[caracal]

(05-14-2014 10:01 AM)DJ-Matt Wrote:  

I own a bunch of these, an easy way to purchase silver ounce by ounce.

I've actually decided to go down a similar path. Buy silver and a few gold coins I particularly like that also have an intrinsic value whenever I feel I have a bit of spare money I can splash around.

[rudebwoy]

Any Silver bugs out there?

Are you still stacking....

[vinman]

When I see gold or silver prices getting hit I automatically think buying opportunity.

[rudebwoy]

You buying silver eagles? Yes it will hit big in the next few years.

[DJ-Matt]

I keep seeing threads on slickdeals for coins and bars at near spot prices which is damn cheap.

[Phoenix]

Perhaps someone can explain the silver-hoarding mentality to me.

I can remember many people, in person, on forums, and in youtube videos/comments, talking about silver-buying like true believers.
Whenever the price goes up, its 'proof we are right' (and should buy more), whenever the price goes down, its 'proof of "manipulation"' and a signal to 'buy more' (because its now 'cheap').

They would even compete on how hardcore their silver-buying is. 'Buy physical'. 'Don't just buy bars, buy coins for "liquidity"'.

When I pointed out 'the price curve is going parabolic, this is evidence of a bubble', the response was a stubborn 'these are the reasons why silver is in demand:', not 'yes there is a risk this will pull back'.

And what were the results of this? Silver was at $48 in 2010. It is now $16. Anyone who bought during the furor of 2010 has been completely smashed. I remember seeing a chain of Youtube comments for one video: '42!' '45! '47!'. I wonder if there is now a '16!' comment. I remember meeting someone back then who was giving me the 'buy gold, agriculture, and especially silver' line. I wonder if he sticks by his analysis now.

Does this mean the investment decision was wrong? Oh no! This means buy more! 'Stack' the silver. 'At these prices "I will back up a truck"'. Its purchase is always correct, no matter what happens to the price, or how much money we lose. Silver is 'magic'.

When a normal person makes investment decisions, it generally goes like this:
I want to make lots of money, as fast as is possible, risk-adjusted -->>
I will analyze assets and decide based on the data whether their prices will go up or down -->>
Buy/Sell accordingly -->>
Reanalyze my decision in the future, and possibly adjust accordingly

It seems that in the silver-buyers mind, the chain of causation is as follows:
I will buy silver -->>
I will justify this purchase, without regard to what happens, with 'inflation, industrial demand' etc -->>
I will buy more silver

What gives.

[rebelofbabyloin]

I buy silver eagles along with pre-64 circulated coins. The collector value tends to cover the silver price fluctuation.