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stektan 17-05-2013 11:14 PM

Your stacking strategy.. When will you stop?
 
With the recent huge volatility of gold, I'm rethinking my stacking strategy. What's yours? Do share and discuss here..

platinum_member 17-05-2013 11:36 PM

Some financial planners advised to hold a percent of assets in pm.

Nuvole 18-05-2013 12:26 AM

imho, stacking means keep buying.... I buy more during low and less during high.
During bad times, I'll LL sell some to pay for my bill... having in mind that I'm not buying for myself but for my next generation. Stacker are not investor nor stock player. I've learn a simple rule from a Taiwaness "everyone knows how to buy share, but not many know how to sell":( I belong to the group who doesn't know how to sell:(

stektan 18-05-2013 12:45 AM

My changing strategy
 
My strategy 2 years ago was to achieve a certain oz size and was buying consistently every month. When gold dipped, I'd buy a little more than usual. I eventually achieved my target oz and slowed down my purchase. That was before the gold started to slide from usd1600 and eventually hit the low of usd132x in Apr. That's when I realized a huge gap with the current price and my Ave price per oz in my stack. So I started buying significantly again. I'm beginning to think that perhaps I should change my strategy, which is to keep buying consistently as long as the price is below my average price per oz. I may have to buy for a long time more!

bean 18-05-2013 07:25 AM

I am no investment guru but I think not having any investment strategy is NOT the way to go.

In the stock market, I exit when the investment have given me returns I am contented with. I don't have a specific % returns before I exit and I don't care (ok.. maybe grumble a bit :D) if the share price rise days after I Sell off the share.

With PM, its a bit tough to have a goal. There will always be new and nicer things to buy from Perth Mint, RAM, RCM etc (collector mode). Also, I desire to lower my ave cost and buy on dips (stacker mode). In my early days of stacking I limit myself to $x/ month but in certain months I end up using a substantial amount of the month's salary buying PM.

I stopped buying when spot was 32 going 33. I recall having chats with stackers back in Dec 2012 saying I will only buy again when when spot is down to 30. Its 22.36 as I type this. Despite going under 30 in 1Q 2013, I slowed down buying PM significantly because silver was taking up too much footprint.

Then came April 12, 14 and 15 => PMs got hammered to prices I never dreamt of seeing in my lifetime.

I was at UOB yesterday. There were very few people in the queue (maybe because 100 & 50 gms were gone?/ people are bearish?). There were buyers and there were sellers in the 10minutes I was there.

So, I will still buy at lower prices. I haven't thought a strategy yet. Maybe its time I should.

stektan 18-05-2013 07:51 AM

Quote:

Originally Posted by bean (Post 73658)
I am no investment guru but I think not having any investment strategy is NOT the way to go.

In the stock market, I exit when the investment have given me returns I am contented with. I don't have a specific % returns before I exit and I don't care (ok.. maybe grumble a bit :D) if the share price rise days after I Sell off the share.

With PM, its a bit tough to have a goal. There will always be new and nicer things to buy from Perth Mint, RAM, RCM etc (collector mode). Also, I desire to lower my ave cost and buy on dips (stacker mode). In my early days of stacking I limit myself to $x/ month but in certain months I end up using a substantial amount of the month's salary buying PM.

I stopped buying when spot was 32 going 33. I recall having chats with stackers back in Dec 2012 saying I will only buy again when when spot is down to 30. Its 22.36 as I type this. Despite going under 30 in 1Q 2013, I slowed down buying PM significant ntly because silver was taking up too much footprint.

Then came April 12, 14 and 15 => PMs got hammered to prices I never dreamt of seeing in my lifetime.

I was at UOB yesterday. There were very few people in the queue (maybe because 100 & 50 gms were gone?/ people are bearish?). There were buyers and there were sellers in the 10minutes I was there.

So, I will still buy at lower prices. I haven't thought a strategy yet. Maybe its time I should.

Ya am essentially at the same dilemma.. Have accumulated quite alot in oz over the last few years but now my average price per oz is so much higher than the current price. In stock trading strategies, there's a saying not to throw good money after bad money. Should I just stop completely and go away for a few years or take the opportunity to invest heavily now to average down my cost? Guess it depends on the long term view of gold and silver prices. Still undecided but still buying moderately for now.

platinum_member 18-05-2013 09:16 AM

Having went thru the financial crisis where at the peak of the crash i lost (paper) about 2 cars in the stock market even where i was holding blue chips, i learnt that you cannot be too sure when it comes to investment.

Prices dropped drastically, and like you are considering now, i dca. Then it dropped further and i dca again, again, again, until you see the loss ballooned and you cant dca no more because u cant tahan the loss and u also run out of bullets.

Thankfully market rebounded and i recovered the money, because i dca. But note that i only followed the ride down and the ride up, i didnt really make money then as my average cost was when sti ard 2700. (I dca too early). And you need to really have the holding power and pray the crisis will pass and your counter does not fold.

Now i learn not to be too greedy or excited to put a lot of money into things or counters i like. I also keep bullets available to pick up things when they are sold down, and still keep some bullets in case they sold even more.

I also will not put more than a certain percentage of assets into one counter or something, eg pm, unless property.

We are small fry playing along big fishes. They are the professionals, we have to be careful not to get eaten.

But thats just me, playing safe.

I know of people who take huge bets in the property market at the right time and make ton and tons of money, i also know of people who lost their shirts and pants playing in stock market and could never recover.

How will you play?

Have you heard people say not to put all eggs in one basket? There are successful people who will tell you to put all eggs in the same basket and watch that basket carefully.

Another thing i would like to say is, how much readings, research, analyst report can you trust?

Reports can still be bullish and suddenly, price crash. Analyst may be publishing to make people buy or sell, to generate commission.

daniel.yrh 18-05-2013 09:21 AM

My strategy: accumulate PM to a certain amount, sit on it till the price reaches my expectation e.g $4000 for gold, $100 for silver.

I will continue to buy until I reach my target as long as the price is below my average cost.

bargains.singapore 18-05-2013 10:09 AM

My strategy is to diversify and churn and be disciplined, no more than 20% in any asset class be it PM or debt or stock. Have enough holding capacity and do not bite more than you can chew. There is no short cut to getting rich

For PM I prefer silver, gold is too expensive to collect; and yes I am more of collector and not a stacker, for me all silver is not the same. So I steer clear of ASE/CML/non descript bars etc. and focus on quality of things I collect - because quality can make a huge difference when you go out to sell. My theory is collectibles will always hold more value than pure bullion.

Scenario 1 - Stock Markets rise, property rises, PM falls, people are generally prosperous then they come around looking ways to spend money. Collectibles will have demand

Scenario 2 - World collapses, PM's rise, My collectibles still rise in value maybe not as much as ASE/CML in percentage terms but it still rises

Scenario 3 - markets just languish, people get bored of ASE/CML/Bars and come look out for pretty things that cheer them up collectibles still rise.

I started when Silver was $4 an ounce (affordable for my pocket money) and ASE would sell for $6 or more, 33% premium over spot, I still paid - to me premium over spot is a moot point, some ASE but mostly other stuff and you bet I don't regret it :)

Mechanic 18-05-2013 09:28 PM

I will stop when I need a breather or some time off, haha :cool:


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