So many references to protection against inflation of fiat money are made to the idea of stacking silver yet I see so many people at the same time selling it for 2x melt and even more in other cases. Thats the same thing as inflation on fiat money in essence.
Silver is thought to protect wealth whilst fiat's purchasing power decreases due to inflation and quantative easing. If in the midst of this someone can make a fiat profit trading silver then that's not affecting the value of silver globally.
Only one? There are many more ironies (hypocrisis?) in relation to some stacker philosophies vs actions/realities. Best to just put them aside and play the game.
No. It's not the same. That is "Supply and Demand", and at times, "Free Market" Capitalism. It would be inflation if the silver had watered down purity. Nice try. .
There is a big difference between buying silver for protection of capital (bars, bullion coins etc) and buying silver with premiums (numismatic coins, collector bars etc). A bit like the difference between buying fresh vegies from the supermarket and buying a meal at a restaurant. With one you buy the bare minimum, unprocessed product. With the other you are buying a product that has been changed and presented from it's raw state. malachii
Nope. Just wanting to finally start on my dreams in life. I won't say no to experimenting with inorganic chemistry. Would love to incorporate gold and silver photosynthesis into advanced solar technology. Just one of a few 'things' on the to-do-list.
I'm not sure if I get you there. But I like the irony of people borrowing money to buy @ $50, but waiting for a better price when it's 26
I didnt exactly compare the situation as identical in a 1 to one sense. I was comparing the fleecing the buyer gets from both sides. They get fleeced by the government "watering down" their dollar and then they get fleeced paying a premium for the very silver that is suppose to help them get out of the inflation fleecing. "Buy this silver to get away from that government scam...but pay me double for it" Supply and demand I know, but it is not mutually inclusive that demand will be intelligent demand.
Sorry... dont agree.. dont think thats ironic and dont agree with your logic. If silver has a premium that has ZERO to do with inflation... (the increase in money supply) unless that premium increase has risen in direct response to such an increase. A silver coin proberbly has a premium of double over spot as its demand is more than availability to buy it at a lower cost... The fact a silver coin is going up means it is keeping up with inflation anyway? This is compared to fiat in your bank getting a negative return after you add interest than subtract inflation. REAL scarce resources tend to increase as the velocity of money increase whereas paper usually loses its purchasing power.. hence why gold and silver is ahedge against inflation. INFLATION vs PRICE INFLATION, REAL ROI, PURCHASING POWER. To me your example seems to 1d (one dimensional) so to critique it would be flawed as not enough info.. but why arent you just suggesting PREMIUMS over spot have increased? not sure how thats ironic or infaltionary.. may need to expand on your example i feel before i go hard core 1for1
I am not speaking of the market in general. I realize a little research will get plenty of silver even below spot in some cases. But there are people on ebay for one example, claiming that silver is a great asset to have if SHTF due to inflation among other things, and then inflate their asking price of the silver itself. Looking over my post I suppose i wasnt clear in seperating my comment between the real silver market and the silver vendors who are trying to make an extra buck by fleecing their buyers. I would include the US mint on that due to their premiums but they are not selling the angle of protecting agasint inflation.
This is because silver itself as a metal is determined by demand and supply and is represented by the spot price. Each individual silver coin, from different mints, different years, and other factors such as mintage limits also have their own price determined by "demand and supply" as there are numismatic collectors of silver. This is like saying it's "ironic" that people would buy 1920 rolce royce, when they can buy a brand new, safer, faster, more fuel efficient, comfier, smoother, cleaner toyota for a quarter of the price.
Hold it right there. They are allowed to. They break no law, and neither are they immoral. They don't hold a gun to your head to buy their goods. This is a supposed free market buddy, and that also applies to Mints and Bullions (i.e. they too are allowed to ask whatever they hell they want). Yes, we can agree some are asking too much, but they are allowed to. Just don't buy their product if you perceive it as being too 'expensive'. Every new (or used) car dealer has their own unique ticketed price on the cars they are selling. No two are alike (excl. chains). What world do you live in where you are able to get miners prices? So far in my lifetime I am only able to get true miners price for one particular industry (not metal related), rare for the majority of people to get any miners price. Spot price is not what the Mints and Bullions are suppose to be selling their metals for. Spot price is also non-fabricated metal price, not bars or coins et cetera, which is additional cost. Spot price does not reflect the cost associated with manufacturing coins and bars, this cost money. Then you have the retailers, ones whom normally centre around numismatics, they add additional cost to both profit and pay for real estate space used in their shop. Then on top of this you have your shytkickers, such as ebay sellers and SS members, sometimes selling the same price (or just below) compared to what their local Bullion or Mint sells for, and sometimes they ask for more (for whatever reasons such as Mintage numbers and hard to get authenticated coins/bars). Legitimate reasons can be found behind most asking price. Not many are like me occasionally, where we will sell at or below spot silver (sometimes), that's cause we are junkies and desperate for Dare Double Espresso Milk Drink <free plug> /done in hurry cause i got to pee .
In a way i agree with you. Some prices people want 10 years of future inflation for a product today, but that is usually numismatics as mentioned by poster above. Different kind of market. But yes, if you are talking about buying PM's for the purpose of protection against inflation only, then go with gold bars. Or silver bars to avoid the premium compared to coins, but also have it's price moves linked with gold but slightly leveraged both upside and downside. I have bought collector coins with high premium before in the past, but not anymore. Now I stick to bars and lunars/kooks around perth mint prices or less, only ones I pay premium for are previous issue gold lunars (around 10-15%) I think that it is enough of a 'gamble' being in silver as it is, let alone paying super high premium for collector set or whatever. If spot goes down you will never see your money back (same if you bought at spot, but % drop in premium set will be more), and if silver goes ballistic, sure, your set might go up alot more than a bar.. but the price gain in a bar is still okay. Different strokes for different folks.
Man I am getting all kinds of words put into my statement. I am not talking about numismatic coins. I am a numismatic collector and made no mention whatsoever about that market. Ill give another example. Small bars such as 5 grams and quarter ouncers which would make the most sense for buillion commerce if ever need be, are hard to amass for less than 50/ounce. Another, Pamp 1 ounce bars that are being minted today and in theory have not had time to amass the "collector" following that old bars from the 60s and 70s have go above 40. I think there is more supply than demand for these bars as you can easily go and find thousands of them everywhere, at least at most times, but even so the willingness to pay as if there was less supply seems to be there.
If you wanna stop getting ripped off - stop buying swiss 1ozers and buy something more economical - morgans perhaps? 5g bars are more than anything jewellery pieces. I wouldn't even look at them.
Trudat... not Arty dies = cost money Presentation boxes/sleeves/plastic holders = cost money Brand Name = cost money Serializing = cost money If you want the creme de la creme then you pay up the green.
I agree here on this...i was at the ANA show and although i collect and stack i wanted a Pamp Dragon Bar so i picked one up for $40- I know this is way over spot but i didn't care because i wanted one for my collection. The packaging alone makes me feel good about my purchase. its a sick Dragon bar that is Carded in Plastic and even had one of those peel off extra layers of plastic. The detail and time spent on producing this high quality product goes to show why some people will pay more if they want something unique. with that said most of the bars i buy are JM or Engelhard and most of the silver i buy are ASE's or Maples with the occasional numismatic item in between. I also buy Morgans & Peace dollars if they are close to spot...the other day i paid $70 for 3 Peace dollars off a guy on craigslist. silverbulldog
