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Friday's Silver hunt report.

rah1959rah1959 Posts: 964 ✭
in Precious Metals
no 10 ounce bars in my area....

found two 100 ounce bars......$2.00 over spot on each....

may pass on that.....even though that is not too bad...but am use to getting bars much closer to spot

Comments

  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>no 10 ounce bars in my area....

    found two 100 ounce bars......$2.00 over spot on each....

    may pass on that.....even though that is not too bad...but am use to getting bars much closer to spot >>





    Aren't we all. Those days are gone for a while. You can pay the extended premums now or wait for spot to get back in the $18 range for the spreads to decrease.

    You can wait, but you'll still pay more in the long run.



    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • gecko109gecko109 Posts: 8,231 ✭


    << <i>

    << <i>no 10 ounce bars in my area....

    found two 100 ounce bars......$2.00 over spot on each....

    may pass on that.....even though that is not too bad...but am use to getting bars much closer to spot >>





    Aren't we all. Those days are gone for a while. You can pay the extended premums now or wait for spot to get back in the $18 range for the spreads to decrease.

    You can wait, but you'll still pay more in the long run. >>



    Are you implying that current spot on silver is the absolute basement? Couldnt he wait until silver tanks another $2.00 just as easily as wait for it to rise back to $18?
  • rah1959rah1959 Posts: 964 ✭


    << <i>you can pay the extended premums now or wait for spot to get back in the $18 range for the spreads to decrease.

    You can wait, but you'll still pay more in the long run. >>



    was thinking the same....so I may give him a call and see if he can hold them for me till I can get in to see him on Tuesday afternoon.

    Will sleep on it.

    RAH
  • rah1959rah1959 Posts: 964 ✭
    Are you implying that current spot on silver is the absolute basement? Couldnt he wait until silver tanks another $2.00 just as easily as wait for it to rise back to $18?


    thought about that too......although...if silver went to 11..he may just pull them and not offer them..... and wait until silver is back at this level and then tack on the $2.00 premium...

    will sleep on it....
  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>

    << <i>

    << <i>no 10 ounce bars in my area....

    found two 100 ounce bars......$2.00 over spot on each....

    may pass on that.....even though that is not too bad...but am use to getting bars much closer to spot >>





    Aren't we all. Those days are gone for a while. You can pay the extended premums now or wait for spot to get back in the $18 range for the spreads to decrease.

    You can wait, but you'll still pay more in the long run. >>



    Are you implying that current spot on silver is the absolute basement? Couldnt he wait until silver tanks another $2.00 just as easily as wait for it to rise back to $18? >>



    Well, the trend is up these days. The further up it goes the closer we all get to the wholesalers cranking up the machine again.

    I suppose this isn't the absolute basement, but I wouldn't bank on a further drop of $2.00

    The scarcity issues don't indicate to me any sharp drops, just the opposite in fact. Time will tell.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • cinman14cinman14 Posts: 2,489 ✭
    APMEX has NEW 100 ouncers for 1495.00 delivered....image 1.24 over spot
  • tincuptincup Posts: 5,110 ✭✭✭✭✭
    Tulving has 10 ounce A-Mark bars at 1.39 above spot. The catch is that you have to order a minimum of 50. But he does pay the shipping and insurance!
    ----- kj
  • mkman123mkman123 Posts: 6,849 ✭✭✭✭
    rah, seems like my area has much better prices image

    All the places are gonna be closed until tuesday so on Tuesday, I'm going to get rid of some 90% silver dimes and bad conditioned half dollars and pre 64 quarters along with a bunch of 1965-1969 half dollars. Gonna trade them in and get some cash so when some bars come along I can buy them!

    My focus is going to be strictly silver bars, some smaller sized gold coins when I can afford them, and some uncirculated 1964 kennedies.

    Successful Buying and Selling transactions with:

    Many members on this forum that now it cannot fit in my signature. Please ask for entire list.
  • jmski52jmski52 Posts: 22,795 ✭✭✭✭✭
    Jason Hommel suggests going to your local coin shop this weekend to scope out the situation. I think that's just what I'm going to do. It might be interesting.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>rah, seems like my area has much better prices image

    All the places are gonna be closed until tuesday so on Tuesday, I'm going to get rid of some 90% silver dimes and bad conditioned half dollars and pre 64 quarters along with a bunch of 1965-1969 half dollars. Gonna trade them in and get some cash so when some bars come along I can buy them!

    My focus is going to be strictly silver bars, some smaller sized gold coins when I can afford them, and some uncirculated 1964 kennedies. >>



    You would do much better to trade your melt coins for .999 bullion than if you cash out and then spend cash.

    You see, the dealer already paid less for the bars. If he is honest, then you're better off going the trade route than exchanging twice with cash involved, he will still make his spread on both products and you'll end up several percent better off as well.

    That's one of the ways I used to build my hoard up many years ago. I bought tons of melt, much of it from forum members and then traded straight up for .999 bars. Of course, I was dealing in bags and bags of melt and the volume helped me on the trades. Volume always does.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>Jason Hommel suggests going to your local coin shop this weekend to scope out the situation. I think that's just what I'm going to do. It might be interesting. >>



    He suggested going on Sept 2 at 2 PM and for everyone to do it nationally at that time. It would make the B&M shops think that the market for .999 is a sizable force and they might re-consider their postions. I hope he is correct.

    Everyone is closed down here for the weekend anyway.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • jmski52jmski52 Posts: 22,795 ✭✭✭✭✭
    I went to my local coin shop this morning because I will be traveling next week and won't be able to go then.

    My report:

    He would sell 100 oz. silver bars @ $14.50/oz. if he had them and he would buy them @ spot ($13.59), but he sold the only two he had earlier today. A 6.7% spread.

    He is buying 90% silver @ 8X face and selling it at melt, or just over 10X face. (By my calculations, face @ .72 oz. would actually be $9.78), so he is fudging a bit.) A spread of 20%. Hmmmm. Seems very high to me.

    He is selling rolls of ASEs at $350.00, or $3.91 over face - which is very high, considering that Tulving is at $2.89 over face for ASEs and several places are selling Silver Maples at $1.99 over face.

    He would be buying British Gold Sovereigns at $12.00 less than spot - per coin - and selling them at spot gold. This is a little less than double the spread that Tulving quotes.

    Every 5 years or so, I have to go in there to remind myself why I don't do business with him. I'm good for another 5 years now.image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • mkman123mkman123 Posts: 6,849 ✭✭✭✭
    deadhorse, thanks for the info!

    wish I could buy in volume like you did.
    Successful Buying and Selling transactions with:

    Many members on this forum that now it cannot fit in my signature. Please ask for entire list.
  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>I went to my local coin shop this morning because I will be traveling next week and won't be able to go then.

    My report:

    He would sell 100 oz. silver bars @ $14.50/oz. if he had them and he would buy them @ spot ($13.59), but he sold the only two he had earlier today. A 6.7% spread.

    He is buying 90% silver @ 8X face and selling it at melt, or just over 10X face. (By my calculations, face @ .72 oz. would actually be $9.78), so he is fudging a bit.) A spread of 20%. Hmmmm. Seems very high to me.

    He is selling rolls of ASEs at $350.00, or $3.91 over face - which is very high, considering that Tulving is at $2.89 over face for ASEs and several places are selling Silver Maples at $1.99 over face.

    He would be buying British Gold Sovereigns at $12.00 less than spot - per coin - and selling them at spot gold. This is a little less than double the spread that Tulving quotes.

    Every 5 years or so, I have to go in there to remind myself why I don't do business with him. I'm good for another 5 years now.image >>




    The best shop down here is paying .40 to .50 over spot due to demand and depending on what you are selling.

    Sorry to hear you have to deal with such an a-hole.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>deadhorse, thanks for the info!

    wish I could buy in volume like you did. >>



    Regardless, as long as the guy is honest, you'd do better with a straight trade of melt for .999
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • ProofCollectionProofCollection Posts: 6,048 ✭✭✭✭✭
    Aside from storage, what is the advantage of having melt coins vs. bars?
  • cohodkcohodk Posts: 19,070 ✭✭✭✭✭


    << <i>APMEX has NEW 100 ouncers for 1495.00 delivered....image 1.24 over spot >>



    This just seems like a racket to me. People balk at paying a 5% sales charge for a mutual fund, but graciously accept an 8% sales charge to buy silver.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • ProofCollectionProofCollection Posts: 6,048 ✭✭✭✭✭
    There is a big difference though between a physical transaction and an electronic one...
  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>Aside from storage, what is the advantage of having melt coins vs. bars? >>



    Some peole think they would be more fungible in an exceptional financial breakdown.

    I suppose that's OK, but I know they fall behind when the spot price goes up.

    There's probably a psychological effect in play here. I mean, it is real US coinage, it is in smaller amounts and it doesn't require assay and is trusted worldwide, so there's at least something behind it.

    No problem, I always have a couple of bags around anyway. However, 99% of my holdings are in .999, nearly all of it name brand.

    As far as gold, that's what I consider diversification. image
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • CaptHenwayCaptHenway Posts: 32,093 ✭✭✭✭✭
    If you are buying new silver then you should seriously consider whether to buy coin silver or bar silver.

    If you already own either form, it is a waste of money to convert it from one form to the other. The difference in how much either rises or falls with the market is not worth the cost of conversion.

    TD
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>If you are buying new silver then you should seriously consider whether to buy coin silver or bar silver.

    If you already own either form, it is a waste of money to convert it from one form to the other. The difference in how much either rises or falls with the market is not worth the cost of conversion.

    TD >>



    With all due respect, melt coins often command a higher premium in some regions over others.

    I was paying forum members more than they could get for their melt locally(and paying shipping) and trading it here for several percent higher and doing the swap out for .999 and coming out ahead on a regular basis. The B&Ms were giving me a break on the .999 and then shipping the melt coins off. They made a profit on both and I came out better than I would have selling the melt and then buying the .999

    I did that for many years, so it wasn't a fluke. One thing I have noticed is that we seem to have better, as in more honest B&Ms down here. I suppose competition is a good thing. Houston is a big place.

    This also reversed on me one time and I had to pass on a large batch of melt, over 23K in face value. That price reversal stayed in place for a couple of months, but in general melt does better down here than it does in the rest of the country.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
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