Price of Silver Off Slightly This Week – Panic!

by Dr. Michael Jay





While it is true that silver closed slightly down for the week (maybe 50 cents? depending on the delivery date), it is not time to abandon the bright and shiney!  It is easy to get your neck tie caught in the roller coaster ride that represents the daily and weekly gyrations of the silver market – but it is a big mistake!  If you find yourself anxiously watching the ticker tape (or these days hitting “refresh” on your computer to get the latest trade), you need to make a change.  Here are three possible changes you might consider:

1) If you purchased silver (or gold for that matter) as a long term hedge against possible (likely) inflation – than the day to day prices don’t matter.  You are trying to preserve your buying power against the dollar.  Until the threat of inflation passes, or something else fundamental happens that changes your overall strategy, why even look at the short term changes in price?  Remember WHY you own silver, then resolve to ignore the day to day and even week to week changes in the market.

2) If you simply can’t sleep at night.  Sell some of your silver.  Yep you heard me right.  It’s not worth the loss of sleep.  You must have put more than you can afford into silver.  Sell some – pay down your debts, move to gold, cash, the euro, something that lets you sleep.

3) Trade a small percentage (maybe 10%?) of your position.  If the money lost and gained is just driving you crazy, why not sell a small portion of your position when you feel it is “high” or “over bought” and then buy back in when it is “low” or “over sold”.  This way you keep your main position but can satisfy your itch by profiting from the daily gyrations.

Hope that helps!

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by Dr. Michael Jay

“American Eagle Coin Collectors are Angry”

I just read a very interesting blog post discussing the US mint and production of Silver Eagle coins under the title “American Eagle Coin Collectors are Angry”.  The author asserts that the temporary halt in sales last spring and the new buying limits imposed are a result of:

“the U.S. Mint ran out of blanks used to create parts. A blank, or white asthey are sometimes mentioned, is a round metal disc that is ready to be struck coins. These blanks are also used to create parts other than American Silver Eagles, and the companies producing the blanks are busy, limiting the offer received by the U.S. Mint.”

He further states “Clearly, the U.S. Mint has underestimated the strength of the silver bull market and the demand for American Silver Eagle Loonies.”

You can read the entire article here:

http://americanmutual.bloggenesis.com/2009/12/25/american-eagle-silver-dollar-coins-the-reasoning-behind-rationing/html

Whether or not the “rumor” is correct, the facts this article presents about the price and value of silver or “spot” on :) !  I can tell you that THIS Eagle Coin collector is NOT angry the value of his collection is going up.

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December 24, 2009

This is my first Post.  It is a test

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