Silver Squeeze?

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Kingfisher
Catholic
Gold Member
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.
 

Blade Runner

Hummingbird
Orthodox
5. Technology manufacturers will start buying mines and mining companies. This has already crossed my mind that Tesla, for example, may be looking to buy undeveloped nickel and lithium deposits, as well as functioning mines, in North America for its own use.
This is correct.
 

NoMoreTO

Hummingbird
Catholic
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.
 
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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.
 

C-Note

Hummingbird
Other Christian
Gold Member
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.
 

Uzisuicide

Kingfisher
Protestant
Gold Member
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.
 
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Eusebius Erasmus

Ostrich
Orthodox
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.
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
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.

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.
 

Eusebius Erasmus

Ostrich
Orthodox
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:

 

JustinHS

Woodpecker
Orthodox
People can look at the gold-silver ratio and judge for themselves:

I’ve always thought the silver to dollar ratio showed its true value.


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.
 
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Ember

Hummingbird
Other Christian
Gold Member
In Canada Commodites are exempt from VAT. Bullion is a commodity.

VAT = Value Added Tax.

If you work the silver into jewelry, it is now "Value Added". Value has been Added to the product, so it is taxable.

Even in the grocery store,
Unsalted peanuts - No HST
Salted Peanuts - VAT applies (Value added)

There is lots of BS that goes on, but this is the general concept. VAT is actually a decent tax vs. income tax on labour when done properly. Canada has done well with it, other than not lowering any other taxes, and continuing to run up the debt.
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.
 

NoMoreTO

Hummingbird
Catholic
The price of precious metals are heavily manipulated by the big banks selling naked shorts. Lately it's been a daily occurrence.

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.
 

NoMoreTO

Hummingbird
Catholic
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.

 
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