Silver under $12 in last 24 hrs

Discussion in 'Bullion Investing' started by Dow Jones, Mar 16, 2020.

  1. ripple

    ripple Active Member

    Another question that I ask myself. Maybe they are panic buyers? @masterswimmer makes a good point above too.
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  3. CoinBlazer

    CoinBlazer Numismatic Enthusiast

    Possibly because having silver with +$5 premium is better than having none at all? Especially with this "crisis"...
    ripple likes this.
  4. ripple

    ripple Active Member

    I read somewhere on here where someone say too that perhaps they have to much money in the current inventory that they would lose too much per sale.
  5. RLGluvcoins

    RLGluvcoins Active Member

    I have wanted to invest for a while my son gave me his income tax return before everyone freaked out and while I was trying to figure out how to go about getting silver stock things came crashing down any advice. If a go ahead to buy silver stock who do I talk to to do that? Thanks for advice.
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  6. -jeffB

    -jeffB Greshams LEO Supporter

    Well, congratulations on waiting for the big sale on PMs and equities. ;)
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  7. atcarroll

    atcarroll Well-Known Member

    Sold out my...foot, they're sitting on it waiting for it to go back up.
  8. juris klavins

    juris klavins Well-Known Member

    Yet, on eBay, sellers are asking ( and getting ) well above $400 + tax for a tube of 20 ASEs - I guess it's a sellers' market until the excitement subsides :woot:
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  9. mynamespat

    mynamespat Well-Known Member

    Even with the ebay sales for us coins staying strong, I don't really want to sell into this frenzy. Seems like a ripe time for high return rates when the buyers realize spot price dropped, spot price (possibly) drops further, and/or severe economic ramifications really start unfolding.
    ripple, -jeffB and juris klavins like this.
  10. baseball21

    baseball21 Well-Known Member

    The stocks you can do yourself on any of the normal stock platforms like etrade.

    Realistically though you'd do much better with some other stocks when the market comes back.
  11. RLGluvcoins

    RLGluvcoins Active Member

    I won't know what comes of the stock I buy more than likely. I'm terminal and afraid I may run out if time. I don't know what to buy? My luck is bad lol, I don't trust me to pick. I'm not really understanding it and I only have a couple hundred. I will leave it to my grandson I've raised since he was a month old, he's 12 now, he is really good kid and I want him to put his own portfolio together using that stock as a start to keep or trade up as he chooses.
  12. RLGluvcoins

    RLGluvcoins Active Member

    I was picking silver because I can't afford gold and I do love silver. Always have, I used to joke I was like a raccoon loving shiny things. My shiny things is silver jewelry, coins you should see my collection of shiny pennies dimes and nickels, then noticed the prices. It has to go back up when regular money is obsolete or a good fire starter they will use gold and silver to barter .. I was hoping. Anyway
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  13. ripple

    ripple Active Member

    I’m sorry to hear this. Honestly, if you are bent on stocks you should look at index type things or solid blue chips at the least. Otherwise, I think I would look at bonds, even tho they don’t pay anything, and let him do his own studies.
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  14. RLGluvcoins

    RLGluvcoins Active Member

    Thanks I'll look into it.
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  15. ripple

    ripple Active Member

    That’s just my opine of course and I’m sure there are more qualified people here to help. My point is you don’t want to be trying to pick certain stocks since he won’t be able to trade for some time and you would want to preserve as much of the money as possible. I fully admire and respect you for wanting to look out for him, and put him on a path to high finance.
    RLGluvcoins likes this.
  16. FryDaddyJr

    FryDaddyJr Junior Member

    what real choice do they have?
  17. Jeffjay

    Jeffjay Well-Known Member

    I have several rolls of Silver Eagles that I bought about 15 years ago at $10.80 per ounce. Even if I sell them today at $12 I've done better than had that money been in a money market. Doesn't really matter though because I'll sell them when I need the money no matter what the spot price is.
  18. atcarroll

    atcarroll Well-Known Member

    sell at today's price, and replenish their stocks at the same low price. either that or hang it up and retire.
    FryDaddyJr likes this.
  19. FryDaddyJr

    FryDaddyJr Junior Member

    why don't you try running a business like that?
  20. atcarroll

    atcarroll Well-Known Member

    I don't have to, i didn't go into business as a seller of buillion. Why don't you tell me something else you think i oughta do
  21. myownprivy

    myownprivy Well-Known Member

    He's right. Bullion dealers should be selling at today's price and replenishing at today's price, just like bullion dealers always do. They should be making their money on the spread, like always.

    The reality of the situation is big bullion dealers cannot conduct business as usual.

    They say: "In regard to the current market premiums - these are purely a function of supply and demand. At the moment, it is near impossible for us to purchase live American Silver Eagles, from any wholesaler in the world, at any price. The only wholesalers selling Silver Eagles are charging ~$5/oz or more in premiums and quoting multiple weeks for delivery, which we are hesitant to accept. Private mints are now forward selling their production for the next 4-8 weeks at much higher premiums than normal."

    In other words, bullion dealers are not able to buy new bullion for anywhere close to the current market value of silver. My impression is that the current market value of silver is down so much for two reasons 1) people are nervous and putting everything in cash, hence the decline in the market AND precious metals and 2) decreased industrial demand for silver results in decreased spot price. The result of that is that bullionbugs want to buy as much as they can at these low prices, but now that the dealers have sold out, they can't replenish. They can't replenish with "new" stock for the reasons JMBullion mentions on reddit, and I believe that.

    But what I don't know an answer to is this: So why can't Jmbullion offer reasonable buyback prices on silver (meaning, about spot) so they can resell that same silver for they typical 5-10% over spot. And the only answer I can come up with is because bullionbuyers refuse to sell silver at those low spot prices to bullion dealers. Therefore, bullion dealers cannot replenish their stock without anything but new bullion, but new bullion won't be sold to them at those prices. Hence, the bullion shortage and ridiculous premiums.
    Last edited: Mar 22, 2020
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