Three Reasons Why Waiting For "Cheaper Silver" Doesn't Make Cents

If you're still waiting to buy physical silver to start a stash, you're now playing financial Russian Roulette... with four rounds in the cylinder.

The chat rooms talk about buying silver and gold when they decline in price. "If silver goes down to 22, I'm all in!" "When these 'excessive' premiums drop a few dollars, I'm backing up the truck."

1) Emotion and Sentiment

Believe it or not, buying on a price drop goes against human nature.

It is a bit strange, because if you go to the store and find your favorite grass-fed beef on sale, you'll probably see how much you can stuff in the freezer. But back to the metals.

How many people do you know who purchased silver in the spring of 2020 when it fell briefly to $12? Or in 2008 when it fell to $9... before rising to $50 less than three years later? Did you?

Another big change, seemingly contradictory -- is that increasing numbers of well-studied investors are buying whether the price goes up or down, with retail supply getting continually whittled away.

Their sentiment seems not as heavily impacted as others, who remain fearful of declines, or -- as is still the case with most Americans -- are not yet aware of how quickly government-induced inflation is eating away at the value of their pensions and the greenbacks in their wallets.

During market turbulence, the news invariably causes a decline in sentiment, making it difficult even for those of us who've been in these markets for many years, to go ahead and buy.

One of the most important characteristics of an investor who succeeds long term over the majority who do not, is the ability to "Buy when others are selling and sell when others are buying."

It's like the habit of going to the gym. At some point it never gets any easier. No matter how strong your original motivation was, it still can be hard to push yourself out the door and keep at it.

To handle buying more silver when sentiment is negative -- like it is now -- simply go out, as Galactic Update's Stewart Thomson says, and "Buy less than is rational." How much is less important than keeping the habit.

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Disclaimer: Money Metals Exchange and its staff do not act as personal investment advisors. Nor do we advise about or advocate the purchase or sale of any regulated security, listed on any ...

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