Silver has officially hit rock bottom

Discussion in 'Silver' started by SilverDJ, Mar 14, 2020.

  1. alor

    alor Well-Known Member Silver Stacker

    Joined:
    Jun 16, 2011
    Messages:
    8,819
    Likes Received:
    2,005
    Trophy Points:
    113
    Location:
    Pulau Alor ;)
    12.00 was the options exercise price when spot was 8.50 back then
     
  2. 316ag

    316ag Member

    Joined:
    Oct 17, 2018
    Messages:
    66
    Likes Received:
    51
    Trophy Points:
    18
    Location:
    Qld
    Silverling likes this.
  3. silverhair

    silverhair Well-Known Member

    Joined:
    Dec 9, 2019
    Messages:
    265
    Likes Received:
    354
    Trophy Points:
    63
    12.89 USD spot as of now.....
     
  4. 1for1

    1for1 Well-Known Member

    Joined:
    May 3, 2011
    Messages:
    4,066
    Likes Received:
    98
    Trophy Points:
    48
    Location:
    NSW, Australia
    Aud went down...

    Silver down 2.63 in aud (gold down $7)

    Silver down 1.77 in USD ( gold down $20)

    Obviously this makes no sense, nice creative balance sheet work there with paper contracts.. or the Perth mint is behind the giant plunge.
     
  5. minimilled

    minimilled Active Member

    Joined:
    Nov 24, 2019
    Messages:
    334
    Likes Received:
    220
    Trophy Points:
    43
    Physical metal is being cleaned out or vendors are jacking their prices. The price in AUD terms is roughly where it was this time last year. In USD terms it is a good buy.

    If the price stays down I think supply is going to dry up and that will propel the POS up and ultimately the miners when we get the great reflation.
     
    silverhair likes this.
  6. RobHDiaz

    RobHDiaz New Member

    Joined:
    Feb 4, 2020
    Messages:
    9
    Likes Received:
    4
    Trophy Points:
    3
    it's funny how a lot of bullion sellers have all of a sudden withdrawn all their silver they had for sale on their webpages , particularly aussie webpages.
     
  7. minimilled

    minimilled Active Member

    Joined:
    Nov 24, 2019
    Messages:
    334
    Likes Received:
    220
    Trophy Points:
    43
    It’s a rational business decision. They won’t be in business long taking a loss.
     
  8. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

    Joined:
    May 25, 2018
    Messages:
    2,308
    Likes Received:
    1,344
    Trophy Points:
    113
    Location:
    Singapore
    Are they taking a loss? Thought they are hedged?. I remembered Joe said something like this?. Any bullion dealer care to share with us some insights?

    My impression is they do volume and if they can’t replenish stock - shortages worldwide, they have to raise premiums to make up for the loss in volume.
     
  9. minimilled

    minimilled Active Member

    Joined:
    Nov 24, 2019
    Messages:
    334
    Likes Received:
    220
    Trophy Points:
    43
    Don’t know...there were some very steep discounts in the US (all stock picked clean off the online shelves now)

    Re:replenishment - I see ABC Australia now looks out of stock for kilo bars and a few minted rounds eg the roo. 5kg bars are still there and their own minted round at a premium. Maples still there for a fairly low premium.
     
  10. slavaja

    slavaja Well-Known Member Silver Stacker

    Joined:
    Oct 3, 2010
    Messages:
    1,027
    Likes Received:
    655
    Trophy Points:
    113
    Location:
    Melbourne
    I'm sure all bullion dealers hedge. They make money on the premium only
     
    66rounds likes this.
  11. silverhair

    silverhair Well-Known Member

    Joined:
    Dec 9, 2019
    Messages:
    265
    Likes Received:
    354
    Trophy Points:
    63
    O
    Only the mature ones are hedged like abc
     
    sgbuyer likes this.
  12. 66rounds

    66rounds Well-Known Member Silver Stacker

    Joined:
    Jun 22, 2019
    Messages:
    1,784
    Likes Received:
    1,770
    Trophy Points:
    113
    Location:
    Melbourne
    There is not a single bullion dealer that isn't hedged. They wouldn't last a week otherwise. They make their money on premiums otherwise what is the inventive to open doors when spot is so low?
     
  13. 66rounds

    66rounds Well-Known Member Silver Stacker

    Joined:
    Jun 22, 2019
    Messages:
    1,784
    Likes Received:
    1,770
    Trophy Points:
    113
    Location:
    Melbourne
    It's only due to how rapid spot is moving and how many buyers are chasing physical. How can they fairly hedge when spot silver moves $5/Oz overnight while they sleep?
     
    silverhair and Silverling like this.
  14. Michael Stevens

    Michael Stevens Well-Known Member Silver Stacker

    Joined:
    Jul 14, 2019
    Messages:
    360
    Likes Received:
    322
    Trophy Points:
    63
    Looks like we could go sub $20 again!
     
    66rounds likes this.
  15. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

    Joined:
    May 25, 2018
    Messages:
    2,308
    Likes Received:
    1,344
    Trophy Points:
    113
    Location:
    Singapore
    Even if they hedged, they don’t have to sell using spot price. BS is a good example, selling 40-50% above spot yet people are still buying. They are making millions in gross profit a week.
     
    316ag and 66rounds like this.
  16. 316ag

    316ag Member

    Joined:
    Oct 17, 2018
    Messages:
    66
    Likes Received:
    51
    Trophy Points:
    18
    Location:
    Qld
    Today the gold/silver ratio is 120:1 on spot price.
    Approx 90:1 in the physical market.
    30 oz premium or spread I figure.
     
    66rounds likes this.
  17. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

    Joined:
    Mar 16, 2019
    Messages:
    1,499
    Likes Received:
    1,139
    Trophy Points:
    113
    I dont how it is there but here in the us that spot price doesnt mean very much.
    It could drop to $8 and bullion premiums just go up. Silver eagles are still $20 everywhere that has them. Silver dollars are still high.
    It's not like buying now will really save you anything.
    Even generics and secondary is $3-5 mark up, from a 39 cent normal.

    I saw the bag of 90% halves priced at $1400+ at $14.79 spot.
    When I ordered during $14.88 spot last year the same bag was $1170.
    With the premiums you are still paying $17-19.
     
  18. SilverDJ

    SilverDJ Well-Known Member

    Joined:
    Nov 1, 2014
    Messages:
    4,045
    Likes Received:
    1,263
    Trophy Points:
    113
    Location:
    Australia
    $248.9 for 10oz ABC bar, with a $21.25 spot price makes it 17.1% over spot.
     
  19. SilverDJ

    SilverDJ Well-Known Member

    Joined:
    Nov 1, 2014
    Messages:
    4,045
    Likes Received:
    1,263
    Trophy Points:
    113
    Location:
    Australia
    At Perth Mint you can buy silver at $21.59oz and have it converted to a 1kg bar for $34, so $694.14 + $34 = $728/kg
    That's only 6.1% over spot.
    1kg bar at ABC is $741.70
    So unless yu absolutely need your bar in your hands tomorrow, you can still buy physical for a reasonable price over spot.

    upload_2020-3-18_14-22-8.png upload_2020-3-18_14-24-17.png
     
    alor, 66rounds, sgbuyer and 1 other person like this.
  20. slavaja

    slavaja Well-Known Member Silver Stacker

    Joined:
    Oct 3, 2010
    Messages:
    1,027
    Likes Received:
    655
    Trophy Points:
    113
    Location:
    Melbourne
    Only problem with that is Perth mint charges arms and legs for shipping and insurance.
     
    316ag, kilo and 66rounds like this.

Share This Page