Silver Spot Fireworks

[GoDeep]

I'm not so sure about that... people obviously kept buying GameStop on the way up and are holding just to put a hurting on some of the hedge funds since they had to buy to cover their positions, even at a huge loss. Others are selling during the frenzy to take advantage of a little (or large) profit. Most of the activity will be in the paper contracts, ETFs... however, there will be trading in physical too. Here's a statement that I just accessed at www.apmex.com on 1/31/21 at 22:51 EST:

[FONT="][h=1]APMEX Statement On Current Market Conditions:[/h][/FONT][/COLOR]
[COLOR=#666666][FONT="]In the last week, we have seen a dramatic shift in Silver demand from our customers. For example, the ratio of ounces sold per day was running about two times earlier in the week and closer to four times the average demand by the end of the week. Once markets closed on Friday, we saw demand hit as much as six times a typical business day and more than 12 times a normal weekend day. Combined with the extremely high demand levels, we are also seeing a surge in new customers. On Saturday alone, we added as many new customers as we usually add in a week.
Any Precious Metal dealer will take a long position in the futures market to protect against spot price exposure when the markets open. We do this because it is our goal not to take a speculative position on metal. The weekends are unique as we are not able to real-time hedge our position. We took an aggressive position this weekend, but clearly could not have predicted the volumes that were seen. We have partnerships around to world that allowed us to cover these long positions, but only to a point. Once we exceeded our comfort levels, we had little choice but to stop the sale of Silver on our website. This was a difficult decision to make and unprecedented in our history.
As we evaluate the markets, it is difficult to know where Silver's price and demand will go in the coming day and weeks. APMEX is highly capitalized and has more than $150 million in inventory to support demand. We have made strategic decisions to procure additional metal, locking up any metal we can find in the market place. We suspect premiums will rise and rise quickly, as we are seeing significant increases in our costs, when we can even locate the metal. It is also highly likely that we will need an additional day or two to fill orders based on current order counts. The one guarantee we can make to our customers is that you will only be sold metal that is on-site, or we have procured the metal with a firm commitment date from our partners. In markets like this, we feel this is the best approach a retailer can take, as no one can predict product availability.
We want to thank our customers for their patience and understanding during these turbulent times. APMEX prides itself on best in class service and delivering on promises to our customers.

Regards,
Ken Lewis
CEO, APMEX

[/FONT]

You do make a good point, auctions still open on ebay, some buyers are just going to look at the current price and buy it anyway. I think most though, think this spike will likely only last a few days (if not, awesome) and then come back down.

 

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[Xraywolf]

Exactly, if you have physical silver, you won't be able to sell it until the market stabilizes again. Everyone knows, there will be a huge spike, then it'll drop back down, so no one is going to pay the inflated prices brought on by market trading for your silver coins and bars.

I agree, the average Joe like most of us are not in any position to reap huge benefits from manipulated market swings [nor have we made the huge investments it takes to reap huge benefits] I got a decent stash, am happy to hold on to it or partially sell if made an offer I can't refuse but am not particularly looking to cash in for green paper

 

[Duckshot]

Wasn't rhodium $1,600 a toz. just a year or two ago? Now it's more than ten times that and I suspect people are still buying rhodium. Rhodium is needed in manufacturing, same as silver is needed in manufacturing.

 

[mts]

Wasn't rhodium $1,600 a toz. just a year or two ago? Now it's more than ten times that and I suspect people are still buying rhodium. Rhodium is needed in manufacturing, same as silver is needed in manufacturing.

Silver is needed in manufacturing but we have plenty of silver in the world to meet demand and we can continue to dig up more for far less than $25 per ounce. It is not a rare metal like Rhodium.

The other problem with the industrial silver argument is that it is pretty much self limiting. We saw this back when silver went to $40. The solar panel makers started replacing it with copper/nickel instead. So the more silver costs, the less it is used in industrial applications. If there isn't a specific need that only silver can provide, then the manufacturers will stop using silver if the price goes up too much.

 

[mts]

FYI... silver down to $27.43 this morning. I think this was a false alarm.

 

[RTR]

Its about time silver did something ....now at ...$27.73

 

[fistfulladirt]

Still up 100% on all physical PM’s I’ve bought in the last year. Yes, I’ve not sold.

 

[badkharma]

Either way, I'm still buying, premiums not withstanding. If it helps stick it to the banksters, so be it. They've been sticking it to us forever. If not, my stack keeps growing, so win/win. This fiat madness can't last forever. Maybe it'll bail my kids out someday.

 

[Johnnybravo300]

I almost ordered 10 ounces yesterday till I saw the 40 dollar silver dollars and the 61 dollar Libertads haha.
The cheapest rounds were the Apmex house brand and they were almost 34 bucks, way high premium!
I laid awake for awhile debating it but decided to wait for now.
I've been stacking for years to hopefully avoid this type of situation. Same with ammo and everything else.
I ordered 40 silver dollars a couple weeks ago for 25 each and I almost puked.

 

[T.C.]

I almost ordered 10 ounces yesterday till I saw the 40 dollar silver dollars and the 61 dollar Libertads haha.
The cheapest rounds were the Apmex house brand and they were almost 34 bucks, way high premium!
I laid awake for awhile debating it but decided to wait for now.
I've been stacking for years to hopefully avoid this type of situation. Same with ammo and everything else.
I ordered 40 silver dollars a couple weeks ago for 25 each and I almost puked.

Price be damned, it may come down to a silver round for a loaf of bread or 100 rounds of 5.56mm.

 

[fistfulladirt]

Price be damned, it may come down to a silver round for a loaf of bread or 100 rounds of 5.56mm.

Romantic thought, but very, very few will have any silver for trade. I understand the thinking, but who’d give up any food or ammo for a silver round?

 

[jim4silver]

Thanks to the Wallstreetsilver folks on Reddit (and Wallstreetbets) the silver buying masses are in action. These are the folks that were driving Gamestop stock up so high recently. Now they are hyping silver buying. My local stores are completely out of generic silver bullion (they have high dollar graded coins, etc) and there is a 3-5 week wait for buyers who want to pay now and get it later.

Kind of fun seeing newbies getting hyped over silver and showing their new purchases online.

https://www.reddit.com/r/Wallstreetsilver/

 

[Actionman]

fistfulladirt "Romantic thought, but very, very few will have any silver for trade. I understand the thinking, but who’d give up any food or ammo for a silver round? "

Me. It is a store of value. One that you can hold onto. Would someone sell you a car for a semi truck load of food, unless they have a army to feed, it will spoil. Yet they will take silver for payment.

 

[Xraywolf]

Romantic thought, but very, very few will have any silver for trade. I understand the thinking, but who’d give up any food or ammo for a silver round?

I fail to see the romance.
SHTF scenarios have been discussed many years, decades even. If and when we digress to a nation of tribalistic barters, we don't know how it will play out. People will still produce and need food, ammo will still be produced and needed. Either or both may be plentiful in some areas, impossible to get in others, and everywhere in between. It goes without saying that its best to have an abundance of all in advance, so you can at least defend what you have while you work on stocking up some more.
The more urban you are, presumably the worse it will be, and PM will always be attractive to those with a surplus or continuous means of resupply.

 

[leadnugget]

Price be damned, it may come down to a silver round for a loaf of bread or 100 rounds of 5.56mm.

I don't think you're up to date with ammo prices as of late.
it's about 3 ounces for 100 556.

 

[T.C.]

Romantic thought, but very, very few will have any silver for trade. I understand the thinking, but who’d give up any food or ammo for a silver round?

Someone with lots of food and very little ammo.

 

[T.C.]

I don't think you're up to date with ammo prices as of late.
it's about 3 ounces for 100 556.

I wasn't trying to be exact...was that whole wheat, sourdough or just plain old white?

 

[leadnugget]

Sourdough, I make my own sourdough in a Dutch oven, it is really good.
i also cast bullets and reload, sitting on 1000 lbs of lead. Far more useful than my 2 pounds of silver.

 

[fistfulladirt]

I don’t get it, that much ammo. How many squirrels and rabbit can a person eat?

 

[T.C.]

I don’t get it, that much ammo. How many squirrels and rabbit can a person eat?

It's called taking care of your family and friends.