Another Dramatic Silver Tale?

Went to my coin club meeting tonight. One of the main club members works at a coin shop on Saturdays to help out a buddy of his that owns the shop. He gave a "warning" in regards to silver and I wanted to see what you guys think about it. He said:

His buddy the coin shop owner has talked to 7 of the "biggest dealers" in the U.S. They said that once silver hits the "magical" $50 number, a price spread is going to take place initiated by them. That the $50 per ounce number will be the point when people unload all their silver because that's the number stuck in alot of peoples heads, that signals a time to sell. However the new price spread will be in effect at that point, and dealers, shop owners, whomever will only pay between $40-$45 per ounce. Maybe a little less. The "price spread" is the amount of money between the spot price and the price dealers will actually pay people for their silver. He was very insistant about this and said it is going to happen. He said you will get more money if you sell at $48-$49 than you will if you wait until it hits $50.

My questions are these: Is this possible? Could and or do "big time dealers" have this power? A coin shop owner in a quiet little town in Oregon is in contact with the 7 biggest dealers in the U.S? And they shared this information with him?

Personally, I'm holding on. I don't believe all of his story, but can't figure out why he would lie, if he is. Maybe this is just another story that's been dreamed up by someone to add drama to the market. Who knows. Anybody have any thoughts?

 

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Hmm.. it is entirely possible, but that is why I would sell privately and not to a dealer to begin with..

 

It's possible..... I would like to know the 7 dealers that he talked to and then send them a little piece of my mind, criminals, theives... stealing from knowledgeless folks who more likely than not need that cash..... But that is the way of Business in USA..

 

From Wikipedia Dictionary:

collusion - secret or illegal cooperation or conspiracy, esp. in order to cheat or deceive others

In almost every jurisdiction collusion is illegal.

 

Sounds like collusion to me as well. It might happen but not for long. Most people will sell privately or hold as well. TC

 

No, it is not possible. All the dealers will do is make themselves irrelevant. People have more ways to sell these days than in the past.

 

I'm sure they'll have lots of luck shutting down eBay and Craigslist.

If we go back down to $30, it will be harder to sell without a discount anywhere. $50? That means enthusiastic buyers, and enthusiastic competition.

 

I sold 90% silver coins for twenty times face in 1980, as silver briefly moved up to $50 an ounce. That was more than 40% below the actual intrinsic value. Of course, the only place I could sell was to an itinerant dealer who'd set up shop in a local department store.

As I've been selling silver this year, I use my iPhone to get a real time quote from APMEX, which I use as a basis to negotiate with my local buyer, who's had a shop for over twenty years. APMEX consistently offers around 95% of the intrinsic value for bag quantities of 90% coins. My local guy and I talk, and he usually gets within 5% of that. If he didn't, I'd take the APMEX offer. If APMEX starts getting unreasonable with its offers, there's always KITCO.

Times change.

 

Moving on, a strategy like that will not last for long if they want to buy any silver.

 

I think it's possible, but given what you described... coin meeting in a small town, I think he's trying to panic you guys into selling at 47-49 when it has upward momentum, as I think $50 is a resistance point for silver and after it breaks $50, you're looking at more upside, not downside from profit taking.

 

Could not agree with you more. The only local coin dealer around my area is a complete "Rip off Artist". I am shocked to hear what he is willing to pay people when they come in to sell their coins. Its best discribled by you... Theives!

 

Well, the real story will be at the end of May. That is the "drop dead" time for silver speculators who have to put up real physical silver, if its called. The last "drop dead" date was the end of Febuary and all **** broke out then. If there is not enough physical silver to cover at the end of this month we may see $70 silver by June 1. /I]

 

I predict $70 also. I'm actually in a raffle for a silver coin. It's all a guessing game but I can't imagine the PM market going south if the U.S. dollar is losing its value. I dunno...I'm a newbie!

 

If that was really being planned, they could go to prison or pay huge fines. I doubt they would be so loose-lipped about it that it would be being discussed at local coin clubs.

 

Pardon me, the word "niggardly" is not racist. As per
dictionary.com:

niggardly (nig-erd-lee):

–adjective 1. reluctant to give or spend; stingy; miserly.

2. meanly or ungenerously small or scanty:a niggardly tip to a waiter.


–adverb 3. in the manner of a niggard




Origin:
1520–30; niggard + -ly

—Related forms nig·gard·li·ness, noun

—Synonyms
1. penurious, miserly, mean, tight, avaricious, mercenary, illiberal, close. 2. poor.


—Antonyms
1. generous.

niggard (nig-ard)

–noun 1. an excessively parsimonious, miserly, or stingy person.


–adjective 2. miserly; stingy.




Origin:
1325–75; Middle English nyggard, equivalent to nig niggard (< Scandinavian; compare dialectal Swedish nygg; akin to Old English hnēaw stingy)

—Related forms un·nig·gard, adjective
un·nig·gard·ly, adverb


Notice it has nothing to do with black people.


I have been wrongly and maliciously accused of racism by a manager of this room, to the cheers of members. I will not tolerate such treatment. Consider this my final post.

 

Got a new word for us;

Flame Bait

http://www.urbandictionary.com/define.php?term=flame+bait

 

I didn't accuse you of anything other than poor word choice. I understand the dictionary entry and I'm saying that doesn't matter. A casual reader could read that post and take away something completely different than your intention. I'm just saying that in 2011 you might want to use a different word. When you were typing that entry did it not at least enter your mind that it might be offensive? Don't take your crayons and stomp out of the playroom. I've enjoyed reading your other posts.

 

Shame, I always found your knowledge to be well-reflected in your posts. You always have nice insight on whatever topic you're talking about.

 

The fifth edition of the Webster's Collegiate Dictionary specifies:
niggard: "n. A person meanly close and covetous; a miser. --adj. Niggardly. --v. t. & i. Obs. To treat or act niggardly."
niggardly: "adv. In the manner of a niggard. --adj. 1. Meanly parsimonious. 2. Characteristic of a niggard; scanty."

Therefore, your word should have been permitted.