What Happens To Gold And Silver Next? Look Out Below?

Have premiums settled back down for any of you? Mine used to be 3percent over spot for junk. Now 15 to 20 percent over spot and even though prices have stablized for the most part no decrease in premium

Premiums...are in a holding pattern right now. If the seller things silver is going down then they will bring them down after buying additional gold and silver at the new lower prices. If they are of the opinion we are "off to the races", then the premiums will stay the same till the bullion price comes back up to the level where the premiums are at their traditional level.

While we wait for the next step, I thought I would venture a few observations.

First let me put my dealer hat on...

I get up in the morning and I look at Kitco News, and I see PHYSICAL GOLD DEMAND AT 6 MONTH HIGH. Ok........not here. I haven't sold ANY GOLD in...well....3 months. I realize that they talk mostly about India and China. But I then read where with the collapse of the Rupee, and other factors, that it can take the average person 6 months wages to buy 10 grams of gold. Hmmmmmmmmm. And China produces most of it's own gold...

I do understand that the sheer number of people in India make even that small percentage that can afford gold a pretty nice number. But the media has us thinking that everyone in India is sitting outside a Jewelry Shop, waiting for the next shipment. Strangely on the flight back from California, I sat next to an Indian Engineer. We had both graduated from OSU and had a pretty good time talking about Buckeye Football, and then I asked him about the news and how the common person deals with Gold.

The first thing out of his mouth was a laugh and the remark "If you watched the financial news, it would give you the impression that every Indian sits on a pot of gold or has Gold hidden away in the walls. Nothing can be further from the truth. Poverty is so pervasive that most people work all day from sun up to sun down just trying to find enough to eat. The Middle class does have some gold, but still needs to take care of their obligations. Most of the Middle class has a small amount of gold set aside for emergencies. Perhaps around an ounce or two, no more than 5 for the average person. And much less for many".

I'm wondering if we are seeing the beginning of a new set of smoke and mirrors.

If you're to believe the 2002 figures I found,
there were an estimated 352 million ounces in
general population. Toss out the unfortunate
who could only work to be able to eat and that
leaves roughly 200 million that owned any gold
to speak of (in 2002) and you have about 1 and 3/4 oz
per person owning it.

BUT that was in 2002, I would think the average is a little
higher today in 2013

You're new-found friend is right on the money

Yes but now the drama of India and their money going down. Not much about this except for very recent articles.

"I get up in the morning and I look at Kitco News, and I see PHYSICAL GOLD DEMAND AT 6 MONTH HIGH. Ok........not here."

Well I find it funny that often many avoid ebay via the INCREDIBLY high percentage and pp so most see it as racket and want no part of it. They see no window on bullion etc to make any money or profit....

This board and others are great don't get me wrong, free no fees totally a fair system no doubt but sale adds may fly under radar compared to the amount of EXPOSURE one gets on ebay, something I think many who don't use ebay take for GRANITE. Plus MANY here only buy in lower windows which is more beneficial to their situation and are MORE EXPERIENCED to do so, where ebay is full of less exp folk tossing cash around like candy....

And most importantly all too often the less exp buy at the WRONG times when pmz are peaking...

Marketing makes many multi bullion dollar businesses run, is it ever cheap?

No but that does not mean it is not used as a tool....

There is a local country bar here in town which I bar-backed at for a couple of years via Cotton Eye'd Joes which is as long as a football field. Started in 1992 and I worked there from 1998 to 2000....

When I was at UT football game this past Saturday in Neyland stadium via 100,000 strong, I looked up and saw an airplane pulling flyer which said come dance tonite after game at the Joe!

Its 2013 and that bar has made some serious money in now 20 plus years and trust me that is EXTREMELY long shelf life for any bar. Many like the country scene in the south and line dancing and what not on large scale so it has been real successful, and that most key ADVERTISEMENT is what makes it go....

ebay covers all the advertisement to the entire world and sellers need not worry about that short of attractive store and stock etc.. If one is not too set in their ways to see it, many out there in USA and all over world who pay a pretty hefty percentage above spot, just check sell records to see I speak the truth....

Here's a chart showing Indian middle class exponentially growing since '02. More jobs (in part thanks to Bush)
is more money to spend on gold. More jobs and money means more people get married which in turn means more gold is bought.




As for China, its no big secret the government is keeping all the gold they produce there and buying like crazy anyway they can,
either through markets or other concealed avenues. Since 2007 they've been promoting the purchase of gold by their citizens.
They are certainly aiming to be the next reserve currency or be part of a basket of the different int'l currencies.
(if and when the US dollar loses its privilege as the sole reserve currency))
http://blogs.marketwatch.com/thetel...ons-of-gold/
http://www.hangthebankers.com/chine...to-buy-gold/

@yup

For the last few months you have tried to steer people away from "stacking" or even from buying non numismatic PMs. Do you still feel that way? I in no way feel like silver is going to sky rocket anywhere. Just would like to know if you think silver under $25 is a good deal.