Who are the "new" buyers of precious metals?
Baley
Posts: 22,661 ✭✭✭✭✭
So, is there a pool of buyers out there who haven't yet gotten involved with precious metals, and are going to now jump in?
Meaning, of course, the die hard stackers buy and hold through thick and thin, always have.
Then, you've got the folks who got involved recently (past two years) because of advertising, blogs, a friend told them, etc, and are now either feeling A. burned and wondering if they should get out now with a loss or hope it bounces so they can get out breaking even, or B. feeling like a stacker and dollar cost averaging lower prices now.
Do you think there is a segment out there who feels like they missed the boat on metals before, and now has a "second chance" at lower prices?
Because it seems, when a bubble pops like this, they are now glad they were never involved, and might be inclined to just stay away.
Meaning, of course, the die hard stackers buy and hold through thick and thin, always have.
Then, you've got the folks who got involved recently (past two years) because of advertising, blogs, a friend told them, etc, and are now either feeling A. burned and wondering if they should get out now with a loss or hope it bounces so they can get out breaking even, or B. feeling like a stacker and dollar cost averaging lower prices now.
Do you think there is a segment out there who feels like they missed the boat on metals before, and now has a "second chance" at lower prices?
Because it seems, when a bubble pops like this, they are now glad they were never involved, and might be inclined to just stay away.
Liberty: Parent of Science & Industry
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A friend called this morning for advice & I told him the smartest thing he could do was relax & sit it out for awhile.
Now he understands why I like sight seen cash and carry.
>
Successful transactions on the BST boards with rtimmer, coincoins, gerard, tincup, tjm965, MMR, mission16, dirtygoldman, AUandAG, deadmunny, thedutymon, leadoff4, Kid4HOF03, BRI2327, colebear, mcholke, rpcolettrane, rockdjrw, publius, quik, kalinefan, Allen, JackWESQ, CON40, Griffeyfan2430, blue227, Tiggs2012, ndleo, CDsNuts, ve3rules, doh, MurphDawg, tennessebanker, and gene1978.
Lets hope the cynics remain unchanged.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
<< <i>Then, you've got the folks who got involved recently (past two years) because of advertising, blogs, a friend told them, etc, and are now either feeling A. burned and wondering if they should get out now with a loss or hope it bounces so they can get out breaking even, or B. feeling like a stacker and dollar cost averaging lower prices now. >>
Which one are you?
If a liquidity crisis is starting to bubble up based on today's overall financial market actions - your only choices might be TBonds and then possibly cash-PMs.
Something is not right in the banking sector and all of this action the past week is only confirming that. The first step was to crush PMs and then commodities for
whatever the PTB have planned for us next. China has been adding 500-1,000 tonnes of gold per year to its inventory. I'm sure they're quite happy with this 30% off
sale. Their goal is 5,000 to 8,000 tonnes so still plenty of work to do.
<< <i>The current panic has to be v. Unsettling to newbies.
A friend called this morning for advice & I told him the smartest thing he could do was relax & sit it out for awhile.
Now he understands why I like sight seen cash and carry. >>
Yes, and for those of us who owned PMs in 2008/09, this should make things interesting.
Crude oil is down almost $7/barrel since last Thursday. At least those fill-ups will be a bit cheaper!
Not many. The stock market has been on a tear (until today), and now CNBC is mainly talking about how far pms can drop. Not many newbies can figure out that this type of move isn't normal, and even fewer would want to dive right in when they see this much blood (albeit, paper blood) in the streets.
Frankly, there's no way of knowing what's going on in the pm markets right now. It's a good time to buy if you were planning to buy anyway. It's also a good time to be holding physical, and not to have anything on margin.
I knew it would happen.
This is what happens when something is over owned. Nay say all you want, but fact is evident in price. And fact that pm's are an emotional investment leads to the action we saw today.
Knowledge is the enemy of fear
Of course there are some here
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
I wonder if the Troika are forcing the issue before a bailout?
<< <i>It's also a good time to be holding physical, and not to have anything on margin. >>
That is the best advise anyone can pass on
"...holding physical, and not to have anything on margin."
It is interesting to watch all this. Paper boys woke up to a strange Monday and I was thinking about the talk about paper driving spot. That would make physical something other than spot but it trades at spot give or take a little. So, did the paper metal guys get many requests today for delivery of physical, are their phones lit up with panicked paper sellers?
On the other side, I would think that most of the folks that wanted to be holding physical were already there or getting there in terms of their acquisitions. Stackers probably stacking with a renewed fervor after a long wait.
If you're not selling into a bubble bust then what the worry...sit back and enjoy the movie. For all the folks on margin, see Rule #1.
That would be me. 100%. Absolutely yes. Too bad you werent stackin dollar bills like me. Now I can trade in my worthless paper for 2x as much silver. And when it goes to $300/oz, i'll be twice as rich!! Booyah!! LOL
The poor sheeple who were scared by so many to put their hard earned dollars into a "safe currency", with "no counter party risk", now find themselves in shock and even more scared. I've asked a hundred times, "Where is the protection!!??"
Knowledge is the enemy of fear
I knew it would happen.
I just feel for the newbie investors as I saw the SAME EXACT patterns and rhetoric as 2000. EVERYONE who has bought silver in the last 30 months, is now underwater.
This "game" isnt so complicated when you take the emotion out of it. I see people today making up all kinds if excuses for the selloff. Who cares? Silver doesnt. Gold doesnt? Fact is that prices are lower. And if you think it is only the paper price that is lower, then try selling your stack.
But, I'll have you know, then lower the price gets, the more bullish I become. I dont hate PMs, I just dont hold them in reverence.
Knowledge is the enemy of fear
There is no need for an excuse.
Who cares? Silver doesnt. Gold doesnt? Fact is that prices are lower.
Exactly correct. It is the new reality, and no matter what - you have to accept it. No whining.
And if you think it is only the paper price that is lower, then try selling your stack.
I don't want to sell any of my stack, and I have no intention of selling until I am ready to sell some of it. And that wouldn't be "now".
But, I'll have you know, then lower the price gets, the more bullish I become. I dont hate PMs, I just dont hold them in reverence.
They're just metal. No reverence here. No government promises needed, because they aren't paper. That is pretty much it.
I knew it would happen.
<< <i>Of course there are some here who see these physical shortages and higher paid premiums as nothing more than evidence of more sheep being led to the slaughter
That would be me. 100%. Absolutely yes. Too bad you werent stackin dollar bills like me. Now I can trade in my worthless paper for 2x as much silver. And when it goes to $300/oz, i'll be twice as rich!! Booyah!! LOL
The poor sheeple who were scared by so many to put their hard earned dollars into a "safe currency", with "no counter party risk", now find themselves in shock and even more scared. I've asked a hundred times, "Where is the protection!!??" >>
Judging your repeated comments here it's obvious you don't want to own silver so why say that you can now buy twice as much????
I dont buy into any magical abilities of PMs. I dont buy into any fundamental reasons to buy silver. But I will buy it when it is a relative value. For the last 2 years I have seen no value, but it is now becoming interesting.
And I say I can buy twice as much because I can. Math is pretty simple.
So I guess to answer the OPs question, I will be a new buyer, but only when the price and timing are right.
Knowledge is the enemy of fear
<< <i>
<< <i>Then, you've got the folks who got involved recently (past two years) because of advertising, blogs, a friend told them, etc, and are now either feeling A. burned and wondering if they should get out now with a loss or hope it bounces so they can get out breaking even, or B. feeling like a stacker and dollar cost averaging lower prices now. >>
Which one are you? >>
I'm the guy who has seen this movie twice now, once in 1978-1982, and then again 2009-2013.
REALLY looking forward to 2040 or so for a third viewing
Liberty: Parent of Science & Industry
<< <i>
<< <i>
<< <i>Then, you've got the folks who got involved recently (past two years) because of advertising, blogs, a friend told them, etc, and are now either feeling A. burned and wondering if they should get out now with a loss or hope it bounces so they can get out breaking even, or B. feeling like a stacker and dollar cost averaging lower prices now. >>
Which one are you? >>
I'm the guy who has seen this movie twice now, once in 1978-1982, and then again 2009-2013.
REALLY looking forward to 2040 or so for a third viewing
Why didn't you sell and take a profit?
being an "asset allocator", I'm never all the way out of any one segment of the markets (edit: OR "All-In", that's the important part, IMO)
Funny thing is, metals have dropped enough, and other stuff has gone up enough, that now I'm underweighted metals and starting to buy again
Liberty: Parent of Science & Industry
I don't allocate at all. I buy a certain amount of metal for long term and the rest of my loose money I plow back into my own small business for the present.
Tools equipment anything that I use that probably will cost more in fiat going forward.
Since I'm a "jerk of all trades" that covers just about anything If I see stack of plywood on craigslist for half price I am liable to buy that
Speaking of plywood, lumber is definitely not going down in price , if it wasn't so bulky I'd be stacking that faster than silver
I just don't see how someone looking to start adding silver, or any PM really, can start at these prices. But I am watching, learning and looking forward to a time when I can.
Jim
Currency Wants: Any note with serial number 00000731
but I did 10 years ago.
This could either be the mother of all buying opps or
a good head fake. Too many CBs buying for me to discount
the former.
Too many shops are bone dry right now. IIRC, Sinclair said watch for the wild swings
before the parabolic move.
Cohodk has already intimated that he will be one of these buyers at the right price. I assume he benefited as well from the 2002-2011 rally.
The "new" buyers.....are just some of the "old" buyers.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
<< <i>The poor sheeple who were scared by so many to put their hard earned dollars into a "safe currency", with "no counter party risk", now find themselves in shock and even more scared. I've asked a hundred times, "Where is the protection!!??" >>
Anyone scared into purchasing something deserves to take a loss on it. I believe most readers hear are smart enough to realize they are not only reading opinion, but they are reading the opinon of a crowd that is primarily pro PM. You and at least one other seem to consider it financial advice - we've discussed this before and I'm sure it will come up again.
Risk, yes, as with everything, even dollars. There is no counterparty risk with physical gold in your possession. As a former stockbroker you should know the difference. Your counterparty risk with dollars is having them and their future in the hands of bankers who have infiltrated all levels of government economic policy making. Google Cyprus, fractional lending and QE for examples.
Where's the protection? Ben Bernanke is the protection. And while recent history shows that he can cause downward price movements, it also shows they come back stronger.
From ZH: "Gold endures. If confidence in the currency is lost, or in the bond market; Gold is a safe haven" -Dylan Grice. There are good reasons to own gold. And to buy gold, there is now a reason more than a week ago: It's 30% cheaper.
It boils down to two camps - those that think Bernanke can keep the currency market and of the bond market in good standing. I'm in the "I don't believe so" camp.
Edited to add:
Coincidentally, this just popped up on ZH
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Rick Rule
jdimmick;Gerard;wondercoin;claychaser;agentjim007;CCC2010;guitarwes;TAMU15;Zubie;mariner67;segoja;Smittys;kaz;CARDSANDCOINS;FadeToBlack;
jrt103;tizofthe;bronze6827;mkman;Scootersdad;AllCoinsRule;coindeuce;dmarks;piecesofme; and many more
They really think that it can be done indefinitely without any repercussions. LBJ thought that he could finance a war that way. Until he couldn't. Bush & Obama thought that they could finance multiple wars and untold freebies for people who don't work. Until now, perhaps.
I knew it would happen.
<< <i>What are the alternatives?
Rick Rule >>
On come on, fiat currency will endure and the fed has your best interests at heart. No need to put some of your fiat currency into worthless silver which for centuries has been used as real currency and just happens to be a crucial metal for industrial applications. If you believe in future growth of electronics and business invest in silver, if you believe in fiat currency don't invest in silver.
Not being faceitous in the least, but will you update us on any problems (or lack thereof) you might have with delivery?
I knew it would happen.
I agree on that one!
<< <i>The type of buyers that took silver and gold up from the lows of August 1976, will be the same ones that take it up from this next bottom.
Cohodk has already intimated that he will be one of these buyers at the right price. I assume he benefited as well from the 2002-2011 rally.
The "new" buyers.....are just some of the "old" buyers. >>
But I did sell most too soon.
I was in a local shop yesterday. The two guys working there looked like the last two standing by the wall at a school dance. They were so dejected. Anyway, the thought came to mind that people dont really ever sell their PMs. They just die with it and their heirs sell it. Then the cycle starts all over again.
Prices dont have to drop because of selling, but prices do need buying to rise. When the buying wanes, so do prices, until eventually there is a collapse. It happens with all assets. Stocks, farmland, PMs. Its all the same.
Silver will shine again. And the cycle will probably shorten, but it will still take a lot of time for new buyers to emerge and have confidence.
Knowledge is the enemy of fear
Enjoy collecting vintage baseball cards, memorabilia and autos
Liberty: Parent of Science & Industry
Lol, the very LAST thing I want to do is to convert anyone into buying precious metals. I have enough problems of my own.
I knew it would happen.
<< <i>Update, have any of "the faithful" been able to convert any of your friends, family, or colleagues or acquaintences into buying their FIRST metal bullion lately? >>
Absolutely not. If PM's fell, I would never hear the end of it. Remember---"No good dead goes unpunished."
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>Update, have any of "the faithful" been able to convert any of your friends, family, or colleagues or acquaintences into buying their FIRST metal bullion lately? >>
NO...but I convinced by brother to buy a couple thousand shares of CLCT when it dropped to around $13. He likes dividend paying stocks & CLCT pays around 9%.
jdimmick;Gerard;wondercoin;claychaser;agentjim007;CCC2010;guitarwes;TAMU15;Zubie;mariner67;segoja;Smittys;kaz;CARDSANDCOINS;FadeToBlack;
jrt103;tizofthe;bronze6827;mkman;Scootersdad;AllCoinsRule;coindeuce;dmarks;piecesofme; and many more
I recently travelled through Southern Europe for a month and don't see an end to QE by central banks. Even if Bernake or BOJ wants to stop, the Euros will have to continue or risk social disruption.
<< <i>What jmski52 & PerryHall said; and one local business owner that used to give me a hard time for owning a non-interest barbaric relic has started giving me a hard time about it again...maybe that's a good sign :-) >>
Suggest you keep your PM stash secret.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
<< <i>No, I do want to own silver. But, im not going to pay $40, $35, $30, or even $25 an ounce for it.
I dont buy into any magical abilities of PMs. I dont buy into any fundamental reasons to buy silver. But I will buy it when it is a relative value. For the last 2 years I have seen no value, but it is now becoming interesting.
And I say I can buy twice as much because I can. Math is pretty simple.
So I guess to answer the OPs question, I will be a new buyer, but only when the price and timing are right. >>
Wise thinking!
not seeing any new buyers joining the forum at these bargain prices
Liberty: Parent of Science & Industry
<< <i>Update, have any of "the faithful" been able to convert any of your friends, family, or colleagues or acquaintences into buying their FIRST metal bullion lately? >>
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong