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padington

How Many Increments Best To Buy Into Silver Market ?

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OK I'm led to believe the best way to buy into even a bull maket is in increments. This means if it goes up you win and if it goes down and then up you win. What kind of increment should I buy in with 100k ? Or should i just go all in like a crazy man ?

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Wow 100k. I'm waiting for things to settle down a bit before I go in again with my small amount. It seems like a load of bad news came at us in a short period of time which sent the metals berserk.

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OK I'm led to believe the best way to buy into even a bull maket is in increments. This means if it goes up you win and if it goes down and then up you win. What kind of increment should I buy in with 100k ? Or should i just go all in like a crazy man ?

I'm asuming with £100k for a silver investment you are a serious investor who is typically staking 2-3% of their diversified portfolio on silver?

If this isn't the case and this £100k isn't part of a multi millionpound portfolio then I suggest you spend a bit of time educating yourself on the basics of risk management.

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use the 100k as a deposit to leverage up 2x

you know it makes snese

I'm asuming with £100k for a silver investment you are a serious investor who is typically staking 2-3% of their diversified portfolio on silver?

If this isn't the case and this £100k isn't part of a multi millionpound portfolio then I suggest you spend a bit of time educating yourself on the basics of risk management.

Could you suggest any bed time reading or elaborate on any strategies ? Not regarding how much of your portfolio should be in silver (2 - 3 % in my opinion is terrible advice) but how to buy into specifically the silver market with specifically 100k.

Edited by padington

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OK I'm led to believe the best way to buy into even a bull maket is in increments. This means if it goes up you win and if it goes down and then up you win. What kind of increment should I buy in with 100k ? Or should i just go all in like a crazy man ?

You would be better off spending the 100k at once, it is much less hassle and will save you a lot of time. Having said that I would personally use the 100k to borrow 500k and then buy silver with it. If it goes up you win so you might as well win more. If it goes down all you have to do is go back to where you borrowed the 500k and borrow some more so you can win again. Let me know how it went please.

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You would be better off spending the 100k at once, it is much less hassle and will save you a lot of time. Having said that I would personally use the 100k to borrow 500k and then buy silver with it. If it goes up you win so you might as well win more. If it goes down all you have to do is go back to where you borrowed the 500k and borrow some more so you can win again. Let me know how it went please.

Buying silver requires very little hassle and hardly any time, not sure why you would think otherwise ?

Edited by padington

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OK I'm led to believe the best way to buy into even a bull maket is in increments. This means if it goes up you win and if it goes down and then up you win. What kind of increment should I buy in with 100k ? Or should i just go all in like a crazy man ?

Spread it around, etfs, silver miners shares and physical. Good luck.

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I would think that BullionVault is a good place to go unless you actually want the bars and coins in hand. In which case i would suggest coininvestdirect.com

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I would think that BullionVault is a good place to go unless you actually want the bars and coins in hand. In which case i would suggest coininvestdirect.com

With that sort of money to invest then a trip to Germany would be worth the effort to pay their 7% tax instead of our 20%.

I wouldnt be buying silver here though as I believe that very soon gold will start to outperform silver and the GSR to start climbing again.

£100k in silver? I hope that was hypothetical.

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Who can say? I went all in to silver and gold (a hell of a lot less than 100k!) 2 years ago. Only put 10% of my total metals investment in silver though, the rest went in gold. Haven't looked back since B)

Obviously timing is everything and I would be expecting a small consolidation in silver from here, so maybe now is not the optimum time to go all in. RichyC's advice about the seasonal lows would typically be sound, but if Fukushima or the global financial system goes full retard in the mean time, you might kick yourself for waiting that long.

I would agree that you want a hell of a lot more (of your cash assets) than 2-3% in silver. But I'm also assuming that 100k is not your entire net worth and you have other capital/investments? That said, you could probably do a lot worse than going all in silver right now, it should be a one way bet over the medium to long term (very volatile in the short term though), but always prepare for the unexpected.

If you don't have gold then I would put a chunk in that too, as I also expect gold to make the biggest % gains in the next move up for the metals, it is overdue, especially in the £/Oz. Plus gold is a good a long term bet as silver IMO.

What to buy? Get a good chunk of physical, but if you don't want to store a hundred kilos of the stuff (silver is currently about £1000/Kilo) then put the rest in goldmoney or bullionvault. I'd steer clear of ETFs.

If you go the incremental route, I would probably start with 5k-10k increments every couple of weeks. But while this method can work in your favour if the price dips in the interim, it can also work against you if the price keeps on rallying from here and never corrects below $40/Oz ever again. That said we could get a (pretend) end to QE3 in June that knocks the price back a bit and creates a buying opportunity significantly below $40, before Benny and the Inkjets turn the printers back on and carry on their merry way.

Second guessing the market is even tougher when it's not a free one, what can you do?! :huh:

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Also, I would hold off until August for the seasonal lows.

I agree but as General Congreve says, there are other factors which could affect the seasonality of PMs this year.

Anyway, I leave this 40 year seasonality chart for silver, you should find it interesting padington:

bQkiE.gif

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I agree but as General Congreve says, there are other factors which could affect the seasonality of PMs this year.

Anyway, I leave this 40 year seasonality chart for silver, you should find it interesting padington:

bQkiE.gif

I agree about other factors this year but I dont see them being in favour of silver. The main markets are overbought and have been for some time. When the overdue correction comes then silver will nose dive as liquidity is pulled from the markets - hence my belief that gold will outperform silver and the GSR increase. Silver isnt a fear play or any real sort of hedge.

Op, if you want to do some reading then I can recommend pretty much everything here http://www.zealllc.com/

April and may are often strong months for pm's so there is no need to rush into anything, take the time to read and buy in the summer imo.

Edited by richyc

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OK I'm led to believe the best way to buy into even a bull maket is in increments. This means if it goes up you win and if it goes down and then up you win. What kind of increment should I buy in with 100k ? Or should i just go all in like a crazy man ?

http://tfmetalsreport.blogspot.com

This guy has a very good track record for predicting the silver market. He's advising to buy at $39 at the moment.

Personally I wouldn't put more into precious metals until it's clear whether US Quantitative Easing will pause or not. You want to target the big corrections.

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Could you suggest any bed time reading or elaborate on any strategies ? Not regarding how much of your portfolio should be in silver (2 - 3 % in my opinion is terrible advice) but how to buy into specifically the silver market with specifically 100k.

would suggest reading the three little pigs and the big bad wolf

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Could you suggest any bed time reading or elaborate on any strategies ? Not regarding how much of your portfolio should be in silver (2 - 3 % in my opinion is terrible advice) but how to buy into specifically the silver market with specifically 100k.

And you say it's terrible advise on what basis???

I am something of a precious metals bug and follow the gold/silver investors such as Marc Faber and Peter Schiff.

If you read what they have to say they recommend between 10-20% in commodity based investments, split between the pure commodities and commodity equities.

No one recommends going 'all in' on silver alone.

You are dealing with a seriously volotile investment, for which anyone would get too emotional on watching a huge stake in.

The point of diversification is keeping your focus and being able to reallocate if the s*** hits the fan on one of your investments. Risk management is crucial.

So say 5%-10% in commodity stocks (oil, gas, agriculture, miners, etc) and the remaining 5%-10% to in pure commodities.

So of the pure commodity investments, if you go with 10% allocation, something like -

6% Gold

3% Silver

1% Platinum and Palladium.

The remaining 80%-90% should be in equities, commercial property, bonds and cash.

If you are going to speculate on silver I suggest you read up on the technical and fundamental analysis for the metal.

What are the current supply / demand fundamentals to imply that silver will go higher?

What are the technicals for the silver price?

Why is silver now a great opportunity for the next year after so many others have ramped the price up?

Personally as I see silver getting quite high above its 200 day moving average, it would suggest a pull back is due sometime over the next 1 to 6 months.

Edited by ringledman

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And you say it's terrible advise on what basis???

I am something of a precious metals bug and follow the gold/silver investors such as Marc Faber and Peter Schiff.

If you read what they have to say they recommend between 10-20% in commodity based investments, split between the pure commodities and commodity equities.

No one recommends going 'all in' on silver alone.

You are dealing with a seriously volotile investment, for which anyone would get too emotional on watching a huge stake in.

The point of diversification is keeping your focus and being able to reallocate if the s*** hits the fan on one of your investments. Risk management is crucial.

So say 5%-10% in commodity stocks (oil, gas, agriculture, miners, etc) and the remaining 5%-10% to in pure commodities.

So of the pure commodity investments, if you go with 10% allocation, something like -

6% Gold

3% Silver

1% Platinum and Palladium.

The remaining 80%-90% should be in equities, commercial property, bonds and cash.

If you are going to speculate on silver I suggest you read up on the technical and fundamental analysis for the metal.

What are the current supply / demand fundamentals to imply that silver will go higher?

What are the technicals for the silver price?

Why is silver now a great opportunity for the next year after so many others have ramped the price up?

Personally as I see silver getting quite high above its 200 day moving average, it would suggest a pull back is due sometime over the next 1 to 6 months.

Nah I don't buy the 10% rule, silver will be the best buy the market has to offer in the next five years, you watch. At 40 for a five year plan, as I'm thinking, its dirt cheap. Marijuana is 6 -8 times more expensive and thats not finite FFS. Naturally I'll be checking the market like a hawk, with stops in place and prepared to pull out on a correction. However essentially its a bull market for many, many good reasons. I will of course aim to come into the market at the best time(s), , hence my question

I've done a fair bit of homework though, believe me ...

http://preciousmetalsnews.blogspot.com/

Edited by padington

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