Do not obey your television- Buying Gold

Now that I am back state side and see regular TV instead of AFN I see why there is a sudden resurgence in interest in buying gold and silver.
Advertisements.
If they are advertising it they are only encouraging you to buy high so the dealers will make a killing off the hoards of gold and silver they bought while it was cheap.
If they are advertising it then it is a sellers market meaning its not the time to buy.
You should be selling it like I am to all the suckers who obey their television.

 

You are making a very large assumption, equating gold buying with TV watching


I think it will go up some more but I'm not willing to play roulette with my savings.

 

Buying or selling gold or silver is not the game you wish to be in. If you play with the big boys in the long run you will lose. I buy it as an alternative long term store of value, don't really care what the price, own some as insurance against inflation, etc. Don't believe in speculating on it, but it has done me very well in comparison to the stock market or bonds and bank interest. Get the things you need to survive first, beans, bullets, water, etc and then buy some for insurance. I want to at least be able to pay my taxes if things get bad. Had people who lost their land at the end of the civil war as the taxes paid to the confederate states were not considered valid and neither was their money. Those that had a little gold or silver made out ok according to family lore.

 

If buying the pushed "advertised" investments then its not roulette, its more like a slot machine. You feed a bunch of money in to get a little back out.
At least with roulette you can win.

And you should care about the price. The difference between a 2 year high and low with silver if you spent $500 is the difference between getting about 22 ounces at a high versus or about 32 ounces at a low.

 

Very true. But you never know when it is going to go up or when it will drop. I didn't anticipate silver to go down to $15. I figured it would stay up but it didn't. I do wonder if silver and gold truly is a good investment. Gold was always the go to in the past but who is to say it will be in the future.

 

The way I see it, would you rather have it and not need it or need it and not have it? The price is more of a reflection on the power of fiat money, not the value of the PM. Purchasing at a "fair market value" (give or take) and not speculating is my m.o.

 

A good investment is one that can never drop to 0.
Such as you get with individual stocks.
I'm usually looking for at least a 1 or 2 year low to buy.
That lets me buy gold or silver at least once a year.
I am sure the prices will see a sharp drop next year shortly after the election when the world doesn't end after one or the other is sworn in.

 

When gold briefly shot up above $1,300 an ounce I saw a bunch of "buy gold now" TV adds.
Then it drops $100 an ounce in 2 days and all of a sudden the ads are not being run any more.
I guess it actually works, cause they keep doing it.

 

A wide selection of gold is showing up on the secondary market. More than I have seen in a long time.
Looks like plenty of people panic buy high, then panic sell low.
I'm in the wrong business.

 

With gold down around 10% off its normal price and silver down nearly 20% from its high I can't help but notice an absolute lack of "buy gold now" or "buy silver now" TV commercials.

 

That is when you know its time to buy.

 

From December to January is the time of year I expect to see a price dip.
It doesn't happen every year, such as years when the stock market is in the toilet.
This time of year as long as the stock market is acting normally and everyone is preoccupied with running up their credit card ballance buying crap made in China PM demand will be low.

Silver ads are back on.
You know what that means. Any big buys you make now will only pad the dealers coffers.

 

I haven't seen any ads but gold is up to almost $1,290.
So do not by gold now.
If it goes over 1,325 I'm selling.

 

I'll buy gold with .22LR at a 1:1 weight when the time comes. The gold will be for use later if and when it ever has any real value. I'm not going to buy it now and tie up all that purchasing power.

 

After 20 years of buying ammo, buying another $1,200 worth doesn't make much sense for me.
I need something of high value, doesn't take up much room, doesn't spoil or rust , isn't fiat money and that I can keep actual phyical possession of.
Those last 2 eliminate stocks, futures, certificates and bonds.

 

The only "buy gold now ads" I have seen are trying to scare old people into switching to gold based IRA and 401k.
This makes me suspect the big gold institutions are not expecting gold to be this high again for a while, as in they are expecting supply to exceed demand for the foreseeable future.

 

Combine that with the "meh" interest level in gold currently.
I think it adds up to a summer of no love (for gold).

 

I cashed in most of my gold yesterday for the money I originally had in it.
Which left me with a difference of about 1.5 ounces.
Did this for a few reasons.
-1 I have been wanting to buy for a long time but the price has just been too darn high.
Zero, I didn't want to sell every last bit of it.
One, I don't think gold will be over 1,300 again for a while. I think the only place it has to go is down for the foreseeable future.
I wanted to sell last summer when gold went over 1300 but I was in Afghanistan.
2 I want smaller denominations of gold. It's hard to spend 1300 all in one place. The gold I didn't sell was in smaller sizes that I would like to have more of.
3 maybe use some of the money to buy some other under valued assets.
4 when I do buy back in I want to end up with at least 1 and maybe up to 3 more ounces than what I just sold.

Needless to say this is risky business.
With no risk there is no reward.

 

Gold has been on a daily decline for the last 2 weeks now.
At 1250 an ounce now. Oddly enough no advertisements screaming at you to buy gold now because it could go to 1,800 an ounce. Yeah and I could be crowned queen of England.
$1,800 an ounce signals a sense of impeding market doom, like Obama getting elected.
$1,250 an ounce is a weak buy trigger for me. It's not a bad time to buy but it's not a great time to buy. For the regular buyer who picks up 10 to 20 gm at a time sure go for it, but if you want to change your big fat income tax return for gold, hold off.
I'm in it for the long haul, the money from APMEX just hit my account a few days ago and I have no problem sitting on it for 4 to 12 month. I want gold to get as low as possible before I buy. My buy in is as definitely under $1,200 and close to $1,100 an ounce as I can get it. If gold doesnt stop and just keeps marching past $1,100 and down closer to $1,000 I'll take that too.

IMO sell to APMEX, they will pay the most and from the time you lock in your sale and mail off your goods it takes about 5 to 7 business days before the money is in your account.
This is only the 3rd time i have sold to them, same result each time.
If you insist on a check give them a few more days to cut and then snail mail a paper check to you.
Local gold shops just don't pay as much but do deal in cash and don't leave a paper trail.