I am a relative newb. I started buying silver bullion rounds and bars last November and about a month ago I bought my first gold. I am not an investor. I like to think of myself as a rational doomer. I am buying gold and silver because I understand enough about history and economics to know that the current state of economic and political affairs cannot continue. Exactly when the phase shift occurs and how it will play itself out I'll leave to the prophets among us, but you don't need a prophet to see a rock rolling down a hill. Whatever is coming I know gold and silver will preserve what little wealth I have acquired better than anything else I can afford. That is why I stack.
What amazes me is that even though I'm not a trader and I know that in the long run the price of gold or silver today will be meaningless I still get elated when it is climbing and end up flirting with mild depression when the monkeys go to work. My rational self knows that dips are very good things, especially deep ones--I get more shiny for less paper--and once they really pop they will both quickly price themselves out of my income level. What I have when that day comes is going to be all I have when it's over. So what I know would be best is a nice steady linear climb to Metatron--the Angel of angels--and that's what the trend represents, but my irrational, spontaneous self rides the charts like a lunatic.
How do you make it stop?
I have an inverse relationship with the price of silver. When it drops, I'm happy because I can buy more shiny. When it rises, I'm sad because not only can I buy less, but the shit is hitting the fan.
Also, I've been stacking for years, so I'm totally nuts.
Well, I've been through two pretty good beat downs now and I'm still ahead, pricewise, so maybe it'll just take time.
Be secure in your decision. If, you truly believe stacking phyzz is the right course of action, be secure in the knowledge that you are not alone. Look around you. How many people you know are stacking? Yes, up days are fun. Down days, not so much. But, have the funds changed? Does a margin hike really change anything? Up days, down days, do either effect the long term trend?
Always go back to the big picture. I don't know how many times I've drawn this and it never changes, but I keep doing it. I must be insane.
This is the only thing that really does it for me; everything else is just kind of noise. Bob Chapman's nonsense about $500 silver? Noise. The COMEX going to default NOW! Noise. Silver going back to $5? Noise. RAIDS?! Noise.
If we break down below, then there's an issue which will undoubtedly cause a shift in your plans. If we break out above, well, we know the consequences of that quite well.
BTW, feel free to print off your own and extend it out over the next 5-10 years. I did and came up with a modest estimate of silver at $85-100 by 2020. Not 2012, 2020.
Let's break down the math. Silver grows about 8.5% per year on a normal basis (according to Jason Hommel). The doubling time at that rate is 8.25 years. We're at $40 now, so in 8.25 years (2020) we can logically expect about $85 silver.
I don't think there's a coincidence between the visual and the math.