Gold and silver prices are down

[richc]

I just did a physical inventory. Been quite a while. I'm now looking at a second home.

Inventory of PM's or Ammo???

 

[enbloc]

Ok... it just not seem profitable enough to the hassle involved. .075 x spot is around 2$ an ounce.

I agree. I think it is more of a passion/hobby that produces a little side cash and Youtube hits for him.
Also, it depends on what he pays for the Sterling. He might low-ball his sellers and increase his margin.
People aren't bringing him American Eagles. Think flatware and mid-cost jewelry... Possibly fenced?

I think that as solar panels are updated and replaced, there may be a lucrative reclamation industry in that niche'. Much like computer-related Gold.

An average solar panel uses some 20 grams or 0.643 troy ounces of pure silver. Two-thirds of an ounce of silver in every solar panel may not sound costly given today's silver spot price.

Here's another fun video...


I think he buys most of his material from "Cash for Gold" places...

 

[mitch28]

View attachment 384905
Watch you change... looks like people are turning in grandpa’s change jar... got this one today getting coffee at Cumbys!!! 1900% profit.

What is it pure silver?? Let me know thanks!!

 

[richc]

I think that as solar panels are updated and replaced, there may be a lucrative reclamation industry in that niche'. Much like computer-related Gold.

OK a funny story from the 90's related to reclaimed gold.

A buddy of mine was a reseller for a very large computer manufacturer. This company was pushing their clients to upgrade to their latest platform/technologies so they offered a substantial discount when the customer traded in their old equipment.

My buddy normally got a discount of about 30% when reselling. But... if customers traded in their equipment the customer got a discount of 30%, and my buddy still got his 30% for being the delivering dealer.

So my buddy got to wondering... where do these traded in computers go? He had instructions to pack them up and send them to a place in CA that reclaimed metals from old computers. So my buddy gets on an airplane and go visits said reclamation house.

He finds the owner and introduces himself. He said he's interested in some of the computers being sent in by this manufacturer. The guy has truck loads of them.

So my buddy asks the guy how much value he gets out of each computer? The guy says about $10 each. So my buddy offers him $50 each to buy them back and my buddy would pay shipping back to the east coast.

The owner was reluctant at first, wondering if the contract would prevent him from doing so. But apparently legal fell asleep at the wheel. No restrictions at all on what the guy could do with the computers.

So my buddy gets his first truckload of computers. And he places orders for inventory while trading in the computers that had already been traded in. Sure enough it works. They are not watching serial numbers. So now my buddy is getting brand new equipment for 60% off list plus the $50 plus shipping. He can undercut everyone's prices and his business goes bonkers.

He made millions off this until one day the chief legal counsel shows up at his door asking WTF the scam is. No scam, my buddy replies. All well within the terms of their contract.

I guess the legal counsel burst out laughing when he saw what was going on. Legal guy also said you're right, this is perfectly acceptable under our current contract. But I'll be fixing that right away.

FYI they are still great friends. The legal guy retired and they both are having fun and making money via some patents they filed and got approved. Their latest target is Microsoft. A few years ago IBM paid them millions for some of their IP.

What a country!

 

[richc]

 

[enbloc]

The Butter Knife is the single, most versatile Human invention since fire...

 

[DJBrad]

Necessary action for “sky’s the limit”?

 

[55_grain]

So buy silver like it's going out of style, or dump before it falls back to 18?

 

[Varmint]

So buy silver like it's going out of style, or dump before it falls back to 18?

Youll probably find retail silver isn't dropping with the spot price. So the spot price can't go down too far. I don't think you'll ever see $18 silver again.

 

[smokey-seven]

So buy silver like it's going out of style, or dump before it falls back to 18?

At the beginning of this mess, I bought 5 tubes of assorted date BU silver eagles for $440 each. The week before they were $420. Today you need $600+ to do that. It was over $700 not too long ago. So yea it fluctuates but not nearly as fast as spot. I'll bet you one silver eagle that you will see 30$ silver before 18.

 

[richc]

It goes up. It goes down. Day to day fluctuations are part of the journey. It's just noise.

My convictions tell me the US Dollar is headed lower long term. The US government is trying to ignite inflation. And our economy is far worse off than anyone will admit and require tons more liquidity and deficit spending than we can imagine. If my assumptions are correct then gold and silver will move higher.

 

[enbloc]

I'm in Silver for the long haul... Gold too.

 

[DJBrad]

Yup, hold and cherish. Forget it’s even there and carry on day to day. Be surprised in 2-3 years what compounded interest is now yours.

 

[55_grain]

At the beginning of this mess, I bought 5 tubes of assorted date BU silver eagles for $440 each. The week before they were $420. Today you need $600+ to do that. It was over $700 not too long ago. So yea it fluctuates but not nearly as fast as spot. I'll bet you one silver eagle that you will see 30$ silver before 18.

Sir, if I took that bet, I would end up owing you a silver eagle.

 

[smokey-seven]

Sir, if I took that bet, I would end up owing you a silver eagle.

See? I was just trying to insure 30 before 18!

 

[samandglove1]

I don't understand the "never sell" mentality, unless its for insurance or peace of mind. It's probably just the industry I've been in, as I've generally used OPM (Other People's Money) to make investments. Those investors eventually want their money back with a profit (hopefully).

In my opinion, there is no harm in taking some profit every now and then. I know its not an exact science, but it is also not hard to do. When prices of gold/silver shoot up to an acceptable level, sell a percentage of your low cost metal at those big numbers and take advantage of your gains (and correct investment strategy). Use the proceeds for something tangible (something you or your family really wants/needs, or Real Estate and other financial instruments), or hold the cash and buy more metal at lower costs if prices decline. Either way, you benefit. If prices go down after buying, then that's a different story/strategy.

There is no perfect time to sell, but it's foreign to me to be right more often than not, and not see any reward. Maybe all your investment doesn't see the top of the mountain, but you've made a lot of money along the way that can be used/invested in other opportunities. Being happy and holding firm when prices rise, and then being sad while continuing to hold when prices decline, doesn't make sense to me. I firmly believe that if you were smart enough to make the correct investment decision, you should be proactive in getting some kind of reward (kind of like a carried interest in my industry).

I can understand if someone's strategy is to 100% invest in PM's as a hedge or insurance against financial collapse. But if a portion of your rationale is to make money (buy low - sell high), you can't just watch as things happen (positive or negative). There is too much of "the tail wagging the dog" in that scenario.

 

[richc]

I don't understand the "never sell" mentality, unless its for insurance or peace of mind. It's probably just the industry I've been in, as I've generally used OPM (Other People's Money) to make investments. Those investors eventually want their money back with a profit (hopefully).

In my opinion, there is no harm in taking some profit every now and then. I know its not an exact science, but it is also not hard to do. When prices of gold/silver shoot up to an acceptable level, sell a percentage of your low cost metal at those big numbers and take advantage of your gains (and correct investment strategy). Use the proceeds for something tangible (something you or your family really wants/needs, or Real Estate and other financial instruments), or hold the cash and buy more metal at lower costs if prices decline. Either way, you benefit. If prices go down after buying, then that's a different story/strategy.

There is no perfect time to sell, but it's foreign to me to be right more often than not, and not see any reward. Maybe all your investment doesn't see the top of the mountain, but you've made a lot of money along the way that can be used/invested in other opportunities. Being happy and holding firm when prices rise, and then being sad while continuing to hold when prices decline, doesn't make sense to me. I firmly believe that if you were smart enough to make the correct investment decision, you should be proactive in getting some kind of reward (kind of like a carried interest in my industry).

I can understand if someone's strategy is to 100% invest in PM's as a hedge or insurance against financial collapse But if a portion of your rationale is to make money (buy low - sell high), you can't just watch as things happen (positive or negative). There is too much of "the tail wagging the dog" in that scenario.

For me it's insurance. I take my family responsibilities very seriously. And having a few PM's is a hedge against the bad stuff happening.

Plus I don't want the gubbermint to take a cut of my profits. If I sold I'd only do so with the intent of buying back at a lower price. Taxes kill the notion of trading in and out.

Certainly, YMMV.

FYI I'm heading to the range this afternoon at 4PM with a couple buddies. Feel like doing some shooting, Ash?




Rich

 

[samandglove1]

For me it's insurance. I take my family responsibilities very seriously. And having a few PM's is a hedge against the bad stuff happening.

Plus I don't want the gubbermint to take a cut of my profits. If I sold I'd only do so with the intent of buying back at a lower price. Taxes kill the notion of trading in and out.

Certainly, YMMV.

FYI I'm heading to the range this afternoon at 4PM with a couple buddies. Feel like doing some shooting, Ash?




Rich

I agree that trading can be more of a headache (and costly) unless it is a tax free transaction. I may try and run over and meet you at the range later this afternoon, I just have a few things I need to accomplish first.

 

[Nick Leduc]

Reminds me of this:


TLDW: guy sweeps sand from a busy roadway, does a bunch of science to sand and ends up with platinum from cars catalytic converters.

 

[DJBrad]

I don't understand the "never sell" mentality, unless its for insurance or peace of mind. It's probably just the industry I've been in, as I've generally used OPM (Other People's Money) to make investments. Those investors eventually want their money back with a profit (hopefully).

In my opinion, there is no harm in taking some profit every now and then. I know its not an exact science, but it is also not hard to do. When prices of gold/silver shoot up to an acceptable level, sell a percentage of your low cost metal at those big numbers and take advantage of your gains (and correct investment strategy). Use the proceeds for something tangible (something you or your family really wants/needs, or Real Estate and other financial instruments), or hold the cash and buy more metal at lower costs if prices decline. Either way, you benefit. If prices go down after buying, then that's a different story/strategy.

There is no perfect time to sell, but it's foreign to me to be right more often than not, and not see any reward. Maybe all your investment doesn't see the top of the mountain, but you've made a lot of money along the way that can be used/invested in other opportunities. Being happy and holding firm when prices rise, and then being sad while continuing to hold when prices decline, doesn't make sense to me. I firmly believe that if you were smart enough to make the correct investment decision, you should be proactive in getting some kind of reward (kind of like a carried interest in my industry).

I can understand if someone's strategy is to 100% invest in PM's as a hedge or insurance against financial collapse. But if a portion of your rationale is to make money (buy low - sell high), you can't just watch as things happen (positive or negative). There is too much of "the tail wagging the dog" in that scenario.

Well said. Barring the tax burdens I always take profits along the way. Got a big chunk of land coming in the next month so with proceeds. Stocks are too risky for the short term but hard assets are what I’m in right now more heavily. Spread the risk around a bit.

 

[not new guy]

I don't buy gold and silver to make money and I'll never have as much as I want to. Not at this stage of my life anyway.

 

[Win]

News flash: Market is behaving differently than I would expect

 

[richc]

News flash: Market is behaving differently than I would expect

Me thinks some folks are liquidating their PM profits in reaction to the overall stock market sentiment.

Or I'm completely wrong. I dunno. If I could predict the markets perfectly I would not be a computer geek...

 

[DJBrad]

Me thinks some folks are liquidating their PM profits in reaction to the overall stock market sentiment.

Or I'm completely wrong. I dunno. If I could predict the markets perfectly I would not be a computer geek...

Yeah there is probably going to be more tax-loss taking and building of cash reserves. For miners, warrants coming into the money, selloff of shares from big private placements, and weak hands who got in late when overbought, are weighing down the sector. I’m surprised the Vixxy isn’t higher than it currently is. But who am I? If I knew I would be on a tropical island somewhere.

 

[Varmint]

Me thinks some folks are liquidating their PM profits in reaction to the overall stock market sentiment.

Or I'm completely wrong. I dunno. If I could predict the markets perfectly I would not be a computer geek...

yes people are taking profits or getting out since both 1920 and $1880 gold failed to hold. I think it's simply a response to Congress not following through with another stimulus package.

 

[DJBrad]

yes people are taking profits or getting out since both 1920 and $1880 gold failed to hold. I think it's simply a response to Congress not following through with another stimulus package.

And I don’t think there’s any political will to get it done before Nov.3

It’s SJC nomination process or bust for the republicans.

 

[Varmint]

And I don’t think there’s any political will to get it done before Nov.3

It’s SJC nomination process or bust for the republicans.

yeah neither side wants to negotiate on the stimulus, but they will, if stocks retest the March lows. Congress acted fast back then. So that could be in play soon.

 

[DJBrad]

Some blood letting today.

 

[clampett]

I don't understand the "never sell" mentality, unless its for insurance or peace of mind. It's probably just the industry I've been in, as I've generally used OPM (Other People's Money) to make investments. Those investors eventually want their money back with a profit (hopefully).

In my opinion, there is no harm in taking some profit every now and then. I know its not an exact science, but it is also not hard to do. When prices of gold/silver shoot up to an acceptable level, sell a percentage of your low cost metal at those big numbers and take advantage of your gains (and correct investment strategy). Use the proceeds for something tangible (something you or your family really wants/needs, or Real Estate and other financial instruments), or hold the cash and buy more metal at lower costs if prices decline. Either way, you benefit. If prices go down after buying, then that's a different story/strategy.

There is no perfect time to sell, but it's foreign to me to be right more often than not, and not see any reward. Maybe all your investment doesn't see the top of the mountain, but you've made a lot of money along the way that can be used/invested in other opportunities. Being happy and holding firm when prices rise, and then being sad while continuing to hold when prices decline, doesn't make sense to me. I firmly believe that if you were smart enough to make the correct investment decision, you should be proactive in getting some kind of reward (kind of like a carried interest in my industry).

I can understand if someone's strategy is to 100% invest in PM's as a hedge or insurance against financial collapse. But if a portion of your rationale is to make money (buy low - sell high), you can't just watch as things happen (positive or negative). There is too much of "the tail wagging the dog" in that scenario.

I'm one of those never sell guys, and just like you said, it is mostly because I bought it for insurance and peace of mind.
I purchased most of my gold at $800. I enjoyed the relatively short ride up to $1900. and still held onto it as it went down to $1100. I even bought more on the way down, thinking that there is no way that it will go lower than $1500.
I'm also one of those guys that seems to have a dark cloud following me around. I'm pretty sure that if I sold my gold today, the dollar would collapse tomorrow, gold would shoot to the moon, and it would become unobtainable.

 

[richc]

yeah neither side wants to negotiate on the stimulus, but they will, if stocks retest the March lows. Congress acted fast back then. So that could be in play soon.

I don't think either side gives a damn about the stimulus. They just want to be the party that basks in the glory of getting the stimulus done for the American people.

This is all about election year politics.