Today, pre market at present, I'm watching $Pan American Silver(PAAS)$ very closely. I opened a very small position last week at record highs. Was that stupid? Was it FOMO? I mean in retrospect if I'd just waited a few days I'd now get it for $10 less per share.
But an important rule of emotional investing... would've, could've, should've is a mugs game. You cannot time the market. Yet everyone tries to, and very occasionally they get it right, but normally they don't.
So to combat all this. I deploy a strategy that minimises the issue. Every week when I get paid, $50 goes into my trading account. And most weeks I deploy that into a stock in my portfolio thats is the Best Buy. This week it will likely be pan American.
I have no clue what the price of silver and gold will be tomorrow or next week. Will they continue to plummet, or will they recover when the market opens? No clue, but I'm not bothered.
What I do know is that in the long run gold will likely go up more, due to geopolitical tensions. Currency, in the form of paper money is uncertain, gold is the best currency going forward in the mid term.
Silver is not a currency, it's an industrial asset needed in production and it is very scarce. so long term it will climb. Sure the spot price dropped by as much as 33% last Thursday/friday. But the spot price is paper silver not actual silver. Paper silver is just that, a piece of paper. everyone who understands knows it's worthless.
Actual silver has not dropped at all. So I'm not buying futures in silver. It's like betting all your money on 7 at a roulette table. Not buying silver either. There is no cash flow, and if it goes from $120 and ounce to $200 and ounce I've made $80.
No to silver, no to paper silver. Instead for $120 I can buy 2 shares in pan American. And they are cheap today. The stock has dropped due to greedy banks destroying the paper market. But the actual market for silver has not dropped at all. I love nonsense. And silver spot prices are total nonsense. A paper promise backed up with nothing.
Silver mining stocks mine real silver, and pay dividends while doing so. Sometimes 1+1=2. And I will bet on certainty not speculation.
Happy trading tigers.
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