I've talked extensively about when (in my opinion) it looks like good times to sell physical silver.
If you are of the opinion that someday silver will go to $900-1000/ounce (which I do), anytime is a good time to buy silver. If on the other hand, you believe silver will have short term tops, then huge corrections, but ultimately, silver will end up back in the $5-10 it sat in between 1983 to 2005, you would be quite a bit more selective about when you buy.
It is for both these reason I believe in a strategy of maintaining 2 positions of physical silver – the core and the investment positions.
A thought came to me earlier today that as the price for silver is set by paper contract, if my rules were correct MAYBE trading silver contracts on margin could be vastly more profitable than buying physical. However, I do not believe it is wise to do so, as doing so is a paper trade and does not result in any tangible assets in your hand.
I am of the opinion the current fiat based monetary system is going to collapse in my lifetime, and when it does, it will be so fast, there either won’t be enough time to trade paper for hard assets, or it won’t matter how much paper you have as tangibles skyrocket in price and not be attainable with an infinite amount of paper.
Either way, I’m not a professional trader – I’m an engineer who believes strongly that the fundamentals are in place to make silver one of the best investments of a lifetime.
I used to believe unequivocally in the $900-1000 / ounce price range, and so I did nothing but dollar cost average and buy physical silver the same way I bought mutual funds for 10 years. Every pay cheque, I made a regular purchase.
Then I started getting greedy in the big run up of 2010, I started buying more, and more. I am thankful I didn’t (technically) go into debt to buy silver, but when I was forced to make a large purchase item when I had cash, instead I bought silver (and financed the large purchase).
It wasn’t quite a bad call, as at the time, I bought at about $33-35, but when silver was at $49, I still had that $900-1000 price range in my head, and whereas I could have sold about ¼ of my silver and paid for the entire purchase I had financed. When silver crashed (and still hovers) to the $29 – 35 range, I was quite upset. That was a bad decision to buy (and not sell), which I have since meditated on and based the rules of my writings about.
You should never believe take what people say as gospel, as I naively did. You should ALWAYS perform your own due diligence and extensive research before making any decision.
It is for that reason, I looked back to the 10 year price chart to see what I could have done differently. My “When to Sell” series was one half, this “When To Buy” series will be the other half.
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