Buying on the Dip

[beauanderos]

I just picked up a roll of one ounce Provident Prospectors while silver was down .57 cents

Anyone else?

[InfleXion]

As much as I'd like to buy right now, there are 2 things keeping me on the sidelines. Firstly I am expecting further downside as stock markets globally are starting to crash, and I don't think we're through the woods yet. The other thing is that the metal supply I've been watching on APMEX hasn't dwindled enough to make me feel like I need to pull the trigger before it runs out. Granted it didn't move an inch in the last week and now I am finally seeing some inventory reduction, but there's still enough available overall that I'm playing wait and see, watchfully.

[beauanderos]

oh, I'm not trying to "time" the bottom, just buying a bit here and there... and catching a falling knife once in awhile makes me smile

[Catfish4u]

As much as I'd like to buy right now, there are 2 things keeping me on the sidelines. Firstly I am expecting further downside as stock markets globally are starting to crash, and I don't think we're through the woods yet. The other thing is that the metal supply I've been watching on APMEX hasn't dwindled enough to make me feel like I need to pull the trigger before it runs out. Granted it didn't move an inch in the last week and now I am finally seeing some inventory reduction, but there's still enough available overall that I'm playing wait and see, watchfully.

If the global stock markets crash won't there be billions or trillions of dollars for people to invest somewhere[/i]?

[68Camaro]

How do you figure that? Some people will sell into cash but most people (and institutions) will just hold and lose value, resulting in a great loss of paper wealth. On a global scale it is a zero sum game (more or less).

[pennypicker]

I purchased from Bay Precious Metals a 10 oz Royal Canadian Mint silver bar. A beautiful, quality made bar with several security features including a reeded edge.

The Canadian Government is way ahead of the game

[beauanderos]

I purchased from Bay Precious Metals a 10 oz Royal Canadian Mint silver bar. A beautiful, quality made bar with several security features including a reeded edge.

The Canadian Government is way ahead of the game

is this it? Nice looking bars with great security features

http://www.apmex.com/product/83022/10-oz-silver-bar-rcm-9999-fine-new-style

[rsk1963]

183 FV avg circ 90% @11.27x

[InfleXion]

As much as I'd like to buy right now, there are 2 things keeping me on the sidelines. Firstly I am expecting further downside as stock markets globally are starting to crash, and I don't think we're through the woods yet. The other thing is that the metal supply I've been watching on APMEX hasn't dwindled enough to make me feel like I need to pull the trigger before it runs out. Granted it didn't move an inch in the last week and now I am finally seeing some inventory reduction, but there's still enough available overall that I'm playing wait and see, watchfully.

If the global stock markets crash won't there be billions or trillions of dollars for people to invest somewhere?

Sure. Don't get me wrong. I already bought this dip otherwise I would be pulling the trigger

According to Austrian economics, gold and silver are the ultimate extinguishers of debt. Metals should eventually rise to absorb all the debt in the system.

However, due to infinite rehypothecation of derivatives (the loaning and re-loaning of the same asset over and over to balloon balance sheets without adding any underlying value with each recreated proxy claiming to own the single underlying asset), if and when stock markets crash a lot of those derivatives will start blowing up balance sheets as multiple parties attempt to claim the same asset. So a lot of the so called assets out there will disappear when the music stops, and those who have to eat those losses won't be able to re-invest the money they'll have to spend to cover the loss. Even though stocks are a representation of corporate assets, these derivatives will still have far reaching impacts for anyone invested in them which is pretty much everybody who listens to a financial advisor, which is likely a good portion of corporate financial investments.

[beauanderos]

As much as I'd like to buy right now, there are 2 things keeping me on the sidelines. Firstly I am expecting further downside as stock markets globally are starting to crash, and I don't think we're through the woods yet. The other thing is that the metal supply I've been watching on APMEX hasn't dwindled enough to make me feel like I need to pull the trigger before it runs out. Granted it didn't move an inch in the last week and now I am finally seeing some inventory reduction, but there's still enough available overall that I'm playing wait and see, watchfully.

If the global stock markets crash won't there be billions or trillions of dollars for people to invest somewhere?

Sure. Don't get me wrong. I already bought this dip otherwise I would be buying more

According to Austrian economics, gold and silver are the ultimate extinguishers of debt. Metals should eventually rise to absorb all the debt in the system.

However, due to infinite rehypothecation of derivatives (the loaning and re-loaning of the same asset over and over to balloon balance sheets without adding any underlying value with each recreated proxy claiming to own the single underlying asset), if and when stock markets crash a lot of those derivatives will start blowing up balance sheets as multiple parties attempt to claim the same asset. So a lot of the so called assets out there will disappear when the music stops, and those who have to eat those losses won't be able to re-invest the money they'll have to spend to cover the loss. Even though stocks are a representation of corporate assets, these derivatives will still have far reaching impacts for anyone invested in them which is pretty much everybody who listens to a financial advisor, which is likely a good portion of corporate financial investments.

which is why I continue to work, even though I have a pension from 34 years as a firefighter. Because of the pension, I'm only eligible for 40% of SS when I hit 66 (a pittance)... and because the pension fund is invested heavily into the stock
market... once that collapses so will their ability to pay benefits. Keep working, keep stacking.

[neilgin1]

I purchased from Bay Precious Metals a 10 oz Royal Canadian Mint silver bar. A beautiful, quality made bar with several security features including a reeded edge.

The Canadian Government is way ahead of the game

WAY ahead of the game, at least the RCM is.(the Canadians don't have a 2nd amendment, so that's a "fail", imo) my stack is darn good, but I never bought anything above a 1 toz coin, just because I want to be fractionalized....BUT, when I saw that 10 toz'er...THAT I wanted. ...for large trades in the future.

its a beautiful bar, and they made sure one can be confident of its Ag content, via new technologies.

[silverflake]

Re: Buying on the Dip, I have some friends over the last couple years who have actually listened to my tirades about fiat currencies and the place that silver and gold should have in everybody's financial scenario (portfolio?). With the dip in silver just the other day down below $15/oz again, I end up getting a couple of texts from those few that have listened and the gist is: "should I buy more now? Is it going down further? Every time I buy it goes down...I am losing on silver..." etc etc. I am going red in the face trying to tell folks that I do not INVEST in silver, I buy it to preserve value in the face of a never ending dollar depreciation. I tell them this, over and over and over. And they still view it as a matter of 'worth' measured in federal reserve notes. I can't convince them that over time every fiat currency reverts to its intrinsic value.....ZERO. Gold and silver will always have value. And these are the guys that have actually had the nerve to buy some PMs. This is the mind set. I give them credit, at least I know they have some PM.

I have one friend at work, a work friend only but we chat finances often. He is 59, I am 46. He is worried about his retirement, should he ever get there. But he told me about 3 years ago that he is sitting on a mountain of cash. Remnants of when he pulled out of the markets in 2008 and never redeployed. No joke, every 3 months this guy says to me "Should I buy some gold now? It's down..." or he'll say "Boy, gold is inching up, should I buy some now?". Guy has no self esteem and cannot get over the hurdle of doing something as simple as buying PMs. Its foreign to him. I finally pulled him aside last October and I told him this: "don't feel that you have to go full-bore into buying some gold or silver. If you are sitting on a hundred grand, buy 10 grand or even 5 to get your feet wet...."

The sad part is, this is a sampling of the way people in the U.S. think. They push a button to buy AAPL that ends up being a blip on their computer screen in their e-trade account but they cant grasp holding a silver Maple Leaf or a Gold Eagle. And younger folks (not all luckily as I have found out recently) are even worse. I chatted with a 20 year old a year ago who thought all of our current coins (except the penny) were made of silver! Sigh....

Ok, thanks for the ear guys. I am about ready to stop preaching the word about PMs to people. Frustrating. I stick to my credo:

"If the price of silver/gold goes up, I buy a little. If the price of silver/gold goes down, I buy a little."

Keep stacking, people.

[beauanderos]

Re: Buying on the Dip, I have some friends over the last couple years who have actually listened to my tirades about fiat currencies and the place that silver and gold should have in everybody's financial scenario (portfolio?). With the dip in silver just the other day down below $15/oz again, I end up getting a couple of texts from those few that have listened and the gist is: "should I buy more now? Is it going down further? Every time I buy it goes down...I am losing on silver..." etc etc. I am going red in the face trying to tell folks that I do not INVEST in silver, I buy it to preserve value in the face of a never ending dollar depreciation. I tell them this, over and over and over. And they still view it as a matter of 'worth' measured in federal reserve notes. I can't convince them that over time every fiat currency reverts to its intrinsic value.....ZERO. Gold and silver will always have value. And these are the guys that have actually had the nerve to buy some PMs. This is the mind set. I give them credit, at least I know they have some PM.

I have one friend at work, a work friend only but we chat finances often. He is 59, I am 46. He is worried about his retirement, should he ever get there. But he told me about 3 years ago that he is sitting on a mountain of cash. Remnants of when he pulled out of the markets in 2008 and never redeployed. No joke, every 3 months this guy says to me "Should I buy some gold now? It's down..." or he'll say "Boy, gold is inching up, should I buy some now?". Guy has no self esteem and cannot get over the hurdle of doing something as simple as buying PMs. Its foreign to him. I finally pulled him aside last October and I told him this: "don't feel that you have to go full-bore into buying some gold or silver. If you are sitting on a hundred grand, buy 10 grand or even 5 to get your feet wet...."

The sad part is, this is a sampling of the way people in the U.S. think. They push a button to buy AAPL that ends up being a blip on their computer screen in their e-trade account but they cant grasp holding a silver Maple Leaf or a Gold Eagle. And younger folks (not all luckily as I have found out recently) are even worse. I chatted with a 20 year old a year ago who thought all of our current coins (except the penny) were made of silver! Sigh....

Ok, thanks for the ear guys. I am about ready to stop preaching the word about PMs to people. Frustrating. I stick to my credo:

"If the price of silver/gold goes up, I buy a little. If the price of silver/gold goes down, I buy a little."

Keep stacking, people.

Great post

[AlexTG]

Nobody really knows which way silver will go, except maybe JP Morgan Chase, HSBC, Goldman Sacks, ect.,

However we do know that the dollar is cyclical and the strength will eventually come back down, the question is when. The dollar moving lower will force the relative value of Silver and Gold back up. (all else being equal) An opportunity lays before us at a chance to buy silver and gold cheaper relative to the rest of the world and normal dollar strength.

For concerns of if now is the time to buy, the question becomes: Do you think the US economy is becoming stronger versus the rest of the world? If so how much stronger? What industries are becoming stronger? Will the Fed actually keep inflation in check if the economy grows quickly, or will they go overboard and send us back into a recession? A combination of answers here could lead to a buy or hold (the powder) signal.

If not, and you think the economy is becoming weaker versus the rest of the world then now is the time to buy. Why? Because if the US slips back into recession, or even maintains slow growth, the only tool the Fed has left is QE. QE, effectively, has been the same as running the Fed funds rate at negative for a few years. If taking away that support and then trying to raise the Fed Funds rate back to the old "normal" results in a recession that tells us that we are passed the point of no return.

If you read in the News that the Fed will issue another QE, you all know what to do. Ultimately though, when things start to move they will move quickly and you wont have time to buy at a "back up the truck" price.

Personally, I am waiting till Mid October to make any more moves as I just spent all of my, limited, powder to buy silver.



For those who play in the stock market checkout FreePort McMoran http://finance.yahoo.com/q?s=FCX. A big name company that has been devastated by the slowing Chinese economy and increasing purchasing power of the USD. To me it is a matter of time till the world gets back to being productive again. When it does, copper and mining companies have a ton of upside potential. I know one thing for sure though, stay away from d'Anconia Copper.

Regards,
Alex

[InfleXion]

The only person I ever got to buy precious metals (that wasn't already doing so) through all my years of trying to drill it into peoples' heads was because they thought they could make a bunch of money. He bought around $27 before the run up to $49 so he has been around the block, but still doesn't have the right mindset of wealth preservation through dollar cost averaging spending whatever you can afford to lose. Greed will kill in any market. Most people I talk to don't even have a clue about how FRNs are a false representation of the metal dollars they used to be redeemable for, and even those who do don't seem to care because of the general attitude of "everything is going fine so this doesn't need my attention" or "I'd rather spend my money on having a good time right now instead of planning for the future". A lot of people will be hurting when the inevitable wealth transfer is complete. I suppose we should consider ourselves lucky that we are not locked into reactive mindset and instead have a proactive plan in place to take care of our own respective spheres of influence.

[AlexTG]

The only person I ever got to buy precious metals (that wasn't already doing so) through all my years of trying to drill it into peoples' heads was because they thought they could make a bunch of money. He bought around $27 before the run up to $49 so he has been around the block, but still doesn't have the right mindset of wealth preservation through dollar cost averaging spending whatever you can afford to lose. Greed will kill in any market. Most people I talk to don't even have a clue about how FRNs are a false representation of the metal dollars they used to be redeemable for, and even those who do don't seem to care because of the general attitude of "everything is going fine so this doesn't need my attention" or "I'd rather spend my money on having a good time right now instead of planning for the future". A lot of people will be hurting when the inevitable wealth transfer is complete. I suppose we should consider ourselves lucky that we are not locked into reactive mindset and instead have a proactive plan in place to take care of our own respective spheres of influence.

This isn't just individuals, its how the entire democratic process works.

Step 1
Government: Is everything working ok?
Society: Yes, as far as my eyes can see but my brain tells me other wise.
Government: Well is there a problem now?
Society: Nope.
Repeat till the thoughts the brain had come to be seen by the eyes.

Step 2
*Administer patch work of ill informed laws or stop gaps to resolve the problem*

Step 3
Goverment: Did we fix the problem?
Society: Maybe, I don't know, seems to be ok for now.
Goverment: Ok, we did our job. High fives all around.
Go Back to Step 1

[pennypicker]

Ray & Neil,

These Royal Canadian Mint 10 oz bars I believe came out last year with their new security features. The front and back of the bar has very fine vertical lines which gives it a look that no other bar has. The RCM calls it their "bullion finish". The reeded edge is beautifully done and as far as I know the only other fabricator in the world that make bars with reeded edges is the Geiger Mint in Germany. Additionally the RCM uses a unique font for their serial #'s which further distinguishes these bars.

Simply put I feel these RCM bars along with the Geiger "Security Line" bars are the most technically advanced 10 oz bars out there. Both the RCM & Geiger bars are currently sold out at Provident and they don't last long once they get them in. In fact yesterday I finally got an "in stock" notice from Provident on their 10 oz Geiger. The email was 4 hours old. When I went to Provident they were already sold out again




And a picture of the gorgeous Geiger bar out of Germany. These bars come shrink wrapped with a serial numbered hologram inside. Additionally the Geiger Mint places an invisible varnish on the back of their "security line" bars and when the bar is held under a black light you can see a large company logo and the year the bar was made in purple color:

[silverflake]

Ooooh those RCM 10 ounce bars are beautiful! Neil, I know you have warned against making idols out of our stack (duly noted) and also that we should strive toward smaller, government backed pieces for trading purposes (advice taken), but if you want to indulge in a snazzy, hefty hunk of white metal, these bars are very satisfying. Bought two last fall for the heck of it and man-o-man does the RCM do their bullion right. Someday, perhaps, I could use the bars to trade for some land. Perhaps.

Stack gang. Stack 10 ounces at a time with these bad boys. But stack.

[Pachucko]

I purchased from Bay Precious Metals a 10 oz Royal Canadian Mint silver bar. A beautiful, quality made bar with several security features including a reeded edge.

The Canadian Government is way ahead of the game

is this it? Nice looking bars with great security features

http://www.apmex.com/product/83022/10-oz-silver-bar-rcm-9999-fine-new-style

I've been meaning to get one of those.

But WTF is up with APMEX?

[Diggin4copper]

Ooooo... I want one of those Geiger bars...

[pennypicker]

I've been meaning to get one of those. But WTF is up with APMEX?

Provident just got some more RCM 10 oz bars in today (Thursday). Their cash price is $178.80
Apmex cash price- $188.20

[beauanderos]

I've been meaning to get one of those. But WTF is up with APMEX?

Provident just got some more RCM 10 oz bars in today (Thursday). Their cash price is $178.80
Apmex cash price- $188.20

alright, alright... you guys talked me into one... but I'm waiting for the next dip! You know danged well they
won't let this run for long

Do you think APMEX prices are high so they can cover their repeated futile shipping attempts to 68camaro?