| Author |
 Topic  |
|
|
beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
 Posted - 05/20/2010 : 10:21:50
|
I assume, that as far as holdings of precious metals go, we forum members are all in for the long term, not trying to trade in and out on perceived highs and buy back after severe pullbacks. If one takes a long-term perspective (admittedly sometimes hard for me to do) one realizes that if, as we presume, silver and gold will someday (preferably soon?) be multiples higher than it's present value... than whatever happens between now and then to get us there is almost predestined... and must occur in the fashion that it does to get us from point A to point B. So extreme gyrations in values  , whether it be due to seasonality or manipulations, or both, is to be expected, and must be stoically endured if you wish to still be aseat the bull after the eight seconds is over. It helps if you aren't using leverage, and are not playing with money you can't afford to lose.
|
Hoard now and hold on!
http://coppermillions.blogspot.com/
http://wherewillyoubein2012.blogspot.com/ |
|
|
Ardent Listener
Administrator
USA
4841 Posts |
Posted - 05/20/2010 : 10:45:47
|
I for one have cringed in the past when I read people saying that they have put everything they had into precious metals and have even in some cases taken out loans to buy more. Perhaps they will do fine over the long run if they can hold it all together until then.
Thus far this Euro crisis is behaving much like what we went through in 08. Gold is doing better than the industrial precious metals including silver, but everything is off from their highs. Thus far there isn't a run to precious metals as a safe haven by the masses. This is despite many on CNBC telling people to buy "physical" gold. It could all turn around on a dime, but for now keep your eyes open if you are considering a PM buy that you truly can afford. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
 |
|
|
Market Harmony
1000+ Penny Miser Member
USA
1274 Posts |
Posted - 05/20/2010 : 11:12:17
|
Some folks might be in it for the long run, but for other purposes:
Wealth preservation is probably the best way to describe a holding of physical PM's for the long run. That considers a basket of PM's, not solely gold or silver, etc. As wealth preservation, it is all fine and good to hold these PM's. However, it seems that many feel that it is an "investment" to hold PM's. To me, this is not the case.
The price relationship between the different PM's is where money can be "made." But, since gold, silver, and other PM's essentially are money, then no wealth can be created from them... only preserved. In order to create wealth, one must trade one for the other when price relationships are too far from standard deviations. This is why it is important to diversify your holdings. Have some gold, silver, palladium, and platinum (the big 4), and keep a close eye on their price relationships. By doing this, you can trade one for the other at times of disparity, and gain in your overall holdings of PMs when the prices correct to normal parities.
If you're good at math and building systems, you can create a trading platform that tells you which PM is overpriced in relation to the others, and strict functions and variables control the trade into and out of certain PM's. With this type of system, you take out the emotional aspects of trading and can then create wealth from your PM holdings. But, just buying and holding a basket of commodities will really only maintain your purchasing power in relation to the currency in which the commodities are priced. |
goto the new and improved realcent: http://realcent.org |
|
|
|
beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
Posted - 05/20/2010 : 11:21:30
|
Good advice, Michael. I only hold gold and silver bullion, not all four, and do so... not as an investment but as savings in the form of real money. Though I may moan and groan over one day "paper losses" I intend to hold onto the PM's as my self-administered pension, when someday needed, just relinquishing a few coins a month for expenses. I do trade equities, but I watch relative performance, market rebound strength, etc) to gain more paper shares of the silver producers. For instance, I used today's weakness to buy more SLW and SVM, which I see as workhorses, after dumping some weakly performing shares of CDE and SSRI. I try and hit lots of singles, taking whatever ten to fifteen percent quick gains I can after a few days and then waiting for another opportunity to buy back in cheaper. I'm just a novice  |
Hoard now and hold on!
http://coppermillions.blogspot.com/
http://wherewillyoubein2012.blogspot.com/ |
|
|
|
Country
1000+ Penny Miser Member
USA
3121 Posts |
Posted - 05/20/2010 : 11:44:21
|
Like the last crisis in 2008, GOLD will exceed all other precious metals. It always does as money also seeks a safe haven in CASH, and in recent years $USD treasuries and other sovereign bonds. Unfortunately, SILVER is still looked upon as an industrial metal and as such will swoon when the preception that troubled times are dead ahead. Someday that perception will change when most people look upon SILVER again (and coppers) as REAL MONEY.
Corrections are a normal part of BULL markets, whether they be in GOLD, SILVER, or the stock markets of the world. While pain and loss are quick, with patience they recover in time. Markets these days are very volatile and those of us who are the LONG TERM investors and accumulators need to aware of the dangers of borrowing other people's money to invest. As a LONG TERM player that should be one of your cardinal rules - Only invest with YOUR money. It is important to have your financial house in order so that you can ride out the storms that come by now and then.
Here's something to ponder: the price of Copper, a barometer of economic health. Before this correction began, copper fell from from near $3.75 levels. Copper was the first metal to fall. Today, when everything is down, COPPER IS FLAT IN PRICE to $2.96. Watch the copper price for the all clear sign.  |
---> Come to the new and improved realcent: http://realcent.org
The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
– Theodore Roosevelt
|
Edited by - Country on 05/20/2010 16:44:33 |
|
|
|
theo
Penny Hoarding Member
USA
588 Posts |
Posted - 05/20/2010 : 20:17:53
|
Some very good analysis.
Watching the recent market activity, I was, of course, concerned that we might be revisiting the crisis of 2008. However my reasons for holding (and adding to) my PM holdings is simple. I can't see the Government allowing a market collapse a few months before the midterm elections. I can see the Fed quietly pumping even more money into the markets to support the major averages. A major market correction would make the already shaky Administration claims of recovery laughable. |
|
|
| |
Topic |
|
|
|
Silver? Gold? "Que sera, sera"
Forum Locked
