never seen silver drop so fast $25.85

Discussion in 'Bullion Investing' started by enochian, Apr 12, 2013.

  1. coleguy

    coleguy Coin Collector

    I'm with Mike, silver is still too high. I might stock up if it got down to the $10-12 range, just to sell to those who seem to think it wise to buy high, or on the move. Invest in dirt. It's hard to lose on.
    Guy
     
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  3. bluemastiff

    bluemastiff Member

    I have wondered what the real cost of production is. I am no econimist or math wiz but I have read that we have crossed the line of production cost or near it. Here is one link of many that have been saying this. It is all a bunch of gobbledygook to me that turns my brain to mush. http://silverdoctors.com/2011-complete-cost-for-mining-silver/
     
  4. Conder101

    Conder101 Numismatist

    Yes this drop isn't anything like 1980, that was something to see. On Jan 21st silver hit $50 an oz and gold hit $850. Three days later Silver was at $30 a 40% drop, and on the 28th Gold was at $624 a 26% drop in a week. And they kept going down with silver bottoming out for the year on March 27 at right around $10 an oz (80% drop from the high in two months) and gold at $481 a 44% drop in two months.
     
  5. mikem2000

    mikem2000 Lost Cause

    Maybe , but I am sticking to the more accepted price of 20-21 an oz. I would rather err on the side of caution. That would make me a buyer in the 17-18 range.
     
  6. enochian

    enochian silver eater

    gold chart looks almost exactly the same

    gold.gif

    silver

    silver.gif
     
  7. Danr

    Danr Numismatist

    wouldn't you know a big drop right when I am short of cash
     
  8. Zlotych

    Zlotych Member

    I think many of you that think silver is still a bit high, and backing that position up with historical market fluctuations, are forgetting to account for inflation and the fact that imaginary paper assets have never been this overblown in a national and world economy that lacks any real positive production. Right now is not similar to any historical period you can bring up.
     
  9. mikem2000

    mikem2000 Lost Cause


    Not at all, it is bit high and that is backed up by the fact that it is still selling at a substantial premium to the cost of production. I may be old school, but that is how we always valued commodities, and in the long term, it works.

    Do not believe anything about these paper assets messing it all up. They may effect things in the short term, but for the long haul, it is nothing but fluff
     
  10. medoraman

    medoraman Supporter! Supporter

    Thing about the "paper assets" is there are as many buyers as sellers. Why is it everyone onpy believes it the sell side being manipulated? Is it just as plausible its been too HIGH because of buyer manipulation?

    Btw Mike, i never meant i thought it was a screaming deal with me sale comment earlier. Just reminding buyers if they thought it was a good buy at $30, they should be ecstatic about it at $26.
     
  11. newcoinguy

    newcoinguy Member

    I want to see $5.00 silver, that would make my day!!!!!!
     
  12. Aslanmia

    Aslanmia Active Member

    I too concur. Both silver and especially gold, are too high... definitely too high to start investing in at this point, IMHO. I stopped buying silver when it hit $14 and got out when it hit $35. I could have made a better profit if I held on for a while longer, but the crystal ball was on the fritz. ;) Someone's always left holding the ball in these situations and I wanted to make sure it wasn't me.

    Canada never had a mortgage crisis like the US and land and housing prices have only recently begun to drop in my area, thanks in part to some new rules imposed by the federal government. Guess where I'm going to be investing all that profit I made on PMs?

    The name of the game is buy low and sell high. :)
     
  13. Tinpot

    Tinpot Well-Known Member

    Short term speculation in anything is dangerous if it isn't money that you can afford to lose.

    I'll take PM's over giving my money to the bankers to make money off of and giving me nothing in return (except for the illusion of security and negative returns on that money in real terms considering inflation)

    -15% loss on paper? It only matters if you've got to sell now. Silver went from $21 down to $9 already and recovered just fine. There is pretty much no way that the bull market can be over right now considering the huge amount of debts being held by governments, they have to print or die. Not to mention interest rates being so low, high interest rates is likely what killed the last bull market in gold/silver. They also can't afford to raise interest rates, unless there is some sort of unbelievable economic recovery.

    I'd also recommend Provident metals for anyone who is paying a 10% dealer spread. You can get kilo bars for .59 over spot in any quantity and they buy back for .10 over spot. Less than 2% spread not including your shipping costs either way. That is a bit of a special, but they typically have some sort of generic for less a $1 over spot, and pay .10 over. So about 3% spread at worst.

    The spread on their 1 oz gold bars is even cheaper, they have a 1 oz OPM generic gold bar for $12.95 over and buy back at spot -$10 I believe, so 22.95 spread, about 1.5%.
     
  14. Briguy

    Briguy Collector 4 Life

    Very true... I think I'll be patient and watch closely.
     
  15. Tinpot

    Tinpot Well-Known Member

    "Buy when there's blood in the streets, even if the blood is your own." Baron Rothschild

    Guy was a scumbag if what I've read is true, but he hit the nail on the head with that quote.
     
  16. westcoasting

    westcoasting Active Member

    I started buying a bunch of Silver Bullion coins recently when silver was three bucks per oz. higher. I figure the price is always going to fluctuate and sometimes severely... but, I know I want bullion to diversify assets (already have real estate and some stocks). It's not really an investment for me. Just some insurance for certain 'scenarios'. So, bring on $15/oz or $5/oz! I'd buy more to add to the "policy".
     
  17. mikem2000

    mikem2000 Lost Cause


    Gotcha :thumb:
     
  18. Revi

    Revi Mildly numismatic

    I started buying when it was $4 an ounce. Back then everyone thought I was nuts, and I wasn't so sure I wasn't. I just kept on buying. I like it when it's common knowledge that it's a bad thing to buy. I think silver will languish for about six years and then spike to over $100. I am not buying much at this price, but I'm not selling much either. If I can sell it when I'm retired in 5 years I might do okay.
     
  19. RaceBannon

    RaceBannon Member

    For once I may have lucked out and timed the market right. I sold the vast majority of my gold bullion last fall when it was betw 1650 & 1700. I got into PMs in 2004 when gold was around 400 and silver was 9 or 10 bucks an ounce.

    I just figured we'd been in this bull market for 10 years and gold had plateud at 1600 or so for a year at that point. It was Time to take some profits.

    Don't worry though...if you're in it for the long haul, this is just another buying opportunity.
     
  20. medoraman

    medoraman Supporter! Supporter

    I too was thought to have some mental illness buying old cruddy coins.

    The real key is to do what you did sir. Keep buying when its NOT a hot investment. Keep buying when you get snickers from others about how bad the market is performing.

    For those new to pm, please stick around and keep with it when its a downward market, or stagnant for a decade. This is when most new investors leave, licking their wounds and forever swearing to never buy pm again. It makes me sad how they could have profited if they had stuck with it in down markets.

    Basically, i hope all of those who truly believe in pm stick around. If they do, i do believe they will profit long term, even if to date they bought all of their silver in the 30's. Its a marathon, not a sprint guys, like i said earlier if you liked it in the 30's you should love lower prices. Keep buying at prices you believe are good. PM goes in major spikes, people who continue to accumulate will get bailed out by the next spike and inflation.
     
  21. coleguy

    coleguy Coin Collector

    The thing is, there is no reason for it to be higher, regardless of inflation. It has very little common use in the 21st century aside from a short term investment, and even that only accounts for less than .01 of commodity trading. So, why should it be higher? If there were wealth potential, you can be certain the mining industry would be bringing a lot more to the market, but that isn't the case. Its all hype, just like gold, and just like diamonds were in the last century.
    Guy
     
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