What can be done with bags of .90 Silver?
DisneyFan
Posts: 2,884 ✭✭✭✭✭
One can argue silver may be a good long term investment right now.
If that is the case, I'm asking myself why institutions are not buying bags of them at the current discounts from spot and storing them? For example, with spot at $92.51 MONEX is selling $1,000 bags for $65,940 and buying them at $59,660. An institution could offer more on the buy price and hold the silver as is. The concept would be similar to buying closed end mutual funds at a discount.
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Comments
Maybe institutions are buying them and just not telling us 😁.
MIKE B.
risk
Perhaps because gutter metal is currently in the largest bubble of an entire generation? Institutions are there to make $$$ not to be bag holders. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
OR, you are a relic / fossil of the past.
COPPER is gutter !
Actually it is possible there would be no risk to the institutions themselves. Think of mutual fund familys (or fund familys) which are collection of different mutual funds, ETFs, and other investment products all managed and marketed by the same investment company, like Vanguard or Fidelity. These funds share a common management company but offer diverse investment objectives, strategies (stocks, bonds, money market), and risk levels, acting as a "one-stop shop" for investors to build a diversified portfolio with convenience and potentially lower costs.
to compare to a mutual fund, the bags would be bought with customers' funds and held on accounts for the owners
At this juncture, ASEs are preferred, but I wouldn't be selling any bags of 90% unless you need the money. If buying, buy ASEs. If selling, don't - if you don't have to.
I knew it would happen.
Because for a institution, $10 million would be a tiny investment, yet that would weigh about 4 tons. Why would they want to mess with that?
Knowledge is the enemy of fear
I also hear the junk bags make good doorstops. With what the dealers are willing to pay for them that's probably about the best use for them atm. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Retiring at 55, what day is today?
You also hear WHAT? You need an intervention. yawn yawn YAWN man.
COPPER is gutter !
bullion dealers are in the business of turning over inventory, they don't attempt to be stackers because of the risk.
When gold and silver move together, it signals the coming end of fiat money.
You're trying to force your conceptual view on others.
They do stocks and things that aren't physical. There is no storage cost nor risk.
As someone (Redneck) stated, in volumes, storage would be huge. Did you factor that into your question as well?
Another reason is that they can already quick flip, keep inventory smallish, and keep funds liquid. Liquidity is key for any institutions.
Also, while I see period being different, many remember the '80s with the Hunts brothers. Thinks tanked overnight and many lost their @$$3$. No one wants to be THAT person and take the responsibility.
So, they'll continue to buy/sell on the way up, or the way down, and hedge their risks that way.
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
That's right. I'm not referring to bullion dealers.
I'm mentioning the possibility of a closed end mutual fund created to hold bags of currently "deeply" discounted .90 silver in secured vaults. It would operate the same way the metals ETFs operate. The risk is borne by the shareholders, not the investment company itself.>
@Mike59 said:
Warren Buffett comes to mind.
Latest comments from Vermillion Enterprises.
Explains why the refiners are backed up. It takes 35 to 40 minutes to melt a $1,000 bag of 90% silver. In a day they could melt 5600 ounces. They take in more than 5600 ounces each day!
Just fyi for everyone, his supply process info starts at about 8 minutes in, though the entire thing is interesting.