I can't remember if I asked these question or not; Tell me what to expect when the price of Silver spikes and thousands of us who have been buying and holding, want to sell a lot of our Precious Metals. I called some of the online companies who sell silver and gold, and some of them say they will sell but not buy back. The ones that said they would buy back didn't seem to have a problem with paying cash or check for your cache. What happens if hundreds or thousands of us want to sell when the prices goes up substantially? Will they have to wait for a buyer to sell your silver/gold. I'm sure their vaults don't have millions of cash just laying around in them to pay us for our metals. Are we over looking something. I really haven't given much thought on what might happen in the event many of us want to sell at the same time. After all the highs don't last long. You might only have a few days to sell. Do you send them your silver/gold in hopes they have a buyer? I'm just wondering about what to expect.
A few things to consider 1. Gold and silver are griffin goods. When prices spike up more people flood in 2. It's a long term strategy something to buy and put away - to pass on to your kids. 3. When prices spike it will not be in a vacuum and other serious changes will be occurring in the economy which will change your perception. 4. You are pricing gold in $ which are constantly falling in value. We have seen a short term (4year) correction in prices which run completely contrary to fundamentals - call it manipulation. Will it continue - yes, forever- no. 5. Alternatives ? $ in a bank as an unsecured creditor ? Stocks ? Bonds hahahaha 6. Gold and silver are savings
Very simple: if there are no buyers it simply means that the price is too high and that it should be lower instead. If you try to sell at a too high price you simply put yourself out of the market and you have no takers.
In any major city you will find several places that will pay at least spot for your metal. As Ronnie said, when the price goes up people flood in, in fact the price goes up because people are flooding in. I wasn't here to see it but those who were will tell you that the for sale forum here was much more active back when silver was at $30/oz, before and after the spike. I would recommend selling to other stackers where possible, your more likely to get more than spot (i.e some of your premium back) and if you were going to sell for spot to a dealer anyway then why not five another stacker the opportunity to buy some of that cheap metal? I'm the meantime I would try and start to build a relationship with a couple of local dealers that pay spot, at least to the point where you know where they are and what to expect when the time comes.
For any market price to be sustained there must be buyers and sellers. Unless the collective wordwide stacker community (including those who aren't part of the "community") got together and sold enmasse, the selling/holding/buying spread will always be maintained at almost any price.
Nope. Maybe you wanted to say Veblen good: https://en.m.wikipedia.org/wiki/Veblen_good In economics, Veblen goods are types of material commodities for which the demand is proportional to its high price, which is an apparent contradiction of the law of demand
Not that simple Giffen Goods usually refer to grains, rice etc. Here is a review of Gold as, or as not a Giffen good http://www.silverdoctors.com/is-gold-a-giffen-good/ Long article but to note : | 12 October 2012 | Thunder Road report Once again, this is evidence of Giffen behaviour with respect to gold. The data above obviously doesn't take account of likely additional purchases by China's central banks per the discussion above. I use the term "Giffen behaviour" deliberately. Someeconomists argue that there are three necessary pre-conditions for a Giffen good:Firstly, there should be a lack of close substitutes. This is certainly true for gold as there are only two monetary metals - the other being silver - and the latter is both a monetary AND industrial metal. In contrast, other types of money, like paper currency and electronic credit, have no intrinsic value;Secondly, it should be an "inferior good" a good that people buy more of when their income goes down. Once again, gold scores well here as gold's attraction increases in response to a rise in inflation/inflation expectations which have a negative impact on real incomes; and Thirdly, the good should constitute a substantial percentage of the consumer's income. This is much harder to argue in gold's favour. There is no doubt that growing numbers of people are allocating a larger slice of their savings (past income/future consumption) to gold, but that's about as far as the argument can be taken.While two out of three "ain't bad", we'll stop short of attaching the term Giffen good to gold and instead focus on clear evidence of gold's Giffen behavior
So, he decided on his own that gold and silver are the only two monetary metals ? Edit: now that I think about it, pitchforks might be a Giffen good....
