The price of silver

[Pipers]

@ilovesilverireallydo

Thanks for That much appreciated!

 

[vand]

 

[Mildred]

On 26.3.2018 at 08:27, KDave said:

Anyone who buys anything to sell on can be seen as a parasite if you want to look at it like that. Are shop keepers creating value? Car salesman? Banks? 

Precious metals are a good medium to save ones capital, much as saving your earnings in currency. You would not call a saver a parasite. They earned or have claim on the capital and want to preserve it. Cash is the equivalent of being robbed by parasitical inflation. Precious metals are protected from the thievery of inflation (for the most part) and function as long term stores of value far better than currency which has a poor history. 

 

I agree

 

By the way, putting down that provocative line (PM investors aren't creating any value. From a capitalistic point of view, they are kind of economical parasites) I was just reporting something which already is around in MSM and will even more when the reset kick in.

I wasn't putting down my view about hoarders.

That was clear, yes?  

[Mildred]

On 26.3.2018 at 02:34, sixgun said:

Some imagined we would return to precious metals as circulating coins. This is ludicrous and will never happen outside of a bomb crater and some Mad Max society. In these cases a bag of sugar is likely more valuable. There is a massive future for silver but not in circulating coins as a barter currency but as backing for 21st century cryptocurrencies.

A currency is a token of exchange. It can pebbles, sea shells, gold and silver coins or pieces of paper with the Queen's head on. It is a means of exchange. For this reason you are right to question gold and silver being currencies. Well they are because they are used as such by the financial markets, they are used by the international banks. The Bank of International Settlements has a dedicated trading desk for both metals. They deal in the metals as currencies in their task to manage all the major currencies. They are traded against the fiat currencies in the markets. This is the 'cash price' the spot price. It is the price against cash, where gold and silver are cash. This you could say is the relic of the past when fiat currency was backed by metals in gold and silver standards, where there were fixed rates of exchange between metals and national currencies. This still continues and gold and silver are still currencies b/c the markets recognise them as tokens of exchange even if this stop happening for the man in the street. The GSR is the exchange rate between gold and silver, as currencies. 

Money differs from pure currencies in that it is a store of value. Fiat currencies are short term money - they store value in the short term but we know as the banks push out more and more paper and digits there is inflation and value is lost.

The future is asset backed cryptocurrencies. When the US dollar collapses this will blow a massive hole in confidence in Western currencies. The Russians and China are piling up gold and silver to back their currencies - gold will be the main backer of these currencies. This is why the pair of them have a collective store of something like 70 000 tonnes of gold. They will be the kings of the world. There will be metal backed trade notes when the USD implodes - if you have metal we can do business but if you don't have something tangible get lost. Gold and silver cryptos will and are appearing. These are the future. Fully backed, fully audited currency. These can be trusted. Trade is dependent on confidence. A friend of mine did many $millions of trade in an import and export business. In 2008 confidence was lost and no-one would do business. He just had to stop trading. There was no longer secure credit and trading for him ended. This will happen as the fiat currencies come down and the cure is gold and silver backed cryptos. These can be transferred across the world in seconds - a bag of coins or bars cannot. This is why i keep banging on about Kinesis b/c this fits the bill. The future of silver as money through the medium of cryptocurrencies is massive. The upside is huge. It is not wishful thinking, it is inevitable and much nearer than most think except in their dreams.

Excellent post

I hope you don't mind if I quote it in another forum

 

[sixgun]

2 hours ago, Mildred said:

Excellent post

I hope you don't mind if I quote it in another forum

 

i don't mind. 

[Roy]

On 3/23/2018 at 17:43, vand said:

Roy's just getting upset as he once bought silver for £30 and is still bitterly holding.

Missed this!

$28.7/oz average actually 

Yup, bitterly holding  

[Silverclown]

44 minutes ago, Roy said:

Missed this!

$28.7/oz average actually 

Yup, bitterly holding  

If you want to sell, I can buy at spot

[Roy]

What, all of it?

[LittleJohnSilver]

I will be buying my silver based on pence per gram as I could care less for all this spot price malarkey.

My philosophy is simply to buy it cheap and stack it high.

The only silver coins I will be stockpiling for a foundation will be 1oz Britannias as I am in the UK (if I were in the US or Canada it would be that country's mintage), that are currently available on gs.be for £14.78 each (based on me buying 15 at a time including postage via BYB forum deals).

So that means pence per gram I am spending roughly £0.45 on silver. So any future silver buys will be bought at no more than £0.45 pence per gram or whichever is the new price for Brits from gs.be (within reason). That also means that if I want to buy a bar or coin or any other cheap .999 to .9999 silver off ebay, say for instance 5oz, I will calculate how many grams are in that 5oz to determine the overall amount I would expect to bid for said silver (minus postage).

I've been using that pretext to observe over 30 ebay auction listings in my watch list over the past week, and every single one of them has sold for either a few pence over total value or slightly under. It would appear many buyers are using the same approach as me when it comes to pence per gram. So off the bat many privately minted 100 and 250 gram bars with a buy it now price of £70-£120 respectively are immediately off my list. My pence per gram routine will be maintained at all costs! And as Jocko Willink says "Discipline Equals Freedom".

Gold - haven't yet decided how I'm going to approach that. Probably in the same manner with gold Britannias (1/4-1/10.....1/2 meh). Seeing which UK or European dealer sells it the cheapest including delivery, and then go from there.

[Silverclown]

21 minutes ago, Roy said:

What, all of it?

How many oz are there?( this is when I find out your stack is soooo, big that you’ve started to use it to mimic household furniture)

[Roy]

2260oz

So, you owe me £26,055.

Bank transfer or PP F+F?

Pm me for my details please.

[KDave]

@LittleJohnSilver Keeping costs low is a good strategy, having a target price per gram is also good short term, but what happens when spot rises will you stop buying? I am following a similar strategy but without the price cap, instead focusing on cost per ounce. Aiming to stay around 15% premium over spot, which is horrible to look at when comparing to gold, but it is what it is, the price of entry. 

[LittleJohnSilver]

7 minutes ago, KDave said:

@LittleJohnSilver Keeping costs low is a good strategy, having a target price per gram is also good short term, but what happens when spot rises will you stop buying? I am following a similar strategy but without the price cap, instead focusing on cost per ounce. Aiming to stay around 15% premium over spot, which is horrible to look at when comparing to gold, but it is what it is, the price of entry. 

I'll simply amend it to whomever is selling Brits the cheapest, and recalculate from there. I think it also depends on the individual's reason from stockpiling as well. Some might be hedging their bets for future flipping, others might be stockpiling in case of another *guaranteed* financial meltdown that kills fiat. Northern Rock in '07 was my wake up call.

[KDave]

3 minutes ago, Roy said:

2260oz

So, you owe me £26,055.

Bank transfer or PP F+F?

Pm me for my details please.

Where do you keep it all, the second fridge? Probably need 3 fridges for that lot. 

[Silverclown]

3 minutes ago, Roy said:

2260oz

So, you owe me £26,055.

Bank transfer or PP F+F?

Pm me for my details please.

Rofl( got me there)

[Roy]

I forgot to mention, no post offered. You're collecting this  

[LittleJohnSilver]

1 minute ago, Roy said:

I forgot to mention, no post offered. You're collecting this  

Over 72kg gross weight.

Jesus H Titty Christ and call me Arthur!

Hope he has strong pockets.

[Silverclown]

28 minutes ago, LittleJohnSilver said:

I'll simply amend it to whomever is selling Brits the cheapest, and recalculate from there. I think it also depends on the individual's reason from stockpiling as well. Some might be hedging their bets for future flipping, others might be stockpiling in case of another *guaranteed* financial meltdown that kills fiat. Northern Rock in '07 was my wake up call.

I’m not to bothered at the moment I’m happy to pay 20% over spot but aiming to get cheaper. you are right about north rock ,people are greedy and free fiat is always kaos.

[vand]

14 hours ago, Roy said:

Missed this!

$28.7/oz average actually 

Yup, bitterly holding  

I didn't say anything about average cost /oz 

TBH who cares what it costs. You've got the ounces stored. Some ounces may have cost more that they cost today, but the price of insurance goes up and down. 

Think of PMs as financial insurance policy that you don't have the annually renew.. you're just building a bigger policy each year.

[Roy]

10 hours ago, vand said:

I didn't say anything about average cost /oz 

TBH who cares what it costs. You've got the ounces stored. Some ounces may have cost more that they cost today, but the price of insurance goes up and down. 

Think of PMs as financial insurance policy that you don't have the annually renew.. you're just building a bigger policy each year.

You're correct, you didn't.

Everything you said above is true, but it's gold that fulfills that role for me.

I bought too much silver. Simple. The premiums, VAT, storage 'cost' and worry, lack of dividend/yield/interest and quality issues have convinced me.

I'll trade 35oz of silver for 1oz of gold, anyone?

 

[KDave]

27 minutes ago, Roy said:

 

I'll trade 35oz of silver for 1oz of gold, anyone?

 

Patience - give it time and the right conditions and you will be able to do that. Not sure how long it will be though, could be years. Short term not looking good, silver is breaking down according to chris aaron, gonna be another few months of sideways/downwards movement according to his TA, but he has been wrong before. 

[Roy]

Yes, I shall.

It was my fault for being naive and gullible- the scourge of the newbie stacker!

Perhaps I'll go on eBay and corrupt another newbie?

I think you know I'm better than that 

 

[KDave]

Sell the stuff that has gained premium and buy more ounces cheap, bring the average down a bit. Plenty of collectors on t'ebay willing to bite. 

 

[Roy]

Collectors or innocent fools?

I'll try putting them on here, if they are too dear, Premium members will tell me lol

[KDave]

14 minutes ago, Roy said:

Collectors or innocent fools?

I don't ask, I just sell at the price the market will bear. Does that do me discredit? I have bought silver from bullion by post before and felt like a fool, yet they are the largest bullion dealer in the UK (treasure island). 

Besides, at least on ebay people can use nectar points, ebay offers, top cashback and claw away some of the premium. Do we perhaps give willing ebay buyers discredit by thinking of them as fools in the first place?