Dead cat bounce??

Aw Chris, you have said it best so many times, if you are collecting because you like it, go for it, collect anything you want that makes you happy. As an investment though, not seeing it yet

Mike

 

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Dealers have been raising their premiums as the price drops, and inventory is becoming scarce. I bought some Fiji takus when spot was $25.50 and the buy price now is not even 50 cents cheaper per coin. Everything is on delay too, but I will get mine on time since I beat the rush.

So is it a dead cat bounce? I have no idea, but if it is there will be consequences at lower prices. $24 is the cost of production for many mining operations.

 

If the cost of mining exceeds the cost of production then they simply don't mine any more. My family had owned mines up in Alaska since 1923. From 1923 till about 1930 it was an active mine. After that my great grandfather and great-great uncle didn't see the mine as viable therefore closing it indefinitely. Several decades and heirs later about 3 dozen surviving family members sold it to a California mining company in 2006 who wanted to activate it. The mining suspension was never a burden to my great grandfather and uncle since they were never soley reliant on the mines and were deversified in logging timber from Washington to Alaska. With that said, I'd say miners will walk away with their profits and get back to excavating septic tanks or whatever they did when gold was at $400. Maybe another 70 years down the road their hiers will sell it and stuff a bit of cash into their pockets.

 

70 years from now gold will hit $50 an ounce:yes:

 

Fluffy... Noooooo...

 

I agree premiums are up, but if the market stays at these levels more production will erode that down back to normal. World mints are still striking, mines are still open. There is so much competiton online i will expect premiums to come down faster than they did 30 years ago.

 

youre spot on man. i wrote a whole thread about this. why the premiums FOR PHYSICAL are increasing while the prices drop. DEMAND is obviously high....NOONE HAS ANY SILVER TO SELL. Once the paper markets COMPLETELY CRASH DUE TO FRAUD AND MANIPULATION and the scumbags have to produce some of their "cheap commodity", they are skrizzood. And then physical silver is going to explode. Everyone gets to caught up in the daily, weekly or even monthly price move of silver. IT IS A VOLATILE PRECIOUS METAL PEOPLE. Look at any 10 year chart of silver and show me a loss. It doesn't exist. Unless you start on Silver Thursday in 1980 (the greatest correction of silver manipulation ever) as the beginning of the 10 year period.

I think paper silver is meaningless. All those JP Morgan-ish beasts are going to eventually have to answer for their greed. PHYSICAL silver will continue to rise over ANY 10 year period. But please, everyone, panic, sell me your silver for cheap. I am gobbling this $23/oz ish UP...gobble gobble

my .02, sorry for yellin

 

you can't find any silver to buy? really?

 

I knew someone would nit-pick and I would have to explain in better detail. A shame that certain ideas arent just generally understood.

Find me a generic 1 oz chunk of silver for $1 above spot on ebay. ITS NOT THERE, BUT I AWAIT YOUR LINK.

I go to shows EVERY Sunday, I cannot find ANY silver for a NORMAL premium (ie $1/oz on generic silver, $2 on Eagles) And unfrotnuately, NO, I will not believe you that you can.

Go to a major online provider. They are "out of stock" of this, "out of stock" of that, "out of stock" of ALOT. Or charging A WHOLE LOT CRAZY PREMIUM.

but take me literally. dont think about it...btw, do u wanna sell me any of yours?

 

I don't plan on selling any unless I am not working. with spot being so low, silver is still a steal compared to last week. just being obvious.

 

thank you.

 

Then call their bluff on Comex and put your money up to take physical delivery of a contract at Comex pricing. Don't have enough? Then join together with everyone on pm board complaining about "manipulation" and buy, paying all of the cash up front, for physical delivery.

Still no because you can't? Well why should COMEX give a crud what you think of their market then? Last time i heard, customers are whom companies care about, not someone using their pricing data for free and never paying them a dime. WHO ASKED YOU, or any of us, to use their market prices? They sure didn't. Ignore their market then and pay what you wish. Its a free country.

 

you misunderstand. i love it. they will destroy themselves. i know what my avg price per ounce is, and even at $24 I am up, significantly. my point is, the paper world is theoretic. physical WILL ALWAYS triumph. what would u rather have, 100 ounces of physical, or 500 ounces of paper? ill take the physical. paper can go to zero, after all, our paper american currency is devalued 98.2% (give or take?). Only about 2% left to go to zero. Physical silver CANNOT go to zero. the paper silver market will eventually do the same. and that is not even considering a major disaster, ie nuclear war, an "end of fight club start from scratch scenario", etc. haha

 

500 ounces of 10,000 dollar bills.

 

Sadly there aren't enough $10,000 bills in the world for that, but yeah that would be my preference.

 

Oh my goodness, so many cliches, so little time. Do you know what basis is? All of thr rest of the pm cliche parade i have responded to here many times, too late at night to care to do it for the 100th time.

 

Btw, anyone ever stop to think maybe it was the large pm pushers who punked the market? Think about it, they hedge their inventory, get a lot of press, basis increases so they make a mint, and sell product like gangbusters. I bet the profitability of a properly hedged pm pusher just skyrocketed! Who else has made more money in this whole market decline, and as deep throat used to say, "follow the money". Provident and the like making a fortune on the backs of pm purchasers.

 

People keep posting the comparison between "paper" and "physical" there is a third option that trumps them both: any guesses?

 

Numismatic silver?

BTW: When silver spiked into the 40s many thought it was going to 100. Now that it has dropped to the low 20s many are thinking/wishing it will drop back to 5-10. Keeping with the dead cat analogy, we must remember that silver is like a feral cat with 9 lives. Highly volatile but keeps coming back. :smile TC

 

Check these out my friend 1 oz generic rounds, 1.39 over spot on 20+, 1.19 over on 100+, .99 over on 500+

http://www.providentmetals.com/bull-and-bear-1-oz-999-fine-silver-bullion-round.html