I was stacking during that period and Mike Moloneys claim is definitely true in Sydney. When spot was around $14, I was prepared to pay $18+ an oz to take immediate delivery of 5kg bars. ABC Sydney had promised 10 weeks for delivery and I finally managed to get my last batch from them after a very worrying 16 weeks. Was so worried that they only had paper silver to back their holdings and that they were going under that I was prepared to pay an extra $3+ an oz premium just so that I can hold physical rather than risk my money on buying a promise for future delivery.
That was back when there was only a couple of bullion dealers . thankfully theres a lot of new places to go now . I wonder how there volumes have gone since all the new guys have appeared ?
AEL, Baloney was not talking about bars. He specifically said ASE premiums went up to 400%. ASE premiums went to around $6-7, but not $16 and even that premium spike didn't last long. I don't deal in bars, so I have no knowledge of what normal 5kg bar premiums were at the time.
The shortage was real, but I'd think it was only unobtainable at the price people were prepared to pay (over spot). They could have had all the silver they wanted if they were prepared to pay a ridiculous premium.
nope ..well not in a hurry . there was virtually no physical on hand . I actuall bought from the states because of the long waiting times .
One dealer in Sydney has been frank enough to tell me that business is really crap; he had to lay off staff. The rest just pretend that everything is hunky dory
Well, I did say "ridiculous" premiums (implying premiums so high that no sane person would pay it) I'm quite sure there would be people holding physical silver who would be happy to deliver if someone desperate enough were to offer them some crazy price. But maybe in such a intense demand scenario, people simply couldn't afford it anyway.
My memory is a bit sketchy and it would take me yonks to dig up the paperwork, so the figures below is not gospel I think premiums on kilo bars was around $35 - $40 as long as you were prepared to wait and wait and wait. 30%+ above spot for immediate delivery from secondary suppliers. Beggars couldn't be choosers; anything that was silver sold for a premium including sterling silver medallions, coins and pre-decimals
I'm in for 95 ounces in the last two weeks, also in a sit back and wait mode... Even decided maybe even a few shares of paas (pan American silver) @ $10.10. Do you guys think it's a bad idea investing in mines? They were above 40 last peak...
Mines. Mining your money. All sous of counter party risk and you bought because they've already lost 75%?
So are you saying it's not a good idea nsw? These past few weeks have been my first in silver. It looked to me like a good bet... On the short term that is. My silver is long term. I felt silver goes up so do mine profits. Also being a big mining corp they have the funds to survive a multi yr price below production cost.
As long as you understand why they lost 75% and know why they can't lose another 75% then good luck. As far as I'm concerned the only reason share trading is freely available is so they can fleece you. Good luck with it.
Your investing in a company that's potentially producing at a loss rather than than buying silver at below production cost. Is that correct?
I can't speak to AU, but silver was easily available in the US, both at the peak in 2011 and the bottom in 2008. During periods of price extremes, there could be a smelter backlogs. I remember a period like that, but the backlog didn't affect the availability of ASEs at the dealers. The other thing I remember is that at the bottom, there were some extremely good deals. Edit: As I stated before, the premiums in the US, weren't ridiculous unless you consider $6 over spot ridiculous.
Yes I am. Before I bought the stock I read that they can produce at $17oz and they can do this because they have invested in new technology that has allow them to reduce employee cost by 15% and improve yield. Also they own multiple mines of varying degrees of quality ore. I dunno really it's all a gamble in the end... Maybe I should just go back to work, because this truck is pulling away.
No mining stock investing for me....I stick with physical. Paper investing is not for everyone but if you are smart enough that you can make money on it and you understand the risks, then I have no probs with people investing in stocks. .
Lots of people have been burned with the miners...however if you can pick some towards the bottom, you'll multiply your returns, hassle free when it comes to storing and liquidating too. BUT that's if you can pick them at the right time.
I've backed my proverbial truck up. This is the biggest investment I've ever made (much bigger than my super, which for me is no great horde given my meagre means, but I feel pretty good about it. For an Australian to loose money (assuming the cash was going to be in some form if cash or in the bank) is for silver to drop and for the AUD to stay high. Even some of the more dire predictions for silver (15usd) will be mostly offset if the aussie hits ~70usd like other doomsayers predict. I know my buying power is reduced but it would have been anyway. Plus, I'm not so gloomy, I think $30 silver sometime in the next 18 months is realistic. In that sense I see it as fairly low risk since I can afford to wait the market it if I have to. In the meantime if it does drop I'll buy again to try and average my costs but when the most expensive bullion you own cost you $670aud/KG in hand I don't think there's to much to worry about. First post!
