To buy or not to buy

80
Tue, Oct 7, 2014 - 3:06am

If I sit back, and close my eyes and recall the exciting days of 2010 and 2011, the recurring thought that comes to me is my desire to have bought more metal when the price was low. I recall walking through an antique store in Centerville Indiana in 2001 and noticing that one dealer had hundreds of silver coins in cardboard holders on the table top for folks to look through, picking out coins for their collections—silver coins, unwatched by security or anyone except the cashier about 30 feet away who was often distracted ringing people up. The shoplifters were after better stuff. The coins were deemed not worthy of even putting in a glass case. Silver was about 4.75 per ounce then.

Oh! How I wish I had loaded the boat like some of you did!

But I didn’t, and it was another nine years before I noticed some silver coins in the display at another antique shop. This time they were with the jewelry and other “good stuff,” and this time the walking liberties were priced at each. I suspected something was up and finally, finally started to investigate. I started making some judicious purchases, a few ounces at a atime.

After silver topped , I realized I needed more, that my purchases at were rather insignificant. I often sang that refrain: “How I wish I had bought it cheaper.” How many of you have sang that?

The rest is history—especially the part where I loaded the boat with a credit card at over per ounce.

So here we are with handle silver (16-something over the weekend), with warnings from Turd and others that we may see lower prices. Meh! We have already been tortured and seeing metals priced in for less fiat just doesn’t hurt any longer. My perspectives are changing. What is valuable to me now are the things I will need when the paper system moves to its intrinsic value.

So, are you stocking up? My wife and I did the other day, to the best of our ability. NO regrets, even with this push lower. I might even consider loading up with my credit card again if they push things even lower. I am curious how others feel about that potentially foolhardy strategy.

If you have not listened to the Kirby interview yet, and if you are debating a purchase, I suggest it is 30 minutes well spent. My thanks to a couple of people who posted it the other day.

Rob Kirby-Physical Gold and Silver Contracts Default in 2014

And I wonder about those former posters here who moved back to paper trading. Do you stop by TFMR from time to time and chuckle at what cultish strong-handed idiots we have been, patting yourself on the back for selling your stack before we took the really big dive? Well ... are you selling your paper here at the top for a nice profit and loading your boats with metals? I sure hope so, for your sake. The tide will soon turn. This isn’t going down like we all planned, hoping to catch a moonshot then convert our metal back to fiat and pay off houses, land, and buy stuff for a nice retirement in a new economy. No, they have put the pain to strong hands, hoping to shake our metal loose, punishing us for daring to make their road more difficult.

We are buying to preserve our families through this transition period, not to get rich and retire.QE is ending, Rates may be raised in 2015. The dollar is being pushed out of reserve status. The petrodollar strength is eroding one nation at a time. Eighty percent of the world population regards precious metals as money—and their governments are buying, their citizens are buying. Price may rise, or it may fall further. But one Saturday morning, not long from now, after unsuccessfully looking for cartoons on cable, we shall channel-flip across a Bloomberg story (about an hour after Zerohedge runs it) that the Comex will settle all outstanding contracts in cash, at Friday’s price. Then the traders will say "I think I'll buy metals now--they are a good asset class." But will you find any metal for sale? Will your dealer even ship the order you made four days earlier while they are waiting to see if your check clears?

One of our members, Lamenting Laverne, asked an astute question the other night:

Could it be that due to risk of disruption to continuance of government - either from sabotage or because the economy could crash in the process - that an army of bloggers have been warning people in a million different ways, so as many people as possible can fend for themselves (Link)

If she is correct about the possibility that TPTB are divided, and at least one faction is trying to warn us, then this latest beatdown is intended for our benefit. We’d better take full advantage. Time may be shorter than we know.

These prices are a gift. Unless you like paper better. But even Cookie Monster can figure this one out. One of these things is not like the other.

Today, you can buy silver cheaper than miners can dig it out of the ground—and you can still get it delivered to your door in a box marked “auto parts.” Gold is at its break-even price for miners. How long until there is no metal available at any price? I don’t know about you, but I won’t be kicking myself for not buying at 17-something. If metals stay available at these absurdly low rates, then that simply confirms more strongly that the endgame is here.

Buy. Hold. Sleep well.

About the Author

  80 Comments

surfergod
Oct 7, 2014 - 3:12am
atarangi
Oct 7, 2014 - 3:18am

waterboard

Anyone who isn't buying at these prices needs a good waterboarding.

Barfly
Oct 7, 2014 - 3:44am

If you don't have it by now,

If you don't have it by now, I don't know if it's going to be available. I considered hyperinflationary theory very carefully before making my first significant purchase of metal. It came in a box marked auto parts, in point of fact. But, the people who sold it to me are now history. Suddenly bankrupt. Imagine if I had waited on that purchase until the day after they went under. I decided that the best approach was to get what I could when I could and not really worry about the price. Thus, every significant windfall I've had since has gone to metals. I actually feel myself lucky price has been declining. Every significant price smash, starting in April 2013, it seems, has taken a significant amount of metal into hiding. Retailers pull their stock and won't sell. My wholesaler gets bum rushed every time price gets smacked hard and quickly empties their vault. I guess what I'm trying to say is that one would have to have special relationships or get extraordinarily lucky to get physical in significant quantity at the absolute bottom of the chart.

atarangi
Oct 7, 2014 - 3:55am
Spartacus Rex
Oct 7, 2014 - 4:12am

Funny, Just When You Think The Weak Hands Have All Left...

Unbelievably, they are still out there, still listening to the MSM MOPE, and believe it or not, Goldman Sux!

It's like seriously? To come this far, and last friday's smack down causes them to crap their shorts and capitulate, in spite of the fact that the U.S. is yet another Trillion U.S. Diapers in the hole, even all of our allies and trading partners are setting up bilateral currency swaps w/ China, and the BRICS are creating their own SWIFT apparatus?

Oh well, more than happy to take that burden and weight off your hands Paper is so much lighter and easier to carry!

Really, and Good Luck with those 401K's, Pensions, MYRA's, Bonds, etc..

Cheers, S. Rex

Hammer
Oct 7, 2014 - 4:34am

Kind of like a moment of

Kind of like a moment of realisation Doc...........like this ?

:)

Video unavailable
Safety Dan
Oct 7, 2014 - 4:38am
Safety Dan
Oct 7, 2014 - 4:40am
Safety Dan
Oct 7, 2014 - 5:03am

This chart says the long

This chart says the long decline in silver could soon be over

From Chris Kimble at Kimble Charting Solutions:

The above chart was created when silver was trading at per ounce. I shared with Premium Members in June of 2012, that silver looked to be creating a bearish descending triangle and the measured move was calling for silver to hit per ounce (see projection of red arrow above).

Since the chart was made, silver is down 40% in value and is nearing the projected price of the descending triangle.

CLICK ON CHART TO ENLARGE

I have been sharing with metals members for months that the $15 zone in silver looks to be an interesting place to pick up some more. The above chart highlights why the “Power of the Pattern” says this could be a potential good buy point.

Hammer
Oct 7, 2014 - 5:12am

OK, I'm not American in any

OK, I'm not American in any way but seriously WTF !!!

This Is the First Weekend in America With No Saturday Morning Cartoons

https://gizmodo.com/this-is-the-first-weekend-in-america-with-no-saturday-m-1642441646

Anyone who now has any memory of this in The US is now just a sad old fuck with babblings of yesteryear.

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