Are you seeing long lines to sell silver?
DisneyFan
Posts: 2,751 ✭✭✭✭✭
Back in 1980, the Hunt days, the news was full of stories about people lined up everywhere to sell silver to be melted down.
For those who were active back then, I ask were the refiners able to process the silver better then than they do now?
And are you seeing the same numbers of public selling today?
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Shops are busy stateside for the most part but lines out the door I don't think so. Yet. Worldwide there are instances of this.
I don't think the masses here in the US are tuned in. Yet.
COPPER is gutter !
Lines are all at the Shanghai, LBMA and COMEX vaults trying to turn paper into metal.
If two brothers can squeeze silver to $50, imagine what a world of stackers is about to do.
Keep in mind that we are still far below the inflation adjusted high. If silver hits $200 an ounce in the near future, I have no doubt that we’ll see crowds coming out to sell. (Although my very modest stack is not for sale at any price!)
Nobodys buying physical gutter. this is still all 100% paper driven. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
My guess is $100 silver will start things off. At the top back then the silver buyer shops sprouted up like weeds, and quickly disappeared after the crash. I remember one of the local stores was busted for buying stolen silver. I haven't seen any new stores yet where I live so it is probably still early.
I've encountered what looked like reasonable activity, but no lines like in 1979-1980.
I knew it would happen.
I was there in line in 1980. As a college student, I didn't have much money at the time. I remember deciding to sell my 1960-1964 proof sets for 21 times face value (for the dime, quarter, half), even though the actual "melt" value at the time was about 26x. No shops were paying higher than 21x. A few days later I was back in line with one roll of 40% silver Kennedy halfs. The shop's buy price was $80. The line was long and slow. Most people in line were selling. A guy behind me asked what I had to sell. He told me that he would give me $80 (cash) for the roll. So I sold to him and left the line early. I felt that was perfectly fine because this was an indoor mall and we were in the public area (outside the shop).
A couple days later, the silver price hit $46. I was talking to my college roommates about it. They mentioned that they had 250 silver dollars. I told them, you have to sell TODAY. Not tomorrow. TODAY. We went to look at the coins immediately and they were all common 1921 Morgans in various grades VF to AU. We called all the shops in town (Denver area) and the best offer was $24 each. Then one place quoted $26. We headed right over there and my roommates sold all 250 coins for $26 each. Theoretical "melt" value was $35 each. But I knew the price would drop, so it was time to sell. Sure enough, within a few days the price was a lot lower.
At that time (1980) the general public was a net seller of silver (just like now). Coin shops were taking it in, then channeling it to refiners who made 1000-oz exchange-compatible bars, and then those bars ultimately went through COMEX.
The difference between 1980 and today:
In late 1979 and early1980 there was only one significant buyer in the entire world - the Hunt Brothers.
Today, while the same coin shop to refinery dynamic is taking place, there are MULTIPLE large buyers in the world.
I have not seen anything even remotely close to a "line" this time around.
In 1980 I did not hear of any refinery bottlenecks. But once the silver price peaked and started coming down, buy prices dropped even faster. The Hunt Brothers were actually forced to liquidate, reinforcing the downturn.
However, this time, refineries stopped accepting sub-999 silver. But a curious thing is now happening. The refineries are getting through the backlog and some are starting to accept sub-999 silver again. And all of this is happening while the silver price is still going UP.
I am not selling my few marginal collector/bullion pieces at this time.
I know dealers that are saying its busier then normal (whatever normal is). Guess that's a good thing
Is it that there are fewer refiners today?
I remember late 1979 very clearly. I was 14 years old. My father pressured me to sell, and mistakenly believing that he knew what he was talking about, I sold way too early.
I continued following the silver market up to the peak in January 1980. The local coin store in my area never offered more than 24 times face. I remember calling the store on the phone and asking why they were only paying 24X and was told that "the refiners are backed up."
Stopped by my local shop this morning, and picked up a little 90%. Paid 40x. It was fairly busy in the shop. They were almost out of 90%, which I thought was odd. Usually they have $500+ face value in dimes, quarters and halves. All they had was halves today. They said someone bought everything they had earlier this week.
On a side note, a newbie customer was staring at their gold bars in their case. Most were 5 or 10g bars. One of the bars was a 10oz bar. HUGE. He asked how much for the 'big bar'. I don't recall what the dealer said, but it was forty-some thousand. The customer looked at me and said 'Wow, that's a lot of money. And look, the original price was only $999'. I said 'Uh..... 999.9 is the purity, not the original price'. We all had good laugh.
Dave
Busy than normal for me, although I have had to turn down lots of 999 due to asking price, (cant move it any longer close to spot) not gold though.
Once in a while Ill get 3-4 people who come around same time, and get backed up for a bit, but no lines.
I like to read post like yours with life experience. Thanks for the write up. I enjoy reading it.
NO lines.
More selling, but no lines.
You should have posted here...I've been tempted to sell some 90%, but just haven't gotten off my butt to do so.
If I get energy, I'm going to post some 90% proof/unc (from mint/proof sets and from commemoratives) at some point.
Also have circ dimes/quarters.
I like local as easy transactions and no shipping (holiday time shipping sucks)
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment