Thursday, December 20, 2012

Deja Vu - Gold & Silver Plunge Into The Year End

I am not a financial advisor. Please speak with one before making any investment decisions.

As precious metal investors once again prepare to dump their assets and throw themselves from very tall buildings, I can only hope that they once again come here first before deciding to so.

Can we look back in history and find a time when precious metals went into free fall and everyone went into complete panic heading into the end of the year? Yes, this same exact thing happened exactly one year ago.

Rather than essentially re-printing the entire thought process of buying low and selling high I would just re-read last year's article written on December 29, 2011: Precious Metals Fear & Panic. Good chart from Jesse's Cafe Americain showing the silver take down in December 2011.


I bought silver today for the first time since early summer as it moved back under $30. If it goes lower, I will buy more.

The Sprott Physical Silver Trust (PSLV) now has a NAV at just 1%. This means that the price you pay for all the physical silver the fund holds is now just 1% over the total value of that silver based on the share price of the fund today. You would be hard pressed to find a better premium buying price for physical silver anywhere.

I was fortunate to put the sell order on the site here (and for myself personally) when the NAV on the PSLV fund reached close to 32%. I recommended at the time that investors look at the Central Fund of Canada (CEF) as another option to buy metals when the NAV was less than 1% (the NAV for the CEF is now over 4%). For the discussion see Purchasing Precious Metals: NAV Considerations

For those interested in purchasing physical silver, the NAV on the Sprott Physical Silver Trust plus the recent price plunge makes it a doubly attractive holiday gift for your portfolio.

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