sold some into this silver bubble

[jrf30]

I have a bunch of silver eagles I bought for an average of about 20.33 each. Tonight, someone was willing to pay $36.50 each for 100 of them. So I sold 100. I know it might be early, but I think silver is hitting a little bubble finally, so I was happy to sell some off. If it goes up, I have lots more, so I'm good. If it goes down, I sold some, so I feel better. either way, I win. :-) BUt that was a good premium above spot, and spot is high, so putting the two together I decided to sell a little.

I might sell another 500 or so if the price stays up here. I want to see what it does tomorrow. :-)

(I Know this is off topic from CRH, but we all seem to share what we are doing overall with silver, and so I share this with you guys - and gals - as my friends. You're more than just some bloggers who post on the same board as me. that's why Jeff I posted in spite of this being off topic. Plesae don't delete it if you don't "have" to)

 

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[SFBayArea]

Wow..you have a lot of eagles.. you got a stash of them.

I would wait unless you need the money. It'll go to $35 this year in my opinion.

 

[FreedomUIC]

Wow..you have a lot of eagles.. you got a stash of them.

I would wait unless you need the money. It'll go to $35 this year in my opinion.

45 - 47 steady at least. 59 - 62 by the end of next year with a few corrections. Egypt has shut down all mining because of
civil unrest and our supply is below the "Safe Limits".

Jrf, you did good
I remember your post about buying a "Monster Box" last year and was wondering when I would see you post about selling some
of them. Hold off, there will be a little correction but it is going to take off again.

 

[jrf30]

Wow..you have a lot of eagles.. you got a stash of them.

I would wait unless you need the money. It'll go to $35 this year in my opinion.

45 - 47 steady at least. 59 - 62 by the end of next year with a few corrections. Egypt has shut down all mining because of
civil unrest and our supply is below the "Safe Limits".

Jrf, you did good
I remember your post about buying a "Monster Box" last year and was wondering when I would see you post about selling some
of them. Hold off, there will be a little correction but it is going to take off again.

Eygpt might be a reason to hold most. Thanks. :-)

 

[rileyboy]

Well done. John. You got some money out of the deal and as you stated, "You will win either way."
Congrats,
rileyboy

 

[jim4silver]

Sounds like you did well JRF. Nothing wrong with taking some profits now and then.

Jim

 

[wharghoul]

JRF,

Curious, any of the profits going into copper or increasing your capacity (additional Ryedales) to cull coppers from the wild?

 

[mr_larry]

Silver bubble? I must respectfully disagree.
When we see $100 silver we might be getting high, but probably not given the state of the world.
There is a huge shortage of silver out there.

 

[jim4silver]

Silver bubble? I must respectfully disagree.
When we see $100 silver we might be getting high, but probably not given the state of the world.
There is a huge shortage of silver out there.

Mr. Larry,

I can't speak for JRF, but my interpretation of his use of the term "bubble" in his post was more like an intermediate top-overbought position that could lead to a long overdue near-term mini correction.

But that is just how I took it from reading his post.

As far as a shortage, that is what is being proposed, but I have been to some local coin shops this week and all had plenty to sell. We'll have to see what happens this month and into March with the Comex deliveries. If there is no default, which many pundits say there will be a default, then it will hopefully put the whole "shortage" issue to rest for a while. If there is a default then you will be indeed correct about the "shortage".

One big online site, Tulving, claims to have over 500,000 ounces of silver in stock for sale right now.

Jim

 

[mr_larry]

I think we had our 10% "mini-correction" in January. If you like following the action at the COMEX, you should check out Harvey's blog.
He does all the work for you in keeping track of silver & gold inventory. Also check out the lease rates for silver. From all accounts it appears we will be seeing record futures contracts taking physical delivery on their silver this month and next.
http://harveyorgan.blogspot.com/

 

[jrf30]

JRF,

Curious, any of the profits going into copper or increasing your capacity (additional Ryedales) to cull coppers from the wild?

I only have two hands, so one Ryedale is enough. This money won't need to go into coppper, as that is separate money anyway. But i'm still adding all the copper I get time to work. (never enough time)

PLus I keep adding rental houses to the list. Buying at about $60,000 and renting for $900 per month. Get a loan for $45,000, have $15,000 left invested in the house, and get about $3,000 per year NET cash flow. Good 20% cash flow WHILE waiting for the hosue to go up in value in a few years, when the dollar deflates more and inflation comes back. remember - hyper inflation would mean bread may cost $100 per loaf and silver will be $150 per ounce, but that same inflation means a house is worth more TOO. If it takes wheelbarrows of money to buy "anything", then i can use a wheelbarrow to pay off what will then be minor mortgages, and I own all the houses free and clear. PLus rents go up for the same reason. In 5 years, If nothing happens with inflation, i STILL hvae 100% of my money back (And spent on copper, silver, or more houses) and I own a house that is paying $4,000 per year positive by then with no money invested.

A long term plan. Diversified. But all hard assets, so if inflation comes it does not crush me like those with money in the bank in CD. When $100,000 will buy a volkswagon, those people wil llose their wealth. We in silver and gold will retain ours. And in real estate I'll do the same.

Enough. I babble at times. :-)

 

[jrf30]

This was in an article telling people to BUY silver. <<When this Gold bull market ends, everything except Gold and the dollar will crash. Gold will be locked to debt/dollars. Not Silver. Silver is poised to end the bull market with a worse crash than 1980.>>

Odd statement to make.

I'm MUCH more bullish on silver than on gold long term. the usage of silver will make it scarcer than gold over time, and I think someday we may even see silver hit parity with and then surpass gold. Not for many years, and maybe after I'm gone, but I think silver, with its industrial uses and such, will surpass gold someday in price. (For now, I'll take a 20:1 ratio with a big smile if it gives me that! HA!)

 

[jim4silver]

This was in an article telling people to BUY silver. <<When this Gold bull market ends, everything except Gold and the dollar will crash. Gold will be locked to debt/dollars. Not Silver. Silver is poised to end the bull market with a worse crash than 1980.>>

Odd statement to make.

I'm MUCH more bullish on silver than on gold long term. the usage of silver will make it scarcer than gold over time, and I think someday we may even see silver hit parity with and then surpass gold. Not for many years, and maybe after I'm gone, but I think silver, with its industrial uses and such, will surpass gold someday in price. (For now, I'll take a 20:1 ratio with a big smile if it gives me that! HA!)

JRF,

My interpretation is that he meant that when the bull market finally ends, gold will hold up much better than silver, much like it did in 1980. I agree with that view. In 1980 to 1985 gold dropped from 850 to 300 roughly. In the same time period silver went from 50 to 5, which is a much greater decline percentage wise.

Silver is widely used in industry as you mention, but there is plenty of inventory for such use. People keep talking about a silver shortage, and yes when you are talking about heavy hitter speculators seeking delivery on their Comex contracts all at once (like what is supposedly going to happen in March), then there could be a "shortage" with respect to enough silver being around to satisfy their contracts in the warehouse. But this does not mean there is an actual shortage of supply on the planet regarding what is necessary for use in industry. At some price holders will sell to make their profit if they are speculators or even collectors. Is that number 35, 40, 50 or 100? At that time there will be a supply glut and price could fall greatly, even in the face of a bad dollar situation.

Further, since the price has gone up over the past years more mines are getting up and running and I feel supply will be more than necessary each year for industry and investment demand from what I have read. As cost of production of an ounce is roughly 1/3 or less per ounce of the going rate, more miners are going to get into the action. In other words there is still plenty in the ground from what I have read in mine reports, etc. That does not mean though that in the next few years speculators cannot drive the price past 100+ in a bull market frenzy like you see at the end of a bull market (a greater version of what we have seen over the past week), but every bull market ends at some point, and it would be bad to be the one left holding the bag when that happens.

But if we finally end up in a depression situation someday, the demand for such items using silver will drop-consumer products, etc. If the dollar drops and we have a depression, gold will hold up better than silver, based on what happened in other countries in the past that had similar situations occur, such as the hyperinflationary depression in Weimar republic, etc.

All just my opinion. Wish I had a crystal ball to know for sure.

Jim

 

[Hi Ho Silver!]

I did the same with some 40%ers got $4.50 a piece today so i dumped 10 rolls. I couldn'd resist taking some profit! I'll put it aside to buy more when/if the price dives.