To Buy Silver

Hi Everyone and Welcome to the Site!

If you’re new to silver investing, start reading right here.
If you’re an old hand, scroll down for some fresh material.

 

Introduction


When considering places to park your hard-won dollars, your many options can confuse you and oftentimes even stop you from making a move.  Why not just keep your money in the bank or some sort of fund?  You can earn some interest and your money is safe there, no?  I will tell you right off the bat that, in my opinion, in our current economic environment, this is the worst thing you could do with your money.  Before I go further, I must say that I am no financial advisor; I am not licensed as one, and any opinions that I present are just that – merely opinions that you can choose to act upon or not. 

That said, have you seen a chart recently that shows the purchasing power of the dollar since 1913 (coincidentally the same year that the Federal Reserve took over the country)? 

Here is your reason to buy silver

Over the last 100 years, the dollar has lost over 95% of its value and we’re not stopping there.  Inflation is often thought of as a rising of prices; however, the true definition is a loss of value of the dollar.  How does a dollar lose value?  Simple:  Print more of them!  And boy are we.  The Fed, through its various forms of money printing (think Quantitative Easing) are creating billions, yes billions of dollars… per day… PER DAY (118 million dollars per hour… now close your mouth and continue reading).  That means that every dollar that gets created (this is done mainly electronically, not through actual printing in case you didn’t know) lessens the value of every electronic dollar that is sitting in your bank or fund.  That is  shocking to contemplate, but nowhere near as alarming as what is possibly coming to a Western Banking System near you – the BAIL-IN (think Cyprus).  I won’t go into details here, but basically governments are busy justifying their imminent ability to take your funds in bank and retirement accounts in exchange for government bonds so that they can pay off the outrageous debts that they are accumulating by spending too much and then printing too much money…!  Check out Jim Sinclair’s website.  He’s a great guy and a strong proponent of real money and GOTS – Get Out of The System. 

To Buy Silver

Speaking of “real money,” when you come right down to it, there are only a couple of forms around these days.  No, I’m not talking about Bitcoin – ha.  I’m talking about the metals of Kings, of the Sun and Moon; the “barbarous relics” that have been known as money for literally thousands of years.  Gold is the King, of course, but for our purposes, we’re going to focus on the Queen – “poor man’s gold”: Silver.  Why? Mainly because it’s more affordable for the poorer man.  It’s more accessible and it comes in some more practical forms than gold. Also, as you will learn through the reading of these articles, the fundamentals at this time strongly favor silver over gold.

silver spot price

You want to get yourself some of these!

The Title of this article reminds me, and I ask forgiveness of my younger readers here, of the Twilight Zone episode entitled “To Serve Man.”  I won’t tell you the plot, but the title can be read a couple of ways; therein lies the drama.  I can assure you that To Buy Silver contains no double entendres.  Throughout this series we’ll discuss silver value and we will discover how to buy silver, where to buy silver, the best place to buy silver and the best way to buy silver.  Notice that you’ve got some hyperlinks there in that last sentence.  If you’re a bit antsy and you want to get right to it, go ahead and click a link that will take you directly to that topic.  You can also see a list of articles in the sidebar on the right.   When it comes time, you’ll want to sell some or all of your silver.  “For dollars?” you may ask.  When it comes time for selling, anywhere from two to ten years from now, the economic world as we know it today will be much changed.  But that’s a conversation for another time.   We’ll discuss how to sell our silver and where to sell silver, and if you’re contemplating grabbing the silverware and heading off to one of those “cash for silver” joints, please hold off until you read a little bit more.

Volatility of Silver

Before we go further, I will tell you right off that silver is not a coward’s game.  It is for the brave and self-secure only.  Let me ask you:  Do you like to ride roller coasters?  If your reply is in the affirmative, then silver might be an investment vehicle for you.  Gold experiences volatility.  As the price has risen almost 1000% since the beginning of its bull market in 1999, it has experienced some serious drawdowns.  In fact, here in Summer 2013, we are finishing up one just about now when gold plummeted from $1900 to around $1200.  That’s over 35%.  Silver, and you might want to sit down for this, reached its most recent high in 2011 at $49 and is currently plumbing the depths of this correction at around $18.  That’s a might big drop, and personally I’ve been riding it all the way down, kicking myself some days for not selling a little around the peak (I had planned to sell a 1000 oz bar the week of the peak, believe it or not) and still comfortable on others when I realize that I bought a lot of it between $5 and $10 way back when.  And then when I consider the options (dollars or stocks or bonds) , I know that I’m doing the sensible thing by hanging on to the metal because I know that this correction will end sooner than later and we will be hitting new highs once again.

silver bar chart1Instability

So how do I know that new highs are a’ comin’?  Well, being the financial advisor that I am not, I cannot tell for sure, but a quick check of the nightly news tells me that things in our country, and around the world are pretty shaky.  In the past, when world economies get shaky, there’s been a run to the dollar.  This has been demonstrated yet again over the last few months, as per usual, but it is the status quo is no longer.  The dollar is ill, like an over active immune system, it keeps producing antibodies (dollars) that will eventually kill the system.  So if the world cannot rely on the dollar any longer, what will the world do?  They’re going to do what you’re going to do: buy some silver.  And that is what is going to send the price to the moon.  The only thing is, you’re going to buy it much sooner than the rest of the world – like right now when the price is lower and then you will appreciate the massive appreciation of your holdings.

Silver Paper Games

Much has been written about this latest price crash in silver.  There are plenty of cries of manipulation by several banks (JPM is a main culprit), and much too obvious passivity by the US government (CFTC).  Ted Butler has done amazing investigative work in regard to this topic and I suggest you check out some of his work and maybe even subscribe to his service.  The oddest thing about this latest price drop is that while the price has been dropping, demand has been rising… strongly and steadily.  This phenomenon flies in the face of basic economic theory.  There’s been plenty of talk as well about a silver shortage.  Some, like Mr. Butler, claim it’s obvious that there is.  Others say it’s just crazy talk. 

Buying the Precious

My friends and readers often ask what form of silver should I buy?  We’ll discuss how to buy silver coins and where to buy silver coins.  We’ll also discuss the best places where to buy silver bars.  And what about junk silver?  What’s that you ask? Is that some form of discounted, cheap silver knock off?  Patience, grasshopper, we’re getting to it (or just click on the link.)  What about the various incarnations of the genus ETF Silver?  Well, we’ll discuss that too.  If you choose to go the physical silver route, you’ll need some place to keep your holdings (amassed silver can get a bit… bulky).  We’ll discuss that too.  More to come, friends.  Buckle up!

I’d like to officially welcome you to our site and hope you gain and learn from it.  I’d like to hear from you as well.  Please let me know if you have any comments or questions.  You can click on the “Contact” page above to reach me, or share your comments at the bottom of any article.  Also, be sure to link to the site on your favorite forums and/or social medium, and sign up for email/RSS updates on the right sidebar.  Thanks for joining us!

Joe


The Waiting…

Hey All-

So, it’s been a while, eh?  As many of you know, I’m a teacher so I keep pretty busy.  The past four months have been no exception.  I want to keep an eye on our friend Silver, so every now and then I give a quick peek at a silver chart or I log on to one of my favorite sites to see what going on in the world of metal and whenever I do, I find myself simultaneously puzzled, sickened, & ambivalent, not only at where the price of the metals are, but at the ceaseless commentary and forecasts that never seem to change.  The silver price is back in the $19s – where it was back in July when I started this site.  The forecasts are right back where they were then as well.  Nothing seems to have changed.  No one knows anything for certain.  So what do we do?  What else can we do?  We wait…

waiting for the silver price explosion

Honestly, you could just re-read an article or two that I wrote over the summer to ascertain my current feelings and forecasts for this market at its current stage.  That too has not changed.  I am certain of the horror to come; to what degree it will affect us, or my family, or me, I don’t know.  The stock markets are enjoying their new highs and most analysts feel that there is more to come until there isn’t any longer.  A painful and probably protracted correction is on the way that will take everything with it… maybe even silver and gold… for a while.  The metals will experience an explosion in price at some point in the future.  When will that commence?  Well, most likely sometime after we’ve hit bottom.  We certainly continue to experience the current “bottoming process.”  Perhaps lower prices and even a new low are in the cards.  Perhaps we’ve already had our low and just need to get our feet under ourselves before we can rise up. …

The Noise

You know I’ve written about this before and it still challenges me to some extent.  There is so much information regarding the metals market these days and there’s not enough time in the day to read all of it.  Many of you send me articles from this or that author portraying your particular point of view.  The forecasts vary, but it still fascinates me that I will tend to focus on the forecasts that agree with my personal opinion.  As I’ve mentioned elsewhere, I’m still looking to affirm my beliefs, I suppose, and what better way to do that than to read the articles of people who write what I agree with.  I guess there’s nothing wrong with that, unless of course I’m wrong – ha.  In the meantime, and in the end, it’s all kind of a waste of time though, isn’t it?  I mean what’s the point of reading the same stuff over and over again?  What’s the point of following the metals that aren’t going anywhere?  What’s the point of reading this…?  Exactly…

So, with that said, I’m going to sign off for now.  I merely wanted to touch base with y’all and let you know that all is well and that nothing has changed with our friend Silver.  The fundamentals are sound.  Sometime during 2014, she will have something to say about these low prices and the ongoing manipulation of her paper price, and after she gets warmed up, she will not speak softly.  I’ll be back when there’s something to write about.  In the meantime, ignore the noise, focus on what’s truly important, and enjoy yourselves.

Much love and light to you in this New Year.  J.

PS- If you haven’t noticed, we removed the commenting abilities from the articles.  We were being buried by spam.  We still want to hear from you though.  You can reach us via the “Contact” page.  See ya’!  J.

Silver and Gold are NOT Our Power

Hello Friends-

As we move into this long weekend, I find it important to share a couple of emails that I received from some friends of the site recently — I hope they don’t mind me sharing.  Here’s the first from C., followed by my reply:

hey joe how u doin .       just been following the silver move up steadily  in the last week or two which was nice and then yesterday we had this huge drop back may be 2 or 3 % what do you think was the reason for this everything i am reading is telling me it is still going higher but what caused the hiccup in the last 2 days or is this not unusual like i said when i contacted you before i am very new to this game   thanks take care    c.

This is sort of action is very usual, C.   Take a look at what happened in April 2011 until June 2013.  Silver offers incredible profit potential.  Along with that will come massive rapid sell-offs.  You need to be mentally and emotionally prepared for it.  As I recommend in my writing, don’t mess with any daily charts – just ignore them.  Focus on the monthly charts or weekly if you must.  I don’t plan to sell anything until the mid-$40s – whenever that comes.  You cannot worry about this stuff.  I’ve been there and will not go back.  Life’s too short.  J.


Here is a second letter from T., again followed by my reply.

Hope this finds you in good spirits! I have just finished reading “Trying to stay sane in a insane world” on The Burning Platform site. I do not know if you have read it or not but bet you have. Anyway, it goes into pretty good detail about this country’s financial situation. I have always known this and that is why I have PMs.What I want to ask you is, if these so called human beings that run this show have this much power, what is going to keep them from undermining my having PMs either by manipulating the markets for ever to their advantage, or taxing them out of all the PMs worth or confiscate them? Jim Sinclair and Bo Polny have both told me to hold on to my metals always and that 2020 is the year all this will come to a head, so hold on and sell only what you need to and save them for prosperity. What do you say? And I have always worried about how do I sell the metals when I need to and to whom? Hope I have not “bugged” you too much! I think you get what I am asking you. Thanks for all you do and I am glad I have found your site!   

Hey T!  I’ve addressed your questions in an article on my gold site: http://tobuyandsellgold.com/where-to-now/
Every once in a while I started feeling a bit helpless and despondent about the current state of affairs and about what the future holds.  I’ll indulge myself for a day or two and then realize that worry and fear are just a waste of energy.  No one knows what will happen, not even Jim S. or BoPo.  All of the analysts and forecasters have no idea either.
The metals are a form of security and a protection of our wealth, but they are just metals.  They are not our power.   Joe



 

First off, I want to thank C & T for sharing their questions, thoughts and concerns with me.  I don’t take this position lightly.  There are literally hundreds of chartists, analysts, and forecasters out there.  I feel like my niche in this mess of metals is to help new investors.  So again, thanks to C & T.

That said, this is not a game for the weak.  Gold and silver (or any volatile market) will drive you mad if you let them.  I find it fascinating that, I received these emails at the same time that I was experiencing a loss of direction myself (see link to our gold site above).  As I wrote in the second letter, fear and worry are a waste of time, energy and life.  Think about 5-10 years from now.  Silver and gold are many multiples higher and the government let you keep all of those not-inflation-destroyed dollars after you sold right at the peak, but you’ve been miserable this whole time.  You’ve wasted 5-10 years of your life on worry.

It’s not about the destination, everyone.  It’s about the journey, and that journey will reach great heights and plumb the nadir of despair.  That’s life!  You don’t have to enjoy it, but at least try to respect it and appreciate it.

_________________________________

Well, that may not be what you wanted to hear, but it’s what I need to write.  I encourage you to invest in the metals, and have fun with the metals.  Do your research, but don’t expect anyone to provide you with the “correct” answers every time.  If you’re having trouble sleeping, you’re over-invested.  Buy or sell what you need to rest easy.  Rest easy this weekend, friends.  Remember, these metals are fun to play with, but they are not our power.  Our power is limitless and formless.  It is worry-free and certainty.  Joe

PS- Please feel free to share your comments and questions here.  If you think I’m full of bologna (baloney for you purists), then lay it on me.  As always, I ask you to share our site with your friends and neighbors.  J.