Will Silver Prices Go Down to $0.29?

[LawrenceChard]

Will Silver Prices Go Down to $0.29?

Sorry if this topic title consitutes "clickbait", but I just couldn't help myself, having just seen a very similar thing in a recent thread / topic.

I was aware of the marketing / journalistic gimmick, but only just discovered it has a name:

Betteridge's law (of headlines) is an adage that states "Any headline that ends in a question mark can be answered by the word no." The sweeping generalization refers to the poor journalistic practice of writing sensational headlines in the form of a question in order to compensate for the author's lack of facts.

With tongue firmly in cheek, perhaps I should add:

This week’s guest is so bullshit on silver that he’s even written a best-selling book ‘The Great Silver Bullshit’ where he takes an in-depth look at why silver will outperform gold once again and even go as high as $300 an ounce.

I did actually post a topic recently:

All Time Lowest Silver Price £0.07 Per Troy Ounce - OK It Was 1931 But Hey!

Perhaps I ought to even write a book!

😎

[Orpster]

But its going to the moooooon, bookface told me

[dicker]

32 minutes ago, LawrenceChard said:

Will Silver Prices Go Down to $0.29?

Sorry if this topic title consitutes "clickbait", but I just couldn't help myself, having just seen a very similar thing in a recent thread / topic.

I was aware of the marketing / journalistic gimmick, but only just discovered it has a name:

Betteridge's law (of headlines) is an adage that states "Any headline that ends in a question mark can be answered by the word no." The sweeping generalization refers to the poor journalistic practice of writing sensational headlines in the form of a question in order to compensate for the author's lack of facts.

With tongue firmly in cheek, perhaps I should add:

This week’s guest is so bullshit on silver that he’s even written a best-selling book ‘The Great Silver Bullshit’ where he takes an in-depth look at why silver will outperform gold once again and even go as high as $300 an ounce.

I did actually post a topic recently:

All Time Lowest Silver Price £0.07 Per Troy Ounce - OK It Was 1931 But Hey!

Perhaps I ought to even write a book!

😎

You already have vastly more replies to this post than the one in question that you have referenced.

 

 

[HerefordBullyun]

40 minutes ago, LawrenceChard said:

 

Perhaps I ought to even write a book!

😎

Yes Id call it The Savage gentlemen! Memoirs of Blackpools top 20 gold dealer

[Orpster]

3 minutes ago, HerefordBullyun said:

Yes Id call it The Savage gentlemen! Memoirs of Blackpools top 20 gold dealer

Should sell like hot cakes, if you offer free delivery 😜

[LawrenceChard]

59 minutes ago, Orpster said:

But its going to the moooooon, bookface told me

Was that a spoonerism?

😎

[LawrenceChard]

35 minutes ago, dicker said:

You already have vastly more replies to this post than the one in question that you have referenced.

 

Credit where it's due!

😎

[HerefordBullyun]

2 minutes ago, LawrenceChard said:

Credit where it's due!

😎

Ah thats a good call do you give credit? Now you do free postage, asking for a bert friend! So can I have 5 tones of gold on credit with free postage installment starting in 2225 at 1p per month? 😁

[MetalMandible]

No, I don't think it will do that.

[Happypanda88]

Will Silver Prices Go Down to $0.29?

If silver drops to this price level in a matter of weeks, will bullion dealers continue to sell or will all silver products magically become Out-Of-Stock ! 😎

Edited August 10, 2022 by Happypanda88

[dicker]

1 hour ago, Happypanda88 said:

Will Silver Prices Go Down to $0.29?

If silver drops to this price level in a matter of weeks, will bullion dealers continue to sell or will all silver products magically become Out-Of-Stock ! 😎

I would think that like any company, they can choose not to sell at a loss.  They are not compelled to!

[LawrenceChard]

14 hours ago, HerefordBullyun said:

Ah thats a good call do you give credit? Now you do free postage, asking for a bert friend! So can I have 5 tones of gold on credit with free postage installment starting in 2225 at 1p per month? 😁

I am sure you will be ablt to get free credit:

https://www.royalmint.com/help/orders/payment-methods/

Credit account holders

If you already have a credit account with the Royal Mint and it covers the total cost of your order you can choose during the checkout process to use your available credit to make the purchase. Bullion purchases are excluded.

They had to go and spoil it in the last sentence!

😎

10 hours ago, MetalMandible said:

No, I don't think it will do that.

Neither do I!

😎

[LawrenceChard]

9 hours ago, Happypanda88 said:

Will Silver Prices Go Down to $0.29?

If silver drops to this price level in a matter of weeks, will bullion dealers continue to sell or will all silver products magically become Out-Of-Stock ! 😎

Physical goods would sell out very quickly, but:

"Definition: Price mechanism refers to the system where the forces of demand and supply determine the prices of commodities and the changes therein. It is the buyers and sellers who actually determine the price of a commodity."

So market would continue to operate, but there would be delays in deliveries, similar to the situation in the 2008/9 financial crisis, and recent Covid crisis.

A "split market" may develop where panic buyers would pay more to get quick delivery, and this also happened during both of the above events.

😎

 

Edited August 10, 2022 by LawrenceChard

[LawrenceChard]

7 hours ago, dicker said:

I would think that like any company, they can choose not to sell at a loss.  They are not compelled to!

As far as I / we are concerned, we would still intend to be active traders.

There would need to be suppiers / sellers for prices to drop to any level. 

The main function of a broker  / dealer is to trade the market according to existing conditions, although one would normally expect to try to look ahead to future market conditions.

Of course, in a big price decline, many dealers would make a theoretical or paper loss on their stockholdings, which may get crystalised as they continued to trade, but experiencing losses and gains on an hourly and daily basis is part and parcel of what dealers do.

I am referring mainly to commodity type markets. Where specialised products such as, for example, proof coins are involved, then many dealers and investors will opt to keep their "stock" rather than accept a loss on it, but this is entirely to be expected.

😎

 

[SidS]

When I read your clickbait, I thought @LawrenceChard must have appointed Wonga as a financial advisor... 😧

You'll know silver's at rock bottom when Gordon Brown tries to sell it.

[LawrenceChard]

3 minutes ago, SidS said:

When I read your clickbait, I thought @LawrenceChard must have appointed Wonga as a financial advisor... 😧

You'll know silver's at rock bottom when Gordon Brown tries to sell it.

Brilliant!

I just saw a news report saying he suppported a Scottish Independence Referendum!

King Gordon I?

😎

[dicker]

1 hour ago, LawrenceChard said:

As far as I / we are concerned, we would still intend to be active traders.

There would need to be suppiers / sellers for prices to drop to any level. 

The main function of a broker  / dealer is to trade the market according to existing conditions, although one would normally expect to try to look ahead to future market conditions.

Of course, in a big price decline, many dealers would make a theoretical or paper loss on their stockholdings, which may get crystalised as they continued to trade, but experiencing losses and gains on an hourly and daily basis is part and parcel of what dealers do.

I am referring mainly to commodity type markets. Where specialised products such as, for example, proof coins are involved, then many dealers and investors will opt to keep their "stock" rather than accept a loss on it, but this is entirely to be expected.

😎

 

Quite.

The art I suspect is maintaining in and outbound sales as prices change and thereby providing liquidity in the market. 

[LawrenceChard]

8 minutes ago, dicker said:

Quite.

The art I suspect is maintaining in and outbound sales as prices change and thereby providing liquidity in the market. 

Yes, exactly!

😎

[GoldDiggerDave]

What would happen if the polar opposite happened?  The magical day where silver “goes to the moon”  and it’s £350oz. 

Where do you sell it and who’s gonna buy it? 
 

Would dealers be buying? Would they offer you anywhere near spot especially when they can see queues of transit vans out side with 100’000’s of silver rounds everyones begging to offload? 
 

Would dealers be liquid enough to buy 100,000’s of silver 1oz coins plus  several tons of silver bars on that day? 
 

 

[LawrenceChard]

2 minutes ago, GoldDiggerDave said:

What would happen if the polar opposite happened?  The magical day where silver “goes to the moon”  and it’s £350oz. 

Where do you sell it and who’s gonna buy it? 
 

Would dealers be buying? Would they offer you anywhere near spot especially when they can see queues of transit vans out side with 100’000’s of silver rounds everyones begging to offload? 
 

Would dealers be liquid enough to buy 100,000’s of silver 1oz coins plus  several tons of silver bars on that day? 
 

 

We did experience that, but with silver to $47 - $50 in 1980.

We had queues outside our door at 9.00 most mornings.

There were also queues at Johnson Matthey in Hatton Garden London most days, even though JM had dropped its public counter buying price.

There were London dealers working the queue offering more than JM's price, but many people refused to believe it, and stayed in the queue to sell to JM.

We often bought about a tonne a day, of 50% pre-47 silver, but also plenty of 925 sterling items.

Refineries did run into backlogs because of the amounts being processed, and would often only deal with existing customers.

We had good existing relationships with JM, Engelhard, and others, so we were able to keep it moving, although sometimes we were waiting weeks for a full pay-out.

😎

[SidS]

52 minutes ago, LawrenceChard said:

We often bought about a tonne a day, of 50% pre-47 silver, but also plenty of 925 sterling items.

😎

What happened to all that pre-47 silver? Did it all end up at the refinery, or did some go back out as it was?

There's still tonnes out there. Can't shift on eBay for pre-47 junk, keeps turning up when you search for 'pre-1920'.

Pre-1920 seems to be very thin on the ground the last few years, except for those god awful threepences.

[LawrenceChard]

2 hours ago, SidS said:

What happened to all that pre-47 silver? Did it all end up at the refinery, or did some go back out as it was?

There's still tonnes out there. Can't shift on eBay for pre-47 junk, keeps turning up when you search for 'pre-1920'.

Pre-1920 seems to be very thin on the ground the last few years, except for those god awful threepences.

About 99% of the pre-1947 got melted.

I like silver threepences, as long as they are not bent.

😎

[SidS]

14 minutes ago, LawrenceChard said:

About 99% of the pre-1947 got melted.

I like silver threepences, as long as they are not bent.

😎

I like 'em too, as long as they say sixpence on them and are twice as heavy... 😉

 

[LawrenceChard]

1 hour ago, SidS said:

I like 'em too, as long as they say sixpence on them and are twice as heavy... 😉

 

They're OK too!

😎

[JoppySlow]

I am actually glad this got posted. I watched a couple of other videos featuring Peter Krauth the other day. Being the newb that I am, he sounded impressive, but I came away from them skeptical.

Sincere question, though. Is the price to produce silver around $18-$19? The so-called "floor" where there's no incentive to even "turn on your drill?"