Precious Metal Exchanges
A few examples to get started with…
https://www.coinexchangeny.com
https://libertycoin.com/
https://www.jmbullion.com/
Resources
Silver Dragons
The Silver Dragons channel is about silver stacking, buying silver, silver investing, precious metals, gold investing and anything to do with silver or gold …
https://www.youtube.com/channel/UCucqfNRyBkieAop_LDUqHEg
Yankee Stacking
One New Englander trying to stack silver and gold the “Yankee Way”!Stack silver and gold to hedge against our debt-fueled, fiat currency-based economy that …
https://www.youtube.com/c/YankeeStacking
Tickers on Yahoo Finance, this is where the iPhone gets prices
SI=F Silver Futures next delivery period, close enough to the spot price.
GC=F Gold Futures next delivery period, close enough to the spot price.
DXY (DX-Y.NYB) Dollar Index, strength of the USD against a basket of other currencies, The six currencies included in the USDX are the Euro, Swiss franc, Japanese yen, Canadian dollar, British pound, and Swedish krona. When the dollar goes up, metals go down and vice versa.
Investing Basics
All of the basics of investing apply to not only gold and silver but in general, only this first idea is specific to gold and silver.
Do you buy gold, silver, both?
A general rule for investing that gives a short answer for Gold -v- Silver.
When the ratio of the Gold price divided by the Silver price is…
> 80 Buy Silver
60-80 Buy Both
< 60 Buy Gold
Some people will even pairs-trade (swap) between the two to accumulate more metal over time. As in when > 80 buy silver by selling gold. When < 60 buy gold by selling silver. 60-80 is a neutral zone do nothing.
DCA
The following applies to metals or any other long term investment.
You can’t always predict the right moment to move a large sum into or out of an investment.
For investing it is best to dollar cost average (DCA) in and out of a position. Buying and selling on a periodic basis helps accumulate and distribute at average reasonable prices over the long haul of time. This can be done weekly, monthly, quarterly. And it could be done by considering good prices to buy or sell at, with a buy lower and sell higher plan.
Buy Lower/Sell Higher
The following applies to metals or any other long term investment.
You can’t always pick the bottom or top of a market.
A simple rule is to buy when the price is lower than it has been in a while, buying a local low and the converse on highs. The concept can be used to improve upon the ‘blind’ DCA, buy on a regular periodic basis.
Looking back at the high or low from the past year, or market cycle works fine for picking a reasonable high and low point. Keep buying in small amounts when below a local low and selling small amounts when above ( preferably longer timeframe ) local high. It is not always worth trying to ‘time’ the tops and bottoms of the market as this is very tricky even for sophisticated traders.
Judging Value Simply
The following applies to metals or any other long term investment.
Is it a bargain or overpriced?
When starting out it in investing is hard to judge value, so a quick and easy to spot way is the best way to start to get thinking about value.
A reasonable rule is to use the midpoint between the last big high or low price and keep accumulating up to that midpoint. In this manner you can easily tell that you are buying ‘value’ and not buying the asset when it is overpriced. Then hold the asset until the appropriate market cycle which reaches beyond local highs, preferably higher than a previous high in the future and do the converse, slowly sell above the midpoint which should always be checked out to make sure it is in profitable range. It is easier to sell into a rising market as when the price hits a peak sometimes it can drop violently. Prices tend to fall faster than they rise.
Price Charts
How to view the price and a handy tool, the moving average of price.
Kitco among others has decent charts for metals that have moving averages on them as well. The moving averages are a tool that can help with trading and investing. They act as guides to see to position of the price relative to a slower,smoother version of the price, the average price. These charts can be used to help DCA in and out using the buy lower/sell higher, judging value simply or using the moving averages as described below to use a trading type strategy or to accumulate and distribute for long term investing.
Using charts as a trading tool example
Moving averages can be used to follow a trend. When the price is above a moving average or even better, a short time average (like 14,30,60 days) is above a long average (200 days) there is an uptrend. It is possible to follow a trend by buying in when the short average crosses the long average and sell when the short average goes below the long average. This is an example of a ‘trade’, specifically a long trade or going long. Technically this is called a Dual Moving Average Crossover. This is just one simple example of many trading styles.
Using charts as a tool to accumulate and distribute example
Moving averages can be also used to accumulate and distribute by looking for lows that are worth DCA-ing in and out on. For example good buys would be in the zone where the following line up, ..
- short moving average lower (try 30 or days- blue line on Kitco chart) than long moving average. 200 day, green line on Kitco chart), with price lower than both ( buy when 30 or 60 day average below 200, with price below both, blue line below green, with red price below both
This is like buying little nips at a time, buying mini-bottoms. The opposite can be done for distributing….
- ( sell when 30 or 60 day average above 200, with price above both, blue line above green, with red price above both ), unless you have a buy and hold forever plan.