Silver Dump Price?

Barryg, that is exactly the problem that I forsee. I've talked to a couple of my dealers and they won't be buying all of the junk silver that walks in the door once the price passes $40. They don't want to get stuck holding the bag. My dealers are currently buying but have told me they would have to consider paying less of a percentage of spot if the price gets much higher. At that rate, it almost becomes where I would dump a little earlier because as the percentage to spot goes down, I won't get there anyway.

The target in my mind has been $40 and all of my junk and generic bullion will be gone. I don't know if it will make it there but the past couple weeks have been promising.

Dealers may not be but people on ebay will be buying. Theyre always be panic buyers or buyers late to the game. Say silver does hit 100 an ounce, you could sell below melt at 90 which would sell and still be far ahead of where you bought it.

They type of silver will probably matter too. Junk may not sell as easily but ASEs and things like that should still sell

I am sure the income range, collection type, and motivations among members of this site will differ significantly, but for me, coins are purely a "sticky" investment/savings strategy.

What I mean by that is that I historically have not done well with savings, and I was dissatisfied with my RRSP's performance. Getting into coin collecting was a way to invest in something that was:

1) Tangible
2) Interesting
3) Resistant to liquidation

For me, all three are equally valuable. I have around $1000 worth of silver, just at flat bullion price, and a good 15-20% of my collection has a significant numismatic value on top of that. Since I only buy at bullion price, I have nothing to lose.

I have put a stop on significant silver purchasing for now, as I want to get to an ounce of gold (1980's Krugerrand preferably), as well as a Palladium and Platinum Maple Leaf.

I figure these three will take me 2-3 years. So excluding $20 for $20 series I subscribe to, and the silver dollar I buy off my dealer once a week just to have an excuse to go there, I will be allocating the rest to gold, platinum, and palladium.

If someone was to make an offer that was even 10 points higher than spot + the numismatic premium on the 15-20% of my coins that have it, I would gladly take it, and convert everything into more valuable stock.

Of course, I would still make sure to buy at LEAST one ounce of silver a month for an investment, but I would stick that money into something available at pure bullion price, such as American 0.900, Canadian Silver Dollars, or Maria Theresa Thalers.

Silver is my one of my retirement strategies, Coins are one of my retirement entertainment strategies
As such I am not interested in "Dumping" any of my silver until I retire at the minimum.
I may just hold it until I "Really need it".
I retire in 7 years and I cannot see silver being below $60-70 per oz at that time,Crikey I recon it will stay in the mid 30's for a while and have the odd bounce to try and break the $50 threshold over the next couple of years.
I only have about 500 oz at the moment But I recon that will get me a fair bit of beer, fuel and fish hooks when I retire and when I will need the extra cash to fund my fishing and numismatic pursuits
to me silver is simply another savings plan, I will keep adding and not cash any in and at the end of the day I will have a reasonable amount salted away to make my retirement a more pleasurable experience

No unless my math is wrong, it is better to sell silver and buy gold when the ratio drops.

My Math (using extreme, round numbers to make it easy and discounting premiums):

Let's say silver is $10 an ounce, gold is $1,000 an ounce and I have a hoard of 100 ozs. The gold/silver ration would be 100:1. If I were to sell silver and buy gold, that 100 ounces of silver would buy me 1 ounce of gold - (100 * $10)/$1000 = 1. On the flip side, if I have one ounce of gold and I cashed it in for silver I would be able to purchase 100 ounces of silver - (1 * $1,000)/$10 = 100

Now let's say silver stays at $10 an ounce, but gold drops to $500. Now the ratio is 50:1. If I sell my 100 ounces of silver, I now can buy 2 ounces of gold - (100 * $10)/$500 = 2. The flip side to this is that now one ounce of gold would only buy me 50 ounces of silver (1 * $500)/$10 = $50.

So as the gold/silver ration drops, selling silver and buying gold becomes more attractive to me and selling gold to buy silver becomes less attractive.


Edited for spelling

Indeed so... but, alas, it was not to be. Shortly thereafter, that same shop had several Colt Single Action Army revolvers in the old west calibers... .45 Colt, .38-40, and .44-40 for the princely sum of $249 each. Had I known or even suspected that Colt would stop making them 6 months later, I would have begged, borrowed, and stole to get the money to buy them all. You can't touch one of those today for less than about $1200 and often closer to $1500.



Agreed. The problem with most government programs is that they promise too much and deliver too little at too high a cost. They always start small but notch up incrementally until they are major hogs gulping dollars from the public treasury. Note that when gold was money, it was virtually impossible for politicians to squander more money than they actually had. Although a gold standard may have its problems, high inflation and high debt loads do not seem to be among them.



If they are in business to flip gold and silver, they pretty much have to buy regardless of price. Maybe they will scale back the amount that they are buying and selling, though. My LPS hasn't been getting any silver lately because almost no one is selling in this area.



Other than a few garden seeds, what more does a man really need?



It just might. There's really no way to know for sure. The G/S ratio will get REALLY interesting if it approaches the ratio of these two metals production amounts. That is about 9.3 to 1 silver to gold. With $1730 gold that would give us $186 silver. If gold were to rise to $5,000 as some are saying it will, things would get even more interesting for us silver collectors.



It can be. Trick is, you need to know which bars really deserve a premium, which ones are rare, and which ones sell easily. Like coins, bars have their info that anyone who wants to buy and sell them needs to know to be successful.

tgauchsin, I believe the opposite is correct. Using your example, if you convert $1000 in 100 ounces of $10 silver, and the ratio rises by way of silver doubling with gold staying the same, you can now buy 2 ounces of gold. If the ratio rises by way of gold dropping to half, you can still buy two ounces of gold.

If you convert $1000 into one ounce of gold, and the ratio rises by way of silver doubling, you can only buy 50 ounces. If gold drops by half, you can still only buy 50 ounces.

The smart thing to do at the moment is to SELL gold for silver, since the ratio is closing. If you believe silver is trending towards the ratio increasing, you should convert silver to gold. I think.

I can't remember if it was a politician or comedian who once said: