< $15 Silver: Is this something worth waiting on?

I would think a lot of silver being sold , was bought at a higher cost to dealers , they didn't buy it after silver went below $15

 

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No one likes to take a loss and right now many dealers are sitting on inventory that was acquired weeks or months ago. So they sit on it, hoping for prices to go up. Reminds me of the gas station dealers - while prices are going up they raise prices on product in the tank and by doing so increase their profit margin, and then when prices are falling they wait to lower retail prices until their higher cost inventory is gone. They all do it. Collusion? Naw!

 

I just bought a couple of silver mple leaf's for 16.75. We have a great little dealer here who operates on a SMALL margin

 

The large bullion companies can't work on cash/physical commodity alone due to this reason. Most of their expenses stay no matter what, so they maintain their stock based on options to buy and sell the physical, as well as premium, to balance their cash flow. Those that don't generally close down unless they are supporting it out of their own pocket ( financially dangerous).

 

Pulled the trigger for the first time in a while late last night for a modest amount of silver, gold, and platinum before the news from China came out. Expecting more downside due to contagion, since Chinese are invested abroad even if our markets are not heavily invested there. Still, very happy to be buying silver at sub $15 and gold at $1100, and if it goes lower will cost average my way down. If Andrew Maguire's statements still hold any water, the COT became net buyers after last week's gold smackdown. If there is more downside to metals, the big money isn't betting on it. Yet I find it hard to accept that what is happening in the East won't spill over as positions in one camp are liquidated to cover losses in another.

 

I made another 15% move today from stable value (bond/MM) into mid-cap growth.

Sell was at Dow 18.2k - buy at 17.4k. Avoiding ~3% losses and buying back the shares at a cheaper price.

Buy low - sell high, that's what everyone keeps saying I should do right?

More carnage to come through early August in the stock market. (Thanks China!)

Gold is going to go up in the election year with a lame duck in the white house. No clue on the stock market.

If you wait for the bottom and miss - you miss.

I just got a call from the wife - shiny gold metal object in mail today. EUREKA!

Long Live the Contrarian!

 

The picture I get in my head when I hear people who stack, hedge or invest in PM's talk.

 

And I'm quite sure that someone as arrogant and closed minded as to not realize that PM is a valid long term investment is also sniffing what Kyle's dad has in his glass.

Keep feelin' good about yourself.

 

I'll be making another 15% move at today's market close. Considering I moved out in 15% increments when the market was above 18.1k, I've avoided an average of about 3% loss in account value by following my instincts, watching the market signs, and being cautious.

I'll make one more move before summer's end. At this point I'm satisfied and "in the money" from the moves no matter what.

Two reasons for gloating -

1. Don't listen to the pundits blindly. Read what they ALL say (especially the contrarian views) and then do your homework before making a move. You can learn how to time this stuff - it may not be perfect, but you can get a good idea of macro trends and use them to your advantage with a bit of cautious risk.

2. I told you so... (Sorry, I had to!)

Cheers to all for engaging the discussions. I learn each day!

 

Will the feds raise interest rates now that China is beating down their currency?

A cheaper Yuan will increase Chinese exports at the expense of...Oh No! At the expense of the federal reserve's Working Class Heroes! They can't let that happen!

 

Yes, they will raise rates, September is iffy at best and my guess is no, but Dec... it will happen.

 

Do you still feel this way given the opportunity to purchase bars over the last month at such low prices?

 

What low prices? The premiums were outrageous.

 

I was asking more to gain your insight on this, not to be plugging silver. I recently had to retire early due to health issues and can no longer contribute substantially to my nest egg. I started in PM's a little less than a year ago because I fear what happened in 2008.
I know, premiums have been terrible in most cases but 10 oz. generic bars could be had at a decent premium as well as kilo and 100 oz. so I've taken advantage.
My stack is 60% bars - 40% ASE's and my DCA is $18.41. Not exceptional but I would say pretty good.

 

I, as a new OP, learned that lesson the hard way. Gee, I was never to "Beat Up" by words by only one member...I agree, people can get nasty. There is no need for that. I am hear to learn...

 

I see Monarch precious metals has decent prices on 90% junk.

 

Now's a good time to buy, In my humble opinion. Please don't quote me if it goes down to $10....

 

I seem to recall you bought some silver EFT shares not too long ago and silver started down the next day. Just teasing.

 

Everyone must off at the Trumpf rallies. This thread died. lol

 

Not everyone, I'm still watching silver!