Silver Spot $24, Supplies Down, What Gives?

Had a bunch of items picked out for April's stack. Everything I was after is showing out of stock now that spot has dropped.

Makes no sense!

 

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The big boys are buying hard and I can assure you prices are still average over $30 an ounce.

 

Yes, I noticed supplies started disappearing as retail dropped below $32.

 

Supply has little to do with price. Demand still high at retail since Covid relief, some people still nervous, etc. Spot price is big money, retail little money, the demands especially after an economic shock are usually dissimilar.

Remember this moment in 4 years when prices down, premiums down, and no one wants to talk about PM. THAT is when you want to buy, not in this market.

 

Spot on mate!

 

That makes good sense. I guess I didn't realize retail is apparently a minnow in the market, or so they would like us to believe. I'll research a bit.

These days, I'm not sure if we have 4 years left to wait!

 

What many who talk about "manipulation" do not understand is that "spot" prices are real. If you can afford it, you can pay up front for a contract in total and take delivery. Most major players do not, but physical delivery is how they make this a "real" market, if its truly manipulated down call their bluff and buy a contract and take delivery. The major money is at the contract level, physical coins truly are the minnows.

Be careful. Back in 2011 everyone was saying the same thing, "we might not have 4 years left". Maybe we won't, but every other similar situation I have been through we did. Investing scared is usually a recipe for disaster. Getting into a PM position should be a decades long proposition. I have slowly built up my position over 30+ years, sidestepping times like this, but buying when its boring. I am not a fan of what is going on in DC either, but an unwilling to pay the premiums demanded today. I understand I have the luxury of having a position in place, but do intend to add to it when everything calms down and prices retreat, which they almost always do.

 

When will it calm down though?I haven't bought bullion for over a year now I haven't got any 2021 coins,ASE,Maple,Brittana e.t.c.

 

IDK. I was here around 2010-2012 and it was high pm prices and high premiums for over a year. You can go back and review threads in that timeframe. If I recall even 2013 had higher than average premiums. I know I own a whole bunch of 2011-2013 dated things like pandas I know the original purchaser lost their rear on, since I paid around $17 for them around 2017. A year might seem like a long time to you, but in the pm market it kind of goes in cycles of a few years at a time, long enough for newbies who come in all excited to lose interest and dump their positions. If you were here a few years ago I was posting how it was a great time to buy, but many people who are buying today weren't interested in PM then. Especially in PM, long term interest pays off.

 

Well stated, thank you. I've switched to a balance of numismatic coins I like, and bullion. US 90% is still my go to at close to spot for stacking.

Yes, the last recession and money-printing extravaganza was a real mess, but this time around feels much worse considering all the other factors involved. Another $4 trillion spending on the way.

Of course, I'm 10 years older now too, and the clock is ticking!

 

I've been buying more world silver and sometimes for %50 under melt.

 

PM's.....
HOLD ON, CT-ers, It's getting to be a Bumpy Ride.
J.T.

 

I'm no expert on this and have never bought a contract, much less tried to take delivery, so take this with a whole box of salt.

I can't imagine you can request delivery of your spot price silver and get your 5,000 Oz (or whatever the minimum is) delivered to your door for free. I would expect fees to ship it, possibly by armored car, to an approved storage facility, and more fees to store it there. Not to mention whatever hassle you have to go through to arrange all this. Your time is worth money, too. Manipulation theories aside, wouldn't all of these factors amount to a built-in premium above spot for your physical silver?

Just throwing out an idea, not trying to be argumentative.

 

Take the time to watch this video. Super informative and Ed is a very smart man.

 

Gold mine near me ( 40 miles). About 3/4 ounce pure per huge truck of mainly sand. Truck tires are 8 ft. diameter








Since the mine is 40 miles from Colorado river, the ground water is fairly high and limits how deep they can dig.



The gold is leeched out by using a cyanide spray. The area towards the top . The gold/sand is deposited in the lower part of the photo waiting its turn .
Here is the leaching area. They have workers down in the cyanide spray with raincoats, plastic head covers, doubled gloves etc. But the chemist said it was OK and he put his bare hands in the cyanide to demonstrate. Not me.



Hoping to get to go again. but GM club is closed for covid . The Mines say they are the ones that determine the value of their product for the company.

Jim

 

The big silver run a decade ago ended when the powers that be increased the percentage required to buy on margin. The spot price of silver fell 30% virtually overnight. Some silver-stackers that I knew at that time, who got in late, learned a hard lesson.

 

Same thing they did to the Hunts back in 1980.

 

To be fair, the market the futures and options were on raised margin requirements to protect itself. The volatility had increased tremendously, and the market did not want to take a risk it would not be made whole. NYSE, Comex, CME, all of these markets do NOT take market risk, and when volatility increases they normally raise margin requirements to protect themselves. They have to settle both sides of the trade, so if a loser on a trade cannot come up with the money, Comex still has to pay the winner themselves.

 

Yes, I agree. I was simply pointing out how this sort of manipulation can negatively affect small buyers of physical silver like many here.