Any precious metals investors?

[steve-in-kville]

I've been taking a real hard look at precious metals as of late. I have a small silver collection and I am thinking of expanding on it. Not saying I put my entire savings in it, but diversify a bit.

Any comments on the precious metals market??

 

[Coad]

Look into the silver futures market. There is a book called the wave theory that may help you. If you just want silver for a rainy day stick to things you can sell easily. Silver eagles and canadian maple leafs here in the us. Watch the live silver prices, study the day ,week, month ect. Charts and try to predict the best low to buy on.

 

[Gollnick]

The basic rule of investing is: Buy low, sell high.

Precious metal are at historic highs right now.

 

[Coad]

Gollnic, absolutely. And the futures let you capitalize on a price drop. It is however very risky and can result in your taking delivery.

 

[Gollnick]

There was a report on Bloomberg just the other day that there had never been more shorts in precious metal at any time in history than there are right now. The pros are betting on precious metals to fall.

 

[Smithy]

I have been buying and selling PM's for years. Today, there seems to be two reasons for investing in PM's. One, for wealth protection and investment. Here, you have some fiat currency and want to protect it's value and make money along the way.

The second is buying PM's for your self preservation in times of civil unrest. Treat these like any other survival asset. Buy them, put them away, and don't worry about what you paid for them.

I buy and sell metals using a dollar cost averaging system. I buy (a little) on the dips and sell ( a little) at the peaks. When I buy, I figure out how much I can afford to spend at the time. When I sell, I figure out how much money I need at the time .

http://www.kitco.com is probably the best site on the net for information on the PM market.

I have about 15 % of my total portfolio in PM's. I just increased it 5 % from 10% due to current economic conditions. ...Teddy

 

[CrazySanMan]

I got real lucky and bought a roll of 20 1996 US silver dollars in 1996 that was sealed by the US Mint. I paid $100 for it from an add in the back of a magazine. Today that same roll sells on eBay for $1299. There were less silver dollars minted in 1996 than in any other year in the history of them. Previously that made the roll valuable. But today's astronomical silver price has dwarfed the value of the rarity of the coin.

I'm not sure if I should sell now or continue holding it?

 

[bld522]

I have been buying and selling PM's for years. Today, there seems to be two reasons for investing in PM's. One, for wealth protection and investment. Here, you have some fiat currency and want to protect it's value and make money along the way. The second is buying PM's for your self preservation in times of civil unrest. Treat these like any other survival asset. Buy them, put them away, and don't worry about what you paid for them.

This^^^. I think of PMs more as insurance than investments. I set aside a specific proportion of my portfolio in them. Then I just walk away. Like you, Goldsmithy, I've been doing that for years. And so far, so good. Lord willing, I'll never have to rely on them. If I do, it's because everything else I've invested in went to hell in a handbasket.

One nice thing about looking at PMs as investment insurance is that they have the possibility of appreciating in value. I wish I could say the same for my auto insurance and my homeowner's insurance . . .