Friday, October 7, 2016

Getting Ready To Back Up The Truck for 2016....

In a week, Silver has plunged about 10%, the biggest drop in the past 42 weeks. Hubba hubba.

If you buying things that have plunged recently turns you on, then this might just do the trick.


I did say on 29 Sep that I am looking for another plunge of Silver to $17, but actually to elaborate, I was expecting it to be $17.XX, or just below the $18 mark. However, we're making good way toward the $17 mark and I'm not complaining if the thing that I want to buy more of becomes cheaper and cheaper, heh.

Of course with this recent plunge in prices, my precious metals aren't doing as good as before, but that's okay with me because I think that this trade in precious metals still has a looooooong way to go. I'm not expecting to sell off my positions anytime soon. Maybe in a few years?

As some of you might know, I am very bullish on precious metals, particularly in the value of gold relative to fiat currencies, but more of the relative value of silver to that of gold. I'm looking to add to my annual collection of Silver American Eagles and both Gold and Silver Canadian Maples, as well as stack a bit of RCM 10 oz bars. I've got my mind set on a rough amount already, but if prices get too attractive, I might not be able to control myself and I might end up getting a little bit more, haha.

Honestly, I'm ready to pull the trigger at these prices. I'm just sizing up the market. I do think that I'd be placing my order within the next 1 or 2 weeks, so perhaps that's something to look forward to if you're a gold bug.

Precious metals has been a painful trade. But if you're not leveraged you do have the luxury of time. If you have analyzed the fundamentals to be attractive, you would also know that the rewards are massive compared to the risks (of which most of it has disappeared because of the drop in prices). Another thing that you'd also know is compared to history, the trajectory of gold has almost never gone so far south for so long. So either this situation is ripe for some mathematical mean reversal (and gains if you're long), or we really have transitioned into a "new normal". I don't think so, but that is something to ponder about.

3 comments:

  1. Thanks for the heads-up. I have not been following the PM market for quite some time. Time to stack again! :D

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    Replies
    1. No prob unintelligent nerd. What do you stack and who do you stack from? Always interested to know how others get their phys!

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    2. Bullionstar/GoldSilverCentral. I stack the typical silver tubes and occasionally hunt for the exotic bars.

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