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.
  2. Avatar

    Guest User Guest



    to hide this ad.
  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.
     
    Heavymetal and harrync like this.
  7. Mr. Flute

    Mr. Flute Well-Known Member

    Back up the truck!

    ;)
     
    Kentucky and Heavymetal like this.
  8. SLACKACTION

    SLACKACTION UNION REPRESENTATIVE

  9. SLACKACTION

    SLACKACTION UNION REPRESENTATIVE

    Market is set to plunge...……..don't that means PMs will go up..
     
    Heavymetal likes this.
  10. Heavymetal

    Heavymetal Well-Known Member

    Elevator down for equities. Last chance for PM buyers
     
  11. Clawcoins

    Clawcoins Well-Known Member

    No.

    Although PMs will trend with equities in certain situations,
    PMs more often than not reverse trend to the US Dollar Index.

    With larger trade concerns the US Dollar Index will typically strengthen dependent upon the total situation,
    which will typically lower PMs excluding all other possible indicators.

    In this case the US Dollar Index is rising
    upload_2019-5-6_9-40-25.png

    which is pushing PMs down (excluding other demands, impact items).
    upload_2019-5-6_9-41-2.png

    Now, if the general market has a pull out of funds .. ie they get scared, they general go to "safe havens" which PMs are a safe haven. So .. this downward PM trend may change quickly, irregardless of the US Dollar Index.

    If this is a one day blip though, there maybe a surge tomorrow in equities .. so we could have a see-sawing effect of equities and PMs. Or equities could drop in the morning and rise as the day continues. It all depends upon the trending indicators throughout the day.

    In other words, If you are biased towards PMs then a down market will be a buy signal if you think spot is at a good spot.
     
    Last edited: May 6, 2019
    SLACKACTION likes this.
  12. Clawcoins

    Clawcoins Well-Known Member

    Subsequently, you are now seeing a pullback of the US Dollar Index,
    upload_2019-5-6_10-13-43.png

    a clawback of the DOW from -500 to -275,
    upload_2019-5-6_10-15-20.png

    silver is see-sawing around
    upload_2019-5-6_10-16-58.png

    and gold continues down a bit
    upload_2019-5-6_10-16-34.png

    and the VIX is slowly scaling back - showing you how frantic ppl are. Large VIX sways may equate to larger PM fluctuations. (I'd worry if it approaches 20).
    upload_2019-5-6_10-18-14.png


    of course, YMMV
    time to buy Amzn if ya' got the $$

    if the Bond market starts selling off with equities ... then that's different.
     

    Attached Files:

    Last edited: May 6, 2019
  13. SLACKACTION

    SLACKACTION UNION REPRESENTATIVE

  14. Cheech9712

    Cheech9712 Every thing is a guess

    Look at todays prices. Time to buy again right. Look at your #2 post
     
  15. RICHARD K

    RICHARD K MISTY & SASHA

    Wish the Silver to Gold ratio would change to like about 50 to 1,would be real nice. One site says demand for silver is more than supply in last 4 yrs. miners don't make any money when silver is this low. I think something will have to change, get rid of derivatives and I think things for silver would look a lot better
     
  16. FryDaddyJr

    FryDaddyJr Junior Member

    "sites say" a lot of stupid things.
     
  17. RICHARD K

    RICHARD K MISTY & SASHA

    I'd rather have gold and sliver than that useless paper they just keep printing.
     
  18. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    Silver is always in demand, but most people do not want to pay what it is offered at by the price setting boards, they want it at the price the mining companies show on their balance sheet, which is of course much less. Think about it, the people pushing/selling silver are always willing to accept " Useless paper they keep pushing" rather than keep their own silver..........Gee, how could they be so dumb? I like such US paper myself, maybe I should write a bullion column. Follow the money. Jim
     
    Cheech9712 and harrync like this.
  19. -jeffB

    -jeffB Greshams LEO Supporter

    "Useless paper"? What do you use to buy your gold and silver?
     
    harrync and masterswimmer like this.
  20. RICHARD K

    RICHARD K MISTY & SASHA

    FIAT NON BACKED PAPER which has no value but "TRUST" and one day will fail
     
  21. Clawcoins

    Clawcoins Well-Known Member

    That useless paper normally has a RESPONSIBLTY to support commerce transactions.
     
    chascat and masterswimmer like this.
Draft saved Draft deleted

Share This Page