Silver buying

I am not a coin dealer, but why should Wall Street and their paper Silver contracts dictate the short-term price of real Silver at your local coin shop.

 

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I would wait and buy some Mecury dimes. I was at an auction and saw 10 bags of $10 face in mercs go from 210-230 and that is under melt.

 

There is one local dealer that I go to that does that and he admitted that. I cannot blame him for doing that because he does not want to sell it for a loss.

 

Whatever total $ amount you were going to spend on silver, spend half of it now on silver and save the other half if silver drops further.

 

I just meant without knowing your expectations and timelines its hard to estimate if silver at this price would be good for you.

 

I know that kind of behaviour can be irritating, but it's one of the mechanisms that stops declines. People holding on to what they've got at a low price means the demand can't be fulfilled there, so the price has to be bid up before the market can clear again.

 

I'm going to bring this up since the last time Cloud brought it up although not in the same fashion


which would you do?


buy an ASE for $30 +$5 premium with the spot price at $30.50
or
buy an ASE for $34 +$2 premium with the spot price at $34.00


if you truely believe that the price is going to go up! then why wait for it to? why worry about a premium if even with that premium it's still cheaper? think TOTAL cost


Sure if you can buy cheaper then $35 then go for it but I could care less myself if someone makes $5 on me instead of $2 if I get the lower cost for the same thing...I'm A-OK it's more about myself gaining then worrying if someone else does...

 

Total cost and marketability in my opinion are the two Keys. ASE's are in very high demand, even with the Mint selling an average of nearly 3 Million a month in 2011. Therefore, dealers have increased the premium from 10% to more than 15%, and they are are getting it.

Since all physical silver, from reputable sources, seems to be in high demand, I choose NTR silver bars with a premium of less than 6%. That is about a 10% savings from ASE's, and enough for me to make the extra effort when I do decide to sell.

NTR on their web site claims that they are a $1.2 Billion firm with offices throughout the US. They are a major player in refining "used" PM. Since their Silver bars are offered by AMPEX; Provident and Gainsville, etc. I feel that I should have little difficulty selling when that time arrives.

The "total cost" of silver bars and rounds is almost always much less then bullion ASE. In fact I believe that the premium that the Mint charges their primary dealers is greater than the premium charged to retail customers of silver bars.

Since the premium charged on ASE's are generally a percentage of the coins sales price, you are very unlikely to have a total cost lower on a ASE purchased when the spot price increases. Everything is possible.

Good luck!

 

do you believe any kind of premium you pay always goes up in smoke? ASE's have a premium because people want them...and why is that? very simple you know exactly what you got
not bars that might be filled with lead...not rounds made by someone that very few know of...
if you think you can't get the premium back or your told that by a buyer...then you got the wrong buyer...
there is demand out there and right now with the $10+ drop in price I would rather have something that holds it value more...look at ebay for an example
http://www.ebay.com/itm/20-2011-American-Silver-Eagle-Coins-1-Roll-Fine-Silver-Coins-20-oz-All-GEMS-/290613601875?pt=LH_DefaultDomain_0&hash=item43a9eba653#ht_2533wt_1396

just ended not long ago Spot price is $29.22 and this ended at $774.53 or an avg of $38.73 each ASE
and looking at apmex they are selling these for 20-99 $34.03 or 500+ $33.03...seems like there's a gap in there to make some quick profit if one had the money to do it with... if only i had $16,515 or more sitting around I'd buy in and start selling 'em like hotcakes

 

1. Understand your investment strategy and reason for owning silver.
2. Do what your paycheck can afford.
3. Win.

 

Nothing really amazing about that, I think. The conventional investment "wisdom" is "The trend is your friend". If the market is trending upward, people will still be buying even at $50 if they think the market will go higher. If the market is trending downward, people will be hesitant to buy even at $30 because they think the market can fall even further.

 

No hesitation here i bought some this weekend and if it drops more ill buy more later

 

Silver is 27.72 as I write. It is mainly the US dollar at fault, @ 79.355, it is greatly influencing commodities. Gold and silver are not reacting the way most people thought they would in this situation. But with China slowing down, it throws another possible wrench into the global financial machine. IMO.

Jim

 

Wow! 26.63

 

Back up to 28.18.
What a roller coaster.

 

That's my plan. I'd like to get these coins as close to $100 a piece as possible.

 

China's Futures market in Shanghai also raised it's margin limit on Silver by 20% over the weekend. This is moving to predictions. Paper PM markets blow themselves up as the banks go down, then what is left is the physical market. If you have physical in your possession, you haven't lost anything. This is a buying opportunity.

 

$32.61/oz right now...

 

I am so so so soooo happy that I bought at $30! I was a little sad when I noticed that it went down to $28/29 the next day, but this buy was the best decision I've made in a while.