Saturday, May 21, 2011

Treat it like a business.

I'm going to try and focus my project-related energy into the hours between 11am and 1pm. This doesn't interfere with my work schedule, and if I can stick to it (which is the goal, and key to success for any routine) productivity should explode. Actually, truth be told, I've been sticking to this for the last five days and have gotten a wide variety of things done. Including a silver trade. I know y'all have been demanding updates.

Spot price at time of purchase was $35.17/oz, and I spent about 60% of this months budgeted silver-money picking up some 2011 ASE's at (net) $43/oz. This still lowers my cost-average/oz from my starting days, and if silver drops this week down to $27/oz, the 40% will cover about the same amount I bought with 60%. Its all about lowering my cost average, one purchase at a time. I'm not looking to make huge profits or take huge savings in the short term. The market is just to volatile right now, and will probably remain so through Monday.

My advice, buy the dip with a portion of your cash earmarked for silver and buy again if the price goes lower. At the end of the month, if nothing extreme has occurred, buy more silver with the remaining cash. If your gut or special research tells you to the price is going to drop further - by all means, hold onto your silver. But on a five year timeline, the likes of which I am investing, silver probably will breach 70/oz - and I'm willing to pay a premium and get the silver in hand.

Remember, I personally get a bit of titillation from expressing silver's value in historical values. So here's a quick recap. (the math is in this post)

At one point in history, the Roman equivalent of a private in the army received 3oz of silver in coins per month in pay. Granted, life was cheap in the empire, and Centurions received a much better rate.

 And of course, imagine buying this at a roman auction for between 100-650oz of  silver. 
(Disclaimer: I'm not promoting sexual slavery)

Have a pleasant afternoon readers.
I'm off to other things, like lunch with a cashier I met.


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