What's it going to take to stabilize this market?
Farmer_Bill
Posts: 60 ✭✭✭
Just looked at Kitco. $68.31 an ounce for silver. I remember the run up of 2011 and there were buyers all the way to the top. I was one of them. I was two rolls of quarters short of having $1000 face of 90% split evenly between dollars,halves,quarters, and dimes. I payed either 34 or 37 times face (can't remember which) to get those last two rolls on ebay. My point is there were plentiful buyers. My LCS is not buying at any price. I didn't even ask her sell prices. Seems the general consensus is to sell on ebay and take the haircut or sell to random strangers on facebook or similar. What's it going to take for a stable two way market to return? Much higher spot? Much lower spot? Spot staying the same for a while. Seems like buyers disappeared around $40. Buyers at 50 would still theoretically be way ahead. Just asking for thoughts about how will this market return to normal.
Comments
It's a great question! I don't have good answers, but I think everyone is in shock at how fast silver is going up. Perhaps folks are afraid it is going to drop just as fast. I dunno, I'm not buying, I'm just holding to see where it goes. JMHO
A belief by dealers/LCS that they won't buy high and get burned like in the past. If we flatlines in the $60's for a few months, that would be a start.
Why the price of silver has hit record highs.
It's simple - Demand has overrun supply.
Price will reverse (and quickly) when the big bullion banks and major players such as JPM and BOA decide it's time to cash in - they are the market makers.
When gold and silver move together, it signals the coming end of fiat money.
But they are NOT "major players" -- they are major CUSTODIANS meaning they hold it for others (like the iShares SLV Trust or SWFs or CBs or other institutional players).
The information from Google and AI is simply wrong when it says they control hundreds of millions of ounces. They don't. Total commodities as a percentage of Tier 1 Capital might be $20 billion (~5%), the Federal Reserve Board's theoretical regulatory limit, but even that is not a figure they want to be near and aren't.
On Nov. 28 JPM moved 13.4 million oz of silver from "registered, available for immediate COMEX delivery," to "eligible, unavailable for immediate delivery, privately owned and locked away." You're telling me they did this to someone else's silver? LOL.
JPM does not want it delivered (sold). They want to keep it.
When gold and silver move together, it signals the coming end of fiat money.
Control on runaway gov't spending would be a a good start, along with a sound monetary policy which imho neither are going to happen anytime soon.
tarrifs, regulatory restrictions on sales (taxes) would cool thinngs a bit. And, as Hilbilly once wisely pointed out, high prices tend to cure high prices.
Price equilibrium is the point where supply meets demand. Unless one is unstable, price is stable.
When gold and silver move together, it signals the coming end of fiat money.