Yea when price is dumped down you should be happy to get more oz, only that if you bought without care for spot, when you had fiat 'free', that you might have nothing left to get more oz at that dumped down price. And worry about the day you need to sell? A stacker doesnt have such day. He has an entire life and beyond, to sell. In pieces, just like his former fiat. And manipulation, ohwell, it's just some that weren't stackers, just frontrunners that strive for other peoples money for free. By tricking them into paying the driven up price, and selling at the driven down price. Mentioning JPM is as useless as mentioning one of the birds in the V.
My concentrated silver purchases since the $27>$35,5 and back cycle now amount 7200 gram. Buy 6 months nothing, then buy everything, that's the drill. It's 18% more silver than when spot was $35. See, it's not only the ounces that matter, the price DOES matter too. Since it gives you more ounces.
Yes the buying price always matters. Buying at the bottom or near the bottom just makes sense if your in the game for maximum profits. Some also just buy when they can so the fiat money does not get wasted elsewhere....and I respect that as well.
Buying at/near the bottom price, for any product, makes always sense, regardless intentions (in your case example, maximum profits). Realizing maximum profits, by working harder/more/efficient is also very well. Realizing any profit, by misleading/cheating other people on the market, ehm, that's another story. About thoughts on silver at this point, the COT report covering 12 march, end of day price $29.19, shows the total net Comex silver futures positions as 29423. The week before, 5 march, end of day price 28.69, it was 29183, about the same. Just 240 contracts / 1.2 Moz more, yet the price was 50 USDcent higher. So other silver market sides bought quite some silver more. SLV added almost 2 Moz. US Mint ASE sales (2nd column): 2013/03/05 763,000 9,500 0 2013/03/06 876,500 13,000 500 2013/03/08 897,000 17,000 1,500 2013/03/09 897,000 25,000 5,500 2013/03/11 1,562,500 26,000 5,500 2013/03/13 1,601,500 26,000 5,500 2013/03/14 1,601,500 31,000 6,500 2013/03/15 1,711,500 31,000 6,500 Almost 1 Moz in the week, quite high. If I assume that the US Mint sales is a good reflection of the delivered ("physical") demand as a whole, then my conclusion would be that stacker purchases were the dominant price driver for those 50 cents. Of course, it could also be industry. I see two potential fast/major price downwards movers: those with Comex futures positions (longs-shorts), they have 10K positions left to bring back the 2008 bottom #contracts of 20K (although last year begin summer we saw a 10 years low of 12K), and SLV, that holds 344 Moz, most/all of the extra in recent 2 years due to the 2013/01/15 326,759,768.600 2013/01/16 345,137,860.600 move. The single day change suggests a single entity shareholder/buyer, and big players tend to be systemic, in other words, ready to dump at the expense of the rest. It's almost 20 Moz so it matters much more than aboves story. It might be the reason that the price so far held $28, instead of past $26-27 occasions. And SLV is something to not ignore, despite they didnt do big moves since their march+april 2011 big buys and may 2011 big sale, so weren't responsible for bigger price actions since, they are still there, ready to dump the silver that they bought as paper. There are valid reasons to buy silver as paper (no storage hassle, premiums, etc), but one is to be able to dump fast. Something to take into account. It wouldn't surprise me to see the price being driven down this time NOT due to the Comex side, but due to that +20 Moz SLV shareholder of mid january. But as usual, it will depend on all sides of the silver market. And this whole picture gives me the impression of one where alot sit ready to buy, thus needing others to sell first/buy less first, as of yet did not happen. I'm partly responsible for it.
As I have only been in the silver game for about a year now, my gut tells me that : 1) The powers of be will do whatever it takes to keep this currency BS going as long as possible (so never underestimate how long they can kick the can down the road) 2) The government will intervene when the recession / depression sets in to try and fix things, but only make things worst for the next generation 3) Gold and Silver will play a part in some way of re-setting the new currencies around the globe, and the governments will change the rules to tax the hell out of the physical stackers 4) In light of what just happened in Cyprus, I sleep alot better knowing my government can't steal my silver, as opposed to helping themselves to what digital currency I have in my bank account 5) Inflation will help the debters, Deflation will help the savers, but the silver stackers will hold real value regardless......so in answer to the original question, I think long term Silver will outperform most assets in terms of real purchasing power (not price)
Yeah, we should tax the hell out of those greedy ba$t4rds!!! Good think I don't see any physical stackers around here
My thoughts on silver were not fruitful in recent 2 weeks. People again bid more than my 2 years lasting same bid of 800 euro per kilo. Not a single coin. Despite the price is the same as a month/6weeks ago, where I accumulated 7 kilo. Not that I can buy much, since I dumped so much of my euros that I can barely pay the expected bills.
Hmm, wouldn't it be more prudent to set aside some cash as emergency funds instead of dumping it all into PMs? I'm all for PMs but I think it's troubling when you have problems paying the bills.
You're right, but due to the price which I see as an opportunity, I consider it a risk worth taking. In past occasions I did the same, once I had to quicksell some various junk that I had for sale since months, and return some cash to the bank, in order to be able to pay a larger dealer order for silver. In the end, I'm not poor, only that I use silver as storage of value instead of euro's. So I can pay any bill, only that at the moment, it may take a silver sale first in order to be able to do so, which adds of course more time. Today I could buy 12 junk coins, the sellers responded but in both cases my bid was later on exceeded by other bids. But the sellers both have good feedback, and as always I paid as soon as I received the mails. Another lot from a same seller was sold to someone else. Nevertheless, I will be happy when my next wage arrives over two weeks.
Wow okay. That's a very interesting investment philosophy. Guess it's different for me cos I foresee upcoming commitments like getting a house so can't afford to live on a paycheck to paycheck basis. Could also be that where I come from, we were brought up with a saving mentality so Asians still love their fiat in the bank. I just hope the PM markets go your way so your gamble will pay off!
Today a seller agreed again on my bid on 6 coins, and again somebody afterwards bid more. And I'm acting stupid by holding again less euro's, two weeks to go to the next wage, and an expected bill (a spare bicycle on order) that equals my remaining euro's, somewhere hopefully not earlier. If the timing goes against me, it's the quicksale of some silver About the silver price rollsovers, let it rollover. It just means that I will act stupid next month too, haha. If I'm forced to sell 50 ounces at a loss in order to pay a bill, so what, in some future the same might happen and giving me a gain instead. And hey, as said, I don't live from paycheck to paycheck, remember? It's not like that I swapped my euro's for beer / vacation trips and other 'consumed' things that leave no value left. I swapped them for another currency, namely silver. So why the paycheck to paycheck life comparison?
I'm at 8,2 kilo now, and have to wait a week to pay an expected, but not exactly when, bill. Something I just noticed, when the spot price was $USD 29.2 I ordered 2 tubes Philharmonikers at a dealer. Today the price at the dealer is still the same, despite the $USD 1 lower spot price. Either the dealer adjusted his spot price adaptation, either the euro got weaker, either both. So at the moment, and for my situation, buying when spot was $USD 29.2 was an equal good (or bad) decision as buying now.
To give a followup a month later, junk coins sell here for way over bullion coins at dealers. They still bid the same prices as before the $28>$23 spot price drop. I tried bids according to the lower spot price, but the other bids made me look like a funbidder. I didn't expect this, in past price drop occasions, people became reluctant to bid more and I expected to be able to snoop up some junk (not much since I already used past wages for $29 silver), but so far it ain't the case. Is this something local to me, or does this happen for others elsewhere too?
Pirocco. I'd assume it's pretty much the same everywhere. I'll also add my thoughts on vintage stuff. This is not directed at you but at everyone. If you don't have any and you want some you better jump on it. I think it will be harder to get your hands on. Or you'll pay ungodly premiums for it if you do. Everywhere I look except ebay doesn't have any aside from (cough) APMEX$$$$$(cough). Their pressed 10oz Engels are priced the same as before the drop. I think folks will hang on to vintage with even tighter hands than before. At least I would. If I had to dump some metal the new stuff would be the first to go.
I try to buy junk in Australia at the best possible price, as close to spot as possible, but I have noticed recently this is increasingly more difficult. Often I find prices for junk, particularly Australian coins, have actually risen since the spot price fell and only rarely is there a relative bargain to be found so yes, this seems to happening everywhere. I now find buying premium bullion is often the least expensive compared to junk.
Despite it having a much better price, 23-24 $ silver is still "too high", since the dealers I'm eyeing apply immense premiums, many roughly 30 %! Who's buy silver with that high premiums? Well... I just lost my appetite for it!
