Silver - What's it likely to do in a global recession?

[mr_fishbulb]

Hi all. I bought some silver in an EFT at the beginning of the year. Since then prices of the metal have halved, but the dollar has got a little stronger so I've lost about 40% so far. :j

Now I'm not sure if I should buy more silver now (add to my position as it were) or to wait and see if it will be driven down further by the slowing world economy.

I'm tempted to add to my position - this is my logic: Say I bought £100 worth of Silver at $20/ounce, and then £100 at $10/ounce, it would only need to raise to $15/once to be back in the black.

And pointers (not advice). Cheers

[wombat42]

Hi all. I bought some silver in an EFT at the beginning of the year. Since then prices of the metal have halved, but the dollar has got a little stronger so I've lost about 40% so far. :j

Now I'm not sure if I should buy more silver now (add to my position as it were) or to wait and see if it will be driven down further by the slowing world economy.

I'm tempted to add to my position - this is my logic: Say I bought £100 worth of Silver at $20/ounce, and then £100 at $10/ounce, it would only need to raise to $15/once to be back in the black.

And pointers (not advice). Cheers

I should leave things as they are. There is a chance of raging hyperinflation and a plunging dollar in a year or so but it isnt a certainty
http://www.opednews.com/maxwrite/diarypage.php?did=10120
http://moneynews.newsmax.com/streettalk/inflation/2008/10/13/139920.html

Incidentally have you still got your FAIG ?

[gozomark]

I'm tempted to add to my position - this is my logic: Say I bought £100 worth of Silver at $20/ounce, and then £100 at $10/ounce, it would only need to raise to $15/once to be back in the black.

And pointers (not advice). Cheers

and if it keeps falling you will lose money three times as quickly - never look at it as averaging down. See it as a completely separate decision. Is silver the best thing to buy now, thats what you need to think about. Don't buy more silver just because you have already bought some. Maybe its better to buy some paladium or what ever

[mr_fishbulb]

Incidentally have you still got your FAIG ?
I didn't go for that in the end - I went for the JM Finn Global Opps which has also done poorly but I'm drip feeding that one so it's not much of a worry.

[mr_fishbulb]

and if it keeps falling you will lose money three times as quickly - never look at it as averaging down. See it as a completely separate decision. Is silver the best thing to buy now, thats what you need to think about. Don't buy more silver just because you have already bought some. Maybe its better to buy some paladium or what ever
Thanks - good advice. Maybe I should read a book on how the pros do it.