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 Replies: 75 / Views: 7,189 |
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Valued Member
United States
361 Posts |
I agree. A swing of over 10 % would lead one to think theres something rotten in Denmark. The question is What and better yet, who, is behind said fluctuation?
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Pillar of the Community
United States
3540 Posts |
Maybe they oversold and have to cover inventory?
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Bedrock of the Community
United States
10982 Posts |
Quote:
Six bucks swing seems like a whole lot for silver in one day, something fishy is going on....
Remember a lot of trading is in paper SLVR and not physical metal. China could buy 100,000,000 ounces on a paper contract and the price shoots up, the sale of 100,000,000 paper ounces later in the day takes in down. I'm not saying this happened but it could happen. It is clear that there is shortage of physical silver right now. A paper SLVR contract worth 4.6 billion USD (100,000,000 ounces) might only be backed by 10% actual silver or less. Later this year, this will become known and could lead to a price spike. Again! |
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Pillar of the Community
 United States
3670 Posts |
I think this shines the spot light now on that talk of a silver shortage. I thought the Feds have a huge amount set aside for new ASE minting this year? Could it be, they have to wait for the minting and need more supply before receiving new shipments? Either way, if APMEX extend this offer, may it not open the doors for others short on product, like Perth for example? I would also think this possible shortage of silver can have no effect but to continue to push the silver price up in the long run.... Now then, on the flip side of that argument, gold has been doing pretty solid in recent months and years as well and seems to go up when silver does, and in turn they both seem to drop together as well, but I have not heard of any gold shortage. I think this adds to the argument that it is just not silver moving up, but all commodities. This silver shortage thing, just may mean even more increases for a longer time period than the rest perhaps.... Edited by Silverhawk74
04/25/2011 11:25 pm
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Pillar of the Community
United States
3670 Posts |
Funny, we both posted those last two post BH1964 at same time, and we both pointed to shortage and price increase that should result....
Edited by Silverhawk74
04/25/2011 11:27 pm
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Rest in Peace
United States
9104 Posts |
Quote:Very interesting. Is it common or typical for people like APMEX to pay over spot like this? Not at all, tho ounce bar buys were $8 over spot back in 1980, because of retail buyers. People who are buying silver today want physical chunks of metal. They won't buy ETFs nor will they give you money today for delivery in a month. $3 is a bigger premium than the gubmint charges to buy direct, but they're behind on orders. As the story goes I get a quarter for ice cream, and the guy down the street gets a dime, but he's sold out. When I'm sold out, I only get a nickel! |
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Valued Member
United States
71 Posts |
So, based on this and the pull back that seems to be happening now, is anyone thinking that buying up is probably a good idea? Ideally I am wanting to wait for silver to drop under $43 before I place another order. But I'm getting tempted right now as it is hanging around $44.71.
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Pillar of the Community
United States
3670 Posts |
Tough call Geardaddy, if you wait to long, it may turn back up again. Right now where it is, you are still paying close to 50 an oz after shipping etc.....
I would probably hold off a bit and see if it may drop down to forty, see what happens tom, just to much flux right now to buy at this exact moment IMO....
Edited by Silverhawk74
04/25/2011 11:39 pm
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Pillar of the Community
United States
2589 Posts |
This is nuts, APMEX is one of only a handful of companies that can buy silver eagles directly from the goverment. That their willing to pay 3 bucks over spot indicates to me that the us government cannot meet their demand for coins. I read that to help deal with the shortege of eagles the US Mint is starting up production at the Sanfranciso Mint of silver eagles. Though from what I've heard they wont be using the s mint mark on them (which is a bad business decision on the part of the mint as it would drive up eagle sales even more lol). -XoG |
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Pillar of the Community
United States
1150 Posts |
I'm in the "When they start paying over spot for junk silver" camp.
I'm keeping my silver eagles!
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Valued Member
United States
314 Posts |
You may have waited to long. The price point that you asked about was met with strong resistance. Spot closed at 46 and some change on Thursday. The international markets drove the price up almost 3 dollars before NYSE opened on Monday. This caused each contract to be worth 15,000 more than what it was bought for on Thursday. You bet people were scrambling to get those profits.
We seen profit taking mania. Heavy resistance was formed just under $45. This bull is still rearing it's horns.
With the higher prices, expect larger swings up and down, don't be surprised by them. Strong hands are shaking the tree.
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Valued Member
United States
68 Posts |
Quote:No, this is VERY atypical. Most bullion dealers sell for a premium above spot and then buy at some fixed amount or percentage below spot. This is the 1st time since about 1981 that I can recall any dealer buying above spot. They must be getting desperate for inventory! I have made 2 purchases from APMEX. One in late March and the other about 4 days ago. It's funny to be receiving an offer to buy back a shipment of coins that they haven't even shipped to me yet! I am currently waiting for them to ship my ATB 5 OZ coins, which I purchased 11 days ago for $1,008.00 and I could sell them back right now for $1,250.00. Crazy. |
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Valued Member
United States
341 Posts |
It sounds like now everyone and their brother is getting "in" which usually means it's a good time to get "out". Decisions decisions.
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Pillar of the Community
United States
3670 Posts |
Sorry APMEX, I stopped by my local silver shop today and bought a very nice 1990 ASE proof MS69 in case, and don't plan on selling it any time soon.... The one I bought locally is just like this one below from ebay, exactly. Can anyone tell me if it is a proof? This is my first nice graded one as well.... http://cgi.ebay.com/1990-AMERICAN-S...em4158d08fde |
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Pillar of the Community
United States
2335 Posts |
The idea that APMEX is stocking up because they "know something" is a little bit out there. They are a broker, which means they keep very little inventory & match buyers demand from sellers supply. They are contacting previous buyers in an attempt to purchase so they can satisfy new buyers & make their spread off the transaction. On a side note, why do people assume market manipulation is occuring when prices drop X amount but think it's normal market activity when it rises the same amount? |
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Replies: 75 / Views: 7,189 |
First Page
Posted 04/25/2011 11:01 pm
