Silver vs CPI vs Stock Market

Discussion in 'Bullion Investing' started by Phil Ham, Feb 22, 2015.


Where are you investing most of your money?

  1. Bullion

    7 vote(s)
  2. US Equity Market

    25 vote(s)
  3. Global Equity Market

    3 vote(s)
  4. Real Estate

    2 vote(s)
  5. Bond Market

    0 vote(s)
  6. Money Market

    1 vote(s)
  7. Under Pillow

    1 vote(s)
  8. None of the Above

    2 vote(s)
  1. Santinidollar

    Santinidollar Supporter! Supporter

    The Fed chairman’s remarks today really jerked back the stock market. Got plenty of dry powder in my corner — but one day does not a market make.
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    Well now you need some cash also, but I like any kind of silver for a hedge against fiat. JPM sells so many silver contracts there is no way for people to redeem for silver, if you don't hold it you don't own it. What about the the JPM whistle-blower who had to tell the truth the other day? His superiors told to short silver contracts to drop the price and rebuy at a lower price. It' like musical chairs there's say 1ox. silver for 10 people, one person wins 9 are out.
    Last edited: Jan 5, 2019
    EdThelorax likes this.
  4. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    When you buy or sell a silver contract, you are not touching a single silver oz. UNLESS you buy a contract for physical delivery on a set date ready or not. or a contract to sell physical silver at a set date. The CASH is put up for deliver on the date of the TRANSACTION, so you pay the full price and the storage and transportation costs for the bars.

    If JPM or any investor thinks the price is going to fall, they can sell contracts at a slightly lower value that are not delivery of silver and then use the cash to buy contract to receive silver in the future at a lower price. If instead silver stays at the same price, JPM will lose. Actually although these contracts are based on silver, very little silver actually moves from JPM ( except for manufacturers who use large amounts, jewelers, bullion makers, etc. ) the rest is done in cash transactions both ways.

    "1ox. silver for 10 people, one person wins 9 are out"

    The total amount of silver "contracted" to go both ways is much higher than the amount available, but this is true in both directions , Only delivery contracts are handled in silver if demanded, all others are handled in cash.

    If you wish to contract for 1000 oz of silver for delivery , you pay the actual contract price of the silver plus transaction fees and storage rental and delivery upfront, and on the demand date, it becomes available to the contract holder.

    If you buy the contract for the future delivery, you pay the cash value of the contract plus fees. Obviously if silver jumps, you sell the contract anytime for cash or hang to the end and get it for the contract price plus fees ( Exchanges make their money on fees and their own possessions of silver.

    The exchange by law doesn't have to have silver to pay off a contract. Their prospectus ( which I have read and so should anyone believing the internet gossip sayd they can pay it off in cash if they don't have enough silver as cash is still legal~ you paid in cash and so can receive cash in return.

    I sometimes play the paper game and made and lost cash at various times, but it was my good or my bad when it happened. It's not fixed, just designed for silver dealers, not the average stacker.

    Unfortunately it is an easy attention getting for "Stacker" publications to twist the facts a little to make it appear that you better buy physical silver for stacking and not paper because some day they may not have any silver available to sell to you.....Guess who are big players in the silver paper game....Yep. the bullion suppliers who pay/support for such publications. They adjust their winnings/losings with their costs over melt depending on whether they are winning or losing their paper bets.

    Lastly it is stackers ( IMHO) that change the price of silver much more than any other industry as they increase the supply if they sell, or deplete the supply when buying. So heavy buying will raise the price. An article such ones on exchanges can "scare" stackers so the buy more silver, more ammo,more guns.....and the prices go up to do so because of it. They are their own worse enemies by misguidance. But please read about the commodity market! IMO. Jim


    Well you win, but I still like silver in this kind of crazy market fluctuations
  6. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    I wasn't looking at it as a win/loss, just educational perhaps. I prefer to play the commodities when the gains are through usage/consumption rather than panic or induced fear of the unknown. It is too crazy to buy or sell when stability is questionable either way ( and each person has their own level of that). If silver keeps going up, I would favor playing the down side by using straddles , as you can leverage it more and don't have to pay shipping either way for electronic cash.
    Clawcoins likes this.
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