Would you advise a friend or relative to start stacking silver at current levels.....$34.00 oz
Luxor
Posts: 469 ✭✭✭✭✭
.....or advise to maybe hold off for a pullback?
Your hobby is supposed to be your therapy, not the reason you need it.
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I suspect there is still some upside potential but as always, I expect it will be short lived.
If they don't mind being underwater/stuck in the gutter possibly for decades they may choose to buy some but at these levels I would remain as liquid as possible (paper SLV) and have the stop loss set accordingly. Be ready to hit the sell button once the mob of Joe six-pack start showing up talking about gutter to da moon. IMO RGDS!
The whole worlds off its rocker, buy Gold™.
The trouble for a lot of newbies is that if they buy on the rise and the rise continues, they can't let go until it's too late and the tide has turned. I'd advise them that it's a gamble; and if they're going to speculate, they'll have to recognize and understand the risks.
Coinlearner, Ahrensdad, Nolawyer, RG, coinlieutenant, Yorkshireman, lordmarcovan, Soldi, masscrew, JimTyler, Relaxn, jclovescoins
Now listen boy, I'm tryin' to teach you sumthin' . . . . that ain't an optical illusion, it only looks like an optical illusion.
My mind reader refuses to charge me....
Can't answer that question without more info on the individuals financial situation. First priorities would be maintaining essentials such as food, housing, etc.
Does the individual have any savings? If not, IMO having some savings is essential. And then debt reduction.,
If the individual is in relatively good financial shape.... perhaps very selective amounts of silver purchases, when a dip occurs (I expect silver to continue a relative upwards trend for awhile, but dips will likely occur that may present a buying opportunity). For starting out, I see physical 90% as a good option, in whatever amount feasible given common sense and finances.
Best advice... if it is someone new to the buying of coins, silver, etc... never spend money that you cannot afford to lose!!!! There are no guarantees.
Only with $$$ that they have no problem with if silver goes back to $17 or even lower.
If it would impact their lives....take $$$ away from traditional investments -- no.
not if they are in debt. Get out of non-mortgage debt first. If free of debt buy silver junior miners SILJ.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
The last thing I'd do is buy SLV or silver miners, or "traditional investments" at this particular time. Only consider the physical metal.
1) pay off all debt All of it.
2) Unless you or he can accurately predict the price of a volatile & manipulated metal like silver, there is only one way to go about it. Take about 1/4 of the money and buy a low premium variety of silver such as 90% silver dimes or quarters.
Then, a full month later, have him (or her) buy more 90% silver with another 1/4 of the money that they want to invest.
Another month later, have him do it again. By that time, he will see exactly what happens when the price moves up (or down) and how he will emotionally react to the changes.
Take a long term view, and don't let him assume a hair-trigger mentality like blitz seems to have with his paper silver. Long term means that he won't end up losing his ass on a quick downward move and blame you for it. If silver moves up strongly as i suspect that it will, you can both pat each other on the back a year from now.
I knew it would happen.
I avoid advising. Each to their own.
Advising friends and family can get messy. I agree that getting out of debt is the most important thing people can do. For most Americans they are deep in debt and can’t even come up with $1,000 for an emergency. For those people I think they need to get out of debt before they do anything else. Buying silver while paying 20-30% interest on credit cards is nuts. Heck, they are more interested in a football team than financial freedom from debt. Imagine that…. Grown men worried about a bunch of men running around in tights playing catch. Blows my mind!
Personally, I am only buying 90% now. Will keep buying regardless of if it’s $15 or $45 an ounce. I don’t really see it as an investment like some do. I expect the dollar to continue to loose purchasing power and eventually its world reserve status. Don’t know if that will be a year, decade or century from now. But I expect it to happen in my lifetime. If it doesn’t then my kids will inherit all of it.
Buy now. Buy more if it falls. Just buy and hold on. There’s an increasing demand for silver in the world for all things tech.