Wednesday, October 1, 2014

Pre-Holiday (Silver) Sale!


I picked up a bit of Silver today when it dipped to $17.10.

I have been packing my bags and getting ready to jet-set off to my next overseas destination. Last week was for business, this week will be for pleasure!

While packing, I overheard the talking heads on CNBC panicking and I turn to see Silver massively slump again! I man-ed up, picked up my balls, and shoved it where it should be. I doubled down and bought even more today at $17 flat. It isn't easy being a contrarian. Watching Silver get monkey hammered is both exciting and scary. You really need the stones for this asset class.

From my previous lines that I have drawn up on my own charts, the $16.90-$17 seems to be an area of very possible support. If that does not hold up, I am not expecting to just slide down to the $16-16.30 area, which should be another strong area of support. The final line in the sand is the $14-$15 area which I strongly suspect will very very fiercely hold, if we even get there. Any lower than that, I might need to buy a safe to store all my silver as I BTFD, haha. I see very big long term technical patterns that target the $14-15 area, so I wouldn't be too surprised if it heads down to that level though. If it does, I will really try very hard to execute my Silver Accumulation Plan, which isn't going too well I must add. It's tough to force yourself to buy when the charts look so horrible like what we are seeing on all these smack downs. 

My current gold and silver physical allocation is very healthy at over 12% of all my investible liquid assets. If you count unit trust and related mining equities allocation, then phew, I might actually have a very hefty allocation to the precious metals. I dare say that it is my largest allocation so far. Well, maybe cash is bigger. I guess it's just me and Tiho from The Short Side of Long picking up all the unwanted goods!

Oh well, buy low, sell high. Like all them investment books say, it's a lot easier said than done. I continue to accumulate physical holdings of the different precious metals through BullionStar. Now I feel all worn out from all this buying and reviewing that I have been doing with my portfolio today.

It's time to head over to a beach and not give a rat's ass about how the financial markets are doing! Ciao everybody!

Full disclosure: If you enter BullionStar through my site, and you buy anything, I get a small commission.

This is my main source of blog revenue. I prefer this to asking for "donations" because I rather you get something that you want as well, instead of an outright tip.

Whether you buy at BullionStar directly or enter from my site, the price you pay does not change.

My personal precious metals investments are stored with BullionStar and I pay the same fees as any other regular customer.

2 comments:

  1. Hi GotMoneyGotHoney,

    Interested to know why you choose to buy physical silver....which usually sells are a premium and not market rate. Instead of investing in a silver ETF? like iShares Silver (SLV), which has holding fee of 0.5% only.

    I'm actually also on a silver accumulation plan, currently @ 10% allocation for silver. Now since price dropped to below $17, its worth taking a second look and accumulate more. so thanks for the blogpost.

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    Replies
    1. Hi HM Shak,

      After reading about currency creation and the difference between that and money, along with how big the "paper" gold market is, I have a very strong preference for the physical even though they do come along with a premium. It is only warranted since you have physical accounting of the good, and it's not some derivative owned by a counter-party that can only be cash-settled for the difference when SHTF.

      I also view precious metals as my portfolio insurance, which is slightly different from my other trades and positions. For other positions, I just want to sell it at a higher price than I bought it. But for precious metals, I think I will always have an allocation regardless of the market prices. Come hell or high water, I can always know that I have stored up and locked in a small portion of my wealth to get me anywhere safely.

      I know, it's a bit extreme and "prepper"-mentality, but it's just nice knowing that I have physical precious metals to my name locked up in some big safe. I will be going to take delivery of some of my holdings soon too. Maybe the next paycheck, haha.

      I have a few issues with SLV. It trades in USD which means that there is currency costs, and I am also unfamiliar with the capital gains treatment. I just find it much too complicated. If you take delivery of your goods, you have zero holding fee, heh. But of course, that's why you would also be paying a hefty premium for the physical goods.

      You are now investing in silver through SLV? How is the process like for you? Simple and easy?

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