What should I do
Posted: Thu Mar 22, 2012 2:41 pmI purchased silver when the market was up, should I cut my losses, buy more and cost average, or just wait?
Page 1 of 1
Posted: Thu Mar 22, 2012 2:41 pmRe: What should I do
Posted: Thu Mar 22, 2012 2:48 pmYou don't have a "loss" untill you sell so unless you need the money don't do that.
Re: What should I do
Posted: Thu Mar 22, 2012 3:02 pm.
if you could afford silver when you bought the silver and you can hold it the price will go back up.
if you bought silver when you could not afford it and can not hold it you have to cut your losses.
never buy silver or gold when you have to put them on your credit card, and can not pay the card off within the month.
.
if you could afford silver when you bought the silver and you can hold it the price will go back up.
if you bought silver when you could not afford it and can not hold it you have to cut your losses.
never buy silver or gold when you have to put them on your credit card, and can not pay the card off within the month.
.
Re: What should I do
Posted: Thu Mar 22, 2012 4:38 pmI agree Beau.
I think I will buy more and wait for it to go back up.
I think I will buy more and wait for it to go back up.
Re: What should I do
Posted: Thu Mar 22, 2012 4:46 pmkwebb70 wrote:I agree Beau.
I think I will buy more and wait for it to go back up.
If you plan ahead a bit, you can make some money off the tax aspect as well. If you bought some ounces at $40, then bought the same number of ounces at $30, you could sell half your holdings at $35 and still claim a loss from the ounces purchased at $40.
Re: What should I do
Posted: Mon Mar 26, 2012 8:31 amBuy more or sell short? I think it really depends on how much your investment has dropped and the amount you are going to lose.
Assuming you weren't investing money into silver that you would need within the next few years. The money you've lost will be reduced over time if you start buying more frequently (dollar cost averaging). That's the only option I see you having, since I doubt we're going to see silver spike up to $45 an ounce this year and I wouldn't suggest you sell at a loss.
Personally I'd be careful about putting lots of money into anything that is on a year (or more) high, but if you must, perhaps consider smaller weekly or monthly purchases instead. I think it's a good thing to experience this at least once. So you get a taste for what can happen to when you invest. Just hope in your case it wasn't a considerable amount.
~JobIII
Assuming you weren't investing money into silver that you would need within the next few years. The money you've lost will be reduced over time if you start buying more frequently (dollar cost averaging). That's the only option I see you having, since I doubt we're going to see silver spike up to $45 an ounce this year and I wouldn't suggest you sell at a loss.
Personally I'd be careful about putting lots of money into anything that is on a year (or more) high, but if you must, perhaps consider smaller weekly or monthly purchases instead. I think it's a good thing to experience this at least once. So you get a taste for what can happen to when you invest. Just hope in your case it wasn't a considerable amount.
~JobIII
Re: What should I do
Posted: Tue Mar 27, 2012 7:51 pmBuy more.... ALWAYS ALWAYS BUY MORE!!!! (if you can that is). At some point in your life... you WILL be glad you did. Maybe not now, maybe not tomorrow... but you will be glad you did. If you have to sell... wait a little while and sell at (or close to) your buy point.
Honestly... it sounds like you may be fearfull of a MAJOR drop (and let's hope so... at least for a short time) and you are wanting out of the silver gambit. If so... remember why you bought it in the 1st place.
If you moved a MAJOR portion of your portfolio out of whatever other investments and your scared to keep your eggs all in one basket... then I'd sell some of it and look for other investments.
Honestly... it sounds like you may be fearfull of a MAJOR drop (and let's hope so... at least for a short time) and you are wanting out of the silver gambit. If so... remember why you bought it in the 1st place.
If you moved a MAJOR portion of your portfolio out of whatever other investments and your scared to keep your eggs all in one basket... then I'd sell some of it and look for other investments.
Re: What should I do
Posted: Tue Mar 27, 2012 8:32 pmBeau pretty much called it.
I don't count my PM as liquid "savings", but as a long term investment that I will need to sell off at some future date. "Life insurance", sort-a.
I don't count my PM as liquid "savings", but as a long term investment that I will need to sell off at some future date. "Life insurance", sort-a.
Re: What should I do
Posted: Tue Mar 27, 2012 8:38 pmSimple......Measure wealth in ounces not dollars.
Re: What should I do
Posted: Wed Mar 28, 2012 12:25 pmI think all commodities are down right now. Now if only I can figure out when they will be at their lowest 
Re: What should I do
Posted: Wed Mar 28, 2012 3:26 pmJobIII wrote:I think all commodities are down right now. Now if only I can figure out when they will be at their lowest
If you can figure out how to do that...
Re: What should I do
Posted: Wed Mar 28, 2012 5:18 pmFor what it's worth, here are some guidelines I use for investing in PM's:
1) Don't invest any money you can't afford to lose. Don't buy PM's with loans or credit cards. Use some of the money you have left over after bills are paid, IRA/401k funded, etc.
2) Use dollar cost averaging. Instead of one big purchase, spread it out over time--that way you don't have to worry about catching the absolute high or low.
3) Your PM's are a form of insurance. Insurance against SHTF, or the Fed's actions, or the economy going down the drain. PM's are something to hold for the long term. You don't cash in your life insurance policy as soon as it has some cash value--that's how you should treat your PM's.
4) Measure your wealth in ounces, rather than dollars. Keep an eye on the gold/silver ratio and use it to help increase the number of ounces you hold. Last year about this time, the ratio was in the 30's, so it made sense to trade silver for gold. Now, it's in the 50's, so it may be time to go back to silver for a while. It's up to you how/if you trade, but the gold/silver ratio is something you definitely want to keep an eye on.
5) Keep your eye out for opportunities to upgrade your stash. As the market's been rising the past few years, I've been trading out of war nickels, 40%, & foreign silver & increasing my stash of 90% and .999 silver. I find them to be more liquid and you can sell for closer to melt.
6) Don't count on the PM market to go up forever. I think that when we see the return of positive interest rates on bank deposits, cd's & bonds, the prices will level off & start to decline.
1) Don't invest any money you can't afford to lose. Don't buy PM's with loans or credit cards. Use some of the money you have left over after bills are paid, IRA/401k funded, etc.
2) Use dollar cost averaging. Instead of one big purchase, spread it out over time--that way you don't have to worry about catching the absolute high or low.
3) Your PM's are a form of insurance. Insurance against SHTF, or the Fed's actions, or the economy going down the drain. PM's are something to hold for the long term. You don't cash in your life insurance policy as soon as it has some cash value--that's how you should treat your PM's.
4) Measure your wealth in ounces, rather than dollars. Keep an eye on the gold/silver ratio and use it to help increase the number of ounces you hold. Last year about this time, the ratio was in the 30's, so it made sense to trade silver for gold. Now, it's in the 50's, so it may be time to go back to silver for a while. It's up to you how/if you trade, but the gold/silver ratio is something you definitely want to keep an eye on.
5) Keep your eye out for opportunities to upgrade your stash. As the market's been rising the past few years, I've been trading out of war nickels, 40%, & foreign silver & increasing my stash of 90% and .999 silver. I find them to be more liquid and you can sell for closer to melt.
6) Don't count on the PM market to go up forever. I think that when we see the return of positive interest rates on bank deposits, cd's & bonds, the prices will level off & start to decline.
Re: What should I do
Posted: Wed Mar 28, 2012 9:11 pmJohn Reich wrote:For what it's worth, here are some guidelines I use for investing in PM's:
1) Don't invest any money you can't afford to lose. Don't buy PM's with loans or credit cards. Use some of the money you have left over after bills are paid, IRA/401k funded, etc.
2) Use dollar cost averaging. Instead of one big purchase, spread it out over time--that way you don't have to worry about catching the absolute high or low.
3) Your PM's are a form of insurance. Insurance against SHTF, or the Fed's actions, or the economy going down the drain. PM's are something to hold for the long term. You don't cash in your life insurance policy as soon as it has some cash value--that's how you should treat your PM's.
4) Measure your wealth in ounces, rather than dollars. Keep an eye on the gold/silver ratio and use it to help increase the number of ounces you hold. Last year about this time, the ratio was in the 30's, so it made sense to trade silver for gold. Now, it's in the 50's, so it may be time to go back to silver for a while. It's up to you how/if you trade, but the gold/silver ratio is something you definitely want to keep an eye on.
5) Keep your eye out for opportunities to upgrade your stash. As the market's been rising the past few years, I've been trading out of war nickels, 40%, & foreign silver & increasing my stash of 90% and .999 silver. I find them to be more liquid and you can sell for closer to melt.
6) Don't count on the PM market to go up forever. I think that when we see the return of positive interest rates on bank deposits, cd's & bonds, the prices will level off & start to decline.
+1 on the good advice!