Silver getting crushed today

Discussion in 'Bullion Investing' started by Soiled, Apr 1, 2016.

  1. -jeffB

    -jeffB Greshams LEO Supporter

    How is he going to make a living by sitting on inventory? You can wait for years before the price comes back up to your buy price. (Some people who bought in 2011 are still waiting.)

    You can only stay in business if you can turn items over. If you're waiting for the price to go up, you're speculating, and that's a risky model.
     
    SLACKACTION likes this.
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  3. myownprivy

    myownprivy Well-Known Member

    Twoshadows volunteers at a coin shop. I'm not sure he's fully learned the economics of the business model yet. Coin shops need to sell CONSTANTLY to stay in business. They make their living on their buy sell spread. They need to be buying an ounce of silver for 50 cents under and selling it for 50 cents over that same week, ideally.

    A coin shop that prices bullion significantly over spot and rips you off when buying from you won't get any of my business.
    Lower profit on high volume is always better than high profit on low volume, for the simple reason that having more customers is always better than just a few. Not to mention, selling on low margins at high volume will make more customers happy. Isn't that what any business wants?
     
    Last edited: Apr 4, 2019
  4. twoshadows

    twoshadows Member

    I understand turning your money over but was trying to explain no one, including the small coin shops, can afford to sell at a loss. The highly collectable coins usually are turned over very quickly as everyone wants them but buying gold or silver bullion when silver is up cannot be sold at a loss. Now junk silver, well that is bought and sold by market prices each and every day. The ten, fifty and one hundred ounce bars are a different story. (silver) Now gold is not as tough as it doesn't move much and hasn't for a while so prices don't fluctuate as much.
     
  5. ToppCatt

    ToppCatt ToppCatt

     
  6. ToppCatt

    ToppCatt ToppCatt

    I believe PM's are not for investors looking for a profit someday that may be far away but for a hedge against inflation that is always around the corner.
     
    harrync likes this.
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