Silver recovered today

[Scanner]

Well, my silver suffered along with everything else in my portfolio which kind of discouraged me b/c I thought I was so diversified.

Well today, it's back over where I bought it by about $.40. It's like for 1/2 of my IRA - October 2008 was a bad memory.

I am glad I put 1/2 my IRA there. . .now the question is, "What do I do from here?" I am thinking of putting a bottom on it with a sell order or stop order or whatever you call it.

[sweeps]

I think everyone is scratching their heads at this point.

I'm 100% in stocks -- to my short-term detriment -- but I have a very long time horizon, so I expect to win big in the long run.

If this is the end of the United States as we know it then, well, we all lose anyway.

[Scanner]

If this is the end of the United States as we know it then, well, we all lose anyway.

That's why I hedge with silver.

[Broken Arrow]

October 2008 was bad for everybody except for those holding shorts. So, I wouldn't feel too bad about that month.

What was once considered as stable shelter has gone sour as well. This applies both to defensive stocks as well as precious metals, and of course, real estate as well.

This economic condition is extraordinary. We are, in some ways, in a brand new territory. But with that, we also have to be careful about our "old" ways of thinking. It may not apply here. We need to go back to the drawing board and study it anew.

Either that, or go completely passive, completely diversified, and set your alarm for a very long time. Rip Van Winkle it.

[jIM_Ohio]

Scanner- generally commodities I would expect to me more volatile than stocks. And more frequently volatile if you could understand that.

Meaning you will see stocks trend one direction or another over an 18-36 month period. In that same 18 months of a stock market moving 30-50% in one direction (as a trend), I would expect gold and silver to make 2-3 round trips of a similar 30-50%.

What would I do? keep my positions in volatile investments to around 10% of my portfolio. I know you are 33% or 25%... so my comment would be to reduce the position and invest the balance in TIPs. Buy them direct (not a fund, but own the paper itself).

[Scanner]

What are TIPS?

My current thought is to hold it a bit longer, let it go upwards around $16.50/share and then put a sell order in on it 10% below the target price every week or so. . .so there is a bottom.

If the sell order is activated. . .and then I am sitting on cash. . .I am not sure where I would stuff it at this point. In the past, I had been previously interested in ICF, a ETF that tracks real estate, and it is deflated. . .but a lot of it is business real estate and now the trend is downward on commercial rent and residential rent.

I think with copper mining shut down (of which I understand silver is a byproduct), and the printing of more American money, the precious metal has further to go and $30/oz. isn't unreasonable.

I could convert to oil at that point as that commodity has no where but up to go IMO, at $35/barrel. I'll have to think about it.

[jIM_Ohio]

TIPs-
treasury inflation protected securities- think t-bills with an inflation indexed component

Individual - Treasury Inflation-Protected Securities (TIPS)

[Scanner]

I am not sure why I should pay for inflation protection - I need deflation protection.

How about DIPS for me?

[Broken Arrow]

LOL. Nice.

[Rainelli]

I suggest to do what you think the best for it.