WHOA, guys what should I do with my silver collection!!

mkman123

Guys, there is a local guy in my area selling TONS of 10 oz Engelhard bars. He has many he said and I just called him.

If I buy some right now, it will be 13.37/oz.

Do you guys think I should sell all my generic bars and rounds and use the money to replace it with the Engelhards or what? I know Engelhards command a good PREMIUM so what you guys think???

fc

13.37 is a stiff premium right now for a savy buyer. i would think
carefully about that premium you speak of for engelhard.. it is not
as large as you think. silver is silver when it comes to bars... there
are many respected small sized minters.

if it was me.. i would try to find a buyer for your silver at 13.37 and
then flip for engelhard... but do not take a loss trying to aquire them.

mkman123

fc, how much avg are Engelhards selling on ebay right now? I thought Engelhards would be a much better choice than a bunch of generic rounds/bars because they are a well known brand. I will have to think about this.

Any other suggestions from you experts would be appreciated.

mhammerman

If they were wrapped and not discolored...like a frog, but that's just me!

fc

they sell right now for 150-160. the premiums are falling.
of course there are always anomolies.. with some selling higher.
but in general if you search you will see the premiums are dropping.

roadrunner

I know silver buyers in my area are paying 10X face for 90% coin. That works out to be around $14+/oz. The 10 oz bars for $13.37 seem realistic compared to that.

It really comes down to the fact of is there a sustained shortage or not. One thing to note is that physical silver and gold buying has increased since the July and August "paper" Comex takedowns. That should not happen in a true supply and demand market. Something is seriously out of whack, and has been for months.

roadrunner

fc

my main concern on your plan is this:

how do you sell your generic stuff to aquire engelhard without
taking a loss right now?

if you paid 12 for it.. and sell for 11.. well that sucks.

konsole

Ya I agree with what fc said. Engelhard bars might command a very small premium but I personally dont think its enough to go through all the trouble of trying to sell what you have to acquire them. Maybe keep what you have and use fresh cash to buy the engelhards. $4.00 over spot isnt really anything to get excited about.

jmski52

I wouldn't sell anything until you actually decide to divest. There's no point in taking a hit for one type of silver in order to buy another type. It's the same thing as churning a stock brokerage account, and generating unnecessary additional costs for the same class of asset simply reduces your long term profits.

If you like the idea of Engelhards, start buying them. At a spot close of $9.37/oz., a $4.00/oz premium is 29.9%. That's the highest I've ever seen it, but it's in line with the current market. As weird as it seems, if the shortage is indeed real, the premiums could continue to increase. There are good reasons to suspect the Comex spot prices, so the premium may not be as significant as it normally would be. See where the break-point is for a quantity purchase - if you buy 10, maybe you'll get a break of 5% or so.

If the 29.9% premium doesn't deter you, I would nevertheless advise some restraint and I'd suggest that you keep shopping around. It goes against my grain to buy at that premium, but on the other hand - the train could leave the station at any time. The financial situation, and its impact upon precious metals prices is very hard to predict, especially considering the US Treasury's thrashing around with Trillions of Dollars.

I would ALWAYS suggest "averaging in" when you are establishing a position. Buy 1/3rd of what you intend to buy, and wait awhile - maybe 2 or 3 months. Keep on top of the financial news and wait to see what happens. Spread your risk over 3 separate purchases. The price will change, and the premiums will change, but you will have a realistic market price when you're done buying.

mkman123

roadrunner, fc, konsole, and jmski thank you very much for the advice, I will listen to you guys.

jdimmick

I am not sold on this super high premium due to shortage, its due to shortage of folks selling at the new reduced levels. If prices continue down, it will come down I can assure you as people will be converting assests to cash!

SilverBaron

Just wondering...... What kind of quantity does he have?

I am a BIG fan of die struck Engelhard and JM 10oz bars. While $4 over spot is stiff......

It is below the asking price of MOST dealers.... when they have any!!

I agree with the others about NOT selling your present holdings, BUTTTTT, if you have the funds,

try and purchase as many of them as you can.....

Engelhard & JM 10's are not getting any easyer to find in quantity.



Keep on stack'n!!

ttown

I'm not a fan of generic rounds since they are much harder to sell at the dealer level you can bet they will bring much less than the 10 ozers. I'd purchase some of the bars and try to sell some of the rounds. While $4 over spot is high it's normal right now, this isn't paper silever you know. Silver rounds are usually discounted as much as 90% silver while your name brand bars are always hot and easy to sell anywhere.

roadrunner

If prices continue down, it will come down I can assure you as people will be converting assests to cash!

This still gets back to the original question of whether the Comex pricing has any real weight. IF, it were true that we were months away from a Comex default on either silver or gold, would that change anyone's view point on paying premiums today?

Since most here believe we are in a protracted deflationary cycle with little to no cash trickling down, then how is Joe the Plumber going to purchase 10 oz. silver bars in the first place? If cash is not trickling down (ie cash getting more valuable), why shouldn't silver (real cash as well) get dearer as well (ie higher premiums)?

I would say that most people who have socked away some silver, will be unloading their silver last. The average guy who was having a tough go of making ends meet wasn't putting away silver for the past few years. This seems to makes sense considering that small silver bars and rounds are still not showing up at local shops.

roadrunner

jmski52

Since most here believe we are in a protracted deflationary cycle with little to no cash trickling down, then how is Joe the Plumber going to purchase 10 oz. silver bars in the first place? If cash is not trickling down (ie cash getting more valuable), why shouldn't silver (real cash as well) get dearer as well (ie higher premiums)?

rr, I don't know if the deflationary cycle will be all that protracted. I am beginning to think that this whole washout is being engineered in order to remove all buying power from the public, and then to suck up all of the good assets (silver included) after the public's buying power has been stripped away.

When the government can bestow free money on corrupt private banking corporations who then pay off senators and congressmen in political donations, what's to stop them from taking every last cent from pension funds and 401Ks by playing with volatility until the public is tapped out?

I'm using cash to protect my precious metals for now, and I will use my precious metals to protect my cash when it becomes appropriate. Those are the only two asset classes I need in order to maintain my financial security until the dust settles.

mkman123

silverbaron, this person has thousands of engelhard bars. When I called him on the phone, he mentioned he sold a few thousand ounces to nearby local stores that were low and some to other hoarders in my area. He only wanted to deal in at least a thousand ounces but I talked him into helping a newby hoarder and he said he would sell me a minimum of 50 ounces. He told me a place we could meet up and he could deliver the silver to me whenever. I'm gonna call him on monday or tuesday and check in with him.

I'm just gonna buy maybe 50 ounces and keep my generic rounds.

Thanks for all the great responses.

asin

MKMAN123 Meet this guy at a bank some place safe and check the local stores out that he sold to, just be careful.

Deadhorse

<< <i>MKMAN123 Meet this guy at a bank some place safe and check the local stores out that he sold to, just be careful. >>




Yep, BANK LOBBY.

That's the only place to meet for security purposes.

I used to buy fairly often from the public through adverts, and I always arranged to meet in a bank lobby, theirs or mine.

Security cameras, armed guards, etc.

mkman123

asin, thanks for the tip.

jdimmick

There is silver bars and rounds all over the place here. If money wasnt an object, you could cart away 300 oz of silver in denoms less than 10 oz here locally easily. They have it, its just overpriced!!!

ajbauman

I'm not sure about $13 an oz...depends on you.

I can purchase 10oz bars at $11.62 an oz from a supplier that I know but it would take me about 4 - 6 weeks to receive them and they are whatever brand they can get.

Just my $.02

Metalsman

<< <i>Guys, there is a local guy in my area selling TONS of 10 oz Engelhard bars. He has many he said and I just called him.

If I buy some right now, it will be 13.37/oz.

Do you guys think I should sell all my generic bars and rounds and use the money to replace it with the Engelhards or what? I know Engelhards command a good PREMIUM so what you guys think??? >>



FLIP em!. If you have the time to do it start Flipping.. you should be able to make 20-30 on each if you know what you are doing. And build yourself a lower cost stack.