Disruption to physical supply/sales ...

auspm said:
This is a classic example of the discussion we had previously and I did state quite simply that in the event of a drop a lot of dealers will simply shut up shop and refuse to trade.

Look at it simply.

If you are purchasing stock at X price, why would you be expected to sell it at under what you paid for it and expect to stay in business?

A sharp drop in spot will simply mean no active trading on physical (even if there is stock present) until a profit can be realised on trades.

Unless you have an extremely quick turn over of stock or very deep pockets, you are largely restricted to your sale price based on what you paid for your stock in the first place.

If 'spot' rises above your paid price to buy the stock in the first place, you can claim the margins as profit.

But if spot falls below those prices you paid and you face a loss, you can simply put up a 'closed' sign under any guise you wish and wait for the price of your stock come within profit.


Hence, regardless of what spot does on the open market, there's a floor price on physical silver and this rush of stores putting up the closed signs are exactly what I predicted would happen.

Let this be a practical example of why I expout the cost average stacking strategy being a better method for the smaller volume stacker than trying to time the dips.

While i agree for the most, a business cannot simply afford to CLOSE UP SHOP until spot goes over the price they paid for it, staff and rent must still be paid in the interim. Dont bullion companies hedge against this likelyhood as a common methodology to counteract this exact circumstance?

In the event of a BIG dip like we're seeing now, you'll be scratching to locate physical - especially physical following spot in realtime.
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I too Auspm, am a little-by-little dollar cost average investor, but this time around i dont see any shortages at lower prices. I guess now i know about Bullionbourse and Bullionmoney i can take advantage of a low spot price. Prior to that i guess i felt like i couldnt capitalise when weve previously had these vicious retracements.

Can you really say the following is true?

"A sharp drop in spot will simply mean no active trading on physical" - empirically this is a fellable statement.

Silver spot has had a sharp drop, yet there IS active trading in physical - see any major bullion site.. they are all open for business and selling bullion reflecting a spot price that has just lost $13 since last week.

Sorry mate.. just not scratching to find a seller at these low prices.. its all who you know! (where to buy from)

Exceptions, SS forum - just dragons (no-one on this site is selling but we CAN still source cheap silver, ainslie down (due to 1oz dragons at loss-leader pricing)

1for1
 
Sargeant Argent said:
Silvergoldbull.com is up and running but they're charging based on 30.04 CAD and 1684 CAD when it is at 1660 and 28.81
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well that's not aussie website :|
 
nicwinner said:
Sargeant Argent said:
Silvergoldbull.com is up and running but they're charging based on 30.04 CAD and 1684 CAD when it is at 1660 and 28.81
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well that's not aussie website :|
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The original question was not country specific. Over 20% of the forum are non-Australian.
 
Nukz said:
There all down because china is buying up all the 1oz dragons
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Are they.. awesome.. we need someone to prop up the +$100 per unit 1 oz dragon market to keep those with sitting pretty.. it was wavering a little there at around $70.. thanks Chinese.. can you prop up the Rabbit and Mouse bullion market too..

Hang on .. you mean China (the GUV) or Chinese, the Citizens? Should i even ask if this is credible info?

1for1
 
Gainesville Coins is currently performing routine updates to the website in an effort to improve your shopping experience. We apologize for any inconvenience. If you need assistance, please contact a member of our staff at 813.482.9300.
 
1for1 said:
Nukz said:
There all down because china is buying up all the 1oz dragons
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Are they.. awesome.. we need someone to prop up the +$100 per unit 1 oz dragon market to keep those with sitting pretty.. it was wavering a little there at around $70.. thanks Chinese.. can you prop up the Rabbit and Mouse bullion market too..

Hang on .. you mean China (the GUV) or Chinese, the Citizens? Should i even ask if this is credible info?

1for1
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they (China mainland) release lunar every year, so why they need buy dragons from us?
 
fishball said:
Gainesville Coins is currently performing routine updates to the website in an effort to improve your shopping experience. We apologize for any inconvenience. If you need assistance, please contact a member of our staff at 813.482.9300.
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Very interesting times in the silver market. Very interesting.
 
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