Very quiet here the last few days

Discussion in 'Bullion Investing' started by PeacePeople, Jul 23, 2016.

  1. baseball21

    baseball21 Well-Known Member

    This is mostly true, it has a minimal impact where trading is where the big money is at. With that said when the physical market is dead that generally reflects a sentiment that will not have big money pouring into the stocks.
     
    Santinidollar likes this.
  2. Avatar

    Guest User Guest



    to hide this ad.
  3. baseball21

    baseball21 Well-Known Member

    I get the point you are trying to make, but in terms of pricing the amount purchased is all that matters. 1 ounce has no impact, 10 million changes the price instantly
     
  4. PeacePeople

    PeacePeople Wall St and stocks, where it's at

    Can you guys tell me how much impact the US Mint, making 40 million eagles a year for the last 3 years or so, and all the other government mints producing as much as they can and want has impacted the spot/futures market. Producing that much physical inventory, and the demand forcing them to ration the production to their APs, should have caused the spot/futures market to go way up, right? It was probably a huge help in moving the market from the 30's all the way up to the 14's.

    Help me out, I just found out denial is no a river in Africa.
     
  5. saltysam-1

    saltysam-1 Junior Member

    I just worry about my out of pocket expense when i purchase or sell. That includes delivery and commission. The rest can go to h...
     
    Brett_in_Sacto likes this.
  6. medoraman

    medoraman Supporter! Supporter

    Coins are just one user of silver. I do not know of one mint who takes physical delivery from the COMEX, and by definition people buying and selling used coins do not affect the COMEX.

    Good, bad, or otherwise, coin collectors or small retail bullion buyers really do not affect the market. CEOs of solar panel manufacturers, state leaders mandating solar cells, large manufacturers of jewelry, as well as miner can affect it. Miners refusing to hedge production or manufacturers refusing to hedge demand may, but business leaders are pragmatists and need cash flow and certainty. Some call such futures markets a "collection of liars" since price will be a function of all of these participants BELIEFS in future pricing. Be that as it may, buy a coin at a retail store, (or 100), will not touch this market.

    The only reason this is important to understand is to not believe a shortage of junk silver or ASE's means the market MUST go up, or vice versa. The PM market truly does not move based upon small time investor availability to buy product. I include myself in this, though I am well above PeacePeople's 1000 ounce "minimum" silver holdings. I love silver, always have, but am also trained in markets as part of my job.
     
  7. PeacePeople

    PeacePeople Wall St and stocks, where it's at

    This is the best way to look at it. What is my spread and what are the costs to deliver, in or out.
     
    Brett_in_Sacto likes this.
  8. Brett_in_Sacto

    Brett_in_Sacto Well-Known Member

    :cool::cigar::D

    [​IMG]
     
  9. PeacePeople

    PeacePeople Wall St and stocks, where it's at

    I agree with this for the most part. I believe that a lot of the large end users aren't buying from the futures market. People like Bron Sucheki (sp) and others in the industry continue to allude to the OTC market or over the counter. The biggest of reasons to use the OTC is cash flow and just in time inventory. They're more likely to buy a component that goes into their products as needed as opposed to putting months of inventory into a vault to suck up their cash.

    My belief of who or what truly controls the futures is the bullion banks and miners. The miners are selling forward for cash and the bullion banks are taking the forward inventories in and putting them into the market. Granted they're putting it into the market at whatever multiple they use, but it's still those 2 that are dominating the futures. Most of the others are there to get a shave.

    I will add that there are probably more than a few with over 1000 ounces, and I didn't want to turn this into a roll call thread. I was making the point that even if you have 10,000 ounces, that nothing considering that is traded in milliseconds, or if you hold 100,000 it might actually take a full second to trade. I hope that clarifies that point.
     
  10. medoraman

    medoraman Supporter! Supporter

    I understand, and was not wanting it to be a roll call either. I just wanted to prove I am not a hater on silver or something, in fact have held physical silver longer than most on this board most likely. Though you and I differ on who controls the silver market or if its the appropriate market to be referencing pm trades to begin with, we both understand there is a disconnect between them. That is something for others to understand. If they wish to get exactly the market change as their return, they need to be investing in paper pm. If they wish to have a long term position and minimize carrying costs, physical pm is probably most appropriate.
     
  11. PeacePeople

    PeacePeople Wall St and stocks, where it's at

    That's pretty much it in a nutshell. Play in the casino, or take your pm chips and keep them at home
     
Draft saved Draft deleted

Share This Page