Observation on price

Discussion in 'General Precious Metals Discussion' started by rbaggio, Sep 27, 2011.

  1. rbaggio

    rbaggio Active Member Silver Stacker

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    I have found this intriguing since getting into stacking:

    Someone could be offering a 1oz bullion silver coin for sale, for say, $39.

    At the time of listing, spot is $31.

    No one touches it with a 10-foot pole. "Look around buddy, it's available for cheaper at XYZ."

    Overnight, spot jumps to $37.

    Suddenly this 1oz coin is a bargain. Someone snaps up this $39 coin. "Bargain! Nice work there! Cheap price!

    ... But what has changed? It is the same coin. It is the same 1oz of bullion precious metal as it was the day before.

    One day, overpriced. The next day, bargain price.

    This is the precious metals rollercoaster :)
     
    rbaggio, Sep 27, 2011
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  2. Boyo

    Boyo Active Member Silver Stacker

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    Interesting observation,rbaggio.
    I put it down to EMOTIVATIONISM.....think that is the word ..right? :)
     
    Boyo, Sep 27, 2011
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  3. Ag

    Ag Well-Known Member Silver Stacker

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    HEY BE QUIET! you'll give away all the Silver secrets!

    Seriously totally agree...we live in to moment and easily forget the past purchases...
     
    Ag, Sep 27, 2011
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  4. hiho

    hiho Active Member Silver Stacker

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    what i want to know is, who's buying into the next big thing before it occurs? ;)
     
    hiho, Sep 27, 2011
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  5. RetardedMonkey

    RetardedMonkey Active Member Silver Stacker

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    This is what I'd like to know also.

    All those who were in Silver at $4/oz.

    What are you doing now.... PM me? :p
     
    RetardedMonkey, Sep 27, 2011
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  6. 940palmtx

    940palmtx New Member

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    I do look at it like ozs not dollar value. The only reason I might wait is to see if I can get more ozs for my money, but ultimately you're right, same coin, same weight, same value to me.
     
    940palmtx, Sep 27, 2011
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  7. CriticalSilver

    CriticalSilver New Member Silver Stacker

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    That would be one Mr W Buffett, former silver investor, current Goldman Sachs priority shareholder.
     
    CriticalSilver, Sep 27, 2011
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  8. dccpa

    dccpa Active Member

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    If the price is dropping, people expect it to keep dropping and wait. If the price is stable, people expect the price to remain stable and are in no hurry to buy. If the price is rising, people expect it to keep rising and rush out to buy.

    When the latter example of expectations of rising prices occurs in most things, you have hyperinflation.
     
    dccpa, Sep 27, 2011
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  9. BBQ

    BBQ Member

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    Coming on a year of watching silver, I can totally relate to what you wrote rbaggio :)
    Perceptions are all relative to that mercurial spot price, and it is a rollercoaster for sure.
     
    BBQ, Sep 28, 2011
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