I'm sure you all know that the price of spot silver has been rising this past year. It's now at $8.11 an oz. (a price a coin dealer once told me I would never see -or at least, he said, I wouldn't want to be around if it did hit $8 because the world have to be in terrible shape for that to happen). Right now I'm holding about 200 oz of silver (mostly 10oz bars), most of it bought between $5 and $6 an oz. Is anyone else checking the metal market daily, wondering when to dump their stockpile? Will silver hit $10 an oz? $11 an oz? or more!?! Are any of you buying silver bullion at this price?
Welcome to the forum. Well a few other dealers and myself saw $8 an ounce coming back in November. Will it $10? Who knows? My broker says never, but other dealers say yes. As a dealer, I sell bags of silver on a regular basis whether the price is $4.50 an ounce or $8 an ounce. If you want to make money, sell. If you want to speculate it will go higher, hold. You know now that you can make a few dollars, so I would sell. You know the saying, a bird in hand is better than two in the bush.
Thanks for reply. Sounds like good advice. Glad I found this board. I think I'm going to hold out for just a little bit longer. Papa needs a new automobile!
Don't quote me, but I think someone is doing some major manipulating of the market. (Has anyone seen the Hunt brothers around recently?)
I think the weak U.S. Dollar is what drove the price up, initially. Now, intense speculation has taken over. Where it stops no one can say.
This bullion market is a little different than when the Hunt brothers were around. The prices have been on a steady slow climb since late last year. The world market is up across the board. There have been minor corrections along the way, so this is a safe area for the most part. Prices may come down a bit slowly, but should not crash all together.
There is another side to the metals market just like any commodities or securities market that must be remembered. That is - for every person who thinks a given item will go up in price - a long - there is another person who thinks it will go down - a short. The person who thinks it's going up buys long - the person who thinks it's going down sells short. If either is wrong - they lose money. But here's the tricky part. When a short seller is wrong - the only way he can cover or stop his loss from getting worse is to buy. And when he does - the longs have him at their mercy for the short has no choice but to buy or lose even more. When this happens - it creates an artificial and usually short lived jump in price. This happened recently in the silver market and created the very quick run up from $7 to $8. If it happens again - silver will go up even more. But if it doesn't - it will come down.
