Silver Squeeze?

NoMoreTO

Ostrich
This morning is a great time to buy, silver is down to $28 and some rounds are only $5 over on JM bullion (I keep bringing it up because it's the only one I have experience with).
Agree totally.

I was talking to a friend. As long as we are under $30/oz resistance you have to basically be a believer that it will bust out based on fundamentals. I was confident in this back then. The short squeeze to me is the icing on the cake, there's alot of buzz now about silver, alot more than when I bought in Spring 2020 and Summer 2020.

If you take a position online like Sprott PSLV, at least buy a few coins or some 10oz physical bars. I would consider this your "Kicker in the movement". I had a friend who didn't like the idea of buying physical, but as long as you are buying on the market, your receipt of product is uncertain, and you play into hands of financiers.

All that said, physical is a better deal.
 

scubadude

Woodpecker
Having ordered from Gainesville Coins for years, I will no longer support them. Current price is “as low as 66.09” for a random 1oz silver eagle. Talk about price gouging.
 
ASE has more divisibility, potential for numismatic value, and more of a reputation than any bar. Given that Maple Leafs, Krugerrands, etc fill the same purpose, I would not pay those premiums
 

Cervantes

Robin
If you want to buy metals, the right way is to buy them from an accredited vault - and keep them in that vault. Once the metals leave the accredited vault they lose value because they need to be remelted and assayed before they can enter the precious metals system again.

There are basically three levels of owning metals:

1. physical delivery to you - like having gold bars and coins at home
2. gold certificates in an accredited vault - like having a deed of ownership to some specific gold/silver bar stored in a vault. In principle you can drive over with the certificate and get your bar if you want it.
3. virtual metals securities.

The problem with 1 is that it's inefficient to buy and sell. When you buy it, unless you get it from a vault you can never be sure it has not been tampered with (e.g. gold plated tungsten coins), and when you try to sell it you won't get full price because it has to be re-assayed. You're also at risk of theft.

The problem with 3: If you're buying precious metals as a hedge against financial collapse, then a metals security will not help you - since the fund you're buying may not hold any actual metals and in a financial crisis is as likely to go bust as anything else.

A good medium is to own your own bars - but never take them out of the vault. This site compares precious metals vaults: https://www.trustablegold.com/

Chose one that is not in your own country - just in case your government tries a gold confiscation as was done in the depression.
 
If you want to buy metals, the right way is to buy them from an accredited vault - and keep them in that vault. Once the metals leave the accredited vault they lose value because they need to be remelted and assayed before they can enter the precious metals system again.

There are basically three levels of owning metals:

1. physical delivery to you - like having gold bars and coins at home
2. gold certificates in an accredited vault - like having a deed of ownership to some specific gold/silver bar stored in a vault. In principle you can drive over with the certificate and get your bar if you want it.
3. virtual metals securities.

The problem with 1 is that it's inefficient to buy and sell. When you buy it, unless you get it from a vault you can never be sure it has not been tampered with (e.g. gold plated tungsten coins), and when you try to sell it you won't get full price because it has to be re-assayed. You're also at risk of theft.

The problem with 3: If you're buying precious metals as a hedge against financial collapse, then a metals security will not help you - since the fund you're buying may not hold any actual metals and in a financial crisis is as likely to go bust as anything else.

A good medium is to own your own bars - but never take them out of the vault. This site compares precious metals vaults: https://www.trustablegold.com/

Chose one that is not in your own country - just in case your government tries a gold confiscation as was done in the depression.
If gold confiscation by the government occurs that means it is either time for you to leave or hunker down and make sure they confiscate a few bullets in their vests too. Something like goldmoney or PSLV will work for people that want to make a an easier buck or two of this squeeze.
 

NoMoreTO

Ostrich
Peter Schiff put up a good podcast last night where he talks about what's been going on in the silver market and other markets.

https://www.schiffradio.com/schiff-gold-becomes-schiff-silver/

At 20:53 he starts talking about numismatics and why it's best to buy bullion instead of rare numismatic coins.
Yes. I think he is on point.

There was a post in the precious metals thread explaining how numismatic coins balance out risk from basic coins/bullion depending on where in the precious metals cycle we are.

Still I don't buy them.
 

Pelern

Pigeon
I have been thinking about it and listening to a few podcasts and interviews.

It seems like they can keep the price of silver down with paper which means there will be a disconnect between the spot price and the physical price.

The spot price is the same as it was when I bought it last week but the premium is three dollars (CAD) more.

Some mining stocks should do well though going forward because someone is going to have to produce more silver to meet all the demand.

The silver spot price probably won't move much until enough of the population loses faith in the currencies they are using.
 

zoom

Kingfisher
Gold Member
The silver spot price probably won't move much until enough of the population loses faith in the currencies they are using.

That's not true. The spot price has moved a lot over the past year. Whether there is an attempt at a silversqueeze or not, the spot price can move.

On March 18th the spot price was $11.74.

On August 6th the spot price was $29.37.
 

Hypno

Crow
Ten years ago, in January of 2011 the spot silver price went above 30 dollars per ounce for the first time in 30 years. It stayed above 30 dollars for 2 WHOLE years until January of 2013. The highest it reached was around 49 dollars per ounce in April of 2011.

Even with all this hype online, today's silver spot price (29 USD per ounce) isn't very impressive compared to the record prices from the years 2011 to 2013.

As a hedge/security against paper money and overall inflation, silver pretty much sucks if we just now still trying to catch up to spot prices from 10 years ago.

People who bought silver in the years 2011 to 2013 and held it, are only now just starting to simply BREAK EVEN ten years later.

Unless the silver spot price goes way past the all time high of April of 2011 (49 dollars per ounce) and stays there at least a year, this current "rally" is just another over hyped nothing burger.

My first buys were in 1979. Rode it up and all the way down lol.
 

Pelern

Pigeon
That's not true. The spot price has moved a lot over the past year. Whether there is an attempt at a silversqueeze or not, the spot price can move.

On March 18th the spot price was $11.74.

On August 6th the spot price was $29.37.
True but once it hit's a certain point it get's hammered with paper. This keeps happening every time silver gets too high.

Adjusted for inflation silver is still low and well below it's all time high's. I believe there is too much manipulation and corruption to allow silver to naturally find it's actual value.

Don't get me wrong I still intend to buy more silver because my cash is going to lose purchasing power year after year and eventually they will probably decide to reset the system.
 

Hell_Is_Like_Newark

Kingfisher
Gold Member
If you want to buy metals, the right way is to buy them from an accredited vault - and keep them in that vault. Once the metals leave the accredited vault they lose value because they need to be remelted and assayed before they can enter the precious metals system again.

There are basically three levels of owning metals:

1. physical delivery to you - like having gold bars and coins at home
Add one more cavaet about buying bullion.. many states charge sales / use tax on bullion. A state could subpoena say records from APMEX and go after you for tax owed, interest, plus penalties.
 

Hypno

Crow
Any reason there is a preference for ASE over Bars and similar 1oz coins?

10 ASE is about $100 over a 10oz bar on Scottsdale right now..
Government minted coins will always fetch the highest premium. Local market is higher over other govt coins

Purity matters too. ASEs are .999 fine. Sterling is .925 and junk silver coins are 90%

Smaller sizes tend to carry higher premiums

oddly, old gold like British sovereigns French roosters and Swiss francs carry hardly any premium and are recognized readily by knowledgeable buyers
 

Penitent

Pigeon
Any reason there is a preference for ASE over Bars and similar 1oz coins?

10 ASE is about $100 over a 10oz bar on Scottsdale right now..
The difference is that the ASE is a "coin" and a round is not. A "coin," is actually legal tender. A round is privately minted. You could take an Eagle and spend it in the store for $1, even though it is more valuable than that because of its silver content. It is also highly liquid meaning that it is easier to sell. The three foundations of a good silver stack are American Silver Eagles, Silver rounds, and "junk silver," which means pre-1965 US minted coinage. They used to make coins out of 90% silver before 1965.
 
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