Welcome to the Debtcrash Precious Metals Purchase Program.
The normally suggested method for purchasing precious metals is to dollar cost average. Dollar cost averaging is just another way of saying you are investing a fixed dollar amount each month into an investment. While this is a mindless way of investing, and that takes the pressure off the investor, it does not take advantage of price dips as aggressively as some investors would like.
An alternative to dollar cost averaging is to attempt to 'buy the dips', or subjectively become more aggressive when the price appears to offer a good deal. This can be emotionally draining particularly in a protracted bear market such as the one we are currently experiencing. Investors often get the deer in the headlights mentality where they are afraid to buy as the price is dropping for fear that there are lower prices to come. Once the price starts to rise they may feel as if they missed the boat and again have a difficult time pulling the trigger on a purchase.
The Debtcrash Precious Metals Purchase Program attempts to capture the structured low stress investing of dollar cost averaging while taking advantage of lower prices as price falls. Here is the program as it appears in Microsoft Excel:
At this point I advise downloading the program and following along, testing the various aspects of the program. The program can be down loaded at the top of the page.
Note: If a wage increase or lifestyle change allows more money to be allocated to your investment than the program results dictates automatically, consider adjusting the % of Average Purchase Price column.
Note: When setting up the program for my own use I ensure it will allow me enough of a cash cushion to take advantage of drops in price. This prudence does come with a cost, and that is your cash holdings may build to a level that could be above what you feel is necessary. This isn't a bad problem to have, but should be addressed. In this event you can consider making a one time purchase, or adjusting your % of Average Purchase Price column. Though before these options I would consider other possible investments such as building resiliency at your home, including food storage, a garden, or renewable energy. Try not to box yourself in.
Step 5: Once you have responsibly filled out the program relax and let the program worry for you. I have found using the program it is not only fun when the price goes up (like always) but it can be exciting when a price drop causes the program to increase your buying, or to see the effects on your average purchase price.
Note: Prior to using the program, and periodically, check to ensure the program is performing the math functions as designed. I have locked many of the cells to protect users. Unfortunately this prevents you from adding purchase rows. There are two options once you have filled up all of the dates. You can either start a new program using your total ounces/shares and average purchase price from the one you just filled, or you can make your own program. Though the formulas are locked you can still view the formulas so it is easy enough to make your own program using Excel.
If you think anyone might be interested please don't forward the program alone, send the link to this site to protect them from a corrupt program. This will also allow them the chance to read the quick tutorial above.
Warning: The Debtcrash Precious Metals Purchase Program is a tool only and can be misused for your particular investment goals. It is a program and as such can be corrupted. Consult your financial advisor before using Debtcrash Precious Metals Purchase Program and use at your own risk. Accordingly by using this program you agree to hold Debtcrash authors harmless for the consequences of its use.