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nalaberong's Avatar
Canada
2805 Posts
 Posted 04/30/2013  10:06 pm Show Profile   Bookmark this topic Add nalaberong to your friends list Get a Link to this Message Number of Subscribers
A coin store near my school opened the day after the big dip. I've been coming in every week since, adding to my Canadian 80% date sets and chatting it up. When the store was first opened, there was a modest selection of silver dollars near spot and a couple centennials (centennial quarters/dimes are the only silver the owner sends in to get melted due to their fluctuating content). I was pretty sure the dollars would be gone fast, so I got one, and I was right - next week, all that remained was a 1967 that had been glued to something at some point. However, the lower denomination silver (dimes and quarters) was gone.

Here's where this ancedote gets weird (and worth posting about): just two weeks later, with commodity prices still staggering through their lowest levels in several years, the store now carries about 5 pounds of 80% silver, mostly quarters. Now, I can understand why you'd dump bullion at a drop like this - maybe you think it'll keep going down from now on and you're getting out while you still can - but junk silver? I was expecting the store to get stingy with silver prices, but everything was bought after the dip and the 80% is coming in and out by the bucketload. The owner is making so much off premiums that he's the only coin store in the area to be selling close to spot. I wonder why so many more people are selling than buying? They can't all be expecting a continued downtrend, can they?
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barryg's Avatar
United States
5846 Posts
 Posted 04/30/2013  10:20 pm  Show Profile   Bookmark this reply Add barryg to your friends list Get a Link to this Reply

Quote:
They can't all be expecting a continued downtrend, can they?


Yes. It's called "panic selling" and happens with stock every time there is a stock market crash. Prices drop sharply, people think the downtrend will continue and sell off everything they have (even at a great loss) in the hopes of at least getting something before prices drop even further.

Historically, of course, crashes are absolutely the worst time to be selling. The smart folks buy like crazy when prices start to go down so that they can reap the long-term benefits when prices eventually go back up. Even if prices continue to go down, you can keep buying as prices get cheaper and cheaper rather than trying to time the bottom and either missing it entirely or else discovering there's nothing available to buy when things do hit bottom.

This doesn't apply to folks who are going for short-term gains, of course.
Bedrock of the Community
sel_69l's Avatar
Australia
21786 Posts
 Posted 05/01/2013  03:49 am  Show Profile   Bookmark this reply Add sel_69l to your friends list Get a Link to this Reply
AS they say on the stock market:
'Buy in gloom, sell in doom!'
Valued Member
capsnhawks's Avatar
United States
134 Posts
 Posted 05/01/2013  10:03 am  Show Profile   Bookmark this reply Add capsnhawks to your friends list Get a Link to this Reply
This past weekend I was talking with a family memember who works at a Chicago area coin shop. He said that very few folks are bringing in any silver to sell. What little they do see and buy is sold within a half an hour. Orders for ASEs and generic rounds are taking weeks to be delivered. On the other hand, I was at a Northern Virginia coin show this past Saturday and found ample silver and gold bullion available for purchase. ASEs were going on average for $34 while generic silver rounds were selling for $26. There were a few dealers who said they did not bring their bullion to the show because they bought it at pre-crash prices, but, overall, plenty of silver and gold to go around. Interesting how availability seemingly differs geographically.
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SA4H's Avatar
United States
2764 Posts
 Posted 05/01/2013  5:21 pm  Show Profile   Bookmark this reply Add SA4H to your friends list Get a Link to this Reply
Availability at what price?

ASE at $34, vs generic round at $26, that's $8 premium on top of $$2+ premium for the generic round so we are talking about $10+ premium for ASE. When spot was around $27/oz, ASE and SML was offered online for around $30-$31/oz.....

The best bullion on the market right now seemed to be from the Perth Mint (10oz and Kilo size) where the premium is around $2 or less per oz.

Note: Not just because spot price dip, you are getting a great deal. Always looking at the final price tag, compare to spot price, when buying bullion!
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basebal21's Avatar
13014 Posts
 Posted 05/01/2013  5:36 pm  Show Profile   Bookmark this reply Add basebal21 to your friends list Get a Link to this Reply
I was at the same show silver was absolutely everywhere so was gold. Its all out there its just wether or not you want to pay that price is a different story. People will gouge as long the public let's them.
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