What is up with the crash in silver prices

any talk of more spouses being melted?

 

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If silver ever gets to $4/oz, you're going to have a lot more to worry about than how much silver to buy! Like how you're going to take care of all the relatives showing up at the door!

The other day I read a blurb from a Silver Mining company. They were opening a new mine and said that average cost to mine and "prepare" (I forget the word) an ounce of silver was about $10.20. As a couple people have pointed out, the cost of getting it out of the ground and processed in various ways plays a roll here.

I'm guessing that if the economy goes down, so will demand for silver. Could be a bit of a ride here.......

 

This is why you purchase with a CC. At the time of the purchase you lock in your purchase price whether it goes up or down after the sale is of no benefit or loss to you. It's a done deal. When you purchase, take a picture of the market, log it in and make certain that your price is = to the market. I think you'll see that it is. Regardless of when it was shipped.

 

Everyone must have faith in the US dollar for the next 50-100 years. I personally don't.

As McCain said, the bailout is merely a ternicate to stop the bleeding. We're still in critical condition. These are strange times.

 

US $$$ appear to have run their course by abuse of power and mis-use of its concept and original intent. Today's result? Inflation, decreased value and world wide competition trying to gobble up what's left. Compare the last 10 years to any other time in US history. Unrest and nobody knowing the way out with most or all best efforts from those in command failing. What's on the horizon for Monday? Gold at $1,000 or $700? Silver at $9 or $14? Stocks up or Stocks down? :rolling:

 

people who melt spouses go to the pen i thought i would let you know jic

 

http://www.kitco.com/charts/livesilver.html#ny

OUCH, down 15%+ Friday.



Hit $9.50 there. Prediction: it will bounce to $11.50 or so then totally dump (at which time I will buy).

 

What? No

When you purchase a stock it is at the price at the moment the deal was agreed on. What you don't see on the ticker is that there are bids out their constantly waiting for sellers at different prices. And when you get a match, BOINK, that is the sale price. I think the ticker is some calculation of all the sales in some finite time period, like 5 minutes? or even 30 seconds?

Ruben

 

Metals took a big down turn on Friday because all of leehmans holding were liquidating late in the day. All of the bullion coming into the market in just under an hour dropped the prices dramatically. If you are prepared then is a great buying chance. I purchased to mini contracts just before close on Friday.

 

That's what I have heard from traders also, although it is just the liquidation of futures contracts, not physical bullion sales. This sort of thing should have little or no impact on coin prices. Just don't get paniced into selling right now.

 

So would this drop the price of bars of silver? What about tubes of silver eagles?

 

Right now the price of physical silver is quite a bit higher than "paper" silver represented by the spot price. If you can buy near spot, you're getting a bargain. If you sell near spot, you're not getting full and fair value.

 

we need silver coin's again!!

 

The $4.50 an ounce price would make the Canadian Silver Maple Leaf real attractive(Since it has a $5 face value compared to the Silver Eagle's $1 face value).

 

good point, maybe this is how silver will get back into money.

 

I wonder if we will see some European metals come on the market soon, i wonder.

 

Future contracts are to commodities what options are to stocks. You can control large amounts of silver or gold for a specified time period. Mines are usually sellers of contracts and jewelers, minters, industrials are usually buyers. Hedgers and spectulators don't want delivery of the metal, just the positive/negative values of assuming the risk.

here is a nice page on it from Monex.
http://www.investopedia.com/articles/optioninvestor/06/goldsilverfutures.asp

Jim

 

Nice article Jim. That's how it is in reality which messes up pricing.

 

Thanks, I attended a meeting where the operators of Mesquite Gold Mine ( WGW) said their gold production and value above cost were increasing, but their stock was decreasing in price because people needed cash, not the risk in a gold stock. The Asian version of CNBC said that Goldman predicts commodities , except for gold, will decrease by the end of the year. Oil might be $70 bbl which is less than Iran and Venezuela break-even due to their increased dependency on high oil dollars. Ironic I think.

Jim

 

Hi, i'm in a farming area. Soybeans have dropped from $15 a bushel to almost $8 a bushel. Wheat $7+ to $3+ a bushel. This has happened in the last couple of months. But it's normal to have a sizable price drop at harvest, with price rallys starting in the winter. But the recent harvest price drops are much larger than a normal year. A major exodus in hedge funds following the first no vote on the bailout. It might take them awhile to get back in.