Silver News

The Mission Of The Silver News Surfer Has Always Been & Will Always Be - To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!

May Health Wealth And Success Be Yours!


Gold & Silver: Don’t Wait for the Bottom – “Average Down”

May 7, 2013 9:24 am est

On a Personal Note…

Just FYI – In case you were not aware – Aside from great advice and good reading… The Silver News Surfer does sell silver and gold also.

If you can understand and comprehend how your purchasing power is being destroyed and that silver & gold has a 5,000 year track record of intrinsic value, then you will be just fine.

That’s not to say that you still have your concerns about when to buy, how much to buy and when to sell – it’s a very confusing time.

Hopefully, by the end of today’s report, you will have a more clear understanding of the dollar cost average factor and be more clear on your decisions.

The Mission Of The Silver News Surfer Has Always Been & Will Always Be – To Preserve Your Wealth, Protect Your Purchasing Power and Help You To Create Generational Wealth!

May Health Wealth And Success Be Yours!

 

Eric Weigand

The Silver News Surfer

954-639-3059

Now, onto the business of protecting your wealth…

After countless conversations with my readers and followers, I surmise that you know that you want to buy silver and gold and for all the right reasons, but you are still scared and concerned that if you do buy, maybe the price will go down even more – So let’s roll-play that scenario.

Yesterday, silver was holding strong at $24 and today it’s down .50 cents at $23.50. So lets say you bought yesterday and you woke up today to see the market down… are you mad at yourself? Does it really matter that you could have bought .50 lower?

Let’s say that you bought today .50 down and then by the end of the week silver goes down another $2. does it really matter? You have to realize that it is not about price here – it’s about accumulation of an asset that is short in supply and high in demand that is causing premiums to spike!

If you buy silver and gold the right way and for the right reasons, then you have nothing to worry about and you should stay true to your convictions and be scared of nothing! If you bought today and silver went down to $18 what would you do? Would you get scared and sell or would you take a deep breath and maybe buy more down at a lower price?

Most investors, and I mean a large portion of investors are momentum investors, this means they love to buy when the market is going up and people are all over the news talking about it – this, in simple terms means, start thinking about selling and booking profits. So again, I ask you  – if you bought silver and gold, which reflect 5,000 years of intrinsic value and it went down from where you bought, should you be mad, nervous or scared?

I say no. Here’s why…

Other than the “detailed Strategy” that I presented to you back on March 29th or the dollar cost average strategy I presented back on April 3rd, there are more reasons to cost average your positions today, then when I wrote these pieces.

Conclusion:

I can see that sometimes I may sound redundant in my writings, it’s simply because I want to make sure you fully understand that there is virtually no risk in investing in precious metals – I for one have purchased as low as $8 and as high as $52 with premium in 2011 and I will continue to accumulate on a dollar cost average basis and never sell until the reasons to sell are clear and prominent and today, they are in no way clear – the need to protect purchasing power and preserving wealth are a heck of a lot stronger than they used to be.

I know where my research leads me – where does your research lead you? If you believe that the fundamentals for owning more hard assets outweigh the need of owning paper liabilities… then your choice is clear – But just as a reminder, incase you were distracted, here are the top 4 questions you need to ask yourself to understand the fundamental factors of physical ownership… Check each box…

Do we have –

1) Debasing currency – Yup, the FED still has ink in the presses and trees to cut and $80 Billion is still being printed every month.. so check that box.

2) Inflation – yup, gas and food is virtually double from just four years ago… check that box

3) Geo political tensions – yup, Israel & Syria, No. & So Korea, No. Korea & the US among others… Check that box.

4) Supply & Demand – yup, got that one too. The US Mint has reported a all time record 1st quarter 2013 of silver eagle sales, junk silver premiums have sky rocketed if you can even find them and the silver eagle premiums are virtually through the roof… so check that box too.

You see guys, this is where you are being trick, lied to and shaken out of your positions because the cartel is trying to scare the hell out of you and for most, it’s working like a charm!

Don’t fall for it, stick to your guns. My readers are not dumb, you get what’s going on, I know you do!

Now, on to the breaking news that matters…

  

How Your Purchasing Power Was And Is Destroyed – Most people fail to understand basic mathematical concepts such as exponents and ratios as they apply to everyday life.  We usually “get it” when it comes to the mathematical facts that are taught in school (if we passed through basic Algebra) but nobody in our government schools ever teaches how these functions apply to the real world.

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I can understand how someone might not “get it” when it comes to how they’ve been robbed if it has not been clear to them, and they simply didn’t know where to look to find the truth. But after seeing this (and verifying it for yourself), exactly what excuse do you have for continuing to play the puerile game run by both the banksters and the politicians of all stripes?

Read More Here

A complete and total RUN on physical metal supplies and inventories has never ever been more ripe than it is now.  The “paper smash” that was surely designed to SCARE investors away from the metals has done exactly the opposite.  It was in retrospect a MASSIVE MISTAKE!  Previous to take down 3 weeks ago we believed that the physical market was “fragile” at best, now we have proof that we were correct in this analysis.

Now the question becomes, “can they put this back into the box?”.  Can they calm the physical precious metals markets?  My guess is that they cannot unless…one of two or both of two things happen.  Some way, somehow “sufficient supply” must show up in the cash markets OR the price must rise (and by rise I mean dramatically) in order to ration out the existing supply.  Nothing causes a buying panic greater than a shortage.

Read More Here

The Global Run On Silver & What It Means Going Forward – The recent run on silver is a sign that the general population is starting to understand the stark differences between the safety of sound money and peril of paper money.  We can only hope that more and more people reach that same conclusion before it is too late.”

Read More Here

Gold and Silver: Sentiment Reversal is Inevitable –  The usefulness of sentiment’s stealth crystal ball is about to be revealed to the litany of unsuspecting precious metal bears and skeptics who have convinced themselves that gold’s bull market is either over or, at the minimum, in need of lengthy ongoing retesting, restructuring and consolidation.

Sentiment extremes, simply put, tell us that there are too many traders at one end of the boat and therefore the boat is about to tip over. Sentiment can strongly suggest that the trade, as some say, has become “crowded”. When someone finally yells “fire” in the “crowded” room there are so many of the market’s participants motivated to get out the same door and in the same direction that most get trampled – unable to reverse their trade fast enough.

Read More Here 

Gold & Silver: Don’t Wait for the Bottom – “Average Down” 

You cannot control what others do, especially those in power. You can control what you do.  Just keep buying, regardless of price, because if/when the price of gold and silver were to go lower, you may not be able to buy.  If/when the price of gold and silver were to go higher, it may be at such an accelerated rate that any price in the past few years seem cheap.

So writes Michael Noonan (http://edgetraderplus.com) in edited excerpts from his original article* entitled Gold And Silver – Are You A Lion Or A Gazelle?  You Had Better Know. (NOTE: This post is presented by  Lorimer Wilson, editor of

www.FinancialArticleSummariesToday.com)

The question of whether to buy gold and silver is an answer already known by almost all who read commentaries like this.  Should you continue to buy more is a question, the answer to which is apparent to most.  For us, it is the best way to survive what is going to be a worsening and even more brazen theft of whatever people have that is unprotected….

Will the price of gold and silver continue to go lower?  We think they will. Does that mean you should wait before buying more?  That has now become a personal decision that needs to be viewed in the context of what has been expressed above, and there are so many other instances that can be cited.

There is no single answer, no right answer.  However, one to be considered is the “averaging down” concept.  The notion is to average the cost of ownership of something over time.  Usually, buying something that is going down is not a good practice.  In this instance, it is different.  It is a matter of fiat fraud by central bankers and a matter of survival by those in opposition….

Our advice is to have a strategy to keep buying physical gold and silver, according to your own needs and circumstances, and be smart about it.  Do not think you can outdo those who are in control, at least in the short run.  Averaging down, in current circumstances, is a whole lot better than trying to pick a bottom.

As to the timing on when such a bottom may occur?  It could well be years from now, and that should be a realization in your personal strategy.  It could happen sooner, and most likely as a “surprise event,” where the prices of gold and silver will take off in a manner that will defy belief.  It can be anything in between.  Laws may be instituted making the purchase of gold and silver akin to an “act of terror” against the government.  No one knows how and when events will develop, and that is the point.

 

Just keep dollar cost averaging!