Lots of new blood coming in to the shops near me

tydye · April 19, 2011 9:39PM

The one dealer I visited yesterday told me he had numerous people who he had never seen before come in a purchase anywhere from 5K to 50K this week in silver and gold. I just bought a few trinkets of fractional gold and was on my way.

jdimmick · April 19, 2011 9:55PM

same here, influx of first timers the past 6 weeks. Not all are spending 5k, but at least 500-1k

jim

gecko109 · April 19, 2011 10:06PM

Alot of investment minded folks would jump in right here and proclaim that this is the beginning of the end for the bull run now that "ordinary" people are getting in on the action.

I see it differently though. I see it as the beginning of mainstream acceptance that PMs are the future in a world of poorly executed fiat strategies. When J6P starts buying, I feel even more comfortable with my own stack. Now I know its not just us "metal bugs" that are believers. And as more and more new people buy PHYSICAL metals, the prices should continue to rise.

Unlike other asset bubbles, in which people are priced out, causing collapse......I feel that the rise in value for metals is directly proportional to the rise in the national debt as well as the rise in production of USDs. Therefore, people wont be "priced out" of gold and silver....because it is REAL money. And back in 2006, you could not buy 1/10th of a house, but there will always be 1/10th of an oz of silver or gold for sale......and affordable to the average J6P.

291fifth · April 19, 2011 10:07PM

A sure sign the bubble is about to burst.

Has the shoe shine boy been in yet?

gecko109 · April 19, 2011 10:08PM

<< A sure sign the bubble is about to burst.

Has the shoe shine boy been in yet? >>

see?

PerryHall · April 19, 2011 10:17PM

<< A sure sign the bubble is about to burst.

Has the shoe shine boy been in yet? >>

Or maybe they figured out that the dollar is rapidly losing value and the economy is going down the toilet.

291fifth · April 19, 2011 10:18PM

The market will burst when the "right" people have made their money and gotten out. The concentration of wealth at the very top is now so great that they can buy politicians silence while they play their financial games. After the bubble bursts the politicians will wail and moan, but do nothing more, knowing full well that the "right" people got their money out and are preparing their next campaign donation and their next financial scheme.

CaptHenway · April 19, 2011 10:29PM

My shoe shine boy takes Krugerrands.......

roadrunner · April 19, 2011 10:43PM

<< A sure sign the bubble is about to burst.
Has the shoe shine boy been in yet? >>

Classic line. We've been hearing it since $7 silver. We're all used to it.
Gold and silver put in for an extended vacation when the dollar/TBond bubbles are deflated and corrected. Wake me up when that happens.

And by the way, I drive the shoe shine boy's limo.

roadrunner

Overdate · April 19, 2011 10:47PM

During the 1980 bubble, interest rates were high and rising, the Fed was tightening, and people were lining up to *sell* their silver.

fivecents · April 19, 2011 10:59PM

<< The market will burst when the "right" people have made their money and gotten out. The concentration of wealth at the very top is now so great that they can buy politicians silence while they play their financial games. After the bubble bursts the politicians will wail and moan, but do nothing more, knowing full well that the "right" people got their money out and are preparing their next campaign donation and their next financial scheme. >>

Well, well "Mr Sunshine" found his way to the Precious Metal forum.

ksammut · April 19, 2011 11:14PM

<< During the 1980 bubble, interest rates were high and rising, the Fed was tightening, and people were lining up to *sell* their silver. >>

That is correct. IMO, we will not see a big correction until QE ends and the FED tightens. Since the US will have to buy its own debt, I cannot see QE ending. They may say that it is going to end but follow their actions and not their words. Rates may take a jump up to get funds to buy the new and maturing bonds but that will only compound the problem as then the higher interest rates will increase the overall debt.

In late May and June we may see a short term drop in the price of gold and silver but in my opinion, that would be a good time to add to your position. This Congress does not have big enough ones to make any kind of dent in the overall national debt and will do little when it comes to balancing the 2012 budget. Another trillion plus will be added to the national debt in the next fiscal year.

Ken

BAJJERFAN · April 19, 2011 11:51PM

<< 

<< A sure sign the bubble is about to burst.

Has the shoe shine boy been in yet? >>

Or maybe they figured out that the dollar is rapidly losing value and the economy is going down the toilet. >>

Go back to that shop and sell them next week. What do you suppose the owner is going to give you? Cash or a check, eh? I'll take those worthless paper bills if you don't want them. PM for my addy and I'll cover shipping. FWIW my wallet can still safely hold more than enough $20 dollar bills to fill my car's fuel tank when it gets empty.

TheBigB · April 19, 2011 11:56PM

<< I'll take those worthless paper bills if you don't want them. PM for my addy and I'll cover shipping. FWIW my wallet can still safely hold more than enough $20 dollar bills to fill my car's fuel tank when it gets empty. >>

As you requested.

BAJJERFAN · April 19, 2011 11:57PM

<< 

<< A sure sign the bubble is about to burst.

Has the shoe shine boy been in yet? >>

Or maybe they figured out that the dollar is rapidly losing value and the economy is going down the toilet. >>

From a practical standpoint those silver rounds won't be much good when you get hungry and want to buy a kerter pounder mit cheese meal at Shay Macs; especially since the kid takin yer money doesn't even know that a Kennedy half is real money.

BAJJERFAN · April 19, 2011 11:57PM

<< The one dealer I visited yesterday told me he had numerous people who he had never seen before come in a purchase anywhere from 5K to 50K this week in silver and gold. I just bought a few trinkets of fractional gold and was on my way. >>

When those folks go to sell that dealer will likely be surprised at the amount of stuff that is out there in his community. He mite be equally surprised at how little of it they originally bought from him.

BigE · April 20, 2011 12:06AM

<< My shoe shine boy takes Krugerrands.......

>>

You must have some big feet--------------BigE

CaptHenway · April 20, 2011 12:07AM

<< 

<< My shoe shine boy takes Krugerrands.......

>>

You must have some big feet--------------BigE >>

You know what they say about the size of a man's feet........

BAJJERFAN · April 20, 2011 12:12AM

<< 

<< I'll take those worthless paper bills if you don't want them. PM for my addy and I'll cover shipping. FWIW my wallet can still safely hold more than enough $20 dollar bills to fill my car's fuel tank when it gets empty. >>

As you requested.

>>

I hear ya, but we aint there yet.

PerryHall · April 20, 2011 12:25AM

<< 

<< 

<< My shoe shine boy takes Krugerrands.......

>>

You must have some big feet--------------BigE >>

You know what they say about the size of a man's feet........

>>

I thought of a couple of responses but I don't want to bet banned.

jmski52 · April 20, 2011 12:34AM

FWIW my wallet can still safely hold more than enough $20 dollar bills to fill my car's fuel tank when it gets empty.

Do you realize what you just said?

It wasn't that long ago when I only needed a $20 bill to fill up. Now you need "enough room in your wallet" to hold more than enough $20s to fill up?

Also, FWIW - I notice my wallet stuffed with $50s these days, and they don't go all that far before I have to go back and get more. I'm pretty sure that I'm not just the exception to this phenomenon.

gsa1fan · April 20, 2011 12:37AM

My food & gasoline bill for the week are twice what they were last year at this time.

BAJJERFAN · April 20, 2011 12:52AM

<< FWIW my wallet can still safely hold more than enough $20 dollar bills to fill my car's fuel tank when it gets empty.

Do you realize what you just said?

It wasn't that long ago when I only needed a $20 bill to fill up. Now you need "enough room in your wallet" to hold more than enough $20s to fill up?

Also, FWIW - I notice my wallet stuffed with $50s these days, and they don't go all that far before I have to go back and get more. I'm pretty sure that I'm not just the exception to this phenomenon. >>

Yes, I know what I said but it isn't like it is going up so fast that it will take $500 to fill up my gas tank next week. Do you also get gasoline for $2 a gallon if you pay with silver rounds?

jmski52 · April 20, 2011 1:03AM

Do you also get gasoline for $2 a gallon if you pay with silver rounds?

That would be very very expensive gasoline!

57loaded · April 20, 2011 1:19AM

<< A sure sign the bubble is about to burst.

Has the shoe shine boy been in yet? >>

i posted this in the economic thread...things get lost there

here is the best reasoning i have found against a bubble in silver and gold.

safehaven link about gold being no where near a bubble and i suppose silver, too

one key factor was that purcahsing PM is still not being leveraged by common folks, IMHO

BAJJERFAN · April 20, 2011 1:27AM

<< Do you also get gasoline for $2 a gallon if you pay with silver rounds?

That would be very very expensive gasoline!

>>

I meant bullion value of course not face value. Right now an ASE would get you maybe 11 gallons.

Overdate · April 20, 2011 1:36AM

The price of gasoline is 12 cents per gallon and falling. (In 90% silver coins, of course.)

gecko109 · April 20, 2011 3:42AM

gecko109 · April 20, 2011 3:45AM

<< 

<< Do you also get gasoline for $2 a gallon if you pay with silver rounds?

That would be very very expensive gasoline!

>>

I meant bullion value of course not face value. Right now an ASE would get you maybe 11 gallons. >>

10 years ago, 2 dollars bought a gallon of gasoline. 2 ASEs would have bought 5 gallons of gasoline.

Today, those EXACT SAME 2 dollars buys 1/2 a gallon of gasoline. Those EXACT SAME 2 ASEs would buy 22 gallons of gasoline.

And you are defending the dollar???? Really????

percyb · April 20, 2011 4:10AM

Call it smart money that realizes the US $ is collapsing.

tydye · April 20, 2011 4:16AM

Hit some more shops today - all crazy. Bought some silver and gold. I joked with the one dealer that I would be back later in the day to sell back the silver I had purchased from him in the morning.

BAJJERFAN · April 20, 2011 4:17AM

<< 

<< 

<< Do you also get gasoline for $2 a gallon if you pay with silver rounds?

That would be very very expensive gasoline!

>>

I meant bullion value of course not face value. Right now an ASE would get you maybe 11 gallons. >>

10 years ago, 2 dollars bought a gallon of gasoline. 2 ASEs would have bought 5 gallons of gasoline.

Today, those EXACT SAME 2 dollars buys 1/2 a gallon of gasoline. Those EXACT SAME 2 ASEs would buy 22 gallons of gasoline.

And you are defending the dollar???? Really????

>>

I'm not defending the dollar. I'm just saying that the value of an ASE is still measured in them.

ProofCollection · April 20, 2011 4:25AM

This is like early 2004 in real estate, where there was a wild 2 year period afterward where housing went nuts as "commoners" became RE investors.

Bear · April 20, 2011 11:06AM

When even the horse you are riding, tries to put its hoof in the stirrups,

you might want to say....If you want to get in the saddle, perhaps it is time

for me to get off.......

calleocho · April 20, 2011 11:18AM

Most people I ever see buying usually pay in cash ...in order to have a true bubble you would need lots of leveraging.

ksammut · April 20, 2011 12:12PM

<< Alot of investment minded folks would jump in right here and proclaim that this is the beginning of the end for the bull run now that "ordinary" people are getting in on the action.

I see it differently though. I see it as the beginning of mainstream acceptance that PMs are the future in a world of poorly executed fiat strategies. When J6P starts buying, I feel even more comfortable with my own stack. Now I know its not just us "metal bugs" that are believers. And as more and more new people buy PHYSICAL metals, the prices should continue to rise.

Unlike other asset bubbles, in which people are priced out, causing collapse......I feel that the rise in value for metals is directly proportional to the rise in the national debt as well as the rise in production of USDs. Therefore, people wont be "priced out" of gold and silver....because it is REAL money. And back in 2006, you could not buy 1/10th of a house, but there will always be 1/10th of an oz of silver or gold for sale......and affordable to the average J6P. >>

I agree with you and in addition:

The rise in metal prices may be impacted some what by Joe six-pack but do not forget that for all the Joe six-packs here in the states, there are Li six-pack, Samir six-pack, and many other six-packers around the world that have been and continue to purchase a lot of silver and gold.

Here in the US, we have a number of options when it comes to purchasing PMs - the metals themselves, ETFs, individual stocks, futures, and mutual funds. In many countries, the every day person's only option is to buy the metal itself whether it be jewelry or bars. The combined international investing in PMs has played a large role in the higher prices. I believe foreign individual investors will continue their PM purchases.

Governments and industry have led the way but in the last two years the individual investors have helped eat up any surplus in the silver market. Relatively few Americans have purchased silver whether it has been from the mint, B&Ms, online, or from other sources. The number may be 1 or 2% of the entire population. Most of the silver purchasing by investors are made by investors who have looked at the economic situation and sense we are in a lot of trouble (just like those of us who participate on this board) but that is still a small number. Should Joe six-pack really jump on board, we will see a lot of dollars chasing less and less available silver forcing industry and governments to quickly step in an hoard as much silver as they can before prices really go crazy. This in itself will force higher prices.

So yes, if Joe six-pack and all the six-packers around the world get "silver fever," the price of silver will get ahead of itself and eventually the bubble will pop but the price of silver could be twice as high as it is now if the mania gets out of hand. I think we are still early in the game and only a hand full of Joe six-packers are now buying. In my circle of family and friends, no one has considered PMs. For the first time however, they are talking a LOT about how much trouble we are in. Hopefully they will take the next step and figure out they need to do something to protect their financial well being.

Lots of new blood coming in to the shops near me

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