jim4silver said:
Bought 3,000 silver eagles there last month (decent timing at least!)
JRF,
That is a huge position in Eagles. I am curious, do you prefer them to Engelhard or JM one ounce bars/rounds?
I prefer the eagles and the prospectors. The main reason is that if we have a devaluation of the dollar (I think it could happen in two years) then silver and gold will go through the roof. And people will recognize the eagles more than the bars if I decide to SPEND them. People like the look of "coins" If i need to spend these in the future, I think the coins will work better. Just personal opinion though.
As for the premiums, boy do THEY jump around a lot. I mark prices on Nucleo from time to time. Sorta track the premiums. I show at one point a few months ago, when silver was at $9.84 per ounce, the eagles were at $16.54 bid by $16.80 ask. A HUGE premium. But when silver went up close to $11 per ounce, I was able to buy at $14.95 per coin and some in the $15's. I think the premiums will jump again at some point, and i"ll sell when the spread is higher. And the price is higher too, of course.
I also have a local dealer that gets eagles from time to time. He charges me $3 over spot to buy all he has. I got a bunch for $12.71 per ounce, and many more in the $13.50 range. That is sweet.
As for that house idea. I already started buying again. I went to two auctions two weeks ago. A Hudson and Marshall and an REDC. Two big firms that advertise these "Bank foreclosure sales. Hundreds of houses. Buy now, now, now!!" type stuff. I bought NINE houses. And at HUGE discounts. The lowest price was one that sold for $202,000 in 2005, has 3 bedrooms, 2.5 baths and a 2 car garage, is 1,395 sq ft, was built in 2001. Good shape, and doesn't even need new arpet (Most do). Even though it sold at $202,000 in 2005 it is worth about $110,000 today. OUCH! But, at the auction? I was high bidder and they accepted my offer at $47,500! For a house that is 8 years old and in a decent area. The way I see it, the value is down a lot, but the banks are selling well below the current value. Although I think values will drop more in 2009, this house may drop from $110,000 to $90,000. And I still own it at $47,500! Sorta like those silver rounds. The premiums came out at Nucleo. ANd the discounts will come out from the banks as we hit bottom, and they anticipate being able to raise some future prices. So I"m buying now on these deals, even though prices could go lower. (I also see a V bottom more than a U bottom, so when it happens I think things will change quick. And lastly on this topic, if hte dollar is devalued, the prices of hard assets will scream up. LIke gold and silver. And houses! WHich is how I htink Obama will get us out of hte mortgage crsis. Make inflation high, devalue the dollar and say it is a tradagy he has to do anyway, and hte mortgages stay the same but hte prices go up in the inflation, and that makes the negative equity people have go to a positive equity. The thougth is long, but that's the jist of it)
Anyway, that's something for you to think about as you contemplate buying a house. Don't buy at $110,000 on one that used to be worth $202,000, as it is going ot $90,000 I think, but also watch for the super deals when the banks give them, as they are lower than the bottom will probably be. :-)
(This is not investment advise. Just my opinions on my own situation and what I see. Blah, blah, blah. disclaimer)
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