Silver Has Fallen, Time To Load Up!

@ merlin - Do you JUST do trannies or do you collect various types of car parts for scrap? What about cat converters? You can recover platinum from them.

Scrapping definitely can be profitable, and I look at it as free money. Especially for the business I do, I am consistently getting copper pipe, brass fittings & 10 - 14ga copper wire. Just raked in $460 a few days back. Got paid $2.40/lb for copper, $1.65/lb for brass, $1.63/lb for regular wire & $1.00/lb for "flat" wire.

We also scrap "electric motors" & get $0.25/lb for them. Since I am in the pump business, our electric motors are well pumps, sump pumps & sewage pumps.

We go 3 - 4 times a year and usually rake in anywhere from $300 - $1000+

lol I took almost every penny of that $460 and purchased silver / coins =D

If it fits between the motor and driveline, I do it, otherwise I don't.

Cat margin is less than 10% because of the stiff competition. Two 5% down days in platinum can wipe out someone doing cats. Many cat recyclers have been caught holding hundreds of thousands of dollars worth of cats when the price has tanked in the past. Some survived, some went bankrupt. Margin versus risk does not pencil out in my book.




That is a LOT of 'ifs' to hope would line up at the same time. According to the trendlines, $25 is possible, but not likely. I doubt that it will get much below $26 and if it does make $25 I doubt that it will stay there long enough for most people to capitalize on it.

Of course, there are two ways of looking at your wife's permission depending on how she stated it. First, she could have given it to you subject to you buying at/below $25. Second, it could mean that once it hits $25 you can buy, but at whatever price you can get, even if it is above $25. Second scenario means that you WILL get on board if $25 is hit regardless of the actual cost. First means you get on board only if you can buy below $25.

To put it another way, if the trigger price of $25 is hit scenario #1 is the same as saying "buy at $25 or lower." Scenario #2 is the same as saying "buy at market if $25 is hit."

mer took the words right out of my mouth, "That is a LOT of 'ifs' to hope would line up at the same time. According to the trendlines, $25 is possible, but not likely. I doubt that it will get much below $26 and if it does make $25 I doubt that it will stay there long enough for most people to capitalize on it."!

I'll start buying again just under 27

Give the man a seegar!

Basically, I doubt I'll be buying any silver at this rate. If it drops below $27, I might buy some anyway if I can stay below the $5000 limit. And then I'll tell her it dropped down to $5000 for a microsecond and my timing was really, really good...

Not so fast my friend as ol Lee Corso says. Gold has dropped almost 11 bucks to start new week, and silver is down in the Asian markets as well 55 cents back down to 29.19....

I think we all would agree, that 29 even Mendoza line should tell huge if it crosses below it, which then makes me think it may go back to 25 to 26 bucks. However, if it recovers back up before the North American markets open, it may go back up again to 30 an beyond....

I have a gut feeling we got more pull back to go just yet, before the new year recovery begins....

Depending on what your goals are, any time and any price could be a good time to buy.

Typically people that get rich with PMs, stocks, etc tend to buy when everyone else is selling and sell when everyone else is buying. And the price action will tell you which is which.

If I had the money, I would buy on every 5% drop and sell on every 5% rise. On average that would give me a 55% edge in my favor instead of the normal 50-50 stab in the dark.

That would work, too, with a 60-40 edge. Only issue would be fewer buys and sells, so POSSIBLY less net profit over time. However, as you state, costs have a large bearing on which method would be more profitable.

A slim margin of say 1% on a 5% move scenario may or may not be better than a wider 6% margin on a 10% move - Just depends on how may opportunities are available with each method.