Friday, November 18, 2011

Fox Business Advises to Sell Your Silver Whether Price Rises or Falls

You just can't make this stuff up folks.  Fox Business posted a Q&A article Thursday titled When is the Right Time to Sell Silver Coins?  The woman writing asks:

Dear Dr. Don,
I have quite a few very old silver dollars, dimes, quarters, etc., that I've been told are worth much more than their face value. Should I hold on to them in view of all the warnings that the dollar will be worthless and gold and silver will hold their value, or should I sell them?
-- Laurin Longsilver

The Fox Biz "Guru" 's answer:  Pick a high number and a low number, and when silver hits either of these numbers, sell your phyzz. 

This is simply classic MOPE (management of perception economics) at its finest.  Notice how the reader asks should I hold my silver, or should I sell?....and Fox Biz turns the title into When is the Best Time to Sell Your Silver Coins?....and proceeds to say it will be best to pick a random number higher or lower than the current spot price, and sell when silver hits either target. 
As long as you sell, you'll be fine.
Just whatever you do, don't you dare HOLD your silver!

In the late 70s, a financial guru named Howard Ruff thought people should keep some of their money in junk silver to protect against a currency collapse. The argument, as I remember it, is that it's easier to complete a transaction with silver coins than it is by trying to get change in using a gold coin to buy something.
The survivalist argument aside, you're really asking what the dollar price of silver will be in the future. I can't answer that question. It takes a different type of guru.
Silver has fallen off its September highs of more than $42 and is now in the mid-$30s. In recent history, silver didn't break into the $20s until September 2010. Sure, silver hit the $50s in the early 1980s, but that's when the Hunt brothers were trying to corner the silver market.
My advice is to pick two price targets. Choose a low, in which you'd regret not selling if silver fell below that price, and a high, in which you'd be happy to get out even if silver went higher. If the cash price of silver hits either of those targets, sell your junk silver for its melt value.

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