I'm buying this dip.
Silver Squeeze?
- Thread starter andy dufresne
- Start date
I'm buying this dip.
I checked the premiums for silver eagles on some of the reputable dealer websites and the premiums are around 40%. The silver eagles are being offered for over $30 despite the spot price at around $21.50. That's way too high of a premium no matter what your investment time frame is.
So for right now I believe the best option is to buy PSLV. Once the premiums go back under 10% then it would be a good option to sell PSLV shares and buy physical.
So for right now I believe the best option is to buy PSLV. Once the premiums go back under 10% then it would be a good option to sell PSLV shares and buy physical.
I was just thinking about buying some physical too, but the prices are crazy. Maybe I'll get a year free apr on credit and defray the cost that way.
This is correct.
Premiums have only gone up since the March 2020 when the pandemic began. Part of what we are seeing is the de coupling of price between holding the physical, and owning an ETF such as PSLV. (I own both)
If "hyperinflation" becomes real, then any returns in an ETF or similar instrument, will likely be taxable. You'll be paying tax on alot of inflation. Where you win with an ETF is your point of entry. I looked into reimbursing PSLV and you have to have alot of silver to actually receive a redemption.
If demand increases for physical silver, the premiums will only go up as the price goes up. The physical could run away on the spot price via the "premium". In theory dealers should be able to buy some large bars and smelt them down into small bars for resale, I've seen a little of this at one dealer, but then you're buying a funky generic silver vs. a recognizable name/ national mint. The outside benefit of silver
So far Silver has been a doldrum investment for me, I've moved from the excited silver enthusiast to the long term prepper with a little silver stashed away.
If "hyperinflation" becomes real, then any returns in an ETF or similar instrument, will likely be taxable. You'll be paying tax on alot of inflation. Where you win with an ETF is your point of entry. I looked into reimbursing PSLV and you have to have alot of silver to actually receive a redemption.
If demand increases for physical silver, the premiums will only go up as the price goes up. The physical could run away on the spot price via the "premium". In theory dealers should be able to buy some large bars and smelt them down into small bars for resale, I've seen a little of this at one dealer, but then you're buying a funky generic silver vs. a recognizable name/ national mint. The outside benefit of silver
So far Silver has been a doldrum investment for me, I've moved from the excited silver enthusiast to the long term prepper with a little silver stashed away.
Last edited:
MRAll134
Pelican
I am seeing a large increase from the online silver supplier that I usually order from. Silver has increased 40% in price, in just a few weeks. There is a message about "large volume of orders" and shipping times. The premium price and the market price are two very different things, now.
If it's true that that the metals market, including precious metals, follows copper values, then this may be a temporary decline in mining stock valuations and may also be contributing to the lack of a decline in the premiums for silver bullion. The price of copper YTD peaked in May (4.76), but its current price is 4.20 and has held fairly steady over the past few months. As an example, Capstone copper Mining (CSFFF), of which I own some shares, has bounced around between 3.60-4.50 since the end of April, but has always recovered within a day or two of hitting 3.60.
Seems weird that silver has been especially stagnant for well over a year despite inflation being as outrageous as it is. Gold too really... just shows how de-coupled metal really is from what it was, real money.
Caduceus
Ostrich
Silver, at its all time high, was worth 49 US dollars per ounce in April of 2011. Today, more than 10 years later, it's just half that.
It's never gone back to the highs of January 2011 to March 2013 where it almost always was ABOVE 30 US dollars per ounce, for 2 whole years.
As both an investment, AND also an inflation hedge, silver has been one the of the worst performing assets in an entire decade.
It's never gone back to the highs of January 2011 to March 2013 where it almost always was ABOVE 30 US dollars per ounce, for 2 whole years.
As both an investment, AND also an inflation hedge, silver has been one the of the worst performing assets in an entire decade.
Last edited:
In an entire decade, maybe. In the course of a hundred years, definitely not. Silver performs excellently during times of inflation or crisis, and is poised to do very well due to a surge in so-called green tech.
Caduceus
Ostrich
Historically speaking, the last time silver really did its job was during the second world war which was over 75 years ago.
You can not realistically keep an asset for 100 years as a hedge, unless you plan on keeping the silver in your family for 3 generations or more.
Also, the historical ratio of silver to gold has been skewed for over 20 years now.
I have some silver myself, so I'm not totally against it, but one needs to very wary of how much you invest, and how poorly it has performed for such a long time.
People can look at the gold-silver ratio and judge for themselves:
The only silver lining is the gold-silver ratio
Exclusive to Kitco News, technical analyst Gary Wagner provides a daily recap of what happened in the gold market, highlighting important events that captured investors' attention during the U.S. trading session. Wagner's commentary features a mix of fundamental news and technical analysis...
www.kitco.com
I’ve always thought the silver to dollar ratio showed its true value.People can look at the gold-silver ratio and judge for themselves:
The only silver lining is the gold-silver ratio
Exclusive to Kitco News, technical analyst Gary Wagner provides a daily recap of what happened in the gold market, highlighting important events that captured investors' attention during the U.S. trading session. Wagner's commentary features a mix of fundamental news and technical analysis...www.kitco.com
Gold and Precious Metals
www.usdebtclock.org
I remember back when it was ~$785/oz.
The price compared to 1913 ratios are really interesting back when a silver dollar was a dollar, and a twenty dollar gold piece was twenty dollars. It’s surpassed even those prices now by the look of current rates.
Last edited:
The UK charges VAT on silver bullion, but not gold, LOL. If anyone knows a way round it, I'm all ears. I know the fudge to have it stored abroad. That is no good for me.
Buy it privately from someone person to person with cash would be my best suggestion.
Yes, I think they are only able to short silver and gold. Palladium and Rhodium have skyrocketed, because those markets aren't controlled the same way.
It's almost odd to look at how commodities are flying an silver and gold lag during inflation, it's only a matter of time.
Silver Squeeze....well it didn't really happen. But Silver podcasters are just the most based!
I still believe in Physical Precious metals. Part of it is if you check in on certain shows, you start to know the personalities and they are my kind of people.
This guy is pretty pissed off, not sure this qualifies for financial news. I'm about 20 minutes in and he's basically calling the FED and NWO Scum.
Another Metals Buff who I find is quite knowledgeable David Morgan was speaking about the Mark of the Beast the other day. He mentioned he's in the 15th round of the fight that has been his life, and is going to go down swinging. Nice to see a boomer who is repentant about the gurrillion dollars in debt rung up over his life.
I still believe in Physical Precious metals. Part of it is if you check in on certain shows, you start to know the personalities and they are my kind of people.
This guy is pretty pissed off, not sure this qualifies for financial news. I'm about 20 minutes in and he's basically calling the FED and NWO Scum.
Another Metals Buff who I find is quite knowledgeable David Morgan was speaking about the Mark of the Beast the other day. He mentioned he's in the 15th round of the fight that has been his life, and is going to go down swinging. Nice to see a boomer who is repentant about the gurrillion dollars in debt rung up over his life.