My #1 Biggest Mistake
The one mistake, that I have made more than once, was being hesitant to buy when the market was down. Take for instance in 2008 when silver fell from essentially $20 to $9 (see chart below). Candidly, I was eager to buy at $20 but when it fell to $9, I just sat by and watched. Why wasn’t I buying hand over fist? Because I too was worried and uncertain how low the market could go. Well, over the course of the next two and a half years, the silver market went up 500%. I had missed my chance.
So here we are today. Silver is off almost 50% from its recent peak (see chart below), not dissimilar to the correction noted above. What am I doing differently this time? Aggressively buying. Some of my customers are concerned that prices could retreat to $24 or $22 – you pick the number. I don’t care and I am unwilling to wait to find out and then have the price run away from me again.
Consider the first chart. If I had bought at $12 or $15 or $18, I would have had cheaper silver than I could buy today. Today, I don’t care if I buy at the absolute bottom. When silver goes to $50 and $100, I won’t be able to remember what I paid anyway.
All Things Considered – John’s Commentary
Action to take: If you believe in silver and you want to own silver, you have to overcome your worry that it might go lower and that you made a mistake. Time has always rectified the purchase price, and it will again. And if it does go even lower, I am going to buy a little more.
Quote of the day: “Why did Nixon slam shut the gold window when France wanted the debts that the US owed France to be paid in gold rather than dollars? Why did Nixon and company refuse to give up any more US gold? The reason is that the top US leaders knew that gold was our only true tangible money.” – Richard Russell, Editor of the Dow Theory Letters
