Readers want be to PREDICT Silver's Future
I've been asked by quite a few of my readers what my predictions are for silver and gold. I've tried to make 2 things quite clear:
1. PREDICTIONS in the Metals market is ONLY FOR INVESTORS
2. I DO NOT INVEST in Silver and Gold. (I EXCHANGE currencies: Dollars for Silver)
Now, does that mean that some "Predictions" can't be useful for those of us who exchange for silver and gold to preserve our wealth; supplement retirement; protect us during economic troubles; or to pay down debt and purchase items at a discount. Of course not. ALL INFORMATION is good. The more you have, the better choices you can make.
The problem is however; for every person that says that Silver or Gold is going to go up, there's another person saying it will go down. I will say however, that silver and gold always balances inflation and maintains purchasing power. So in that regard, if there's inflation, silver and gold will go up also. Unfortunately, most people don't look at 5, 10, 20 or more years. They are looking at silver and gold the same way investors look at it. They compare yesterday's price with today's price and try and determine what tomorrow's price will be. The minute my readers realize that when you EXCHANGE for silver and gold, you are looking at many years down the road.
Think of silver and gold as an "INSURANCE POLICY" that no matter what happens, you're guaranteed to get your "PREMIUM PAYMENTS" back. In other words, if the insurance of silver or gold is needed...... you have it. If many years from now, you didn't need the INSURANCE, then you exchange the silver back for a different currency and you get your PREMIUMS back. It's a no lose situation. "Unless you're INVESTING".
Now, as for today's prices, I definitely think it's a good time to buy some more if you don't have as much as you think you should. "I have some very good posts in weeks past that explain how much you should have". But if you think you should have more, now is the time to get some more. One thing to notice however..... The premium mark up on minted coins like the American Silver Eagle, Canadian Maple Leaf, Phiharmonic, etc. have increased. When silver spot price was around $18, you could get the minted eagles, maple, philharmonic, ext. for about $20. About $2 over spot. Today; with silver spot price around $16.30, the cheapest American Eagles I can find "Locally or Online" is around $19.30. And that's if you buy at least 100. That's about $3 over spot. Around $20-$21 if you buy individual coins. That's $4-$5 over. That's like 25% mark up. RIDICULOUS!!! Stay away from that Bull Shit. Canadian maple leafs are about $2.30 over spot. Even regular rounds are about $1.30 over spot.
That tells me that when the prices were going up, people bought a SHIT LOAD of these. And with the prices falling, they are charging what they are, to try and at least break even. Realize, these sellers won't lose money. It's not a supply and demand thing. They'll simply sit on their silver if they can't get what they're asking. When the demand goes up, so will the price. They'll simply store it until later when the prices go back up.
So, does that mean you SHOULD or you SHOULDN'T be buying silver right now? Well, the answer is "YES; But it Depends on the Price". This is when you're going to have to do some heavy duty shopping. You have to expect seller, especially local coin shops, to make some profit. Let's say $1.00 per ounce. That sounds fair. But in order to do that today, what's the lowest they can buy for? They sure aren't going to buy silver at spot ($16.30). The people they buy from have to make a profit. So lets say they can get it for $17.00 even. That means they will need to sell it for $18, just to make $1.00 per ounce. So, if you can get rounds for under $18, it's a pretty good price. But don't be surprised if you don't find to many offers for $0.49 over spot. Maybe on some 100 oz bars. The $0.49 over spot offers happen when the prices are rising. From the time the seller got it from their distributor and is ready to sell to you, they were already making $0.50+ per ounce. And that's before you paid a markup. But on the way down, it's different.
So yes, if the price is right, now is a perfect time to buy. I don't see silver going too much lower. Maybe to the $16.00 even mark, but that's about it. Even when it was going down the last week or so, gold held almost flat. That tells me that the price of silver and gold aren't going to go down much more in the NEAR future. Matter of fact, it's probably going to squeeze back up to around $16.50 - $16.80 fairly soon.
Anyway; if you need silver, it's ALWAYS a good time to buy. That's why we have "Dollar Cost Averaging". Buy the same amount every week or every month. It will all average out the highs and lows. If you've got some extra cash, and are trying to be an "Opportunity Buyer"; then I would say that right now is a good opportunity.
CYA: SE:
1. PREDICTIONS in the Metals market is ONLY FOR INVESTORS
2. I DO NOT INVEST in Silver and Gold. (I EXCHANGE currencies: Dollars for Silver)
Now, does that mean that some "Predictions" can't be useful for those of us who exchange for silver and gold to preserve our wealth; supplement retirement; protect us during economic troubles; or to pay down debt and purchase items at a discount. Of course not. ALL INFORMATION is good. The more you have, the better choices you can make.
The problem is however; for every person that says that Silver or Gold is going to go up, there's another person saying it will go down. I will say however, that silver and gold always balances inflation and maintains purchasing power. So in that regard, if there's inflation, silver and gold will go up also. Unfortunately, most people don't look at 5, 10, 20 or more years. They are looking at silver and gold the same way investors look at it. They compare yesterday's price with today's price and try and determine what tomorrow's price will be. The minute my readers realize that when you EXCHANGE for silver and gold, you are looking at many years down the road.
Think of silver and gold as an "INSURANCE POLICY" that no matter what happens, you're guaranteed to get your "PREMIUM PAYMENTS" back. In other words, if the insurance of silver or gold is needed...... you have it. If many years from now, you didn't need the INSURANCE, then you exchange the silver back for a different currency and you get your PREMIUMS back. It's a no lose situation. "Unless you're INVESTING".
Now, as for today's prices, I definitely think it's a good time to buy some more if you don't have as much as you think you should. "I have some very good posts in weeks past that explain how much you should have". But if you think you should have more, now is the time to get some more. One thing to notice however..... The premium mark up on minted coins like the American Silver Eagle, Canadian Maple Leaf, Phiharmonic, etc. have increased. When silver spot price was around $18, you could get the minted eagles, maple, philharmonic, ext. for about $20. About $2 over spot. Today; with silver spot price around $16.30, the cheapest American Eagles I can find "Locally or Online" is around $19.30. And that's if you buy at least 100. That's about $3 over spot. Around $20-$21 if you buy individual coins. That's $4-$5 over. That's like 25% mark up. RIDICULOUS!!! Stay away from that Bull Shit. Canadian maple leafs are about $2.30 over spot. Even regular rounds are about $1.30 over spot.
That tells me that when the prices were going up, people bought a SHIT LOAD of these. And with the prices falling, they are charging what they are, to try and at least break even. Realize, these sellers won't lose money. It's not a supply and demand thing. They'll simply sit on their silver if they can't get what they're asking. When the demand goes up, so will the price. They'll simply store it until later when the prices go back up.
So, does that mean you SHOULD or you SHOULDN'T be buying silver right now? Well, the answer is "YES; But it Depends on the Price". This is when you're going to have to do some heavy duty shopping. You have to expect seller, especially local coin shops, to make some profit. Let's say $1.00 per ounce. That sounds fair. But in order to do that today, what's the lowest they can buy for? They sure aren't going to buy silver at spot ($16.30). The people they buy from have to make a profit. So lets say they can get it for $17.00 even. That means they will need to sell it for $18, just to make $1.00 per ounce. So, if you can get rounds for under $18, it's a pretty good price. But don't be surprised if you don't find to many offers for $0.49 over spot. Maybe on some 100 oz bars. The $0.49 over spot offers happen when the prices are rising. From the time the seller got it from their distributor and is ready to sell to you, they were already making $0.50+ per ounce. And that's before you paid a markup. But on the way down, it's different.
So yes, if the price is right, now is a perfect time to buy. I don't see silver going too much lower. Maybe to the $16.00 even mark, but that's about it. Even when it was going down the last week or so, gold held almost flat. That tells me that the price of silver and gold aren't going to go down much more in the NEAR future. Matter of fact, it's probably going to squeeze back up to around $16.50 - $16.80 fairly soon.
Anyway; if you need silver, it's ALWAYS a good time to buy. That's why we have "Dollar Cost Averaging". Buy the same amount every week or every month. It will all average out the highs and lows. If you've got some extra cash, and are trying to be an "Opportunity Buyer"; then I would say that right now is a good opportunity.
CYA: SE:
Gold Prices Edge Up as Dollar Weakens, Global Trade Tension Escalates intraday Stock Tips
ReplyDelete