Another advantage for the dealer is the opportunity to move all slow moving stock and be replaced with product that is more sellable in the future.
I'm curious why you think dealers would be operating on that model ie. unhedged? Surely they buy some inventory, hedge it and then just adjust their hedging as their inventory moves up and down due to fluctuations in their buying & selling. Midnight Man - the method you described - say the price moved down and held there for a long period of time. The dealers would take a loss on their sales as the price moved down in increments and they'd still have booked a loss regardless of the fact they can "replace" their original inventory at the new lower cost. The only way to recover those losses would be to sell their cheaper stock as the price moved back up (if it ever does) - a bold assumption and no way to run a business. They would simply be speculating on the spot price. So dealers (should be) hedging their inventory and can basically sell regardless of what the spot price is. The only time they cannot is if they can't keep up with the hedging for whatever reason ie. the movements in the spot price are too violent, counter party issues etc.
I truly hope so as not much has happened in the past 2 years...just take a look at the current spot price...
Relax mate i just read the thread and added my thoughts. Not trolling just talking And iam interested in PM's. Next week when it dips under 20 i will be ordering a 1 kilo Fortuna from Maggie's AMPEX order just because i like the look of it. Do people not interested in silver stacking usually buy bars like that for their first peice? A lil respect, thank you I can't answer you're last question but i can say; Imagine you are deaf & blind. In no way are you effected by market manipulations because you do not see or hear what the rest of us do. You are totally impervious to bullshit & have no vested interest in PM's. Now your silver stacking buddy one day says to you "bro buy some silver it's a great investment"... Later that day while you are alone at home you print out historical silver charts in braille and have a feel... You have the 35 year silver chart and you are feeling away... What are you thinking right now?... Well... I will tell you this deaf & blind guy is thinking the exact same thing i'am thinking. Silver is going down and staying down like a hooker at a millionaire's convention. Tulips tulips tulips... Points 1 & 2. I suggest turning the TV off... Point 3. Lucky for me i'm surrounded by silver experts. What happened when the 1980 bubble burst? Did people have trouble selling their silver? Anyway i will be a seious buyer at 15... Polish up your kilo's i'm buying =)
Thanks for sharing the information Be dead set sure, at $15 I too will be a serious buyer, and a very happy one too, the core of my stack will still be in slight profit at that spot price Mind you - whilst I hope you've absolutely nailed the price, I'd be thinking this last week of physical demand will see inventories too short to either reach that price, or obtain any physical at reasonable premiums if it did get there
Trust me, based on this last pullback, if it goes down to $15 spot, the only physical silver you'll be buying will have another $15 per oz premium on it.
There's a whole section of the forum dedicated to trades, split by geographical area... I'm not sure if that area is viewable/accessible to new members, though? (Hoping someone knows off the top of their head?)
New members can view the public sale threads no problem. Even non-registered people can. International sales thread- http://forums.silverstackers.com/forum-18-international-public.html
Usually content with enjoying the threads from afar, I felt compelled to scrape your post from my online shoe. nice attempt to associate the flimsy conspiritainment of the Mayan asrology clock and Hollywood fantasy with the strategy of borrowing your way out of debt. Infinite printing of fiat will lead to collapse and/or war. I do not watch TV, if I did I would be buying worthless stocks or stacking fiat. Rest assured you shilling for the banking system will not have long term stackers dumping there PMs. Good day.
The sudden drop in spot will of course mean a lag time where dealers will be reluctant to sell at a loss. Now, if this thread was started by NASA or the US military, then we could confirm the premiums are due to actual (and serious) shortages.
I would be mad too if I had amassed a lot of silver over the last few years and someone told me silver was going to go down even further. But hes right, people like you arnt thinking clearly. I too believe we will see lower silver prices. Around 15-18 or so. I wont bother stating why trying to prove my epeen is bigger but its what I believe.
Yeah that's the thing. With manipulated prices people have to act fast but when reality hits a critical mass you wont see rapid fluctuations and that will be the prime indicator for safe long term buying. At the end of the day everyone including dealers will be forced to trade even at a loss because "turnover" just happens to be part of business...
yep after the frenzy of 22 and she drops right down what will be left ? dealers are like buyers except in reverse, so when she really drops back down and prices stay up who will buy ? not me.
If price drops to $15 then you should buy unallocated from the big dealers....the problem with unallocated will not occur until everyone is looking to sell at the same time....buying is fine If you want physical then you wait a period of time and pay the extra forty odd dollars and have your unallocated made into bars.....
When silver is $15 your unallocated will probably be paper silver. During the last major shortage in 2008 when physical deliveries took up to 16 weeks, I would rather pay an extra $3 or $4 extra an oz to take immediate delivery of physical I was not prepared to buy any more bars from the biggest bullion dealer in Sydney even though it was cheaper because I so worried that they could default. Trust me, if you have to wait 16 weeks to take delivery when you were promised 10 weeks it generates a lot of distrust and ill-will towards your bullion dealer.
Is this current shortage of silver a supply issue or a production problem. There are many on the net that say confidently this is a production issue but I am not sure. Does anyone have hard figures Thanks
