Silver Monitoring Thread £ (GBP) only.

[Scuzzle]

I'm not sure how it works but as a retailer surely you have a net price you buy at and if after purchasing your stock the retail price does nothing but go down for months or years on end you are going to struggle to turn a profit, I've seen a couple of US bullion dealers have gone down the tubes recently and wondered if this was why.

Does anyone know exactly how the system works for bullion dealers?  I suppose once you have made your sale you can then restock at the equally cheaper price but if enough Bullion Mints etc. suspend trading like the US mint has done then they cannot do this.  I.E. as a dealer I have sold out of my monster boxes of ASE's taking a hit on the low spot price but that's OK because I can restock at that same low spot price, only I can't because the US mint has stopped producing them for a short period of time and when they start up again if that low spot price is not so low all of a sudden then I'm in trouble.

Edited July 8, 2015 by Scuzzle

[AuFinger]

I'm not sure but I'd bet the margin covers enough, in large enough volumes, to pay for insurance or an equivalent type of underwriting in swings each way in price.

But it'll essentially be a rolling system of cover so the retailer just worries about margin not the base metals costs.

Then there will be tax gain/loss variables, which they won't want to be liable for if prices spike they could have a huge tax bill.

Small volume dealers will naturally struggle as these overheads will be spread over less retail volume meaning lower profit margins AND exposure to volatility both ways.

I guess this is where small dealers need to work that bit harder and also have a bit more luck on their side if they buy/sell volumes that leave them exposed, probably all too easy in such a long bear market, or bear 'manipulation'

[HawkHybrid]

stg is out of libertads and the price of ase has gone up.

coincidence or maybe there is some truth to the rumour

that america importing more silver and a lot of it is supplied

by mexico.

 

HH

[garthy]

stg is out of libertads and the price of ase has gone up.

coincidence or maybe there is some truth to the rumour

that america importing more silver and a lot of it is supplied

by mexico.

 

HH

 

I'm pretty sure America do import from Mexico now that they've eaten up their reserves, also the American mint are out of eagles till mid August due to strong demand, or maybe they don't want to sell at these prices? 

Edited July 13, 2015 by garthy

[garthy]

Maple watch, stg price £11.77.

Is that the lowest this forum has seen?

[Scuzzle]

The current spot price of silver is incredible when you actually see what's involved in mining it.  I look at the process on Youtube videos and have no idea how it can possibly be the price it is.  (well I have but you know what I mean).

[HelpingHands]

Maple watch, stg price £11.77.

Is that the lowest this forum has seen?

 

HT had this going for a bit.

https://thesilverforum.com/topic/1968-silver-premium-watch/?hl=%2Bpremium+%2Bwatch

[HighlandTiger]

Heading to the nines?

 

Now we are entrenched in the nines................How about we have a flirt with the eights for a few weeks 

[FriedrichVonHayek]

In USA it sounds like physical is already becoming scarce. Silver Eagle run out?

So commodity price pushed down to say stocks are great, stay confident!

Physical has run out, or another message being narrated to us, so we can't benefit from the resultant low physical price.

This is a perfect example of why waiting thinking prices might go down is s bad idea.

The lower it goes the harder it'll be to buy.

Since my rowing boat capsised with all my silver aboard yesterday, another tube or so from STG is on my cards!

Don't read anything into ASE'S running out.

It happens every year!

I expect commodities to become insanely cheap in the next 18 months.

With China in trouble and Iran now able to sell their oil on international markets I would expect commodities to deflate further.

The best strategy is to keep pound cost averaging.

[garthy]

Don't read anything into ASE'S running out.

It happens every year!

 

I may be wrong but I don't ever remember ASE's running out mid year before, it 

usually happens late November/December.

 

 I do agree cash is king for the near future which really means more deflation on the cards, not good in a debt based system, with interest rates at rock bottom we could have more QE on the way.

[craig12]

£9.60 I haven't seen it this low for a while

Edited July 16, 2015 by craig12

[Pipers]

The best strategy is to keep pound cost averaging.

 

What does this mean?

[AuFinger]

If you just buy at fixed intervals at a fixed purchase price, then naturally you will buy more when it's cheap, and less when it's expensive.

 

This is how you invest in things like pensions because you're making regular contributions and essentially buying more when things are cheap and less when expensive.

 

 

It's a good way to have no bias in your investment purchases by over-thinking too much.

 

 

However, if you follow that logic you need to be buying silver as an investment to make money from it in a specific time frame.

 

The motivations for buying silver may be quite different to an investment based one. Nor may the potential to make regular purchases always be possible.

 

Ie, in a years time silver might be £8, but if an EU currency collapse occurs and unemployment surges with you losing your job, the last thing you want to do is buy silver. Thus the 'investment' becomes biased.

 

You could even argue that people in that situation would feel under pressure to sell some silver to be able to pay their bills, thus biasing things even further.

 

If prices ever do sky rocket then you will sell the PM for fiat money, but right when the PM price is high in fiat terms, it may be so because the fiat you will exchange it for is becoming worth less. So why sell valuable PM for worth less fiat?

 

 

 

This is the problem with viewing PM as an investment commodity in these markets. The best time to sell from this point on will probably be after the worldwide debt has unwound, and then the world has got back on it's feet.

 

Until then PM will be hammered lower, made harder to buy, or made illegal, or other strategies to put people off moving wealth into them.

 

Great that they're lower, till you can't buy them for one reason or another.

 

 

 

 

So purchase averaging might make some sense if you've been buying for years already and have a stack you won't need to sell in an emergency. But I'd say if you're starting just now and buy £30 a month of silver, well it might all be too late by the time you have just 20 ounces or so.

Edited July 16, 2015 by AuFinger

[FriedrichVonHayek]

I may be wrong but I don't ever remember ASE's running out mid year before, it 

usually happens late November/December.

 

 I do agree cash is king for the near future which really means more deflation on the cards, not good in a debt based system, with interest rates at rock bottom we could have more QE on the way.

The US mint sold out of 2013 ASE's on January 18th 2013.

[garthy]

The US mint sold out of 2013 ASE's on January 18th 2013.

 

I stand corrected, I'm hearing 2 million oz of ASE's were bought in one hour earlier this month.  

[craig12]

this is awkward isnt it  do you buy now or keep watching? i havent seen silver this low ever

[Louis540i]

Looks like a downward trend generally, it's hard to keep your nerve..... Just when you thought it couldn't get any lower. Hovering at £10 I thought it was cheap.....

[HighlandTiger]

buy buy buy. 

 

If it drops even more, then buy some more

 

If it goes up in price, still buy some more.

 

Sitting on the fence will only give you a sore arse.

 

  

[Dune69]

this is awkward isnt it  do you buy now or keep watching? i havent seen silver this low ever

 

You could always do a selling strategy in reverse

 

Instead of selling half your stack when prices double.. you'd reverse that and spend half your money at set prices

 

£9 ..........spend half what you were planning to spend and keep the rest as a reserve to add to

£8.50......spend half what you were planning to spend and keep the rest as a reserve to add to

£8...........spend half what you were planning to spend and keep the rest as a reserve to add to

£7.50......spend half what you were planning to spend and keep the rest as a reserve to add to

 

and so on.. At least you'll catch some of the lower prices if there is anything to buy.. Just keep an eye on inflated premiums

 

You can set the trigger points and 25p increments if you don't think it will fall much more

Edited July 20, 2015 by Dune69

[HelpingHands]

Statement on bullionbypost.

Price Drop = Busy

[AuFinger]

I'm amazed they sell anything at their prices!

[craig12]

if silver shadows gold why isn't silver dropping as quick as gold

[HawkHybrid]

if silver shadows gold why isn't silver dropping as quick as gold

 

because we are arriving at strong support ~$1088/oz.

if you are sure gold will drop then you sell silver first.

if there is a chance that gold will not break support

and bounce off, causing silver to rise faster, then

you hold and wait.

 

HH

[HelpingHands]

if silver shadows gold why isn't silver dropping as quick as gold

@craig12 Maybe silver has fallen as far as it's going to. Gold may need to catch up with silver. What do you think of the 10y charts? $800-900 gold to come or a climb up for silver?

[AuFinger]

Silver/Gold ratio is trend low point so whatever happens it's more reasonable to say silver is a better way to go v gold.