Should I Add To Positions Now? And Repo Markets Bursting

It depends who you are, what you want to add to, and why. Repo markets hit the $2 trillion per night mark again. Where is the wall?

• Buying into a breakout is not the best strategy, but it depends on who you are, what you're buying, and why.

• It is important to remain calm and avoid getting caught up in excitement and greed when considering increasing positions. The higher silver goes, the more volatile the market will become.

• The general population does not care about the price of silver unless their stock portfolios are suffering. The panic into silver will happen when people feel their wealth is at risk.

• It will not be well thought out, considered, and rational. It will be instinct, reptilian.

Should I Add To Positions Now?

I've been asked that question a lot since silver sliced through $30. My first answer is that it's never the best thing to buy into a breakout. You buy before the breakout. Still, it depends on what your'e talking about and what kind of person you are and why you want to add to positions. If you're talking about physical and you have too much cash (meaning, you're not emotionally OK with the dollar going to zero tomorrow because you have too many dollars) then sure. You're not going to save much money by waiting for a lower spot price because premiums will rise if the spot price falls, and premiums are very low right now anyway.

If you're convinced "this is it" and you expect to get rich quick and you're stretched thin and want to go into debt and leverage options or 2X ETFs or something like that, I'd say calm down and take a step back. I do think we're going to $50 within a year, yes, but the higher we go, the more severe and scary and generally jerky the pullbacks and advances are going to get. Excitement and greed are not emotions you want to indulge in. Not that you're shouldn't be feeling them – we all feel what we feel. But giving into them while they're hot is not the best idea.

If you want to increase positions, first calm down, go for a long walk, ask yourself why, then put yourself in a worst-case scenario assuming you do increase positions, and figure out if you can handle that worst-case scenario without freaking out.

This is How Far We Have Yet To Go