Just from a "dummies" point of view lurk, the trend you see is BACK TO NORMALCY. The highs of silver and gold were anomalies and we are in the process of returning to normal. So the real "dummies" would be those that buy thinking that the previous highs were NORMAL.
1.low in price, especially in relation to similar items or services. Source: Google. For item/silver to be considered cheap it needs to be available at the time of offered price. It all comes down to comparing to other sellers price for the same item. Also associated costs will change total cost vastly. Some people prefer paying postage where its the only option due to their location or sometimes people do prefer postage only because (time = money) and (f2f=loss time). Cheap can be described in many ways but for silver at the same time for the same piece of silver lower total cost = cheap silver.
It all depends on the item... If I find something I've wanted due to scarcity, it has a different "cheap" price than a normal bar or round. I consider most things I buy from my local shop to be "cheap" because he sells to me at spot, but buys from me at 50 cents-$1 over spot right now, but obviously not on the same items within a short amount of time.... But I buy/trade other things with him quite frequently, so we treat each other very fairly.
Relative to current spot. All other measurements are mere conjecture, as silver cannot be quantitatively valued.
I picked up a Highlander Coin Collection set today for $1.50 over spot per ounce. The set has 5- 2oz silver 999 coins. I think that is cheap. Costs less than generic crap bars. Looks like this set below. I don't know what Highlander is but I am a sucker for cheap coins like this in fancy boxes- especially .999 silver. Usually this stuff is sterling. http://www.ebay.com/itm/1997-HIGHLA...D&orig_cvip=true&rt=nc&_trksid=p2047675.l2557 Jim
Nice pick up JIm. Highlander is a movie and TV series that chronicles the life of the "Immortals". A group of people who can only die by beheading. They travel the centuries looking for their own kind in an effort to behead them and in doing so absorb their life force.
That sounds interesting. I will have to check that out. I just gave the coins a quick and mild "dip" and they look brand new now. Had some very mild but unattractive toning on a couple of them. Jim
Many of the miners can't get it out of the ground for $14USD/oz. You would have to say it is cheap right now.
Hmmmmm. This $14 USD you quote, is that gathered from Chris Duane or Silverdoctors? We have to be very very careful with the information we read as in the beginning of stacking (not saying that you are )but it is very very easy to look for information that reinforces our beliefs. Now the $50 highs of silver were/are AN ABERRATION.... If you look at silver over the last 20 years or even 100 years (though a lot has changed if looking at the 100 year view) you will see silver is WELL ABOVE where it has historically been. So all of those that say we are nearing a bottom i fear their blinders are only allowing them to see that last 4 years of data and NOT the last 20. I think silver is a buy , but i also think we have further to fall. For those buying a dozen ozt's here and there it means very little , but those that buy hundreds or thousands of ozt's a time could be losing if they are buying now.
I believe that half the silver comes as a secondary commodity from larger mines, so it represents a windfall profit after minimal expense. The smaller pure silver mines will be running at a loss, whereas the larger ones, with a better scale of economy, may be marginal.
Take this for the FWIW category, but a friend of mine who in the past worked in the mining industry and has good "connections" in the mining industry still has talked to me about this issue recently. He said the primary silver miners will have big problems if we dip below $14, but the other mines that produce silver as a byproduct, such as copper and gold mines, won't be affected much by the lower silver prices. He said copper is getting close to being a problem (and already has been for some operations), but copper can fall even a bit more and many copper mining operations can still be profitable. He thinks most gold primary producers can keep going even with gold at $900 or even a bit below and still be profitable (I have a hard time believing that but what do I know). Just passing on what he told me. Just my opinion. Jim
Cheap silver! When a Mint re-sells second-hand bullion bars thus avoiding the production cost of a new bar.
