I’m not sure who said it but it’s worth repeating. The best time to buy silver was ten years ago, the second best time is now. This week TPS (The Prospector Site) received our share of emails asking if now is a good time to buy or wait in hopes of a silver price dip. I understand the thinking but to me personally the risk doesn’t out way the return. Over the next few hundred words I’ll explain why I feel now is the time to buy silver.
Few will disagree when I say the world is changing before our very eyes. Germany has asked the US to return all physical gold stored in the United States. The rumor is this gold, German gold that is, is no where to be found. Domestically, this administration is “all in” as they ask Congress to erase the debt ceiling even to the point of warning anyone standing in the way of such fiscal irresponsibility as a obstructionist.
This week alone President Obama warned those opposed to raising the debt ceiling, increasing the national debt, as “responsible if our economy falters”. Never before has this author heard such a political admission of bankruptcy as when the President of the United States admits the only choice is diving deeper in debt. The USA has reached the monetary point of no return from the lips of our own president.
Let me be perfectly clear here. I hold no political bias; my objective is nothing more than to compare facts of the day to PM (precious metal) relevance. I have my political opinions, like you do too, but they shouldn’t play into your decision to buy or not buy silver.
When a country reaches such a point of borrow or bust it matters little the price of silver or gold. The only issues are how much one can afford, where you will buy it, where will it store. Maybe at this point I should share an email we received this week to better clarify my point.
QUESTION: I am looking into purchasing a few thousand dollars of silver coins (junk) from a reputable local coin shop here. Do you recommend I wait for awhile to see if the price drops (like sometime this summer)? I am in my mid 50′s, Please advise. Thanks.
TPS: I love this question for many reasons. It proves Americans are waking up and taking control of their financial future. This reader, proved by their wording, has taken the time to research silver (by the mention of “junk”), check out a local silver source (by mention of a reputable local coin shop), and now timing their silver action (aware of the benefits of buying on a “dip”).
This “think for myself” mentality is exactly what it will take to sludge through 2013 and beyond.
TPS exchanged an email or two with this reader and I’m willing to bet a bullion ounce of silver they will soon buy some, if not already. We can look at today’s mania around the gun and ammo craze as a perfect example of future PM demand. A combination of fear and reality has nearly emptied gun store shelves. The run to silver will soon follow the same type of mania. The reason I know this rests in the paragraph below.
The United States Mint has temporarily sold out of 2013 American Eagle Silver Bullion coins. As a result, sales are suspended until we can build up an inventory of these coins. Sales will resume on or about the week of January 28, 2013, via the allocation process. GOLDSILVER.COM
Any event can trigger a run to silver that leads to an “allocation process“. This is something we’ve written about many times on TPS and completely expect to soon witness. My gut tells me silver allocations will become spotty and then turn into a common part of the PM marketplace.
My advice, for those who choose to own silver, is to build your stack before silver allocation rules the silver market. This demand will affect silver prices both positively and negatively depending on what side of silver ownership you’re sitting.
DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources