Silver Stackers' Playbook

It seems to me that silver premiums will remain high for quite awhile, because of the pent up demand from people who want to "back up the truck" for $23 silver. Meanwhile, I think the POS is more likely to make a big move upward than downward. So I am thinking that now is the time to buy, even with the much higher premiums.
My favorite LCS has not had 90% for 3 weeks.
I am considering other LCS's which would likely have higher premiums, also online dealers.
I love 90%, but might consider getting some ASE's if there are relatively better deals than for 90%
What are your thoughts, fellow stackers?

 

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my lcs is selling 90% at x19 face and generic silver rounds at $26

 

Just made a purchase from Silvertowne this week @ $23... I could see it being brought down a bit more but the upsaide looks better then the downside to me right now. I'm a buyer even with crappy high premiums!

 

Good luck finding what you want. It's hit or miss out there. My LCS is wiped out. They had 3 ozt silver bullion total last time I was there. Three generic rounds.

 

This is certainly an odd time for silver. One of my LCS, the one that said if silver gets below $25 he wouldn't be selling any more silver, had a guy come in looking for silver last Tuesday right after the market tanked. The owner told him he had some, but that he couldn't sell it for less than $31. The guy asked how much he had and he said about a hundred ounces. The guy happily bought it all at $31 an ounce.

He still has a lot of numismatic silver in the cases, but now he's waiting on an order from APMEX and for customers who want to sell so he can have some bullion to sell again.

When you visit Provident and AMPEX, it looks like just about everything is out of stock, delayed, on back order, etc. Even their "New Arrivals" section. It would be nice if they had some section of their web site, or something with their search function, that would allow you to show only what they currently have in stock. Provident actually has some 2013 ASE in stock, but they're asking $30.19 for them. Providents premium on current year BU ASEs is usually MUCH lower than $6.50.

 

It's only been like this for a couple weeks now. If you are building a stack for the future, this (tight supply and high premiums) will probably turn out to be just another short lived blip. Things will return to normal before long.

IMO, silver will get cheaper.

 

Paying $6.00 over spot is crazy. Look at things from a long term perspective.

10 years ago $6.00 would have been more than the value of one ounce of silver. To pay that much of a premium for the privilege of owning an ounce of silver which is already at a much higher price than the historical average does not make financial sense.

It is analogous to taking an interest only loan with a balloon payment because the price of California real estate only goes up.

 

For me ASEs are #1 for stacking, lately I have been also looking at 10 oz. Perth Mint Products too.

 

Make the round of pawn shops and tell the guy you will be spending $500+ in cash if the POS is right.

Pawn shops LOVE cash deals. If the guy won't sell at a decent price, tell him you'll be back in a week, if you have any money left...then SHOW UP in a week, and play the game again.

 

Good plan. Its a tough time. Many retailers believe either silver is going back up, or they can simply charge higher since many may not have heard the news from the last couple of weeks from the market.

Maybe they are right, maybe its going to pop back up. Ask yourself this though. Were you looking to buy a lot of silver when it was in the high 20's? If not, why are you willing to pay such high premiums today, that basically will take any profit away from you for the next $3-4 dollars in silver market appreciation? It always is this way, the basis always increases when there is a move downward. Please trust me, if market prices stay at these levels, new coin production will move into the sales channel, the initial buying frenzy will wear off, and premiums will drop back down to historical levels. They always have in every market drop I have been around since the 70's. If you believe this is the new market price of silver, wait. Prices will drop, I guarantee it. If you think they will go back up into the 30s this year, please by all means buy at today's premiums since you will be still be making a profit.

 

I bought from silvertowne last week as well. I figured That buy getting free shipping I saved at least $6.95 off the price. If I had to drive to the nearest LCS probably $20.00 in gas, So I paid $52.00 for 2 ounce rounds -6.95 = $45.05 /2 = $22.52 ounce Thats was last week when silver was hovering around $23.19 I think I also bought 2 1 ounce bars a few days later when silver dipped under $23.00. I am not sure if the way its going we wont see $16.00 or $17.00 an ounce and am afraid to put any milk money into the system.
Now if I was to sell some steel from the farm well maybe I may still buy a few ounces a week untill it makes some kind of larger swing.

 

I got about $6 face value for 17.75xface the other day. I think that may turn out to be the best deal I will get since silver is on the rebound today, and may continue. We may have hit the bottom that Juan Blanco predicted at around $22, and we're headed up again. It's over $24 again and climbing.

 

I stopped by a local place yesterday. They wanted $10 over on ASE plus,7% sales tax!! Holy smokes, POS would have to move about $10 to be "even". I agree with Chris - more supplies will come and premiums will drop. I'm sure not gonna pay more now, than when POS was $4 higher.

 

I said it before, and I know everyone thought I was kidding, but if anyone has a reason to punk the silver market it would be the bullion dealers. If they properly hedged their positions, they are making a KILLING right now.

I simply find it amusing how all of the bullion sites aren't saying one dang word about how PM has been the worst investment of 2013. Every single story is only about how, "there is a SHORTAGE of bullion", or "we are running out, premiums are proving it", etc ad nauseum. To me its just a slap in the face reality check that these sites care nothing about those following their advice, there is nothing bad EVER about investing in PM, and they are simply pimping their story as long as possible. I just wish one would fess up and actually write how they were wrong, that buying silver has lost you 25% in only 5 months.

 

I'm on the fence about this. You are correct about recent performance, but if someone expects silver and gold to go much higher over the next 5 years or so, holding on is probably the best course of action. The metals are very volatile and the high bid/ask spreads make it hard to jump in and out of the market profitably.

 

I agree completely. If your long term view is up, physical is a very hard investment to try to get in and out of, you should buy, hold, and not worry about interim corrections.

My point was more if someone was reading these sites, bought Jan 1, they are down huge. Not one of these sites write articles how they were simply wrong, every single article either accuses "someone" of manipulation, or writes about how "physical is now short", sidestepping how very, very wrong they were just a few months before.

 

Have you actually tried this?

I stopped at 4 pawn shops one afternoon last week.
One place had no silver. The guy said they never get any.
Another had a couple silver eagles marked $64.95.
At another it took the guy forever to find some silver. He finally came out with some 90% half dollars he said he usually gets $25 for them.

 

That is not how it works and you know it. A bullion newsletter writer would lose all their subscribers if they gave a fair and balanced view. He would be accused of selling out to the manipulators and be shunned. They currently have a winning formula. People are willing to spend big bucks just to hear every single month that silver is a great buy. It sounds silly but it is true. I used to get angry at these folks also, but I have changed my view. They are simply delivering what the public wants. I now look at it as who is the bigger idiot, the bullion sites and bloggers for selling the myth or me for not getting in on the easy money, and now I know, It is me.

 

I proposed the "pawn shop" idea as a strategy. It might never work, but it sounds like fun.

 

Yeah, I do, but I still can get mad about it. Like I said before, my friend at work's son in law liquidated his 401k like Nov-Dec and put it all in silver, (paying the taxes and penalties out of his pocket). Even if silver had not gone down that is a bad move, but with stocks up, silver plummeting, its about the worst investment I have heard of in quite a while. I know we are responsible for ourselves, but gosh dang it I believe someone owes that man an apology, and I do not see anyone offering up one.