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Did the Silver bubble burst?


mission vending

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There is a most basic rule of investing that everyone has heard, yet nobody ever follows. Buy low, sell high.

Interestingly you don't see people running into a grocery store to buy the items that have jumped in price, and avoid the items that are on sale, but this seems to be the way people treat the stock market.

When the stock market crashed in '08, I kept telling people not to sell, and if anything that was the time to buy. I couldn't convince anyone, yet my wife's 401K is now 80% higher then it was right before the crash.

I haven't paid attention to the silver market, so maybe people did better then this. Had I invested in silver, I would probably have sold off little by little as it went up, locking in the profits along the way. I already have a formula I use to sell out of the market, and buy into the market as it fluctuates, but that is only something I do once a year.

For a long time I have thought that a person could simply automate the buying and selling process of any liquid investment. Setting up a formula for buying and selling a percentage of a portfolio that takes into account the fees involved. Now years later I realize that this would work better in turbulent markets, and not as well in calm markets.

Now as far as what silver is going to do, nobody is going to know for sure, because nobody is actually psychic. But we can look at history, and see the events that are going on. With the governments decision open up the printing presses, and explode debt to ridiculous and dangerous levels, anything seen as a hedge against inflation will be kept afloat higher then average. But part of any gain made in these commodities during these times is due to inflation. Adjusted for inflation, gold and silver tend to keep up with inflation, and that is usually it. If it increases above inflation, it will most likely be coming down, at least eventually, and if it below inflation, it will be going back up.

When it comes to commodities, some people are under the false impression that we are running out of everything. But people's minds just cannot grasp just how massive this planet actually is, and how much of any commodity there actually is available. When a commodity climbs in price, companies go out and get that commodity, increasing the supply, and they keep doing so until the price drops. Then as the price drops, they begin to cut out the production.

There are smaller oil companies that can only make a profit when oil is above $70 a barrel. So if oil climbs, they go into business. If oil drops, they shut down.

Oops, I am starting to ramble.

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Yes, buy low and sell high. Everyone else here thought I was crazy when I bought gold at $1100. Now im crazy like a fox!

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Cool. And have you sold as it has gone up?

absolutely not. I never purchase gold to use as an investment vehicle so making money off it is not my intention. it's more of an insurance policy which will allow me to maintain my lifestyle somewhere else in the world should the united states collapse.

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So you have the gold at your house? (What was that address?)

Seriously in the past when people needed to move lots of money easily, such as when many of the Jewish people were fleeing Nazi Germany, they converted their money into diamonds. Small, light, easier to hide. Then unlike gold, you can purchase uncut diamonds at a lower price, then when it is time to sell, hire an expert to cut them, and sell the cut diamonds at a decent profit.

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absolutely not. I never purchase gold to use as an investment vehicle so making money off it is not my intention. it's more of an insurance policy which will allow me to maintain my lifestyle somewhere else in the world should the united states collapse.

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Wow!! I never thought of it that way. I figured if the United States collapsed then so would everywhere else.

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If things do collapse, how do you get your gold? How do you move it?

Also if things collapse, gold may not be important. Food, and possibly guns will be.

This isn't stuff I have done. (Maybe I should.) But a person could actually build a safety net for levels of problems to deal with.

1 Local disaster. Stockpiles of food, and bottled water. Just buying in bulk, and stockpiling when on sale will cover this. You simply use your stockpile as a normal food source, FIFO-ing it. This will keep you months, and possibly years ahead, which can get you through any local disaster, as long as your house is still standing, and sometimes even when it is not. (Keep a manual can opener on hand.)

2 Personal disaster. (Need to get out of town quick.) A quick getaway kit, (luggage filled with clean clothes, and essentials, cash, and a few diamonds) a safe deposit box filled with cash, and more diamonds, on the route you will take out of town. You could even keep foreign cash (Canadian, or Mexican?) in here just in case.

3 National disaster. The kit above, Canadian and/or Mexican cash. A foreign bank account (Swiss?) and possibly foreign investments. Don't use an American account for this.

4 Worldwide Disaster. A relatively large underground bunker with air cleaners, and years worth of food and water. (Recycle urine?) And some form of entertainment to keep you busy, and exercise to keep you healthy.

One option that covers a lot of this is to buy a farm in Central America, and hire people to run it for you. If anything goes haywire, drop down there, and live off the farm.

Oh yeah, the richer you are, the easier this stuff is.

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It's amazing sometimes the direction a thread takes. From the price of Silver to planning for various end of the world scenarios.

I guess I will wait and see what happens tomorrow, and while I'm waiting I'll just be sittin here cleaning my guns. ;D

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If things do collapse, how do you get your gold? How do you move it?

It's not as difficult as one might think.

Also if things collapse, gold may not be important. Food, and possibly guns will be.

If things collapse, I will have traded my gold for the currency of my new country before I'll need food and I already have guns.

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