Gold and silver prices are down

Varmint said:
yeah I bought my junk silver below spot, but to me the silver spot is more important than the spread or premium. When silver is $40, we'll only care about the purchase price we paid.
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They are different questions:

1. Is it time to buy?
2. What is the typical spread on the various forms in which you can buy the PM?
3. Are you concerned about the ability to turn it to ca$h later or use it to buy bread and beer with things go apocolyptic?

The answers to all three combine to generate the correct answer for you.
 
Crazy action in the gold/silver mining ETFs today. GDX dropped 30% today - very strange - and it bounced 15% in the last 3 minutes of trading. I bought a bunch of GDXJ at a 5 year low.

It seems related to the magical rally in stocks back up above the 20% bear market level - but doesn't really make sense, since a rally in stocks isn't bad news for mining stocks.

Strange things afoot in the markets.
 
I’m trying make some room in the PM safe. Anyone want to turn their silver kilo(s) into 1-10oz bars for convenience/liquidity? I would also be interested in buying kilos if the price is right.
 
Picked up 20 each 1 ounce bars today for $15.50 an ounce cash and carry. Closed at $14.67 yesterday so I'd that was an ok price.

I'm good for a bit now 40 ounces in 2 days. Price has to go back up......right? 😬
 
Holy crap down to $12 on silver.

But ....a couple of online vendors that I frequent say they are suspending trading now. And one says 10 day delay in shipping.

I got my recent purchases for about $15.50 per ounce cash and carry locally so I think I'm good. The shop was almost out when I bought from him Saturday
 
I just did a quick look and nobody is selling silver anywhere near spot. I imagine the dealers will lose their shirts selling at today's prices so they may try to ride it out...

www.ebay.com

silver bullion for sale | eBay

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LuvDog said:
Who has some good links for silver coins? Any ebay specials?
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Just searched a few of the online sellers ......they are still showing 15.50 to 16.50 per ounce for bars. Lol
 
richc said:
I just did a quick look and nobody is selling silver anywhere near spot. I imagine the dealers will lose their shirts selling at today's prices so they may try to ride it out...

www.ebay.com

silver bullion for sale | eBay

Get the best deals for silver bullion at eBay.com. We have a great online selection at the lowest prices with Fast & Free shipping on many items!
www.ebay.com
Click to expand...

physical silver demand is so high that dealers are running out of stock. The futures price has little meaning. Same thing happened in 2015, spot price tanked but physical price stayed elevated.
 
Varmint said:
physical silver demand is so high that dealers are running out of stock. The futures price has little meaning. Same thing happened in 2015, spot price tanked but physical price stayed elevated.
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I'll still bet spot is used as the reference by the market makers when it is time to sell to them. A big problem wit the PMs is a buy/spread far greater than traditional financial instruments. The other is the lack of capital gains status on the profits.
 
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Rob Boudrie said:
I'll still bet spot is used as the reference by the market makers when it is time to sell to them. A big problem wit the PMs is a buy/spread far greater than traditional financial instruments. The other is the lack of capital gains status on the profits.
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yeah, PMs are really long term investments or insurance, definitely not short term investments.

im not sure how the futures contracts work - you should be able to buy a contract at $12 silver and exchange it for physical at the contract date, why not do that when the physical is selling for $16? Makes me think the big gaps between physical and futures prices can't last very long.
 
Rob Boudrie said:
I'll still bet spot is used as the reference by the market makers when it is time to sell to them. A big problem wit the PMs is a buy/spread far greater than traditional financial instruments. The other is the lack of capital gains status on the profits.
Click to expand...
At the local shop I use the owner uses the spot price from 4pm the day before and sets that as his price per ounce for the day. That's for bars .....some of his coins have premiums added. But.....since the spot went down to $13 and then $12 I have not been back......he may be holding back on sales and I wouldn't blame him
 
Baby Billy said:
So where would one go to buy some gold or silver? Asking for a precious metals noob.
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Will be tough to buy from a shop right now. Prices are down and they are selling out quick. That's why I went over the weekend and he had almost nothing left when I bought 20 ounces.

Coin and silver shops are around. So some Google for "coin and silver shops" and you'll find some.

The online vendors like jm bullion and sd silver are showing about $15.50 to $16 am ounce right now but also showing out of stock and delayed shipping times.
 
TrashcanDan said:
So, question- Say I buy into metals by way of physically purchasing and storing it for 10 or so years
How do you sell this stuff after you buy it?
Bars or coins?
Gold or silver?
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I take mine to a silver shop. The two that I use you have to negotiate a little. When the price is up.....like it was in 2011 I don't get spot price but you have to know what you paid for it to make a good negotiation and get some profit. The spot price online is different than what you'll get for it on a physical sale. But there is money to be made.

A buddy of mine bought a pickup truck for his kid and paid the seller in silver. He bought all of it at around $18 an ounce over the years. The market was at $40 or a little more. The asking price for the truck was $4000 and he paid him in physical silver at a negotiated price of $35 an ounce.....which worked out to 115 ounces......the 115 ounces he paid $18 an ounce for so he paid $2070 for the truck based in the price he paid for the silver.

There are ways to make money with silver. Just have to be patient and wait for the opportunities.

There is a chance of the economy and stock market tanks this year or next year to see $30 an ounce maybe more.
 
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TrashcanDan said:
So, question- Say I buy into metals by way of physically purchasing and storing it for 10 or so years
How do you sell this stuff after you buy it?
Bars or coins?
Gold or silver?
Click to expand...

Sell it on a forum like this one, or facebook, or craigslist. Meet in the PD parking lot - don't laugh, I've done it.
Big bars (kilos, 100oz) will be harder to sell than Eagles/Maple Leaves or 90% junk. Fractional gold (under an oz) is easy to move too.
 
While today and yesterday kind of look like a bottoming for gold and silver, I don't think it's real. I think stocks will retest 2350 and sooner or later break through down toward 2000. This will bring new lows in gold and silver.

If all the Fed printing successfully halts the stock crash and we go back up - then gold and silver probably bottomed today.
 

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