Why silver price is going down when we have such inflation?

[theman73]

1 hour ago, HerefordBullyun said:

My top tip is go and see dealer up north who does free postage save you burning all the expensive fuel @LawrenceChard should be able to give you a pointer or two!

I buy my silver from the dealer of the Northerner's, hence my miles...

[LawrenceChard]

2 hours ago, GoldDiggerDave said:

 If silver did go to $0.29 oz it’s worth buying and using  1kg  bar as door stop, it would be cheaper than buying a cast iron one. 
 

Would there still be a 20% dealer premium on such low prices? There is still real world transport, storage and handling.  what I’m getting at that low price would it cost more to handle store per oz than the actual value per oz. 

If we ignore VAT for now, the premium on good delivery silver bars is much lower, but still typically a few percent. This will normally be higher than similar gold bars, because the melting, processing costs are simiilar for both metals, in actual cash terms, but disproportionately higher for silver precisely because of its much lower intrinsic value.

Similar for shipping costs, storage costs, etc.

Which is partly why gold is the more important investment / store of wealth option.

Reintroduce VAT at 20% (or any other percentage), and gold is by far the better investment metal for most physical investors.

And also why I say so here: 

https://www.chards.co.uk/blog/advice-guide-for-uk-bullion-investors/1041

😎

Edited August 19, 2022 by LawrenceChard

[GoldDiggerDave]

Does anyone know the actual cost per 1oz round.  The cost price to mine, refine, mint and ship?  
 

We could see a scenario where it becomes more expensive to produce than the manipulated spot price with ever increasing inflation and energy costs we have to be getting close.  

[HerefordBullyun]

28 minutes ago, LawrenceChard said:

NFT?

😎

Non fungible token or in this case Noisy fart token! 

[modofantasma]

30 minutes ago, GoldDiggerDave said:

round.  The cost price to mine, refine, mint and ship?  

There would be a degree of fluctuation with fuel prices and country to country I guess 

[LawrenceChard]

2 hours ago, theman73 said:

Silver market is manipulated by rich guys.

Please define "rich"!

😎

[LawrenceChard]

1 hour ago, HerefordBullyun said:

Non fungible token or in this case Noisy fart token! 

I knew the first one, it was the second one I was after!

😎

[Happypanda88]

12 minutes ago, LawrenceChard said:

Please define "rich"!

😎

You ! 😎

[HerefordBullyun]

4 minutes ago, Happypanda88 said:

You ! 😎

Yes I agree I can only afford bognor at a push for day trip in my string vest and well used underpants....

Whereas the bill gates of Bullion dealers aka @LawrenceChard is making an absolute blooming fortune on pms and postage! 

Whilst hes swanning aroung europe in his EV limo, meeting all the Davos crew  - I have to go on my scooter and thats based on foot power cant afford expensive cars!  

[LawrenceChard]

5 minutes ago, Happypanda88 said:

You ! 😎

I often look around, and realise how poor I am.

There are a number of reasons I now have some capital:

I worked hard, and often long hours.

I used intelligence, and applied much thought.

I retained most rather than spending it.

When I do spend, I like to get good value.

I still work, 10 or 15 years after many people have retired.

I have always invested in gold, silver, coins, and other "stock".

 

I could have been much richer 40 or 50 years ago:

If I cheated people.

If I advertised or described stuff misleadingly.

If I had used any hard selling.

If I had not taken on a partner (very long story).

 

I certainly am not rich enough to manipulate the silver market.

I can't afford to buy a decent yacht to have a boating accident in!

😎

[LawrenceChard]

7 minutes ago, HerefordBullyun said:

Yes I agree I can only afford bognor at a push for day trip in my string vest and well used underpants....

Whereas the bill gates of Bullion dealers aka @LawrenceChard is making an absolute blooming fortune on pms and postage! 

Whilst hes swanning aroung europe in his EV limo, meeting all the Davos crew  - I have to go on my scooter and thats based on foot power cant afford expensive cars!  

Before I was old enough for a driving license, I used to cycle around the Fylde Coast to banks, to buy up their stocks of silver threepences.

😎

[HerefordBullyun]

1 minute ago, LawrenceChard said:

 

I can't afford to buy a decent yacht to have a boating accident in!

😎

you can borrow my inflatable to have a paddle with but it not a boat!!!

[GoldDiggerDave]

13 minutes ago, LawrenceChard said:

I often look around, and realise how poor I am.

There are a number of reasons I now have some capital:

I worked hard, and often long hours.

I used intelligence, and applied much thought.

I retained most rather than spending it.

When I do spend, I like to get good value.

I still work, 10 or 15 years after many people have retired.

I have always invested in gold, silver, coins, and other "stock".

 

I could have been much richer 40 or 50 years ago:

If I cheated people.

If I advertised or described stuff misleadingly.

If I had used any hard selling.

If I had not taken on a partner (very long story).

 

I certainly am not rich enough to manipulate the silver market.

I can't afford to buy a decent yacht to have a boating accident in!

😎

You’ve not seen @HerefordBullyun yacht , he’s making a fortune loaning it out for the unregistered channel crossing! 

[Bigmarc]

9 minutes ago, LawrenceChard said:

I often look around, and realise how poor I am.

There are a number of reasons I now have some capital:

I worked hard, and often long hours.

I used intelligence, and applied much thought.

I retained most rather than spending it.

When I do spend, I like to get good value.

I still work, 10 or 15 years after many people have retired.

I have always invested in gold, silver, coins, and other "stock".

 

I could have been much richer 40 or 50 years ago:

If I cheated people.

If I advertised or described stuff misleadingly.

If I had used any hard selling.

If I had not taken on a partner (very long story).

 

I certainly am not rich enough to manipulate the silver market.

I can't afford to buy a decent yacht to have a boating accident in!

😎

And your houses are bloody cheap up there. I could probably sell up down here and buy the equivalent house made in silver, sit in the garden and watch the value deflate away and never work again.

[LawrenceChard]

3 minutes ago, GoldDiggerDave said:

You’ve not seen @HerefordBullyun yacht , he’s making a fortune loaning it out for the unregistered channel crossing! 

I thpught they were all single use, like supermarket plastic bags.

😎

[LawrenceChard]

3 minutes ago, Bigmarc said:

And your houses are bloody cheap up there. I could probably sell up down here and buy the equivalent house made in silver, sit in the garden and watch the value deflate away and never work again.

Sure, I paid £35K for our house, over 40 years ago. It is probably worth about £1 million, so it has been a good inflation hedge, despite maintenance costs, and some upgrades.

In or around London it would probably have cost at least £1 million 40+ years ago.

Our office / showroom stands us at about £1 million, and would cost £10 million to £20 million or more in London.

😎

[theman73]

30 minutes ago, LawrenceChard said:

I often look around, and realise how poor I am.

There are a number of reasons I now have some capital:

I worked hard, and often long hours.

I used intelligence, and applied much thought.

I retained most rather than spending it.

When I do spend, I like to get good value.

I still work, 10 or 15 years after many people have retired.

I have always invested in gold, silver, coins, and other "stock".

 

I could have been much richer 40 or 50 years ago:

If I cheated people.

If I advertised or described stuff misleadingly.

If I had used any hard selling.

If I had not taken on a partner (very long story).

 

I certainly am not rich enough to manipulate the silver market.

I can't afford to buy a decent yacht to have a boating accident in!

😎

5*

[HerefordBullyun]

21 minutes ago, GoldDiggerDave said:

You’ve not seen @HerefordBullyun yacht , he’s making a fortune loaning it out for the unregistered channel crossing! 

If only it were true!

The paddle i have lost and I am up s*** creek!

[HerefordBullyun]

17 minutes ago, LawrenceChard said:

Sure, I paid £35K for our house, over 40 years ago. It is probably worth about £1 million, so it has been a good inflation hedge, despite maintenance costs, and some upgrades.

In or around London it would probably have cost at least £1 million 40+ years ago.

Our office / showroom stands us at about £1 million, and would cost £10 million to £20 million or more in London.

😎

So tell me again how poor are you?

I live i  a box in down sarrf that got a leaky cardboard roof and asbo nieghbours......

Karachi is a butlins to my poverty. What do you think I do with my NFT in a jar to heat up the kettle with the gas I cannot afford!

   

Edited August 19, 2022 by HerefordBullyun

[GoldDiggerDave]

12 minutes ago, HerefordBullyun said:

If only it were true!

The paddle i have lost and I am up s*** creek!

I’m sure you could get a few on the back of dolly! 

[HerefordBullyun]

9 minutes ago, GoldDiggerDave said:

I’m sure you could get a few on the back of dolly! 

If they wanted to smell of gorganzola - sure!

[Centauri167]

On 31/07/2022 at 08:39, Alex944 said:

Cool! Asking for a friend then, where does one purchase silver bullion from Belgium without having VAT applied which isnt second hand market? 

If you are from the part of Ireland that is in the EU, just check out: www.goldsilver.be

 

[Centauri167]

On 31/07/2022 at 21:05, LawrenceChard said:

If that is correct, then...

Ça plane pour moi!

😎

Easy to check:

https://goldsilver.be/en/84-1-oz-30-gr?orderby=price&orderway=asc

Just choose Belgium as the country were you order from, if you choose the UK, Vat will be added of course.

[TeaTime]

Quoting spot price is meaningless when it comes to silver coins. The reality is that silver coins sell at the current market rate, not at spot. 

Fag packet calculation;

A gold coin bought at £205 in 2002 would now sell for £1,550.

45 Silver coins bought for £200 in 2002 would now sell for £25 x 45 = £1,125 

                  or

45 silver coins bought in 2002 selling at £30 each (realistic for i.e. Brits) = £1,350

£200 in 2002 invested with compound Interest at 7% (average) PA = £775.

Silver coins have always carried a numismatic premium which increases with age - not so much with gold coins that tracks spot much more closely.

So gold presently appears to be a better investment but silver doesn't look too shabby when compared with money in the bank. This time next year silver could easily outperform gold in the long term.

 

 

 

 

 

Edited August 19, 2022 by TeaTime
Reasons

[LawrenceChard]

2 hours ago, Centauri167 said:

Easy to check:

https://goldsilver.be/en/84-1-oz-30-gr?orderby=price&orderway=asc

Just choose Belgium as the country were you order from, if you choose the UK, Vat will be added of course.

But better still, choose gold not silver:

https://www.chards.co.uk/blog/advice-guide-for-uk-bullion-investors/1041

and choose a dealer who gives you good advice, not just a sales pitch.

😎