Is that the dip?

The biggest problem with a dip?
That would have to be a 'chip break'.
There is only 1 remedy: 'a rescue chip'.


24f383519dcb36e2_buy_dips.preview.JPG
 
Auspm said:
Dips can be good if you can find a dealer who will follow spot quickly.

Dealers have margins to cover as well. They buy at X and sell at X+Y% for their profits.

If spot revalues X to X-Z% then even if they add Y%, they will sell at a loss or break even at best.

Most dealers get around this two ways.

1 - Overshoot asking prices by a lot (ie Downies). They buy at $38 per oz, sell at $49 per oz to ensure rapid spot movements don't undermine them.
2 - Take the metal off the market under the guise of shortage.
Click to expand...

you forgot one thing. if the dealer can manage to buy the same amount that they sell, then they are good, that way they are constantly replenishing the sold silver with silver that they are paying less for ... unless the price drops a huge amount intraday, but then they make that back up when it shoots up a huge amount intraday. I've never met a dealer that doesn't track spot on the minute. I went in a shop the other day and the lady said its 40.03. I said, "check it again, it was just 39.87" she said, "oh, its now 39.98" and she ended up selling at 39.96. I think any dealer that is trading at yesterday's spot price because today's is too low is operating on too small a margin or they don't have enough trade volume or they're a little greedy and unfaithful (but that's his/her right!). They for damn sure wouldn't sell at yesterday's price if it was lower than today's, would they?!?
 
Silver Natural 9 said:
The biggest problem with a dip?
That would have to be a 'chip break'.
There is only 1 remedy: 'a rescue chip'.


http://images.teamsugar.com/files/upl2/1/15259/08_2009/24f383519dcb36e2_buy_dips.preview.JPG
Click to expand...


the best way (but not 100% foolproof) is to have the ridges perfectly orthogonal to the surface of the dip. Strength is a vector which has magnitude AND direction! :) think of corrugated metal. but then ... the chip might be more flexible the other way :/ kind of like the story of the blade of grass and the oak tree. the oak tree is strong, but a storm's wind can uproot it - not true of a blade of grass.
 
samboyellowsub said:
Auspm said:
Dips can be good if you can find a dealer who will follow spot quickly.

Dealers have margins to cover as well. They buy at X and sell at X+Y% for their profits.

If spot revalues X to X-Z% then even if they add Y%, they will sell at a loss or break even at best.

Most dealers get around this two ways.

1 - Overshoot asking prices by a lot (ie Downies). They buy at $38 per oz, sell at $49 per oz to ensure rapid spot movements don't undermine them.
2 - Take the metal off the market under the guise of shortage.
Click to expand...

you forgot one thing. if the dealer can manage to buy the same amount that they sell, then they are good, that way they are constantly replenishing the sold silver with silver that they are paying less for ... unless the price drops a huge amount intraday, but then they make that back up when it shoots up a huge amount intraday. I've never met a dealer that doesn't track spot on the minute. I went in a shop the other day and the lady said its 40.03. I said, "check it again, it was just 39.87" she said, "oh, its now 39.98" and she ended up selling at 39.96. I think any dealer that is trading at yesterday's spot price because today's is too low is operating on too small a margin or they don't have enough trade volume or they're a little greedy and unfaithful (but that's his/her right!). They for damn sure wouldn't sell at yesterday's price if it was lower than today's, would they?!?
Click to expand...

You're in the US.

In 'Straya, we tend to be somewhat slower paced. Most of the majors in Sydney update daily at best unless there is sharp movement.

I guess the only exception I can think of locally would be the Perth Mint itself.
 
No, this is a collapse.

I caught the falling knife again and got cut, now I am waiting for a trend reversal and then it is time to load up.

You would think I would have learned from 2008.
 
You must log in or register to reply here.
Back
Top