Please explain to me why......

gecko109

I'd love to know why most of you get excited, even cheer, when the prices of PM's rise. Anytime gold/silver/plat/palladium get a 3-5% bump in a day, or a week, alot of you seem to be celebrating. Im 34 years old, and own a modest 30+ ounces of gold and 450+ ounces of silver. Im not even close to being finished with stacking metals. I notice that when gold moves up 5% in a week, my salary stays the SAME. Unless you are done buying altogether, and are sitting on a huge stack of metal, why in the world would you want to see the price of gold rise? That simply means that on your next purchase, it will take more dollars to buy the same amount of gold as last week. Why is that worth celebrating?

CaptHenway

Because people value the things they already have more than the things they might own someday?

Watching PMs go up validates what they have been doing, and justifies them continuing to do so.

And, it helps them show their wives: "See! I was right!"

TD

gsa1fan

I cheer for my favorite team winning. I suppose I like winning better than loosing.

If it went down and stayed there would there be a market?

gecko109

"Watching PMs go up validates what they have been doing, and justifies them continuing to do so."


This is not logical to me. Its the same as if a new burger joint just opened up, and I love their new burgers. They cost $3 each when they opened. I have been going there since they opened, and plan on going alot in the future. I tell my buddies what a great burger it is. Then a few weeks later they raise the price to $5. Now am I supposed to say to my buddies "see, I told you the burger was THAT good....so good they raised their price!". I wouldnt be happy about that because the SAME burger now costs MORE money. I already knew the burger was good, I dont need the price to go up to tell me it was. I already know that buying metals is good....I dont want a price increase just to validate what I already knew!

JimDepot

The $3 burger that was purchased is gone, one could not sell it for $5 when the price went up.

Norseman88

Because I already own over 12,000 ounces of Silver so the only thing I've bought lately are rare bars or rounds as I don't need to buy anymore.
I own enough Palladium and Gold and wont buy anymore unless a collector coin made of Gold strikes my fancy.

gecko109

<< <i>The $3 burger that was purchased is gone, one could not sell it for $5 when the price went up. >>




While this is true, it doesnt change the concept that it costs more dollars for the same exact burger. Have you ever cheered for anything to increase in price when you have the intentions of continually buying that item for the next 25 years?

gecko109

<< <i>Because I already own over 12,000 ounces of Silver so the only thing I've bought lately are rare bars or rounds as I don't need to buy anymore.
I own enough Palladium and Gold and wont buy anymore unless a collector coin made of Gold strikes my fancy. >>




That is a valid reason. But I would wager that most of the members here do not own over $250,000 worth of metal, especially the ones in my age range. If I was 50 or 60 years old, and had a substantial stack, i'd be rooting for metals to punch through the roof! As it stands now though, I would be MUCH happier to see $10 silver than $50 silver.

gsa1fan

Maybe if you look at it like the actual buying power/worth of a dollar it won't bother you so much.

JimDepot

<< <i>

<< <i>The $3 burger that was purchased is gone, one could not sell it for $5 when the price went up. >>




While this is true, it doesnt change the concept that it costs more dollars for the same exact burger. Have you ever cheered for anything to increase in price when you have the intentions of continually buying that item for the next 25 years? >>



No, I am not a cheerleader. I do like to see an investment increase in value as opposed to being stagnant.

gecko109

<< <i>Maybe if you look at it like the actual buying power/worth of a dollar it won't bother you so much. >>




Was the purchasing power of $810 dollars any different exactly a year ago as it is today? That was the spot price of gold. Today it is $1130. That is an increase of 28%. My salary increases on average 3% per year. Gold has outpaced my income by almost a factor of 10 in the past year. Lets say I make $42/hour. A year ago it took me just over 19 hours of labor to add 1oz of gold to my stack. Now it takes me about 27 hours to add the exact same 1oz of gold. So I now have to work an additional 8 hours to buy that exact same amount of gold. Do you enjoy working harder/longer to buy the same thing that took less labor a year ago? I sure dont!

gecko109

<< <i>

<< <i>

<< <i>The $3 burger that was purchased is gone, one could not sell it for $5 when the price went up. >>




While this is true, it doesnt change the concept that it costs more dollars for the same exact burger. Have you ever cheered for anything to increase in price when you have the intentions of continually buying that item for the next 25 years? >>



No, I am not a cheerleader. I do like to see an investment increase in value as opposed to being stagnant. >>




Thats what millions of American families thought as well when they went out and mortgaged $500,000 homes a few years ago too. How did that turn out?

RedTiger

Some folks are trading futures, stocks or options. On full margin in futures, a 10% move approximately doubles a person's money, so even a small $10 move in gold can mean steak dinners for a month. On options, the leverage can be even greater. Of course the downside is similar, a 10% move against on futures for someone on full margin can wipe out his/her entire account.

Some other folks are playing with big money, six figures or more at a shot, so even a 1% move means $1000 on $100,000. To someone like the original poster, young with a hefty paycheck in the top 20% of national incomes, that amount might not mean much. To someone on a fixed income and/or retired, $1000 might be a big deal.

There are some that don't own much, don't trade, but just like to talk. They are like sports fans or something, it gives them something to post about. It is relatively harmless when they might make enough to buy a Happy Meal with their profits for the day and still want to post about it. For some that may be enough to make their day, and makes them happy.

Ciccio

<< <i>And, it helps them show their wives: "See! I was right!"

TD >>



That's me!

Joking aside, I get excited when PM's rise because what I have worth more but on the other hand, I am with Gecko, I feel I won't be able to buy as much as I would like.

Kd5ddo

True investors want prices to go down. This allows for accumulation in greater quantities due to more bang for your buck. I am very young (under thirty) and would love to have a major drop in PMs. In fact I would probably dance a jig or two, then get a second job for the sole purpose is loading up on PMs.

Traders on the other hand want the markets to go up up and away. Their time perspective is not the same as an investor, therefore their thought on the movements would likely differ from yours. You have a longer time horizon/perspective than the people that celebrate the 2% pops. I don't like the pops and would start cheering (to myself at least) if gold were to drop below 900 or heaven forbid 600!!

So in short, they aren't crazy... And neither are we.

Just my $0.02 worth...

keepdachange

I would love to be able to buy twice as much if were $9 oz. (silver) but have no problem with others hooting and hollering when they go up.

vintagechris

Joking aside, I get excited when PM's rise because what I have worth more but on the other hand, I am with Gecko, I feel I won't be able to buy as much as I would like. >>



This is my exactly. It's kind of exciting to watch it go up but at the end of the day, I don't own enough yet and would like some more time to stack at lower prices.

Norseman88

<< <i>

<< <i>Because I already own over 12,000 ounces of Silver so the only thing I've bought lately are rare bars or rounds as I don't need to buy anymore.
I own enough Palladium and Gold and wont buy anymore unless a collector coin made of Gold strikes my fancy. >>




That is a valid reason. But I would wager that most of the members here do not own over $250,000 worth of metal, especially the ones in my age range. If I was 50 or 60 years old, and had a substantial stack, i'd be rooting for metals to punch through the roof! As it stands now though, I would be MUCH happier to see $10 silver than $50 silver. >>



I agree with your reasoning, if I were your age I would want Silver to fall back to $4 an oz. so I could fill up my safe with cheap Silver, or Palladium to fall back to $100 an oz. or Gold to fall back to $250 an oz.
Anything is possible but this doesn't look to likely to me however there is a chance that Silver will pull back to $14 or less if the shorts can pull off another sell off to cover their positions.
The encouraging thing is that the CTFC has spent alot of time looking at position limits in grains and oil and are now taking a long hard look at Silver and Gold instead of sweeping it under the rug again. My guess is any sell off engineered will be short lived and if there is any hint that the CFTC will implement position limits on JP Morgan and co. Silver and Gold will soar in price as the shorts panic to cover their positions.

Konahead

<< <i>I'd love to know why most of you get excited, even cheer, when the prices of PM's rise. Anytime gold/silver/plat/palladium get a 3-5% bump in a day, or a week, alot of you seem to be celebrating. Im 34 years old, and own a modest 30+ ounces of gold and 450+ ounces of silver. Im not even close to being finished with stacking metals. I notice that when gold moves up 5% in a week, my salary stays the SAME. Unless you are done buying altogether, and are sitting on a huge stack of metal, why in the world would you want to see the price of gold rise? That simply means that on your next purchase, it will take more dollars to buy the same amount of gold as last week. Why is that worth celebrating? >>





I like to see it drop a bit to add, but I don't want to see it tank either.

CaptHenway

How many of you wanting to see the PMs go down so you could buy more, bought the dip in the Fall of 2008????

Norseman88

<< <i>How many of you wanting to see the PMs go down so you could buy more, bought the dip in the Fall of 2008???? >>



I did, in fact I added nearly 3,000 ounces of Silver to my stash ranging from a little over $10 to around $13.

Kd5ddo

I wasn't interested in PMs after it started recovering. My very first PM purchase was after silver recovered to 13/oz. I made my first purchase at 14/oz and have been buying since.

HalfStrike

<< <i>How many of you wanting to see the PMs go down so you could buy more, bought the dip in the Fall of 2008???? >>



That would be the 2008 w gold buffalo and platinum eagles the mint had available back then, many of us bought what we could.

I agree though that as PM prices rise the long-term potential of high mintage coins decrease, at some point the prices will top out or crash like in the past.

gecko109

<< <i>How many of you wanting to see the PMs go down so you could buy more, bought the dip in the Fall of 2008???? >>





I put my money where my mouth is!


In addition to those 185 oz of silver bought in Oct 2008, I probably bought 3-5 oz of gold during that dip as well.

Konahead

<< <i>How many of you wanting to see the PMs go down so you could buy more, bought the dip in the Fall of 2008???? >>




Gold and Silver!

secondrepublic

<< <i>How many of you wanting to see the PMs go down so you could buy more, bought the dip in the Fall of 2008???? >>



Not sure I fall into the camp of wanting PMs to go down, but I did "buy the dip" in fall 2008. I picked up about five ounces of gold from a downtown Chicago coin dealer during that time.

trozau

No special reason other than uncurbed enthusiasm.

Jdurg

<< <i>Joking aside, I get excited when PM's rise because what I have worth more but on the other hand, I am with Gecko, I feel I won't be able to buy as much as I would like. >>



This is my exactly. It's kind of exciting to watch it go up but at the end of the day, I don't own enough yet and would like some more time to stack at lower prices. >>



Same here. As the big 3-0 approaches later this year, I would love to see Gold fall back down to around $500 an ounce so I could pick up a few ounces. It just seems that gold is always in the same relation to my expendable income. When I have a good deal of expendable income, the price of gold per ounce is extraordinarily high. When the amount of expendable income I have drops to almost nothing, the price of gold plummetts and I am still unable to pick up any. I have maybe four or five ounces, but I would love to have more. (Same can be said for platinum as well).