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Pillar of the Community
Canada
1502 Posts |
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Anyone see barryg lately, maybe he has something to do with this?! haha~ my local dealer is moving his gold just fine, as with the 2 national dealers I frequent. I myself have sold 3-4 oz just this month. That's not a whole lot by any means, but I had the same 3-4 oz listed for 2-3 months only to have them go within about a week of each other. |
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Pillar of the Community
 United States
1590 Posts |
They are talking about 90% Silver coins. Actually there is a well documented statistic that shows that more silver has been scrapped than minted. But that is misleading as it includes the Pitman act Coins as well as recoinage by the Mint. It also does not take into account Canadian and other Non-US coins scrapped in this country. I know that many many dealers scrapped their inventory in the great price run ups. I know one dealer that had trays full of Franklins and Walkers in 2x2s for about seven dollars each, and when their scrap value hit ten dollars each he pulled them all out of the 2x2s and sent several HUNDRED to the smelters. All BU. And he did not even try to save ANY of the Franklins. He did save some of the really nice Walkers...for awhile..and then melted them too. Soon the less valuable Morgans and Peace dollars joined them, as well as all the Roosies, and all the Mercs but FOUR (16d, 42/41, 21D and a really, really nice 19D). He is now out of business. But he did make a killing for awhile! Two ounces a month...well...I used to sell 10 ounces a day. In fact there were times when I bought from one customer and turned around and sold to the customer right next to him. It has been a month since anyone, anyone at all has expressed any interest in buying gold. I agree though that it is somewhat of a regional phenomena. As in my part of the world people have seen things like Hamburger in the grocery stores go from $1.99 to $4.19 a pound. Disposable income is not in abundant supply. And as mentioned earlier, people are making smaller purchases in coins again. Coins that are seen as a more stable value. There was a lot of euphoria a couple of years ago. Many people thought that Gold was just going to go UP, UP, UP! And never come down. |
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Pillar of the Community
United States
1228 Posts |
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Pillar of the Community
United States
4008 Posts |
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I know one dealer that had trays full of Franklins and Walkers in 2x2s for about seven dollars each, and when their scrap value hit ten dollars each he pulled them all out of the 2x2s and sent several HUNDRED to the smelters. All BU. Oh-my-gosh! I LOVE Walkers. If I had gone into his store and seen that, I would have asked him to set them aside because I would be coming back from the bank with lots of cash in my hands. It puts tears in my eyes to think of BU grade Walkers being melted down like that!  |
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Valued Member
United States
425 Posts |
"If buyers AND sellers are down-trending, then would it be correct to assume that both are HOLDING? " Yes, I would say that is very true of me and my area,(Front Range Colorado). Most folks are working and house prices are coming down now, unless you want/need horse property. Most folks seem more interested in a boat, motorcycle, or an ATV than Gold or Silver. The choices of PM's at the Coin/Pawn shops are tiny and boring. Then add in the risk of fakes and cored bars, many do not want the risk. I myself have not bought any Gold since it was $400/oz. and I have not traded for Gold since the S/G Ratio was about 36/1. That may sound crazy for some of you out there, but for a little guy like me just can't afford the risk. My PM play money is whatever I can pull out with my wits, blood, and sweat. For the last two years I have been pulling Copper, about every six/eight months I cash in and collect about $1,300. Add that to some pocket change I keep and I can pick up two tubes of ASE's, but for all that work I can not even get one Gold oz. I could get a 1/2 and a 1/4 but the high premium just kills me. Couple days ago I was looking through my wifes jewelry box for a tie clip, found a loose 1/10 AGE I got her around 2001. Got me thinking about Gold again...... went to my local Pawn shop that never has any good PM's and he had a 1/4 Gold Maple Leaf, was gonna let me have it for spot. I walked away, at $1660 an oz. Gold has no where to go but down. Sorry, but that is how this poor ole hillbilly sees it. |
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Pillar of the Community
United States
830 Posts |
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I walked away, at $1660 an oz. Gold has no where to go but down. Got to keep in mind the dollar's value, to me THAT is what has no where to go but down from here. Escaping the strangle hold of $16 trillion and rising debt can only be accomplished by devaluing the dollar (crank up the printing press). The real price of things can't be compared to a sinking currency. Just like oil, it hasn't really gone up in 50 years if you just compare oil in terms of gold or silver. In 1960 you could buy a gal of gas for 25 cents, today if you have a 1960 minted quarter the silver valve is about the same as a gal of gas.  I was just watching the debt counting clock today, it was going about $10,000 per second or faster. When we had the last big debate/fight about the US debt it was around 14 T. They didn't even slow the clock down much less stop it. My guess is it would be impossible to reverse it. Edited by GoThunder
08/25/2012 3:19 pm
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Pillar of the Community
United States
4008 Posts |
Quote:
...at $1660 an oz. Gold has no where to go but down. This is less about the price of gold than it is about the loss of buying power of a dollar. To say that $1660 gold has no place to go but down is the same as saying that the US dollar has no place to go but up. Anyone here really think that? If so, it would be interesting to hear your reasons for it. I would list my reasons for that but can't think of any! Consider this: when I was a kid in the early 1960s, a gallon of gas cost a quarter. Today, that same gallon of gas costs $3.85 (at least in my local area). This is a ratio of 0.25 / 3.85 = 0.065. In just 50 years (yikes!) the dollar has lost 93.5% of its buying power. The political and economic policies that caused this are still in effect. How can we expect this to do a 180 degree turn when the same dollar devaluing policies are still in force and are likely to stay in force? That is what it would take for gold to decline very much in price. Just sayin'... Quote:
Escaping the strangle hold of $16 trillion and rising debt can only be accomplished by devaluing the dollar (crank up the printing press). This is a concept that should be challenged. I am not convinced that this is correct, even though it seems to be a common perception, especially among Keynesian economists. They have been wrong about so many other things that this could just be another one of them. Devaluing a currency steals the buying power of our own citizens, so it could easily be a wash with equal damage done there and to the debt. Besides, if we devalue the currency beyond a certain point, others will not want our currency any more. A lot of US citizens don't like it all that much now, let alone after it has been devalued even more. Quote:
In 1960 you could buy a gal of gas for 25 cents, today if you have a 1960 minted quarter the silver valve is about the same as a gal of gas. As one of the few here who was alive and at least semi-conscious [ ] in 1960, I can vouch for this. But it is actually better than that. A 1960 US quarter has 0.1808 oz. of silver in it. At $30 an oz., that is $5.42 worth of silver. Gasoline is actually declining in price when measured this way. |
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Pillar of the Community
Canada
1723 Posts |
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I believe everyone is taking a breather(both buying and selling) until there is a sudden big move up or down,and if that doesn't happen,things will pick up after the November elections. With both gold and silver being range bound for the last few months it is hard to figure where things are going so everybody is standing pat or just dabbling,looking for bargains. I would not read too much into this slowdown,it is still the end of summer. I agree completely. |
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Pillar of the Community
United States
830 Posts |
Quote:
This is a concept that should be challenged. I am not convinced that this is correct, even though it seems to be a common perception, especially among Keynesian economists. They have been wrong about so many other things that this could just be another one of them. Devaluing a currency steals the buying power of our own citizens, so it could easily be a wash with equal damage done there and to the debt. Besides, if we devalue the currency beyond a certain point, others will not want our currency any more. A lot of US citizens don't like it all that much now, let alone after it has been devalued even more. Well if it is at all possible, that's the only way I can think of anyway. |
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Valued Member
United States
425 Posts |
Thank you Ed B and Go Thunder for correcting my comment, it was out of line. I understand that Gold could still go up and up....... all I was saying was from the view of the small PM hoarder like me,(or maybe it is just me!), Gold has reached a peak and has not really moved for some time. Here is what my brain says: If I buy this 1/4 Gold for $450 and hold it for 5 years, will I recover more or less than I could have if I picked up $450 of Silver? I would say that Silver has a better chance of a big break out in the next 5 years, better than Gold, but if I am wrong....... What is more likely to hold its value?
Also as a side note, I do not like the Gas price vs price of PM's example, too many variables over the years. The better one I heard was the "Nice Suite", how a really nice suite would have cost you a $20 gold piece and now it is still a $20 Gold piece....... not sure that one is true either?
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Pillar of the Community
United States
4008 Posts |
Quote:Well if it is at all possible, that's the only way I can think of anyway. The good news is that this web site IS a mind-expanding experience, so relax, open your mind to new possibilities, and let the collective knowledge of PMs flow under, over, around, and through you. |
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Pillar of the Community
United States
830 Posts |
Timothy Leary? Is that you? |
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Pillar of the Community
United States
4008 Posts |
You're welcome, Odin. Everyone here has an opinion but it is good when our opinions are as well based in facts as it can be. None of us is alone here.  Quote:
all I was saying was from the view of the small PM hoarder like me,(or maybe it is just me!), Gold has reached a peak and has not really moved for some time. I would agree that gold at $1660 does seem expensive. Compared to where it has been, it IS expensive! The question facing us, though, is will it get even more expensive in the future? I'm thinking that it will. The price will bounce up and down a lot during the next few years but the general trend is likely to be higher thanks to all of the political and economic problems facing the US and its currency. Heh, I thought that gold was expensive when it was $500 and oz. but there was no way to know for sure that it wouldn't more than triple in price after that! Quote:
I would say that Silver has a better chance of a big break out in the next 5 years, better than Gold... I tend to think that as well, even though it is just a guess on my part. Silver prices are more volatile than gold prices, there's less of it above ground, and it has a large number of commercial uses. On top of that, we have a silver to gold ratio of about 54:1, which seems high to me from a historical perspective. It has been higher than that but it has been more often lower than that. The future looks very bright for silver, IMHO. |
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Bedrock of the Community
13014 Posts |
Just to throw my Two Cents into the conversation late. My take on the gold market is that as mentioned the price is certainly affecting it. Not just because of the price itself but the risk involved. WIth silver if it crashed back to 5 dollars you lose 25 an ounce. Not fun but wouldnt be the end of the world. Could have a much easier time selling during the crash and not lose it all too if you wanted. With gold if if crashed you just lost 1400 an ounce. That is a very substantial hit. Furthermore with such a high price if its crashing down the market would be flooded with people trying to unload and no one would be buying until it started to bottom out. The ability to really manage the loss just isn't there as the market would quickly dry up. Theres just a lot more risk in the gold market right now and unlike silver or platinum it doesn't really have the industrial demand backing to help keep it up regardless of the economic factors. It of course could go up and make people money. But its just more risk then a lot of people are willing to take on at the moment. Generally for that kind of money anyway if people were going to take a big risk it would be on a stock that would bring back a much more substantial reward if the risk paid off |
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Pillar of the Community
United States
1119 Posts |
I got to thinking about the whole gas comparison idea. In 1960 silver was $0.91 an ounce and that quarter only had $0.164 in melt value. Wow to think of the difference is staggering!
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Posted 08/22/2012 11:57 pm
