Silver

[moneymaker]

Anyone have a specific buy in target for silver, I’m thinking maybe $15.

[desmond]

Go for the Gold

[no_such_reality]

Personally, I prefer wildcat Greenland mining claims.

http://www.bmp.gl/index.php?option=com_content&view=article&id=81&Itemid=100034

[moneymaker]

I wish I could afford to buy gold, but alas I’m a silver buyer (bullion so far). Last time bought for $3-4 and sold @ $32 (after more than 10 years of holding). I’ve always heard that during inflationary periods, hard currency is best.

[raty4R]

Better questions would be ‘When will the dollar stop rising? or What event(s)will cause the dollar to start losing value?’ That will tell you when to buy.
I don’t think that will happen for a while.

[HLS]

IF you believe in silver/gold, take the time to learn option strategies.

There is always a buy/sell spread above spot when buying/selling. If you buy today and there is no move, you would lose money if you sold it today because of that spread.

You can make money without ever touching bullion(or worrying about storing it or having it stolen)
You just need to be right about the direction that it is going to move. You can profit from up or down moves.

For example: If you are willing to buy silver in the $15 dollar range, you could sell JAN 2015 $17 puts and collect over $2.00 per ounce today. (17-2 =$15)
You get to keep the $2 no matter what happens. If silver stays above $17, you make $2 maximum.
If it falls below $15, you will own it at $15.
* you could also sell JAN 2015 $15 puts and collect $1.34 right now. Silver would have to drop below $13.66 for you to lose, and your max gain is $1.34. Limited risk, limited reward.
(You could sell $10puts for 30c.
Silver would have to drop below $9.70 for you to lose money)

there are other strategies that will give you unlimited upside with more risk.
It can be done with gold as well, you do not need
to have the cash to buy it and you can still profit from large moves, up or down.
Same principles apply to stocks as well, you can control (& profit from) larger amount of shares with limited risk by using different strategies.

[Anonymous]

I look at the silver market this way – the metal is currently undervalued, meaning the value is sure to surge from where it is currently. I don’t plan to stuff my portfolio with silver, just want to supplement my investments with a decent amount of silver bullion. So, I buy small amount on the dips which may be $20 or $19. I was lucky to buy some at $18 something.

[moneymaker]

I almost bought some yesterday below $17, but didn’t really know the ins and outs of buying. I now know about sales tax and how much over spot to buy, not yet sure if buying is a good idea if have to sell it below spot as well. Seams like it is a lot like gambling where the only sure winner is the house (broker), do they call them that because that’s what they make you?

Just found out for a 10 oz. bar it’s $1.25 to buy and $.75 to sell that’s a total of $2 commission out of $17, that works out to 11.76%. Yeah, not really a good idea for me!

[Doofrat]

I used to write puts on silver back in the day when silver was really low. I’d place them where the percent change / beta needed to move them into the money hadn’t occurred in the last 40 years. Somebody would always buy them. I figured it must be someone hedging like a producer or someone with some trading strategy that needed to cover.

The idea was that Silver (similar to now) was at that time below the production price and a lot of the Mexican mines had already closed and more were closing, so the chances of silver falling much more was extremely slim.

The puts were pretty far outside and so were cheap, and the margin needed to cover these was pretty high, so I didn’t make much on each one when compared to the cost of holding up that margin. I had to stop when silver recovered.

I think the idea behind holding onto physical silver rather than using options is that Silver may take a long time to recover, I remember that even Warren Buffet lost this bet 8 or 10 years back and sold out before silver recovered.

[The-Shoveler]

I like Silver ( would buy the coins myself ) but I really don’t expect giant returns and would not buy it now over say $20 a oz,

The issue with silver is it’s mostly a byproduct.

ie They mine copper and get the silver as extra income.

but under say $20 I think I could buy a few coins.

[moneymaker]

I agree with you doofrat, I think it may take a while. Inflation however would speed it up. My new strategy would be to buy a mix of gold/silver. By buying 1 oz. of gold with 20 oz. of silver one would not have to pay sales tax in CA and the buy/sell expense would be cut down to 5%. It would still have to go up 10% in order to make 5%.

[CA renter]

Why not buy SLV?

http://finance.yahoo.com/q?s=SLV

[svelte]

.

[moneymaker]

Gold is below $1200, maybe I can afford it now. Silver and Gold! Hi Ho! Hi Ho!
I’m officially a whole sale buyer of gold and silver now.

[The-Shoveler]

So Silver down big (probably more than the S&P500)

I am nibbling a little here on SLV shares

IMO probably margin call selling but maybe I am wrong.

Thoughts?

[Author]

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