Saturday, April 25, 2015

Silver Sniping

Hey guys, in line with the tin foil hat piece that I wrote yesterday, I just thought I'd write about precious metals too!

It'll be a short post since I've actually been very busy recently not being a nerd and having a very happening social life. I'm doing the "if you keep drinking, you can't get a hangover" trick this weekend.

(Mega kick ass bullion charts from BullionStar!)

While MOST people look at the prices of precious metals in USD, I think that since we invest in SGD, it is prudent to also look at the value of precious metals in SGD.

The last time when precious metals spiked down was late Oct, early Nov, and I managed to sink in quite a sum at those nice low prices.

Now, prices of precious metals are inching back towards those levels again, which are making me excited about entering this trade again.

One of my counter trend thesis is that the USD is a pos currency and it is not going to the levels of 1.42 which analyst from all over has been calling out, after the fact when the USD/SGD rate shot from 1.23 to 1.40.

At 1.35, analysts were still saying that it's going back to 1.40+, but now that it has sunk down to 1.33 the entire herd of sheep analysts have run over to the other end of the boat calling for a stronger SGD. Typical.

I think that the SGD will reach parity with the USD over the next decade, but the path towards there is not a straight path. Now with everyone back on the "strong SGD, weak USD" trade, it worries me that the USD strengthens from where we are now. It probably would. And the minute all the analysts flip flop again, the USD will once again fall. C'est la vie.

I have long past my purchasing of precious metals as portfolio insurance and I am quite deep into it in speculation. Along with my physical precious metals investments, I am also heavily invested in precious metals mining equities. These are HUGE positions in my portfolio. That just goes to show how big my tin foil hat is.

I'm not leveraged at all, so I can sit in losses for the next 20 years if I have to. Is it pain watching it go down? Nope, not really. I don't even know the prices most of the time. I check maybe once a week. I swear, I sleep like a damn baby with these open positions.

I'm not writing this post to convince you that precious metals is a good investment because I honestly don't know if it is, plus I don't really care because you shouldn't be listening to 25 year olds blogging on the internet for investment ideas. If you do, you have much bigger problems than you realize.

Precious metals look cheap to me. I remain accumulating on dips.


  1. Good accumulation of Silver!! No one knows what happens in the future. One thing for sure. You are ready when the time comes. Cheers!!

    1. Cheers to you too, my fellow silver accumulator!

  2. Hi, I am tempted to accumulate some slivers, and I have been. But I have some concerns on the price level - in a 3 year horizon, like the chart you put up, it is at the lowest price level now, however, it is not so if we look beyond 5 years, 2009 has a lowest price level at around S$0.4 per gram.
    I know I should not time the market, as no one knows how low it can go or how soon it will bounce. Just that I have concerns for further price weakness.


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