Will silver ever be cheap again?

I'm still gonna stay on pace to pick up a little each month. $15 silver? $12 silver? Who knows? I'm always gonna keep some powder dry just in case. I have diversified myself specifically to be able to do an asset swap if one is up and the other is down.

If it gets really bad, I'll buy 100 oz bars and use them for weights in the safe.

 

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Silver is going under $19 even as we speak. It's been trying to get under the $19 close for the past couple of days, but today might be the day it succeeds, so silver is going to be cheap again very soon.

 

Still haven't got my last order yet. It's sitting at the post office now. I hope the bottom blow out holds off until the 15th. Don't wanna get caught with my shorts down when it hits.

 

The bottom blow out is commencing. The price is down to around $18.70, after tanking this morning. I wonder where it will stop?

 

I'm gonna be keeping a close eye on it today. It's had two big blasts downward since about 3am. Not just yet though...

 

I just need to find a dealer with inventory willing to sell at a reasonable premium. My local guy is hit or miss with 90% junk inventory (dimes, quarters, halves).

Though he does have some common circulated dollars (Morgans and Peace) right now, but still at $25 each.

 

For "pure" stackers, circulated silver dollars are not a particularly good choice. A silver dollar contains 6.92% more silver than two half dollars, but the difference in prices is MUCH higher than 6.92% as Mr. Flute points out, as much as 50% in the current market. [at a 50% premium, with dollars costing $25, two half dollars would cost $16.66 -- roughly their present level -- so it costs you about 50% more to get 6.92% more silver...]

Once again, as silver rises in price, the differential gets smaller, until at (say) $40 per ounce, dollars are junk silver just like the dimes, quarters, and halves, and you've "lost" the premium you originally paid.

 

Indeed. I agree, but it's 'my choice' when purchasing the dollars and I'm working on a decent circulated Peace set. At $25 a piece it's not a bad deal from a collector standpoint and these haven't only been 22/23-P or similar high mintages. I've gotten a nice XF 34-D, a 24-S with 'ugly' toning and a nice XF 26-P. These are better date/mintmark coins, so....

Though, when/if silver goes over $30+ again, I intend to sell all the common junk dollars and fractionals I'm buying right now. But for the time being, I'm buying in small quantities (~$30-50 worth/month) because I like owning these pieces of history.

 

No problemo. I wrote my post thinking there's probably some CT-er's who don't know there's more silver in a silver dollar than in two half dollars, but the premium's a deal-killer, way out of proportion to BV.

 

Me. I didn't know that. Thanks.

 

me too !!!!!!thanks doug444

 

Maybe you are wondering why. Wikipedia sums up the reason in one succinct paragraph, also explaining why mintage of dollars (business strikes) resumed after the 5-year gap from 1873 to 1878:

"The Bland–Allison Act was an 1878 act of United States Congress requiring the US Treasury to buy a certain amount of silver and put it into circulation as silver dollars. Though the bill was vetoed by President Rutherford B. Hayes, the Congress overrode Hayes' veto on February 28, 1878 to enact the law..."

The Western silver lobby, plus farmers in general, waged a no-holds fight to get this legislation passed. Eventually, William Jennings Bryan took up the Populist theme of "Free Silver" to launch his political career and strengthen his influence in Congress, enabling him to run as the Democratic candidate for President in 1896, 1900, and 1908.

 

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Yes, a fixed silver standard seemed dangerous and unpredictable to big business, and working together, business, unions, and manufacturers could easily defeat the Free Silver movement -- several times.

 

The cross of gold.

 

Above is a cartoon of Bryan after his famous Cross of Gold speech.

 

Interesting. Never having read the speech, I now wonder why Bryan's message was (apparently) interpreted as trampling the Bible.

 

We were a religious nation back then. There was a religious affront to Bryan comparing economic policies to Jesus' suffering on the cross. Not much has been written about it in modern times, but at the time a good sized block of people were against him simply due to the reference. Remember he ran for president a number of times, and never won. Some commentators blamed that speech for costing him the election in 1896.

 

So, ... is silver cheap yet? "Mithter buth driver, ith we dere yet?"

Or, is the OP's question answered?

Now who was that guy at ANA Chicago 2011 who gave a Talk predicting the imminent slow motion collapse of PM prices? Oh yeah, it was ME!

So it was spake, and so it has come to pass.

Go back and re-read this whole thread. It's easy to see who was right and who was not. Mikem2000 comes off looking like a prophet. Pretty much ditto for medoraman.

When I bring up my Kitco 5-year chart, it shows me that spot silver is now at a 4-year low tonight.

 

Silver is gyrating wildly this morning. From $18.50 to $18.75. I think it can't decide whether to go up or down. I want to buy some more, but I'm just not sure...