Discussion in 'Bullion Investing' started by myownprivy, Mar 25, 2020.
That would be good advice...last week. But today silver spot is $14.45 at this moment.
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Read the contract carefully. Sometimes you have to take the the spot price of the day BEFORE you sell.
I never liked musical chairs. There are 300 ETF ounces of silver for every physical one.
But you are missing his point sir. At times there are differences between big players, (paper market), and tiny players, (physical market). This is called a basis spread. At those times, take advantage of it by locking in your PM base price on the paper market and wait for the basis to shrink. You could have locked in a base price of $12 for silver, waited for the basis to return to normal, then sold the paper and bought the physical.
No one is talking about converting your paper directly into physical silver. Your 300 to one ratio is VERY VERY NORMAL for derivative markets like PM. Almost every market works the same. I literally could write a book why, but many others already have so pick one up and learn about the markets.
@medoraman gets it. If you learn how markets work, and 99% of players in that market DON'T, then when an unusual market distortion occurs, you are now in the magical world of arbitrage, which is, in essence, legal insider trading, of a sort. If everyone knows something, then the market clears the new information, the opportunity for arbitrage disappears.
In layman's terms, "you snooze, you lose".
You're STILL snoozing, man!
Let's list just a few points.
The US$ has been a fiat currency since 1965;
The Treasuries market locked up with a liquidity crisis and took $1.5 trillion to bump up the market FOR AN HOUR.
The corporate debt market also began to lock up and the Fed committed to throw another odd trillion $ or so.
Just a day or two ago, the Fed committed to print an endless stream of fiat US currency to prop up the world's economy, all based on fiat currencies.
You read today's unemployment report? You read the regional Fed chairman's prediction of our expected unemployment rate by year-end?
I hear snoring about $14.45 unobtainable physical silver. Wakey, wakey!
I had a old Craigslist ad offering up some 90% silver that I forgot to take down and had offers as high as $25 per ounce when silver was in the
I'm not missing the point. ETFs of PMs is no different than me selling pictures of Ferraris and selling them as cars.
If you can't hold it, you don't own it. PERIOD
You do know ETFs are not the same thing as futures and options, right? An ounce of ETF ownership is back by an ounce of physical metal. I was referring to ETF ownership, not futures. Get enough ETF contracts and there are provisions for getting the metal in return.
Either way, I don't care. I was trying to show you how to lock in a lower PM price when your physical dealers are trying to hose you, but you know what they say about a horse and water.....
This is from CME, "Although several ETFs track the price of silver, only three are backed by physical silver."
I've never heard of paper silver being used to make cellphones, or solar panels, or...
What's the best way to find the physical price at any given time?
I use www.coinflation.com
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