Discussion in 'Bullion Investing' started by myownprivy, Mar 25, 2020.
I did not do any buying or selling during this time.
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anyone who managed to purchase any physical silver at $12/oz.
I made one casual call to my dealer buddy when it made the dip to twelve. He sort of giggled when I asked him how much twelve dollar silver he had to sell me.
Although you have to take them with a pinch of salt, as they either sell bullion as their livelyhood, or have been dug into the same political/economical position for 20 years (yes, the Austrian economics), I hear many different people say that dealers aren’t able to supply the demand of physical silver.
I expect the silver price to be inflated by the recent US stimulus package, but as it’s also an industrial metal, there may be lower demand due to production seizing many places, and people do not flee to silver the way that they flee to gold. I still buy if I get silver for 18$ an ounce though.
Tell me about it. I gave up today and bought a gold ETF.
A relative in Kentucky got some in the high 12's.
I had an offer on feebay for a rare AARO bar at $40 an ounce.
With the bay fees, I like it a little more then that
I countered at $50 an ounce and tried to steer the buyer over to another PM talking site where we could both save on the transaction.
Good luck converting that paper to yellow metal.
Why would you? You can sell the ETF for $10 a transaction and do so basically immediately, the metal you'll take a MUCH bigger hit and have to wait for a buyer
That’s not the object of this. It’s to make a profit on the ETF transaction.
Physical silver was NEVER at $12 ounce. Paper silver dropped to $12 per ounce while physical silver went to $21 per ounce. Sign of distorted market in silver similar to an inverted yield curve in the debt market. Caused by 95% of the silver market is paper silver, home of the 1% who never take physical delivery. 5% of the market is us, the 99% / small guy/gal who buys physical gold and silver when the sh** hits the fan.
I am a retired Managing Director of J.P. Morgan Chase who was forced to take my Series 7 broker/dealer exam to keep my job in Power Project Financing.
The 1% are truly bleeding this time, and sold any paper assets they had, even at a loss, to generate cash to buy 10 year T-bills, the safest investment in the world. This, in turn, created a liquidity crisis in the Treasury market as everyone wanted to buy Treasuries, and the big banks ran out. The banks had no more money left to buy more Treasuries from the Fed, so the Fed lent the banks $1.5 trillion to restore liquidity to the US Treasuries market. This calmed the markets for about an hour, until the market realized this was not good news, but bad news.
I bet you have met tons of dealers who bought at $12 levels though.
I bet lots of silver was bought at $12 market levels, but none was sold.
You want to MAKE money, go long on paper silver @ $12 an ounce and wait for the short-term untenable paper silver market distortion to resolve itself. I am mildly satisfied to make some money off the trials and tribulations of the 1% in panic selling mode. -
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