Buy some now!
I’m thinking about starting to invest in precious metals and need some advice.<br>
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Basically, I’m 21, run a small business, own a car outright, no debts and can easily pay my current load of bills with my income, but, rather than transferring “extra” income to my saving account every month, I tend to spend it on things that aren’t really necessary.<br>
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Ultimately, I feel like I’m not working towards something long-term.<br>
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So, I thought it would be smarter to start placing some of that extra income into a long-term investment plan, which involves me buying 1oz silver ingots or 1 pound copper bars a few times a month and over time building a nice size stockpile without a large initial investment; I don’t have the savings to go drop thousands right now on much of anything.<br>
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I've never owned precious metals, so I need some advice. Any info would help.<br>
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<em>Does anyone have an advice?<br>
Should I wait and see if silver drops?<br>
Is this a good or bad idea?<br>
And if good, where should I buy?</em>
<br><br>You are thinking smart for a 21 year old, wish that I could have said the same thing about myself. First of all, now is a great time to start, just start buying small amounts over time so you dollar cost average. You wouldn't want to start off buying a bunch with your life savings because with any market there is downside risk, and you could lose some money in the short term.<br><br>If you have ten or twenty thousand in savings then start out buying maybe one or two thousand dollars worth of silver and gold per month, or if you don't yet have any savings, that is okay too because you are debt free, just figure out about how much you are spending on "extra" stuff per month that you really should be saving, lets say that number is $200. Then every week/month buy a set amount of gold and/or silver, this way if the price is down you will get more ounces, and if the price is up you won't run the risk of losing too much if the market pulls back. This concept is called dollar cost averaging. <br><br>You ask if you should wait to see if Silver drops, well, you could try and time the market, but if it were possible to do with 100% accuracy then everyone would be doing it. In reality, technical analysis does work pretty well so you could go over to stock charts dot com and take their online basic candlestick technical analysis course. It is how I first learned technical analysis. Just a few days ago I thought Silver and Gold were ready to break out as they both had pulled back, consolidated, and were about to cross resistance points on the chart. I figured the metals were gonna make another run, or they'd get pushed down, and the latter happened, it appears someone tried to put the damper on what looked like a technical breakout, and it worked kind of-- but the demand seems too strong and the market dumping didn't keep the price down for very long. This to me shows that there is exceptional demand at current prices so buying either silver or gold now would not be bad timing at all. If someone keeps pushing the metals down when they appear ready to break out, the charts may suffer enough damage to cause metals to pull back some, but as long as you are buying in smaller increments you will be happy to get some at a lower cost, if it goes up then you'll be happy too.<br><br>I'd say the chances are better than 50% that we see $2000 gold and $40 silver before we see $1500 gold and $30 Silver. In either case, in the next few years there isn't much that will stop both from rising, eventually there will probably be a period of very fast price increases possibly increases of 60% in a very short time, like the final phases of the gold breakout back in the 80's. I personally like to buy $1,000 in silver or gold every month or two, when the market seems soft. I am heavy in Silver because I think it is under priced compared to gold, but I always get a little bit of gold (and I mean a little... like a tenth ounce) which forces me to pay a premium. Buying in 1/10 or 1/20 carries a big premium you'll be paying way over $2000 an ounce. Silver on the other hand, I like to buy canadian maple leafs, the .9999 purity and try to get them as close to spot price as possible, usually around $3 or $4 over spot. They are widely accepted for their exceptional quality, and nothing gives you a better feeling once you start accumulating a nice pile of these coins.
<br><br>Buy from a reputable online dealer, I use apmex & kitco and am happy with both. You get a better price if you pay by check or money order and better prices for quantity.<br><br>If I were you, I would start today. Order yourself a few Canadian Maple Leaf Silver Ounces on pay-day, use the "pay yourself first" mentality. If you wait until all the bills are paid there will be nothing left for you-- the most important person. You'll have fun trying out different coins, I like the look of Australian Kookabura's but they usually carry a price premium. You can get some silver and gold on ebay but its usually over priced by about ten percent for some reason. Stick with high quality, very pure coins, they are easy to liquidate if needed.<br><br>Have fun, once you get started you won't want to stop. <br><br><br>
