Today, Saturday I just bought a couple grand worth of Silver

[hiwall]

So when gold and silver drop in price, people are really saying that they trust the endless supply of fiat paper dollars more than they trust metals that have held their value for many hundreds of years?

 

[Supervisor42]

So when gold and silver drop in price, people are really saying that they trust the endless supply of fiat paper dollars more than they trust metals that have held their value for many hundreds of years?

Not at all. It has more to do with people moving huge sums into and out of stocks in the market.
In the old days if you moved your money out of stocks it went into bonds for safe-keeping.
Most use paper PM's today instead.
When they dump money into stocks, it comes out of PM's lowering the price.
If you watch them both you will see:
Stock market goes up (everybody buying stocks), gold goes down because that's where their money comes from.
Stock market takes a dive (everybody selling stocks), gold goes up because they are all buying into it as a safe-harbor.
The value of the 'fiat dollar' has more to do with the global economy and how much our guvment is handing out, instead of gold (and PM's).

 

[Neb]

Not at all. It has more to do with people moving huge sums into and out of stocks in the market.
In the old days if you moved your money out of stocks it went into bonds for safe-keeping.
Most use paper PM's today instead.
When they dump money into stocks, it comes out of PM's lowering the price.
If you watch them both you will see:
Stock market goes up (everybody buying stocks), gold goes down because that's where their money comes from.
Stock market takes a dive (everybody selling stocks), gold goes up because they are all buying into it as a safe-harbor.
The value of the 'fiat dollar' has more to do with the global economy and how much our guvment is handing out, instead of gold (and PM's).

Pretty much concur on that.

Investors put money where it will do the most good for them ideally increasing wealth or at least preserve wealth. One way of understanding the markets and gold is to watch the DOW to gold ratio.

https://www.macrotrends.net/1378/dow-to-gold-ratio-100-year-historical-chart
It eliminates the the value of the dollar from confounding the markets and gold. The ratio tells us if investors are more comfortable with stocks or gold. When the markets look great the ratio goes to 40-50. About 15 is in the middle and when the ratio drops bellow 10 or so that indicates the markets are looking iffy and investors are moving to something safe.

Keep in mind that ratio is a macroscopic view of general trends. It does not explain daily fluctuations. The recent GameStop is an example. When the short positions were being called those that invested in the shorts had to come up with cash fast to cover their bets. That inflicted a hit on gold because there a lot of people dumping gold to get the cash they needed.

Ben

 

[hiwall]

Not at all. It has more to do with people moving huge sums into and out of stocks in the market.
In the old days if you moved your money out of stocks it went into bonds for safe-keeping.
Most use paper PM's today instead.
When they dump money into stocks, it comes out of PM's lowering the price.
If you watch them both you will see:
Stock market goes up (everybody buying stocks), gold goes down because that's where their money comes from.
Stock market takes a dive (everybody selling stocks), gold goes up because they are all buying into it as a safe-harbor.
The value of the 'fiat dollar' has more to do with the global economy and how much our guvment is handing out, instead of gold (and PM's).

Odd, I have noticed the exact opposite of that. When stocks go up often all commodities also go up. Like today, stocks and PMs both went up.

 

[Neb]

Odd, I have noticed the exact opposite of that. When stocks go up often all commodities also go up. Like today, stocks and PMs both went up.

Good eye

This is a time of uncertainty.

Some are looking at commerce opening up and others looking at at the obligation of the dollar.

I see this as an analogy with surfing.

We can sit beyond the reaf and watch it hapen.

We can throw ourselves in arbitrarily.

Or

We can time our entry ride the upward energy and move when conditions permit.

Its not something that can be done with our eyes closed.

Ben

 

[Supervisor42]

Odd, I have noticed the exact opposite of that. When stocks go up often all commodities also go up. Like today, stocks and PMs both went up.

Check out what the market was doing when I made my previous post (August 2020) about gold going over $2,000 an ounce.
Look at where gold is today in comparison to what the stock market was doing then, verses what the market is doing lately. (Record high today for the S&P500 )
I think you said it best back then:

I too, think it is a warning. PMs are going up because people are scared. They are scared of bad times ahead. And I think they are correct.

 

[angie_nrs]

I thought this video was interesting. I didn't know where else to post it, so here it goes.

 

[angie_nrs]

I had two seperate conversations with friends and family regarding PM's this weekend, and I didn't initiate either conversation. I think folks are waking up to the inflationary fears. I told some friends that we have stocked up as much as we can on PM's, but highly recommend it. They said they were concerned about inflation and were wondering what they should do. I told them what we're doing.....that we don't have debt, we're stocking up on everyday supplies, and have purchased physical PM's. Looking at how PM's are now starting to move upward, they might have missed a good opportunity to buy, but I still think (silver especially) is likely to go up from here.

One of the conversations was centered around the silver squeeze. I don't know if that whole movement will pan out or not, but I think there is still going to be pressure pushing Silver up in price regardless of the 'squeeze'. There is quite a bump going on in the silver market today.

 

[dademoss]

I may be wrong, but I am still investing in long term supplies and brass/lead when available.

 

[Cascadian]

We thought about adding some PMs, but there are still enough things we will need so that's what we are doing.

 

[Neb]

We thought about adding some PMs, but there are still enough things we will need so that's what we are doing.

Glint

We are putting money in every month into Glint.

It works like a pre-paid credit car. You put in money in dollars and when you choose you can convert to gold. You can then purchase stuff using the card and the payment is made from your cache of gold.

Ben

 

[Cascadian]

I don't think invisible gold or anything I can't touch is for me. Including a bank statement.

 

[angie_nrs]

If anyone was planning on buying PM's, I noticed a recent dip. I really haven't been looking recently since I think I'm all set on what I want to buy. However, it looks like spot has come down a bit, so that helps in getting more for the buck. Considering inflationary pressures, the price right now looks pretty good. Perhaps if you're looking for a place to park some cash, this might be a good option.

 

[Neb]

If anyone was planning on buying PM's, I noticed a recent dip. I really haven't been looking recently since I think I'm all set on what I want to buy. However, it looks like spot has come down a bit, so that helps in getting more for the buck. Considering inflationary pressures, the price right now looks pretty good. Perhaps if you're looking for a place to park some cash, this might be a good option.

You are spot on.

Ben

 

[Tacitus]

You are spot on.

Golden advice.

 

[Neb]

Golden advice.

Talked my money guy tonight. There are a collection of indicators that point toward inflation. The only one missing is a weakening of the dollar. With gold in a dip now the dollar weakening is not evident now. But it was just a few weeks ago that gold was flirting with a high.

So we will be padding the glint card.

Ben

 

[Supervisor42]

Talked my money guy tonight. There are a collection of indicators that point toward inflation. The only one missing is a weakening of the dollar. With gold in a dip now the dollar weakening is not evident now. But it was just a few weeks ago that gold was flirting with a high.

So we will be padding the glint card.

Ben

Nice to see people that are awake (not woke).
When gold tops $2,000 people go nuts and just gotta get some.
You don't buy high! :spanking:
You wait like a buzzard on a fence, (me) for some good news to come along.
This is what 'good news' looks like if you are buying:

Gold futures (XAUUSD:CUR) settled -1% to $1,763.60/oz. after declining as much as 1.7% to $1,749.50, the lowest since April 15, hurt by a stronger dollar in the run-up to this week's U.S. jobs report, which is widely expected to come in strong and could support the Federal Reserve's recent hawkish stance.
At the height of today's selling, gold was on track for the worst monthly decline since 2013, down more than 8% so far.

Oh, Boo hoo hoo!

 

[angie_nrs]

Silver's taking a bit of a spanking today. Good time to buy? It was just at $25.70, but I see it's starting to climb a bit since I looked at the current price. Still.....not too bad.

https://markets.businessinsider.com/commodities/silver-price

 

[hiwall]

Silver's taking a bit of a spanking today. Good time to buy? It was just at $25.70, but I see it's starting to climb a bit since I looked at the current price. Still.....not too bad.

https://markets.businessinsider.com/commodities/silver-price

Wow !
They are having a sale on real money!

 

[Sourdough]

I realize that many "know" there is actual Precious Metals in some shape or form that could be held in your possession, this is called Actual "Physical" Gold/Silver or dozen of other metals.

This is different from "PAPER" gold/silver/ or other metals "Traded" on markets in paper only. Be very careful when buying or selling that the party on the other side of the transaction does not snooker you. The "quoted" price for each is quite different.

 

[angie_nrs]

Yeah, I don't invest in the paper stuff. That's what cash is for. For physical silver, from what I have seen, it's going for about $4 spot over the market price......but that is delivered to my door. Spot can vary, so keep an eye on it and shop around.

 

[Biggkidd]

I kinda did the same on silver back in 2018 as I recently on steel. I got silver when it was $11 an ounce. I've used some of it since to sweeten some livestock deals. I personally don't KEEP UP with markets or trends I just seem to decide to buy things at the right time somehow. Never did quite understand how it always seems to work out.

 

[havasu]

Can you recommend a good place where I can order real silver (not paper) and ship to my house?

 

[hiwall]

Can you recommend a good place where I can order real silver (not paper) and ship to my house?

Many large coin dealers sell on ebay.

 

[havasu]

I found a dealer just down the street. I'll inquire there first. What is a good "over spot" price to pay?

 

[Bacpacker]

I used to buy my coins from Swiss America. I think they were located somewhere in Arizona. Not sure they are still in business, but I liked dealing with them.

 

[Tacitus]

Can you recommend a good place where I can order real silver (not paper) and ship to my house?

Look for a local coin store. Frequent it. Buy a little every paycheck. Talk to them every time. Build some trust.

However, I have bought online from Apmex, Provident Metals, and JM Bullion. I now buy exclusively from my local coin store, but if I were to buy online again, it would likely be from one of those 3.

 

[Tacitus]

I found a dealer just down the street. I'll inquire there first. What is a good "over spot" price to pay?

With spot at $25.50, my local store is selling an American Silver Eagle for $34.50. Apmex is selling the same for $38. Provident at $35.00. If you buy many (e.g., 500+), you can get them for cheaper. You can get lower premiums if you are willing to buy "junk silver" (e.g., pre-1965 US silver coins).

Premiums rise to very high levels when metal spot prices decline. (Put another way, when spot price is falling, the total price falls slower than the spot price falls, thereby increasing the premium.) This is because the dealers are trying to prevent loss on the downswing. But, if the spot price levels out, or increases, the premiums will decline with time. You just need to decide if you can wait. The prices are pretty volatile now, so there is usually no settle time to allow premiums to drop.

I don't worry as much about premiums as I do the total selling price. If the total price is reasonable, I buy regardless of the premiums. (If you know the "premium" on a Starbucks cup of coffee, you would think that metal premiums are always reasonable.)

The premiums on silver are higher than on gold, generally. So, I moved to gold long ago because the premiums for an ounce of silver can be 25-30% or higher, but the premium for an ounce of gold (depending on the coin) can be 3-5%.

Granted, gold is worth so much more, so you have to stack cash for a long time to buy gold. But, if you have that discipline, you can get the lower premiums. If you don't want a full ounce of gold, you can often find a tenth or quarter ounce gold coin for 10% premiums, but never over 20%. Gold premiums are always better than silver.

 

[bkt]

Silver's taking a bit of a spanking today. Good time to buy? It was just at $25.70, but I see it's starting to climb a bit since I looked at the current price. Still.....not too bad.

https://markets.businessinsider.com/commodities/silver-price

It is always a good day to trade Federal Reserve Notes for money.

 

[bkt]

I realize that many "know" there is actual Precious Metals in some shape or form that could be held in your possession, this is called Actual "Physical" Gold/Silver or dozen of other metals.

This is different from "PAPER" gold/silver/ or other metals "Traded" on markets in paper only. Be very careful when buying or selling that the party on the other side of the transaction does not snooker you. The "quoted" price for each is quite different.

If you can't stand in front of it with a rifle to guard it, you don't own it. That goes for everything, not just precious metals. Never, ever buy paper metals and always take physical possession; never allow others to hold your metal for you in their super-secure vault.