Dollar cost averaging

[dan53]

Does anyone here use dollar cost averaging when buying PM's? I'm sure everyone knows what that entails but here's an example:

On the first of the month, buy a fixed dollar amount of PM (lets use silver in this example). For the amount, lets use $300.00. It doesn't have to be once a month, it could be once every 21 days or whatever. The idea is that if the price of silver goes way up, you are buying less of it which is appropriate since its not "on sale". If the price goes way down, then you are acquiring more and thats beneficial since it is "on sale". The important thing is that its necessary to adhere to the regimen that was established in the beginning of the plan. I was just wondering if anyone had used this type of buying plan?

[newton7]

Yes. Do not be fooled by a low price today and then see it go lower tomorrow. Spread your purchases out over time to get the best DCA. It is smart and a lot safer in my opinion then rushing in to get the best deal of the day only to find out it dropped again the next day. Say.. just like it did the last couple of days.

Along those same lines some Local Coin Shops (LCS) do not have a bunch of silver and gold left after a major drop so waiting for the bottom may prove fruitless as it did for some people today when they walked into one of mine LCS and asked for 10 and 5 oz bars and the guy behind the counter just smiled and said, "Sold out."

I think you should buy in small amounts on the down slide before it hits bottom because there is not any silver left at the bottom, at least in my area. All that is left is 40%s and non-U.S. stuff in various states of tarnish.

Good luck and keep stacking!

[dan53]

Newton, I was in the process of editing when you were replying. Sorry bout that.

[inflationhawk]

So long as you factor in shipping costs, DCA is the best way to go. Wouldn't want to buy 10 coins over 10 separate days and pay shipping 10 times. If you are buying large enough, shipping costs can become very muted and buying more frequently starts making more sense. Economies of scale can be a problem for the individual.

[newton7]

Newton, I was in the process of editing when you were replying. Sorry bout that.

Not a problem dan53, just trying to help. I do not do the time window thing and tend to watch the market and read a lot. If I think the move is down enough I buy but limit myself to a set dollar amount as not to go all in and lose out on the next days bargins.

[walt2727]

yep, i budget every month to buy some silver ($100). I don't worry about the price, as i've read on Realcent before, i'm in it for the long haul and, after a while, it becomes second nature. The biggest thing for me was to get over worrying about the pricing changes. Once i quit being concerned if i was buying at the dip, it made it easier to make each months "payment".