asolarsilver
22nd January 2011, 08:57 AM
Hi,
I was reading another post "Bulls are in control of the Economy, so does this mean Silver/Gold will go down?" and there was a response by Sparky that intrigued me. "......You should have a core position of silver/gold that you never plan to sell. Then you can have a second core position that you don't plan on selling until the end of this metals bull is over, maybe 3-7 years from now. (That's just my guess on timing.) Then, if you like, you can have a third position that you can trade in and out of if you want to speculate and try to time price movement. I recommend stocks for this.
Only this third position should be under consideration for selling. I think you're a newbie buyer, right? You shouldn't be thinking about selling any metals. Hope the price goes down so you can accumulate more........"
Sparky's comment above about the 3 core positions is interesting as we arrived at our initial goal of 900 oz as follows: believing gold will hit $3,500 per ounce by Dec 2012 and the silver-gold ratio will at that point be 16-1, giving silver a price of $218.75. If we sold all the 900 oz then we would have enough to pay off our adjustable rate HELOC / 2nd mortgage but we would be out of silver. So, we planned on buying silver after meeting our initial goal so we would not be out of silver. One concept I am currently considering is what the second goal should be. My friend is advising us that if silver does go up then sell and use the profits to buy gold.
Do any of you have thoughts on the second & third core positions? We got our initial goal after talking to our friend and using his idea on what we wanted to cover / hedge, what our biggest financial stressor is. Is that a good thought process for the 2nd & 3rd core positions also?
And, I know PM is a volatile market, especially silver, but what are the thoughts on this forum about the possibility of silver dropping back done to the single or double digits? Never again? It could? No way to tell? And, any thoughts on what we can expect the futre to hold for price increases? Is my thought of a 16-1 ratio unrealistic? What about the Dow – silver ratio? I know there are no guarantees and everything I s pretty much guesses, and opinions, and everyone has one, but I find them interesting.
Thanks for the wide ranging thoughts!
I was reading another post "Bulls are in control of the Economy, so does this mean Silver/Gold will go down?" and there was a response by Sparky that intrigued me. "......You should have a core position of silver/gold that you never plan to sell. Then you can have a second core position that you don't plan on selling until the end of this metals bull is over, maybe 3-7 years from now. (That's just my guess on timing.) Then, if you like, you can have a third position that you can trade in and out of if you want to speculate and try to time price movement. I recommend stocks for this.
Only this third position should be under consideration for selling. I think you're a newbie buyer, right? You shouldn't be thinking about selling any metals. Hope the price goes down so you can accumulate more........"
Sparky's comment above about the 3 core positions is interesting as we arrived at our initial goal of 900 oz as follows: believing gold will hit $3,500 per ounce by Dec 2012 and the silver-gold ratio will at that point be 16-1, giving silver a price of $218.75. If we sold all the 900 oz then we would have enough to pay off our adjustable rate HELOC / 2nd mortgage but we would be out of silver. So, we planned on buying silver after meeting our initial goal so we would not be out of silver. One concept I am currently considering is what the second goal should be. My friend is advising us that if silver does go up then sell and use the profits to buy gold.
Do any of you have thoughts on the second & third core positions? We got our initial goal after talking to our friend and using his idea on what we wanted to cover / hedge, what our biggest financial stressor is. Is that a good thought process for the 2nd & 3rd core positions also?
And, I know PM is a volatile market, especially silver, but what are the thoughts on this forum about the possibility of silver dropping back done to the single or double digits? Never again? It could? No way to tell? And, any thoughts on what we can expect the futre to hold for price increases? Is my thought of a 16-1 ratio unrealistic? What about the Dow – silver ratio? I know there are no guarantees and everything I s pretty much guesses, and opinions, and everyone has one, but I find them interesting.
Thanks for the wide ranging thoughts!