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n/a
deleted
33 Posts |
 Posted - 07/17/2009 : 00:26:53
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Where will we sell our silver if and when silver hits the moon, i.e. $100, $500 or more per ounce!
I watched these two videos from this guy and he had some good points. He made it sound like either shops won't have enough cash money to buy back the silver and/or everyone will close their doors. What do you think?
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Edited by - n/a on 07/17/2009 00:31:19 |
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highroller4321
1000+ Penny Miser Member
USA
2648 Posts |
Posted - 07/17/2009 : 00:35:09
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That guy is an idiot! He has no idea how being a dealer works! Dealers will be making money on the way up and down! Its not going to go to $500 an ounce overnight.
You dont have to reley on a government instuition!
You cant even compare the 80's run up to now. What a moron.
Im not even going to waste my time watching the 2nd video... |
Copper Penny Investing
www.portlandmint.com |
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n/a
deleted
33 Posts |
Posted - 07/17/2009 : 00:55:59
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quote:
Originally posted by highroller4321
That guy is an idiot! He has no idea how being a dealer works! Dealers will be making money on the way up and down! Its not going to go to $500 an ounce overnight.
You dont have to reley on a government instuition!
You cant even compare the 80's run up to now. What a moron.
Im not even going to waste my time watching the 2nd video...
Ok, I get it, you don't like the guy. I understand. So how does being a dealer work? What other thoughts do you have on the matter of selling at those high prices? |
Edited by - n/a on 07/17/2009 00:57:11 |
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buyingsilvers
Penny Collector Member
441 Posts |
Posted - 07/17/2009 : 01:53:45
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he's right. the "to da moon" theory is somewhat flawed anyways. Silver should be seen more of an inflation hedge than anythng else. It's true that there could be an industrial shortage in the future, which would prop up prices, but more realistically, if silver is at $500, it means that the US dollar has weakened in value. Not so much that silver has increased in value, although it should strengthen in value in "real" terms due to skyrocketing industrial & investor demand.
If silver is at $500, the US dollar is weaker, and people should have more money because everything else has inflated. Think about hte zimbabwe 100 trillion notes. Besides, dealers work the spread. If silver is at $500, they're probably buying at $450 and selling at $550 or soemthing like that. |
Edited by - buyingsilvers on 07/17/2009 02:09:12 |
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n/a
deleted
33 Posts |
Posted - 07/17/2009 : 02:37:03
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Yeah, but who will be buying at $500. Not as many people that is for sure. I won't be buying at $500.
Also, if the US dollar is weaker and things cost more money even less people will be buying. And the idea that people will earn more money right along with inflation is crazy. There is no chance that people will make more money. Our culture is driven by cheaper. Our companies are driven by people who answer to stockholders and "returns". In other words outsource so they can pay workers less and shareholders can profit more.
I seem to think our government is going to pull a fast one on us with our currency. I think they will try to do some new currency BS. |
Edited by - n/a on 07/17/2009 02:38:42 |
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theo
Penny Hoarding Member
USA
588 Posts |
Posted - 07/17/2009 : 02:41:23
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Another option might be to sell on Ebay. You would probably get a better price than any dealer. Of course there would be a record of your transaction which may involve capital gains taxes.
To answer your question, a dealer needs to make a profit just like any other business. In my area dealers seem to pay between 70% to 80% of spot for 90% coins and probably close to spot for SAEs and Maples as they can be sold for at least a 30% premium over spot. However as prices rise that premium may shrink or disappear altogether. The bottom line is, a dealer will want to make a 30% profit at a minimum. However, getting cash may be worth it to protect your privacy. My advice is to call around to dealers in your area to get a feel for what they are paying and what they are selling for.
A third possibility is a black or a gray market materializing as a result of a currency collapse or severe devaluation. Here you may still get cash for your silver (if you dare), but more than likely you'd be trading it for other goods/assets.
Finally, its difficult to know when the best time to sell is. If silver hits $200 and continues to rise, we could be looking at a hyper-inflationary collapse; a bad time to acquire cash. I would wait until things begin to calm down and positive steps are being taken to stabilize the economy and the currency. In other words, don't exchange your silver for cash until you are reasonably sure that cash will hold its value. |
Edited by - theo on 07/17/2009 02:41:53 |
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n/a
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33 Posts |
Posted - 07/17/2009 : 02:54:53
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| If silver took off regardless of a stable economy or currency, wouldn't it make sense to get the cash if it could pay off your debt? For instance your mortgage? |
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Gr33nday43
New Member
Uzbekistan
10 Posts |
Posted - 07/17/2009 : 02:59:49
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| There would be other ways to get money rather than selling your silver...As in your paycheck for example. In an hyper inflationary scenario, money is VERY easy to come by. |
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n/a
deleted
33 Posts |
Posted - 07/17/2009 : 03:19:37
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| So are you telling me I'm going to own my home in a few years? |
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Mikep2020
Penny Collector Member
USA
402 Posts |
Posted - 07/17/2009 : 07:32:50
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quote:
Originally posted by ZippyGaloo
Yeah, but who will be buying at $500. Not as many people that is for sure. I won't be buying at $500.
Also, if the US dollar is weaker and things cost more money even less people will be buying. And the idea that people will earn more money right along with inflation is crazy. There is no chance that people will make more money. Our culture is driven by cheaper. Our companies are driven by people who answer to stockholders and "returns". In other words outsource so they can pay workers less and shareholders can profit more.
I seem to think our government is going to pull a fast one on us with our currency. I think they will try to do some new currency BS.
Once the public realizes the dollar is doomed and PM's skyrocket, there will be massive buying done by the rich people of america that don't have PM's and will pay anything to try and keep any sort of value in their millions of dollars in savings. I'm not talking about the elite, just average millionaires that have enough disposable cash to buy 1000's of ounces at $500 an ounce. The poor and middle class will not be buying, but instead be selling any metals they have just to keep current on their bills. This will be the final transfer of wealth before the dollar is reduced to toilet paper. There will be a tipping point somewhere along the line when regular folks abandon the dollar exchange and move into a barter type system. I plan on bartering with a majority of my PM's and only selling what I have to for fiat to pay off my remaining debt. |
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Country
1000+ Penny Miser Member
USA
3121 Posts |
Posted - 07/17/2009 : 08:41:44
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quote:
Originally posted by Mikep2020
quote:
Originally posted by ZippyGaloo
Yeah, but who will be buying at $500. Not as many people that is for sure. I won't be buying at $500.
Also, if the US dollar is weaker and things cost more money even less people will be buying. And the idea that people will earn more money right along with inflation is crazy. There is no chance that people will make more money. Our culture is driven by cheaper. Our companies are driven by people who answer to stockholders and "returns". In other words outsource so they can pay workers less and shareholders can profit more.
I seem to think our government is going to pull a fast one on us with our currency. I think they will try to do some new currency BS.
Once the public realizes the dollar is doomed and PM's skyrocket, there will be massive buying done by the rich people of america that don't have PM's and will pay anything to try and keep any sort of value in their millions of dollars in savings. I'm not talking about the elite, just average millionaires that have enough disposable cash to buy 1000's of ounces at $500 an ounce. The poor and middle class will not be buying, but instead be selling any metals they have just to keep current on their bills. This will be the final transfer of wealth before the dollar is reduced to toilet paper. There will be a tipping point somewhere along the line when regular folks abandon the dollar exchange and move into a barter type system. I plan on bartering with a majority of my PM's and only selling what I have to for fiat to pay off my remaining debt.
I think we got a little taste of that as PMs disappeared from sale from the PM dealers last fall. Nobody had any for sale; others made you wait for months. I believe when the average millionaire class of folks (9.3 million households in the US) start buying out of fear of a dollar crash, everything that money can buy will geometrically go up in price, PMs included. I agree with you that the middle class will be sellers to the rich folks just to try to survive the situation. I've been out of debt (slavery) for some time. I view PMs as a store of real wealth against the upcoming storm. |
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Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
Posted - 07/17/2009 : 10:05:06
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if you look at the history of silver when gold spikes up, it tends to lag gold. so in the 80's, gold spiked to 850 then silver to 50. silver's spike was steeper meaning you had to act fast to realize that price. everyone should have an exit price in mind. for me, when the price gets above a certain level i'm going to start lightening. i'll accelerate my lightening as it goes across various threshholds. it may never get there, or it could get to that number and leave it in the dust. there is no way to know. however, i think the odds are good that another maniaa phase will develop eventually. you'll know it because everyone will be talking about gold and silver and coins, not juts obscure boards like real cent. the nightly news will quote the gold price. you'll see more coin shops and coin shows. we still haven't seen that so we have a ways to go.
btw, a 100 oz bar at $500/oz is $50,000. With the largest FRN being a 100, you would need 500 FRN's to exchange that bar. Of course, its all relative. IF silver is $500 an ounce milk and gas will probably be north of $10 a gallon. |
Buying:
Peace/Morgan G+ at $15.00
copper cents at 1.3X
wheat pennies at 3X
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Heavy Metal
Penny Sorter Member
USA
86 Posts |
Posted - 07/17/2009 : 11:36:29
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I have to agree that people will still buy silver at $500 and will be buying up all along to bring it up to that amount. I was in a coin shop recently and another customer was asking if they were selling more silver now that the price had gone down. He said that they sold significantly more when it was over $20 than now. They couldn't get enough into the store to meet demand.
You see the same thing in the stock market. If a stock get's hot, people will be buying it even if it's completely overpriced because they don't want to be left out and the stock price will always go up, just like property values.
If there is an economic meltdown, an extended depression, inflation or whatever conditions that reduce the value of fiat currancy or demand for PMs there will be people willing to pay the price, perhaps even more than if the price stayed lower than expected. |
Ever notice how it's a penny for your thoughts, yet you put in your two-cents? Someone is making a penny on the deal! - Steven Wright
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Cody8404
Penny Hoarding Member
USA
602 Posts |
Posted - 07/17/2009 : 14:36:39
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| In the end remember silver is money. The paper stuff is just that paper. |
Awake, O kings of the earth! Come ye, O, come ye, with your gold and your silver, to the help of my people, to the house of the daughters of Zion, to the help of the people of the God of this Land even Jesus Christ. |
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Copper Catcher
Administrator
USA
2092 Posts |
Posted - 07/17/2009 : 19:27:25
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Oh, this guy implies he has a inside track to be able to sell back directly to the Perth mint. LOL, I would not trust this guy with my laundry.
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 07/18/2009 : 20:14:25
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Who will buy our silver when it hits $500?
The same fly by night artists who are buying our scrap gold now.
When PMs go up, the PM buyers come out of the woodwork. Granted, these buyers will offer, say, 90% of silver's melt value to those who will sell to them.
Consider alternatives to coin dealers (interested 3rd parties, i.e. survivalists who will overpay for silver, private buyers, private individuals with cash but a shortage of sellers, etc.)
Remeber this, when the price goes up so do the number of buyers, coin dealers or otherwise. |
Edited by - pencilvanian on 07/18/2009 20:16:29 |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 07/18/2009 : 20:36:33
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Back in 1980 as silver and gold peaked in price I recall my local dealers started to widen their spread between the spot price and what they would pay sellers for it. Common sense would seem to require that. No one wants to be stuck with a PM 'hot potato' as prices grow red hot and are in danger of collapsing. At least some of mine contract with the refiners and dump what they buy almost as fast as they are buying. Others don't seem to be able to or decide not to do that. As pencilvanian said, buyers still flock in just as long as the market appears strong. The problem with physical PMs is that they can be hard to unload quickly. I have missed selling at the very peak if only because I couldn't just drop everthing and run off to my dealer with my physical metals.
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jonflyfish
Penny Hoarding Member
USA
693 Posts |
Posted - 07/21/2009 : 19:59:51
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quote:
Originally posted by ZippyGaloo
Yeah, but who will be buying at $500. Not as many people that is for sure. I won't be buying at $500.
People said the same thing about the stock market when it broke 500... 1,000...2,000...5,000...7,000....10,000...14,000....10,000...7,000
If three silver dimes in 1960 would buy a gallon of gas then who in their right mind would buy those same 3 dimes for 10x face instead of buying a gallon of gas today? |
The first panacea for a mismanaged nation is inflation of the currency; second is war. Both bring a temporary (and false) prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunities. |
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Corsair
Penny Hoarding Member
811 Posts |
Posted - 07/21/2009 : 20:17:31
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quote:
Originally posted by jonflyfish
quote:
Originally posted by ZippyGaloo
Yeah, but who will be buying at $500. Not as many people that is for sure. I won't be buying at $500.
People said the same thing about the stock market when it broke 500... 1,000...2,000...5,000...7,000....10,000...14,000....10,000...7,000
If three silver dimes in 1960 would buy a gallon of gas then who in their right mind would buy those same 3 dimes for 10x face instead of buying a gallon of gas today?
That's insane! 9x face though, and you can send me a PM... |
So long, Realcent 1. Come visit us at Realcent.org! |
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Where will we sell our silver if and when...
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