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Picking your time to buy

  Wednesdays crash in prices in the PM sector illustrates why investing in anything entails some risk.   The Key is minimize the risk while maximizing the profit.   But one also must look at long term vs short term.    A long term strategy can accept some ups and downs, as long as the long term outlook is up.   Short term is more reliant on the day to day changes.
  When it comes to actually purchasing physical metals, one must remember that there is usually a premium that goes with the purchase, and to sell with a profit, one must recover not only the cost, but the premium as well, just to break even.
  Recent shifts in the metals market have not been that large, and are not enough to cover the premium in silver.   So at the moment, purchase of physical silver must remain a long term investment.    Gold on the other hand has come close to covering it's premium, depending on your source.
   Serious drops like Wednesday are perfect times to lock in some physical silver.  Not a lot, but enough to increase your holdings slightly.   SHould the fall continue, then purchases should be increased as your ability to buy exists.    I do not recommend that anyone go "all-in" in the metals, but buying while the price is falling provides opportunities for the long term investor to see his investment grow in value.

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  Why buy on this dip?    It was a serious retracement, providing an excellent time to purchase from dealers.   Secondly, it comes as the COMEX is reporting registered stocks of silver falling to 47.4Moz as of 1/19/10.   That is a massive 7 Million ounce drop in just 11 days!     Total Silver stocks reported by the COMEX actually increased to 113 Moz, however 65.7Moz of that is silver owned by someone else that is "eligible" to cover contracts, after it is first purchased by the short seller!

This is will be the main thrust of my published post, I just wanted to get some of this information out to those who follow me before hand