Ah, the agony of spot price moves!
I had a small IRA from 20 years ago, so I decided to fund it with silver and to store it offshore. I bought 100 oz. silver bars to store in the Cayman Islands yesterday at a spot price of $19.94.
Where is the silver price today? $19.50 as I type this.
Where was the silver price when I decided to fund this IRA with silver? $17.40.
It took a couple of weeks to establish my account and transfer funds, and the largest silver price movement we have experienced in quite some time occurred during that two week period. Go figure.
I watched silver move from $17.40 to $20.34 in that small span of time. Then I added a week of wait time, due to my initial paralysis trying to anticipate if and when there would be a correction/retracement.
Here is the one month silver spot chart, so you can visually see what I experienced:
Many investors attempt to “time the market.” Even I was tempted to try find some market gains by guaging when to time my buying decision based on anticipated decreases in the silver spot price. Shame on me, I know better.
I caught myself in this investor conundrum and stopped myself to fully fund my account yesterday. Why? Because the silver spot price today, next week, next month, and even next year doesn’t really matter. The long term trend for silver is up, and whether it was physical silver in my possession or silver in my IRA, my outlook is longer term, and we are moving in to a bull market.
All of this said, don’t be surprised when you too get in to the minutia of 2 second updates on a live spot feed when you are preparing to buy. Stop. Breathe. Review the chart below and remind yourself that you are buying silver (or gold) for long term security, and the anticipated long term price trend is in your favor.
Did I agonize over the price drop that occurred when the market opened today? Nope. Instead I had a good laugh, as we joked that I triggered a market pullback.
All I had to do was look at all of those long term price gains to be had!