How to buy silver: Physical or via account ?

[xzorro]

The real silver nuts are stressing that we should buy physical silver, because in that way the COMEX traders cannot play their trick: promising to deliver silver when requested although they can never deliver.

Yes, I certainly have bought quite some physical silver. That I consider, as a <b>Long Term play</b>. However, I also fight the COMEX with their own trade on short term. I also buy silver on account and when we get a 25 or 30 % spike in the PofSilver, then I cash my silver trading account. And if the PoS again drops to < $ 6, then I intend to initiate another paper trade.

Yes, I understand that with this paper trading I should not wait with cashing till the PoS maybe rises to > $20, because then the COMEX silver party will be over.

The fun of doing the paper silver trading <b>ONLY for ST</b> is that you fight the COMEX with their own weapons. So, on ST I am wearing them down with the paper trade.
Please let me have any comments/ suggestions.

Chart PoS LT: http://tinyurl.com/4chap

Chart: courtesy StockCharts.com

[lhslancers]

I see you fib off closing prices. Interesting. I agree with your battle plan. Best of luck.

[jerry]

If you have read any of my other posts then you will already know that I am dead set against this.

The reasons are many and I have stated them before in my posts.

The most compelling reason for my dissing your plan is, that you are not fighting Comex through this but rather are battling other small players.

If you and I both play this game, the end result is that either you or I are poorer while I or you become richer. However, if we play the game long enough and assuming that both of us win half the time, both of us will wind up poorer due to the brokerage fees we have paid.

We can go to the casino any number of times, but in the long run the house always wins. The big players are not in this for their health and since the game belongs to them, they will win in the end.

When the game becomes "fair" enough, the big players will close the casino and take the money through default.

We small players are only playing against each other. The house never uses its own money in the game. It only uses ours.

[lhslancers]

X is a big boy and can probably make more winning trades than losers. He'll make money in the long term.

[xzorro]

Jerry, as you may understand putting all your cards on physical, then it means that you are betting on winning the jackpot by waiting long enough. The only and major problem is that you don't know, how long it will last. As nobody can guarantee <b>If and WHEN</b> you that you will win within 10 or 20 years, hence I think it is plain stupid to bet on a single Long Term horse....

I don't think that I am handicapping the physical only silver nuts. <b>I am just scalping the Comex regularly</b>. And if more people trade like me, then the Comex will stop their paper trading. Just cash your paper trades when you have 25 % profit (and if you like you can invest that 25 % in physical and trade paper silver with the core 100 %).

Please understand that in Europe many people may <b>think</b> to buy physical and are in fact still supporting the Comex. The reason for that is that when you ask in Europe delivery of your physical, then you are charged Added Value Tax of ~20 %. Note: In Switzerland you pay (only) 7.5 % added value tax. So, the people leave the physical in the bank's custody, and so it can be used also for the paper trade (without the client knowing this).

My suggestion is that other people should do the same trade just as I suggest. The paper deal is <b>only wrong</b>, when you maintain this for the Big Deal (PoS > $50 or so). BTW I also have a decent physical (13,000 Oz) position.

BR