Silver Is On A Tear Today

Conversely, there are a lot of tears on silver today...

 

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I had an eBay buyer make an offer on a gold watch.
I thought about it for awhile last night and accepted the offer.
The buyer never completed the purchase and seemed to retract the offer after I accepted.
I raised the price back up to where I started it originally and if I can figure out how to block that buyer I will...just because.

 

I'm not worried about the intra nor inter day price today. I do have a major concern regarding future sales though.

While the spot pricing recently touched the low to mid $120's, the offer price to sell (discount to spot) was running anywhere from 5% to about 13% back of spot. That was while intra day swings were 5% to 10% either way. Those are big swings, historically. Caught on the wrong end of that swing could cost a dealer some sizeable losses. Most dealers either stopped buying during those severely volatile days.

Here's my fear.....
With today's intra day trading range at ~31%, the fear of a massive loss after a dealer makes a purchase became very real. If prices do recover and return to the $115-$120 range will dealers still be willing to offer 5% to 13% back of spot? Or will they begin hedging their offer prices even more back of spot to protect themselves? Even with a bigger spread they are leaving themselves very exposed after today's realization that spot can potentially drop 40% or more in one day.

I think our stacks became a little less liquid today.

 

• Day's Range: 74.153 - 118.340

 

I’m not concerned at all. No need to stress or worry either. No panic here. Just riding out the issues from today. Nothing goes straight up or down.

 

Selling a little bit since October I’ve taken out most of the cost basis of my meager holdings. Let the rest ride

 

Not me!!

 

I believe you are 100% correct.

 

Well I managed to buy some mining stocks at near the peaks. Got out of some on the way down. Some I'm just going to have to ride out. Cash on the side waiting for a lower re-entry point. Everybody took a bath today. We knew metals were volatile but I don't know if people were ready for this kind of volatility. One day to the next could end a coin shop now.
Whatever happens from here, the $118 silver point was a good learning experience for everyone. Shops have a finite amount of cash to buy. Spreads get really bad. Takes the fun right out of it.

 

Nope. Just many years of living with females.

 

The Volitility argument is now legitimized, the spread would lean more towards a buyers risk tolerance.

 

Went to a coin show today with plans to sell a little bit of my stack (just a little)...price literally dropped $35 during my drive to the show. Not needing the cash right away I held onto my silver but there were still plenty of people at the show selling and dealers were happy to buy at the lower spot price today. Based on some conversations I overheard, quite a few people selling were folks who had silver coins from a long gone family member - shoe boxes and cigar boxes with assortments of coins. They seemed happy with the offers they got.

I agree with the person above who noted that before today if dealers were buying at all, were not paying full spot after we got over $100/oz. That was what was happening in my area too.

I'm glad I'm not in a position where I have to buy or sell right now. It is interesting to watch the volatility.