These are my personal rules for buying, selling, and swapping precious metals. They're like the pirate code: they're more like "guidelines." As far as I can tell, provided the precious metal bull market is in tact, I think these rules are valid.
I develop these rules as I make mistakes or smart decisions personally (mostly from mistakes). Your mileage may vary in using these rules, but I post them here as a personal reference and in the hopes it may help educate you if you decide to invest in precious metals.
Tuesday, 28 February 2012
Sunday, 26 February 2012
Gold to Silver Ratio - Part 1
The gold to silver ratio (or GSR, as I call it) is the ratio of how many ounces of silver an ounce of gold can be exchanged for.
It stands to reason that the lower this ratio is, the less silver an ounce of gold can be traded for (or the more gold silver can be exchanged for). Likewise, the higher this ratio is, the more silver an ounce of gold can be traded for (or the more silver gold can be exchanged for).
It's common knowledge that both metals have been in a bull market since around 2001. For silver specifically, it reached it's lowest point in November 25th, 2001 at $4.00 / oz. A few months later, silver hit a peak at $4.87 on Jan 6, 2002. A few months later, on July 14th silver hit another peak at $5.15.
On an unrelated note, as a Private in the Canadian Forces reserves back then, my daily salary could have bought me just under 16 ounces of silver. 11 years later, as a civilian professional software engineer, my daily salary can buy me about 5 ounces of silver, even though in dollar terms, my salary has roughly tripled. Silver in the same time has increased around 6 times... good thing I was buying mutual funds back the... oh wait... most of them only were up 10% in the same time period silver was up 600%.
It stands to reason that the lower this ratio is, the less silver an ounce of gold can be traded for (or the more gold silver can be exchanged for). Likewise, the higher this ratio is, the more silver an ounce of gold can be traded for (or the more silver gold can be exchanged for).
It's common knowledge that both metals have been in a bull market since around 2001. For silver specifically, it reached it's lowest point in November 25th, 2001 at $4.00 / oz. A few months later, silver hit a peak at $4.87 on Jan 6, 2002. A few months later, on July 14th silver hit another peak at $5.15.
On an unrelated note, as a Private in the Canadian Forces reserves back then, my daily salary could have bought me just under 16 ounces of silver. 11 years later, as a civilian professional software engineer, my daily salary can buy me about 5 ounces of silver, even though in dollar terms, my salary has roughly tripled. Silver in the same time has increased around 6 times... good thing I was buying mutual funds back the... oh wait... most of them only were up 10% in the same time period silver was up 600%.
Saturday, 25 February 2012
Precious Metals Weekly Analysis - Week 8 - 24 Feb 2012
Big moves this week... let's just go right into the charts
Thursday, 23 February 2012
Alert: 23 Feb Silver Breakout Update
Silver had a huge breakout today, it breezed past a lot of resistance, and for me most importantly, flew past the 200 day moving average.
If I did not own an ounce of silver, I would be buying like crazy right now, at $35.41 and would probably keep doing so all the way up to at least $50.
If I felt comfortable with the position I had built up from the September smack-down onwards, I would be a bit more tempered in my response and wait and see and only get in when the price touches the 200 day moving average or better yet, the long term support trend-line I've mentioned in many of my previous posts.
Is this the start of the big run up to $50, then $60, than $100, then $300? I don't know. I hope so. My gut is telling me we're either out of the woods of this pull back or darn close to it. I hope any of you reading this have the stomach to ride this one out :)
My gut is still telling me a Greek default or American war against Iran could cause the price to pull back. I don't know though. Good luck, silva stacka's!
If I did not own an ounce of silver, I would be buying like crazy right now, at $35.41 and would probably keep doing so all the way up to at least $50.
If I felt comfortable with the position I had built up from the September smack-down onwards, I would be a bit more tempered in my response and wait and see and only get in when the price touches the 200 day moving average or better yet, the long term support trend-line I've mentioned in many of my previous posts.
Is this the start of the big run up to $50, then $60, than $100, then $300? I don't know. I hope so. My gut is telling me we're either out of the woods of this pull back or darn close to it. I hope any of you reading this have the stomach to ride this one out :)
My gut is still telling me a Greek default or American war against Iran could cause the price to pull back. I don't know though. Good luck, silva stacka's!
Sunday, 19 February 2012
Capitalism is Magic: A Friend In Deed
Let me start by saying that I am totally rocking out to Pinkie's new song "Smile, Smile, Smile." I'm a but upset that I didn't hear about it earlier given that it was leaked in November. Oh well... I can't wait until Sim Gretina remixes this:
Wednesday, 15 February 2012
$80/oz Silver: Does the Royal Canadian Mint Know Something We Don't?
Last year, the Royal Canadian Mint started selling commemorative coins stamped with a face value of $20 containing 1/4 oz of 99.99% fine silver to Canadian residents for a price of $20 per coin (limited 3 per household). The RCM has since followed up with 2 releases of the same kind of coins with different designs.
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Tuesday, 14 February 2012
How to Buy Physical Precious Metals Part 2: National Government Mint Bullion
Investing Strategy
I am a proponent of maintaining 2 positions in physical silver: a core position, for which no dollar amount is too much to either buy or sell and an investment position which is purely intended for taking profits and procuring other assets.
I am a proponent of maintaining 2 positions in physical silver: a core position, for which no dollar amount is too much to either buy or sell and an investment position which is purely intended for taking profits and procuring other assets.
Monday, 13 February 2012
Friday, 10 February 2012
How to Buy Physical Precious Metals Part 1: Numismatics and Collector Coins
Investing Strategy
I am a proponent of maintaining 2 positions in physical silver: a core position, for which no dollar amount is too much to either buy or sell and an investment position which is purely intended for taking profits and procuring other assets.
I am a proponent of maintaining 2 positions in physical silver: a core position, for which no dollar amount is too much to either buy or sell and an investment position which is purely intended for taking profits and procuring other assets.
Tuesday, 7 February 2012
Precious Metals Weekly Analysis - Week 6 - 10 Feb 2012
Weekly Video Recommendations
Charts
Gold
Sorry - down 0.2% not $
Silver
On silver, one point to note is the April and Sept 2011 smackdowns from top to bottom were about a 30% percentage drop.
A 30% percentage drop from the present closing price of $33.55 is $23.49. I'm not saying that WILL happen. But having happened twice in the past year, I think it's well worth keeping some powder dry and have a website like silvergoldbull.com bookmarked in case you see that price sometime overnight.
Gold to Silver
Platinum
Gah! That's supposed to say "up 2.3%"
Charts
Gold
Sorry - down 0.2% not $
Silver
On silver, one point to note is the April and Sept 2011 smackdowns from top to bottom were about a 30% percentage drop.
A 30% percentage drop from the present closing price of $33.55 is $23.49. I'm not saying that WILL happen. But having happened twice in the past year, I think it's well worth keeping some powder dry and have a website like silvergoldbull.com bookmarked in case you see that price sometime overnight.
Gold to Silver
Gah! That's supposed to say "up 2.3%"
I think the big news from the week was the CME LOWERING marging requirements for metals contracts - which as Zero Hedge indicated is "short term bullish," but when those margin's get hiked again, I think we'll see the metals fall through the floor.
Never a dull moment in the precious metals markets - but February is shaping up to be exciting, if a little tense.
What do you think. How are you feeling about the metals markets right now? Anything you want me to research, write about, do a little jig or PMV video about?
Sunday, 5 February 2012
Capitalism is Magic: Read It and Weep
There really weren't any capitalist or libertarian undertones in this weeks episode of MLP:FIM, but I'll write a little synopsis anyways. The plot for this episode was fairly simplistic, but the wholesome messsage about the importance of reading isn't one I disagree with at all.
Wednesday, 1 February 2012
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