Why such a drop in silver prices?

apush · Sep 22, 2011

Hello All,
Any comments as to why we are seeing a dive in silver prices? I hope our finds pick up. Mine have been very slim as of late as compared to last year. When I checked coinflation.com a few minutes ago, silver had dropped to $36.35. Jim--what is your take? Greece?

apush :read2:

ImpurestStewart · Sep 22, 2011

Hard to say, It seems all stocks and Crude suffered heavily today. They are reporting record purchases in the London markets soon(mostly by Asians). Coinflation has a nice article on there home page if you want to go check that out. I think it is a healthy bull market with natural sell-offs and profit taking. Only time will tell though.

kleinerschmitter · Sep 22, 2011

Worst 2 day drop in the DOW in the last 3 years, makes for quite a swan dive in all categories

ImpurestStewart · Sep 22, 2011

Another thing, Don't Panic!! The price will come back up. Just hang in there.

Straight_Flush89 · Sep 22, 2011

What you need to understand about silver, is there is far less above ground silver, than there is above ground gold. Eventually, the yearly demand for silver will reach more than we can mine out of the ground annually, this is when you will see silver skyrocket. That demand will exhaust all of the above ground silver, the people who sell silver bullion will be cleaned out for use in industrial applications. The price will only go up in the next couple decades.

Gold however, is plentiful above ground, and has no industrial applications. Unless it is used to determine the value of currency, or is used to back up the USD again, it will drop steeply eventually. It's a huge bubble, because gold is not needed for anything. It's just valuable because that's how it's always been, since ancient Egypt.

Silver derives it's value from it's use in industry. It would still be at $3 an oz if it was like gold, and only an investment metal. Save your silver, we'll exhaust our above ground supply of silver eventually, and it will be up at $300 an oz no problem. Probably more.

mleblanc138 · Sep 22, 2011

I used the price drop to invest myself $2238 into Silver.

Gilmore Happy · Sep 22, 2011

apush said:
Hello All,
Any comments as to why we are seeing a dive in silver prices? I hope our finds pick up. Mine have been very slim as of late as compared to last year. When I checked coinflation.com a few minutes ago, silver had dropped to $36.35. Jim--what is your take? Greece?

apush

I sold all my .999 Bullion for CRH hence the massive drop in price!!!
BTW, Im calling ALL the way down to $29.84 before price stablizes.
Write it down.

koala33 · Sep 22, 2011

Everything is down... No biggie.. Just buy at a discount.

tmjones550 · Sep 22, 2011

As the world markets hit turmoil because of the Fed decision to sell short term bonds and invest in long term bonds by printing 400 million dollars,wall street did not like that because they were expecting more.So the stocks world wide took a deep dive,and in turn the world started to flee to the "safe haven" the dollar.So gold and silver suffered.But wait till next month when QE-3 hits.Metals will soar.Mark my words.

Hi Ho Silver! · Sep 22, 2011

It's all because of the Feds poor outlook. Anytime they have bad news the markets over react.

Generic_Lad · Sep 22, 2011

I'm just hoping they are still low when I go to one my coin dealers this weekend. I'm hoping there are a few silver Britannias I can pick up for less than $40. Or, I guess I could be really lucky and finally find some older British silver there... But that is quite unlikely :laughing9:

either way I hope prices on eBay drop, I'd like to get some more Victorian/Gregorian low-denomination silver.

trancealot · Sep 22, 2011

I used this price drop as a buying opportunity as well and picked up some walking liberty halves and some half ounce rounds. Since I haven't ever found any by CRHing yet, buying it is the next best thing :hello:

GEOFF · Sep 22, 2011

people are dumping, best chance to buy!

HaveAnyHalves? · Sep 22, 2011

Why on earth folks would seek shelter in the dollar, I have no idea? :dontknow:

Working out of town this week and went to a local coin shop on my way back to the hotel. Inquired about prices and just chatted for a bit. Anyway they were selling Morgans for melt. Is that a good deal or not? I normally do not buy old coins like that

Generic_Lad · Sep 23, 2011

HaveAnyHalves? said:
Why on earth folks would seek shelter in the dollar, I have no idea? Working out of town this week and went to a local coin shop on my way back to the hotel. Inquired about prices and just chatted for a bit. Anyway they were selling Morgans for melt. Is that a good deal or not? I normally do not buy old coins like that

Really depends on the year and condition. Things like 1921 Morgans trade pretty close to melt. On the other hand there are some rarities in the Morgan collection. Chances are if it is a coin shop you aren't going to get an extremely good deal unless you can cherry pick some good die varieties out of there, but buying it for melt you certainly won't be ripped off.

Gilmore Happy · Sep 23, 2011

Gilmore Happy said:
apush said:

Hello All,
Any comments as to why we are seeing a dive in silver prices? I hope our finds pick up. Mine have been very slim as of late as compared to last year. When I checked coinflation.com a few minutes ago, silver had dropped to $36.35. Jim--what is your take? Greece?

apush

Click to expand...

BTW, Im calling ALL the way down to $29.84 before price stablizes.
Write it down.

One more day and Happy nails the spot price? How does he do it?

FreedomUIC · Sep 23, 2011

Gilmore Happy said:
Gilmore Happy said:

apush said:

Hello All,
Any comments as to why we are seeing a dive in silver prices? I hope our finds pick up. Mine have been very slim as of late as compared to last year. When I checked coinflation.com a few minutes ago, silver had dropped to $36.35. Jim--what is your take? Greece?

apush

Click to expand...

BTW, Im calling ALL the way down to $29.84 before price stablizes.
Write it down.

Click to expand...

One more day and Happy nails the spot price? How does he do it?

You must have had a dream.... :laughing7:

jim4silver · Sep 23, 2011

Hi Apush,

There are many reasons for why PMs are correcting. But first I would like to say that a correction like we are having--and have had before, is totally healthy in a long term bull market. Nothing goes straight up for years without some corrections along the way.

I believe that right now due to the big stock correction many of the hedge funds and other big institutions are unloading their formerly profitable positions (PMs) to make up the losses on their stocks so their annual returns will not look like crap. No matter what anyone says the paper markets control the prices now and will for a while until more big $$$$ dives into PMs. That will happen eventually because the shell game that has been going on in world economies (endless money creation) cannot go on forever. But it can go on for long periods but when it does crash it crashes big. That is just my opinion.

Right now as I type this gold is at 1661 and is still over 28% over what is was a year ago. So if someone bought last Sept and sold today after this correction they still made a huge return.

I have been calling for a correction for months (and was wrong each time until recently--even a broke clock is right twice a day

), and thus have purchased mostly gold and recently platinum for the past 8 months because I knew silver would get hammered more percentage wise. I did buy some mint and proof sets at spot in the 33-36 range but only trivial amounts.

I believe if we get into the mid 20s silver is a screaming buy, but that is just my personal opinion.

Jim

madwest · Sep 23, 2011

Gilmore Happy said:
. . . Im calling ALL the way down to $29.84 before price stablizes.
Write it down.

I'm still calling it to go below $20 by end of year 2012.

http://forum.treasurenet.com/index.php/topic,422212.msg3011037.html#msg3011037

madwest said:
I know I'll get a lot of disagreement on this one, but it is my prediction that gold and silver will both crash within the next 15 months. I predict silver to go below $20 and gold to go below $1000. When it does, I'll buy junk 90% silver.

Cappy Z. · Sep 23, 2011

madwest said:
Gilmore Happy said:

. . . Im calling ALL the way down to $29.84 before price stablizes.
Write it down.

Click to expand...

I'm still calling it to go below $20 by end of year 2012.

http://forum.treasurenet.com/index.php/topic,422212.msg3011037.html#msg3011037

madwest said:

I know I'll get a lot of disagreement on this one, but it is my prediction that gold and silver will both crash within the next 15 months. I predict silver to go below $20 and gold to go below $1000. When it does, I'll buy junk 90% silver.

Click to expand...

Good call. The metals market is subject to the same supply and demand laws as other commodities. The world has an over abundance of silver. Period. Gold is continually being mined at a cost of approx. $1000 an ounce. But, since folks get gold fever every now and then, they feel it is a safe haven when the equities market drops big. However, much of the volatility is computer initiated trades on a large scale. Fund managers were just waiting for gold to hit a certain peak, then they sell sell sell, and reallocate later.
Bottom line, one should always think in terms of supply and demand.