how can silver have 2 prices ?

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WHAT KIND OF TREASURE ARE WE HUNTING TODAY ?
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MINELAB E TRAC, EXCAL2,QUATTRO,WHITE 6000 DI PRO SL,EAGLE SPECTRUM,SILVER UMAX ,BANDIDO UMAX VARIOUS VINTAGE
i guess jim4silver is right. after my cool garage sale score, i wanted even more silver.i guess im addicted. i always want more ! anyway, i make some calls today. none to be had at anywhere near market price. what gives? i have read online and i still dont understand how the spot price can be so far from reality. why is it ?
 

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Silver has always had 2 prices- the price they buy and the price they sell. Be thankful your name isn't Ted- or you would be a-dic-Ted, but if you are a Ted, sorry. HH Mark
 

Spot price reflects only the value of silver on paper, as in a stock share of silver. Therefore a share's value is affected by the demand for it as a stock share. The more demand for it as a stock causes the price to rise, not the demand for the metal. Although an increased demand for the metal can increase the demand for the stock. In the most recent case your seeing in the stock market, the demand for silver stock shares is down thus the price reflects that. The street price how ever reflects an increase in demand for the metal itself. :wink: Conversely a decrease in demand for the metal will cause the street price to decline, but not necessarily the stock price per share. The stock price per share could increase as demand for a safe haven in the market for investors to hide their money in a stock with usually less volatility (Ups and Downs) like silver , gold and platinum etc... The point is that the stock and the metal are not intrinsically linked. :tongue3:
 

I think he said in other words, the stock price has nothing to do with reality. Kinda like what happened to the rest of the economy. :icon_sunny:
 

scrounger said:
i guess jim4silver is right. after my cool garage sale score, i wanted even more silver.i guess im addicted. i always want more ! anyway, i make some calls today. none to be had at anywhere near market price. what gives? i have read online and i still dont understand how the spot price can be so far from reality. why is it ?


Scrounger,

The way there can be two prices is that in the futures contracts (the "paper" price), it is dictated by the action in the longs vs. the shorts. Very rarely in the futures markets do participants request actual physical delivery (which can be done in any type of commodity contract, such as oil, pork bellies, etc.).

I believe that due to the great disparity in paper vs. physical prices, many of the longs are going to demand delivery in the next six months or so, and as that happens the paper price should go up. If the longs demand delievery the party who is holding the short position will have to come up with 5000 ounces to deliver. Supposedly the Comex warehouse has tons and tons of 1000 ounce bars for delievery, but who knows.

With physical at the retail level, it is a real supply and demand market, in that right now investors are buying up 1 to 100 ounce pieces and the dealers are having trouble replacing them at paper prices, so the price is much higher because they are having to pay sellers more to get the silver so they can keep selling it.

There have to be some wise business people with money who will realize that they could buy up 1000s of ounces at $9.00 or so and have them made into rounds and bars and retail them for a nice profit.

If it happened that the shorts were unable to come up with enough silver to satisfy the contracts, you would see another "Hunt brothers" type situation and silver would rise real fast.

Jim
 

I believe another "Hunt brothers situation" WILL happen to silver. There has been a LOT of manipulation against silver. Numerous big players are short the metal (Like the Hunts. Controlling a market). They have kept it down, but in reality the supply is much less than it is showing ot be.

If a large group of people who own silver asked for it to be delivered to them, from entities that supposedly already have the silver in stock to support the shares they have sold, I think silver would rise $6 an ounce the FIRST day, and maybe a lot moer for each of the next few days. Because COMEX has sold more shares than they have in actual silver. There is a lie out there, just like oil had a lie earlier this year based on some players. That caused it to go up to $145 per barrel, which was above what it SHOULD hvae gone to. Then, it crashed, for the reason that the position unwound itself. Silver is in the same boat, and I think will have the same kind of huge move up followed by a retreat that brings it back down, but not back to where it is today.

Silver is also being used at a higher level than in the past, with new applications each year. As it disappears it will become more expensive (like oil has). PUt it all together, and I am a buyer of silver. And hoarding it. Adding to all that is that the government sold silver for many years, from all the silver they had in coins and reserves. That is disappearing too, as governments are running out of silver supplies finally. Plus investors are waking up to silver for the first time in 2 decades, because of things like the silver eagle, which makes it easy to own and also a realiable medium and product.

So buy all the silver you can, keep all those 90% finds, and wait.

Think of it this way. A 12% per year return in a mutual fund doubles your money in 6 years (thanks to compounding). And that is considered a GOOD return. Better than recently, but that is skewed by the terrible market right now. Still, even from here, a fund that can double our money in 6 years is considered to be doing a good job. Do you think silver will be a double within 6 years from this low price? I think it is an EASY double, and probably MUCH more. Therefore i"m willing to hoard my (little) silver and wait. Wait until that Hunt Brother type explosion occurs, and then sell out for a triple ... or a five fold return. Treat silver like any investment you would make. If you have a portfolio of five stocks, or five mutual funds, then make it four funds and silver as the fifth. Don't look at it short term. People don't sell mutual funds on a daiy basis. They buy and hold, thinking it is going up over time. Eventually they sell. Buy silver, hold it, and wait. When it jumps huge, wait some more. Then, when it stops the jump, and starts down, you'll have time to still sell. And it will probably outperform the other four funds that you have! :-) So buy it like a fifth fund and just sit back and smile. Silver's day is coming, and I think you'll do better than 12% per year as an average. :-)
 

My options would be to either find silver thru dirt fishin (slow), CRH, (slim pickens), or buy from a source. If I figure my time and gas in, it's cheaper for me to buy off ebay, at March '08 silver prices. Now am I a gamblin' man?

AMC
 

Just remember that stocks are only worth the paper their printed on. While precious metals are worth, well whatever your willing to pay to get them and even more importantly what someone else is willing to pay you to get them. :wink:
 

thanx all. i was trying to read up on the net. u guys explained it a lot better. is there a website that gives the street price. insteada spot? someone mentioned oil.diff there was pump price mirrored stock price immed. maybe commodities do this on the upside only.but not when down.as no one has a reason to hurry to lower price for profit. i did fill my tank on gas for 2.39 gal today.so go figure. usually theres always someone willing to sell.
 

As far as street price, you have sites like Kitco, Apmex, and BullionDirect, etc. as references. They deal above spot but can be limitied on what they have in stock, and delivery times can stretch for weeks.

Ebay is a more personal and direct perspective of "street price" in my opinion. Just be aware of how the bay works and the fees associated and such. ;)

~Dave
 

Again I say the only street prices that matter are what are you willing to pay. And what are others willing to pay you to buy. If the down turn continues, which is a really stupid way for me to couch what I'm saying since we haven't even begun to see the bottom of this economic depression. Then what will you be willing to pay to get some precious metals which will allways retain some value while our U.S.D. might not. And if you then need to start using the PM for a currency what will you be willing to accept for it. Like how much silver would you pay for a loaf of bread ? That is,IMHO what we are talking about here ultimately. I know allot of people used to buy PMs for future investments but now days the reality is that they are a hedge against a looming economic collapse. :P
 

BBcardsRI said:
As far as street price, you have sites like Kitco, Apmex, and BullionDirect, etc. as references. They deal above spot but can be limitied on what they have in stock, and delivery times can stretch for weeks.

Ebay is a more personal and direct perspective of "street price" in my opinion. Just be aware of how the bay works and the fees associated and such. ;)

~Dave

I cant say for Kitco or BullionDirect but APMEX is top notch when it comes to delivering. They have been low on silver as of late but you have to check them constantly if you want to get anything such as rounds or bars. Small bars will sell out within the hour of being on their website and their rounds (Buffalo Rounds as of late) will sell out within 3-4 days. The last batch of rounds they had mustve been in the thousands and before you know it they sold out.

To put into perspective their great service I placed an order on the 12th October knowing that their website specifically said they would ship no later than the 20th. Their est ship was the 20th but they ended up shipping on the 16th. Today I received my order of 100 rounds, making that only 15 days from order date. They are the only dealer IMO that delivers according to what their website says...no such thing as delivery in weeks unless they specify that of course
 

Bullion Direct has also been very good with deliveries. Right now they are saying silver is on delay, and it is, but before this they delivered in about 10 days. now it seems to take about 30 days to deliver, as they are behind and slow on getting silver. But they have good prices, tight spreads on their Nucleo system (A way to sell in the future) and decent response time.

IMHO
 

scrounger said:
thanks for the links,guys. still at least 3 bucks higher than spot. plus shipping. im gonna call somemore and see if i cant find any at 10 or 11.


Scrounger,

You can find cheaper silver out there, but it is usually not the good rounds or bars. For example, yesterday I was able to buy some old Mexican silver coins, 5 pesos, 25 pesos, etc. The coins are mostly .720 pure silver and have odd weights to them. I was able to get them for about $10 per ounce. Some of the coins only had mintages of 200K, so maybe some numismatic value down the road.

Jim
 

jim4silver said:
scrounger said:
thanks for the links,guys. still at least 3 bucks higher than spot. plus shipping. im gonna call somemore and see if i cant find any at 10 or 11.


Scrounger,

You can find cheaper silver out there, but it is usually not the good rounds or bars. For example, yesterday I was able to buy some old Mexican silver coins, 5 pesos, 25 pesos, etc. The coins are mostly .720 pure silver and have odd weights to them. I was able to get them for about $10 per ounce. Some of the coins only had mintages of 200K, so maybe some numismatic value down the road.

Jim
thatsa smart play jim.i didnt find any.
 

scrounger said:
jim4silver said:
scrounger said:
thanks for the links,guys. still at least 3 bucks higher than spot. plus shipping. im gonna call somemore and see if i cant find any at 10 or 11.


Scrounger,

You can find cheaper silver out there, but it is usually not the good rounds or bars. For example, yesterday I was able to buy some old Mexican silver coins, 5 pesos, 25 pesos, etc. The coins are mostly .720 pure silver and have odd weights to them. I was able to get them for about $10 per ounce. Some of the coins only had mintages of 200K, so maybe some numismatic value down the road.

Jim
thatsa smart play jim.i didnt find any.


Scrounger,

Be careful with the Mexican junk silver. I found out after I bought mine that it may not be a good idea to get because when you go to sell it, dealers won't pay as much because the purity is below 80%. The smelters dont pay the dealers as much due to the lower purity, etc. I did not get too much and mine is in great shape, so I will hold it to see if it has any numismatic value down the road.

I will stick to buying .999 and US junk silver only from now on.

Jim
 

I went into a coin shop today. All he had was a 5 and a 10 ounce round. 20 per ounce, wouldn't budge. See ya.
 

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