, and above what you paid for it, DON'T SELL and try and "Make a Buck". You didn't buy this for an investment.
2. We want to see the price of Silver and Gold go up, but we WANT to see a saw wave type of increase. Meaning, up a little one day, down a little the next. Maybe even 2 days up and downs. And obviously we want the DOWNS to be LESS than the ups. E.g. UP $0.15 and DOWN $0.08. Then up $0.12 and down $0.05. etc. If we see an uptick that is TOO FAST and TOO MUCH, that is telling you that there's going to be problems. Either with the stock market, bonds, or cash.
3. What you're seeing recently with the rise in the silver and gold; as well as the rise in the stock market, is similar to the 2008 period. RIGHT BEFORE THE BIG CRASH. Now, for us INSURANCE buyers, we're ok with a big crash. It makes the price really low and we can buy more silver and gold.
4. The long term prices have been rising. BEFORE the 2008 cluster phuck, the lows were around $9-$10 for silver. Then the peak of around $48-$49. Then, it started coming down fast. But it only cam back down to a bottom of around $14. So, if we have another 2011 where the silver and gold, along with the stock market goes high again before a major drop, the BOTTOM will probably be around where it is NOW. In the $17-$18 range. What that means is, TODAY is about the WORST you'll have to worry about. That's not to say that there won't be some minor negative spikes; just that I don't see a NORMAL low back into the $10 range again.
5. This is an ELECTION YEAR in the United States. If Hillary Clinton gets elected, the country will continue on economically the way Obama has lead for the last 7 years. That means MORE DEBT, Unwanted Dollar; Over-Inflated Stock Market, high unemployment, (No, it's NOT 5%; it's closer to 12% in REAL numbers). That could lead to a recession or depression. In other words, the silver/gold prices could fluctuate a lot. On the other hand, if Donald Trump is elected, he will be spending money on the border, security, jobs, etc. This means an initial increase in debt, but it will lead to more income/surplus to the government. The question then is; does the government use the excess to pay down the debt, or spend it on other things and keep a high debt. If the debt goes down, the dollar will INCREASE in value and confidence. This is good and bad. A strong dollar may mean lower silver and gold prices. However, we're talking about a couple of years from now. But, if the spending creates more jobs, more income, and expansion, then the industrial market with Solar, Medical, and other areas will increase. This will increase the demand for silver for the industrial purposes. So the price could go up. (This is why I LOVE SILVER). Silver isn't JUST for investing; like most gold is for. If the economy and dollar are strong, the NORMAL price of silver could go down, but the world industry will move forward and will need it; so the price stays good. It's low now because of manipulation.
6. FINALLY: Once the price point of Silver/Gold reaches you DOUBLE break even point; then consider possibly selling some. Only a LITTLE at a time. If you are buying silver/gold for the "Reduce Debt" or "Buy something cheap that you're saving for"; then this is a good time to consider that. But, if you have no debt or buying anything, and you are selling, keep that cash AT HOME, and hold onto it to SUPPLEMENT your income if needed; or to use later when the price goes way down again and you want to buy back. So; how/when to sell. Example: My break even point is around $20 an ounce. If/When it gets to around $40 an ounce, obviously selling HALF would let me BREAK EVEN and leave me with silver/gold left over that is FREE AND CLEAR. But I don't recommend selling the HALF all at once. Let's say to make numbers easy, I had a break even at $20, and I had 1000 ounces of silver. At the $40 mark, I would start looking at the 500 ounces. I'd probably sell 100 ounces. Then, I'd watch the prices. If it is on a steady climb, I'd probably sell another 100 ounces when the price got close to $50 an ounce. I'd keep my eye on the prices, and sell another 100 ounces at $70 an ounce. That 300 ounces would get me back about $16,000. That's close enough to the $20,000 that I spent. I'd put that money in a safe; NOT THE BANK. Now; the 700 ounces you have left, is almost free and clear. Actually, your break even price on what's left, is $5.71 an ounce. So you're in good shape. BUT, if the price starts falling, then you wait until it's UNDER $40 again. Maybe around $35, you buy back 100 ounces. At $25 you buy another 100 ounces. Below $20, you buy the last 100 ounces. That's a total cost of $8000. You had $16,000. You have your 1000 ounces back, and $8000 left over to spend, pay debt, save, or spend on more silver. (Depending, some say you can never have enough). This is true, IF, and ONLY IF, you have everything else in your life you need. E.g. Debt free, house paid, cars, clothes, food, job, insurance, prepper stuff, etc. If you have everything, then you can always buy more silver/gold. If not, you can use the $8000 for other things.
Bottom line is: My blog is NOT for the traditional INVESTOR. Not that you can't make money buying and selling physical silver gold. Just that it's not the MAIN reason me and my readers buy Silver and gold. "Personally", I have the silver and gold that I NEED; just like I recommend. But I also have SOME for "Prepper Purposes". I also have some for Investment purposes. I happen to be able to do that. Not everyone can. But I mainly speak to my blog friends about the insurance, inflation, debt, protection, purposes of buying silver/gold. For these reasons, the silver and gold you have, is to protect you. And, the best part is, if you get to your "Senior" years, where you're retired, and you no longer need to worry about the silver and gold being used to PROTECT yourself in case of inflation, economic crash, crashed dollar, etc. And assuming you've set up your retirement well;... then you have this silver and gold that you can supplement your income with. Use it to enjoy the later years of your life. Use it to travel. Visit grand kids. Buy something that you always wanted but didn't need. Maybe if you are well off, use it to help a grand kid's college fund. Whatever. That's the good thing about silver and gold. It's INSURANCE..... But if you DON'T NEED IT, you get your PREMIUMS BACK!!! Tell me any insurance; car, house, fire, flood, etc. that you get your premiums back if you don't use the insurance. Only certain types of Life Insurance will do that. And that's pretty expensive life insurance.
Anyway; STAY EXCITED about the rise in silver and gold. But remember that it can and will go down; but it can and WILL go up. Just don't BUY or SELL out of that excitement. If you are buying a certain amount each month right now; CONTINUE to do it. DON'T take out your savings and buy a large amount because you're afraid the price is going up. What if it goes down???? What if you needed that money for a broken car, refrigerator, etc. Stay on course.
CYA:
SE:
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