PMs are crashing. How low will they go?

[Wilmingtonsilver]

Since last week all precious metals have been on the decline, with the biggest two day drop in a long time going on right now. Any guesses on how low they will go before they stabilize again? We could be looking at a really good time to buy bullion coming up very soon.

 

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[boristhespider88]

I am hoping for $20 or lower, but that's probably just wishful thinking.

 

[jeff of pa]

$150.00 for Gold

$1.50 for Silver

 

[Wilmingtonsilver]

Sorry. this was posted in another section of the forum because I was an idiot and didn't think to look for a PM Prices section. Since this has already been the topic of discussion, please ignore this post.

 

[jeff of pa]

No harm

 

[tlowery04]

I'd be happy with 10$ bars again

 

[FreedomUIC]

I'd be happy with 10$ bars again

Good luck finding any at that price. NOBODY will sell a bar for $10.00 when they paid in excess of $20.00 for it at the wholesale level.

 

[Jason in Enid]

I would love to buy another 100 ozs if it keeps dropping, but that is a good point. Who is going to sell for $20 what they bought at $30? The refineries might have some to sell but I don't think any of my local shops would sell below.

 

[jeff of pa]

I would love to buy another 100 ozs if it keeps dropping, but that is a good point. Who is going to sell for $20 what they bought at $30? The refineries might have some to sell but I don't think any of my local shops would sell below.

some would out of desperation and lack of knowledge.
but it would definitely take a few years to make
most dealers forget

remember silver hit $50 back in the 1980's Then dropped to prices
below $10.00 by the 90's & you could pick up Rolls of Mercs for $15

 

[TreasurePirate69]

some would out of desperation and lack of knowledge.
but it would definitely take a few years to make
most dealers forget

remember silver hit $50 back in the 1980's Then dropped to prices
below $10.00 by the 90's & you could pick up Rolls of Mercs for $15

Agreed. It just takes time. Eventually the dealers would have to write off those losses if they want to continue being dealers. They will use dollar cost averaging to eventually turn a profit again.

 

[Bad Wolf]

Agreed. It just takes time. Eventually the dealers would have to write off those losses if they want to continue being dealers. They will use dollar cost averaging to eventually turn a profit again.

Point well taken.

 

[jim4silver]

Point well taken.

This is not how coin dealers operate. I have heard stories of coin stores not selling because the price drops too fast and people think they are not selling because of what they paid for the metals. In a smaller operation or a collector who decides to become a coin dealer this might happen for such reasons. But a coin dealer who has a store/operation that does a good business does not really care what they paid for an item they sell (within reason), they care about whether or not they can replace that item and at what price. If they sell you a roll of Eagles at a loss because the market moves down, they simply buy another roll wholesale to make up for the one they sold you and in a sense it evens out. A store could not make profits if their business operated like that all the time, but in instances like right now they can usually at least break even or simply make less profit if they know that they are doing. If the market drops too fast they cannot replace their inventory at regular wholesale prices because the supply tends to dry up and thus some may try to hide merchandise to they have some inventory at all times.

Further, the larger operation coin dealer I know hedges his inventory in various ways to protect against such instances.

Just my opinion.

Jim