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Gold and silver prices are down

Coyote33 said:
So, it is not an actual price of anything. Why would you buy "at spot + anything" and sell minus the premium? Who would do that and why? I want to sell at a premium. This makes no sense.
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It’s the instantaneous price, but if you want to buy a silver coin or bar, it wasn’t mined and made that minute, it was mined months ago and made weeks ago so the price of that coin is influenced by a lot of factors. The spot price is still very useful for everyone in the industry.

The premium can be small compared to the profit you made. If you bought a silver eagle 3 years ago you paid probably $18, and can sell it today for $25-26 to an APMEX, or probably more privately. But only really worth selling if you need the money. Don’t buy PMs to resell for profit. Just buy PSLV or silver miners.
 
Varmint said:
The premium can be small compared to the profit you made. If you bought a silver eagle 3 years ago you paid probably $18, and can sell it today for $25-26 to an APMEX, or probably more privately. But only really worth selling if you need the money. Don’t buy PMs to resell for profit. Just buy PSLV or silver miners.
Click to expand...
True, but if you bought a market index fund would have made way more than that 50%. PM's don't fully insulate one from inflationary risk, since they have to be converted to conventional fiat currency for most purchases. A big advantage is that your holdings are not under government supervision like brokerage and bank accounts.
 
Win said:
The spot price may become increasingly irrelevant and divergent from the physical market. I really don’t care what the electronic price of PMs are. If I just wanted to buy spot, electronic PMs, I might as well just buy cryptos - same amount of physical possession ;)
Click to expand...

You mean the physical retail market (small bars and coins). That’s only like 25% of the silver market so it’s not enough to break the paper market price. You’d think the high demand would make silver retailers boost production but they’re probably used to demand being too cyclical.
 
Coyote33 said:
So, it is not an actual price of anything. Why would you buy "at spot + anything" and sell minus the premium? Who would do that and why? I want to sell at a premium. This makes no sense.
Click to expand...

It's the spread. You trade enough and you will factor it in when you buy and sell.

I've bought at $3.20/Oz with the premium included and sold at spot @ $6.10/Oz. That's taking a profit and dealing with the spot/premium loss and win. So, I for one would do it in a heart beat.You may want to sell at spot + premium but go find a buyer for 2000 Oz when they will pay you a premium. Just consider it like wholesale vs retail. You buy right and hold it until it pays you to sell at spot. I roll in and out of silver and have never lost money. I might have to hold it a bit longer and wait for the indicators to tell me when to take a profit and rebuy at a point in the future.

If you piled on silver before the Hunt brothers got deeply involved and were dollar cost averaged in at $4.00 an oz inclusive of a premium, for what reason would you NOT sell at spot when spot was $40.00+ an Oz?
 
Just for laughs, here is post #1 in this thread.

Rider said:
I had to go back to late February to find anything on the subject, so I thought it would be worth mentioning that gold is right at 1600 and silver is under 30 for the first time in a while. I'm hoping the downward trend will continue a while longer, as people think the economy is getting better, there will be no QE3, and the wheels aren't coming off in Europe.

This could be a good buying opportunity if you're still accumulating metals.
Click to expand...
 
One one hand it is surprising that the government can buy its own debt for decades without a major move in PMs. On the other hand most of modern thinking seems bizarre to me so I have little reason to believe that most people will perceive the world as I perceive and buy the things that I buy [laugh]
 
Win said:
One one hand it is surprising that the government can buy its own debt for decades without a major move in PMs. On the other hand most of modern thinking seems bizarre to me so I have little reason to believe that most people will perceive the world as I perceive and buy the things that I buy [laugh]
Click to expand...

well, gold's not exactly been stagnant the last 30 years.

It takes years to form a cup and handle - we're almost done, then watch out.

pic20e2a689042b4047e3e78f112f733878.jpg
 
Decent deal…

www.ebay.com

$20 Saint Gold Double Eagle MS-64 NGC/ PCGS (Random) | eBay

Ancient Coins. Gold Bars 1 oz Gold Bars Fractional Gold Bars. Gold Rounds. Silver Bars 1 oz 10 oz Kilo 100 oz. Silver Rounds. Pre-33 Gold is popular amongst collectors for its beloved designs. Display your certified Gold Eagle in style by adding a beautifulpresentation box to your order.
www.ebay.com
 
richc said:
Decent deal…

www.ebay.com

$20 Saint Gold Double Eagle MS-64 NGC/ PCGS (Random) | eBay

Ancient Coins. Gold Bars 1 oz Gold Bars Fractional Gold Bars. Gold Rounds. Silver Bars 1 oz 10 oz Kilo 100 oz. Silver Rounds. Pre-33 Gold is popular amongst collectors for its beloved designs. Display your certified Gold Eagle in style by adding a beautifulpresentation box to your order.
www.ebay.com
Click to expand...

Just needs a 5% Ebay bucks deal. Now that it's August we might get one soon.
 
ASHDUMP said:
Are you guys still accumulating gold and mining stocks? Looks like a nice drop. Everyone still bullish or is it a trap?
Click to expand...

Not physical cause those prices haven’t dropped at all, this is just a paper gold selloff. The miners however are at killer prices so I’ve bought some miners the last few weeks. Not sure if miners have bottomed overall but many or even most have bottomed already but are still great buys.

Miners are priced as if gold is $1400 and silver is $18 and going to stay there. If you believe that don’t buy miners.
 
Varmint said:
Not physical cause those prices haven’t dropped at all, this is just a paper gold selloff. The miners however are at killer prices so I’ve bought some miners the last few weeks. Not sure if miners have bottomed overall but many or even most have bottomed already but are still great buys.

Miners are priced as if gold is $1400 and silver is $18 and going to stay there. If you believe that don’t buy miners.
Click to expand...

HUH? Physical prices have dropped a lot.

www.ebay.com

100 oz Royal Canadian Mint (RCM) .9999 Fine Silver Bar | eBay

The Royal Canadian Mint once began as a branch of the Royal British Mint in 1908. Their most popular coins remain their Maple Leaf coins in gold, silver, platinum, and palladium. The RCM has a reputation for being a pioneer in the minting world.
www.ebay.com

www.ebay.com

2021 American 1 oz Gold Eagle BU (Type 2) - $50 US Gold | eBay

Act now to add thefirst issue of the new design to your collection! The new reverse design depicts a bold, up-close portrait of an eagle. New 2021 Gold Eagle Design. Silver Bars 1 oz 10 oz Kilo 100 oz.
www.ebay.com

Premiums over spot have come down a lot.
 
ASHDUMP said:
Are you guys still accumulating gold and mining stocks? Looks like a nice drop. Everyone still bullish or is it a trap?
Click to expand...
I’ve accumulated and established my positions already as I’m out of cash for stocks. Any new money spent is on hard money.
 
richc said:
HUH? Physical prices have dropped a lot.

www.ebay.com

100 oz Royal Canadian Mint (RCM) .9999 Fine Silver Bar | eBay

The Royal Canadian Mint once began as a branch of the Royal British Mint in 1908. Their most popular coins remain their Maple Leaf coins in gold, silver, platinum, and palladium. The RCM has a reputation for being a pioneer in the minting world.
www.ebay.com

www.ebay.com

2021 American 1 oz Gold Eagle BU (Type 2) - $50 US Gold | eBay

Act now to add thefirst issue of the new design to your collection! The new reverse design depicts a bold, up-close portrait of an eagle. New 2021 Gold Eagle Design. Silver Bars 1 oz 10 oz Kilo 100 oz.
www.ebay.com

Premiums over spot have come down a lot.
Click to expand...
I gotta buy one of those big silver stackers soon 😁
 
I bought a bit of physical just before the crash Friday... DOH! But I did so because the premium over spot was decreased quite a bit.

I'm in for the long haul as I watch our government destroy our economy and decimate the value of the US dollar.

At some point I expect most all governments to issue their own crypto currency. They'll use that to monitor money movements and spending habits. And sure does make it easy for the government to confiscate wealth quickly under the cloak of darkness as the government will hold all the keys. IMHO they would not introduce a crypto currency without a back door that gives them ultimate power.

If and when this happens I expect PM's will become more valuable. They'll become a store of value that the government can't see. And ultimately that's why cryptos have done so well. Their anonymity lead to wide spread adoption among criminal enterprises. It seems like the anonymity is disappearing from that market, and with government oversight they'll know about the movement of every digital dollar in the US.

Maybe I'm old fashioned, but I do believe every economy will have elements that want to mask their transactions. And gold is a perfect way to do that.

And I could be dead wrong. Or be dead before I'm right.
 
richc said:
I bought a bit of physical just before the crash Friday... DOH! But I did so because the premium over spot was decreased quite a bit.

I'm in for the long haul as I watch our government destroy our economy and decimate the value of the US dollar.

At some point I expect most all governments to issue their own crypto currency. They'll use that to monitor money movements and spending habits. And sure does make it easy for the government to confiscate wealth quickly under the cloak of darkness as the government will hold all the keys. IMHO they would not introduce a crypto currency without a back door that gives them ultimate power.

If and when this happens I expect PM's will become more valuable. They'll become a store of value that the government can't see. And ultimately that's why cryptos have done so well. Their anonymity lead to wide spread adoption among criminal enterprises. It seems like the anonymity is disappearing from that market, and with government oversight they'll know about the movement of every digital dollar in the US.

Maybe I'm old fashioned, but I do believe every economy will have elements that want to mask their transactions. And gold is a perfect way to do that.

And I could be dead wrong. Or be dead before I'm right.
Click to expand...
Decentralization of monetary transactions is anathema to central banks and .gov control. This is why I respect cryptos. As much as I would rather all the smarty and dumb money get into hard money cryptos just get much more exposure in mainstream news and with retail investors.
 
richc said:
Maybe I'm old fashioned, but I do believe every economy will have elements that want to mask their transactions. And gold is a perfect way to do that.
Click to expand...
Persons going bankrupt or facing nursing home spenddown have strong motivation to maintain off books assets but doing so is risky especially partaking in bankrpucy fraud.
 
Rob Boudrie said:
Persons going bankrupt or facing nursing home spenddown have strong motivation to maintain off books assets but doing so is risky especially partaking in bankrpucy fraud.
Click to expand...

Yup, that's true. And I'm not advocating fraud... at all.

But many folks who have a comfortable level of assets also want off books assets. I don't see this as a conspiracy or illegal activity, but more people just keeping their options open and diversifying a bit. Most of us like and deserve some privacy.

I was chatting with a wealthy young man the other day and talking about the wealth tax that Elizabeth Warren wants. He has his assets hidden in a maze of trusts and LLC's. It just pissed him off that the government wants to know everything. He's so worried he's created a rats nest of legal entities to hide.

Is that really the reason we have government? Who wants an all knowing central government that's watching our every move?

That's where we are headed, and not for our benefit...
 

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