I’m Buying Silver

As of a few minutes ago, I put in my largest order for physical silver since 2010.  I am not trying to be a hero or call the bottom, but because many people do ask me for my opinion on the precious metals I decided to make the buy public.  The rationale for me is extremely simple.  First, I find silver under $30/oz to be a total steal as I expect it to trade well into the hundreds of dollars an ounce in the years ahead.  Furthermore, I think the Central Planners of the world will be forced to act sooner rather than later.  As someone that did the vast majority of his buying years ago, I have been much more patient with my buys in the last few years.  I suspect there are many others out there just like me.  The minute these markets turn they will be in there bidding for physical silver, which I believe cannot be bought in serious size.  The market will turn hard and fast.  That’s my story and I am sticking to it.

Oh and of course, by buying silver I mean physical and I’m taking delivery.

Best,
Mike

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19 thoughts on “I’m Buying Silver

  1. Pingback: I’m Buying Silver « Financial Survival Network

  2. I’m in, invested large under 28 an ounce. When is the next take down? The rest of my dry powder is getting itchy.

  3. Pingback: I’m Buying Silver | WRC559

    • If you can buy 500 ounces then Tulving.com and Gainsville coins have the lowest premium. but Tulving doesn’t sell less then 500 oz.

    • For smaller purchases I like APMEX, where a $100 face bag of 90% today has a premium of 3.7% over spot. The $1000 face bag has a 3.1% premium. http://www.apmex.com. I’ve never had a problem with prompt and correct delivery.

      • APMEX has a history of selling face bags seriously underweight. I’d avoid face and go for weight-denominated sales. I like SilverDoctors for small orders with low premiums

  4. Pingback: I’m Buying Silver – Mike Krieger « InvestmentWatch

  5. Hey Mike!

    I just recently stumbled onto your website/blog and wow am I glad I did! (was directed from goldsilver.com’ news section) Your site is really awesome! Every single essay/interview of yours I’ve read/listed to thus far has been extremely informative. Keep up the great work!

    PS. Please add a donation function to your site. I’m sure many of your fans would like show their appreciation for your work. Thanks!

  6. Mike,

    My question is (and maybe you can address this in a future post):
    Being a US citizen, what do you plan to do with your physical? If you sell it when it’s in the hundreds, uncle Sam will take most/all of your profits through a windfall tax. I suppose there will be other ways to sell but overall, it seems like trying to ‘beat the system’ is futile.

  7. Gee, I don’t know Mike. Seems PMs have to bottom out some more. Doesn’t there have to be a big showy ‘Lehman Brothers moment’ / stock market crash to start QE up again? I bet Bernake will say there will be no stimulus at the next FOMC meeting to lower prices and then start printing middle of next quarter. Don’t they want prices as low as possible? How much printing is need to get from $1550 to $2500? What if there weapon will be print/raid PMs, print/raid PMs. CME lowered margins on PMs so that they can raise them later IMHO.

    Anyways… maybe it doesn’tt matter…. maybe ‘there really can only be one’ when it comes to money and thats gold and silver.

    • I think the post 2000 pattern will continue. Pump it up, followed by big and little tumbles. Meanwhile, the declining value of the dollar and trading losses cut into everybody’s purchasing power. If you look at a chart of the S&P or Dow since the late nineties in constant value dollars or in gold, you see clearly that it has been a long bear market as stocks earnings multiples decline, relieved by enough big rallies to give political cover and draw the unwary back in. One example is at http://homepage.mac.com/ttsmyf/ The Dow/Gold chart is even more dire: http://www.sharelynx.com/chartstemp/DowGoldRatio.php

      • In general, I think we will see deflation in paper assets and rampant inflation in hard assets. I think equities (stocks) as a whole will lose a lot of value but their nominal price may be kept afloat due to high inflation. I think stocks will hold purchasing power better than cash (think Weimar Germany) but hard assets will be the best place to be.

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