Bought some silver today

[TheCoinKid]

Jim,

No great revelation, but our Middle Eastern friends have been impacting the price of crude oil for years, simply by controlling the amount of oil they produce. This impact has been lessened in recent years, as advances in drilling and oil recovery technology has increased US production, making us somewhat less dependent on foreign imports. So, yes, oil prices certainly are affected by the whim of foreign producers. Are there other forces at work? Who knows.

TCK

 

Amazon Forum Fav 👍

DR.ÖTEK Metal Detector, Waterproof Gold Detector, Pinpoint & Terrain Modes, Professional Metal Detector - Grab it through Amazon!

[jim4silver]

Jim,

No great revelation, but our Middle Eastern friends have been impacting the price of crude oil for years, simply by controlling the amount of oil they produce. This impact has been lessened in recent years, as advances in drilling and oil recovery technology has increased US production, making us somewhat less dependent on foreign imports. So, yes, oil prices certainly are affected by the whim of foreign producers. Are there other forces at work? Who knows.

TCK

TCK,

I cannot say for sure, but I doubt it is the Arabs manipulating this time because they are pi$$ed prices are dropping like this.


Just my opinion.

Jim

 

[Marchas45]

Hi! Jim, you said you where going to stack some food. Lol I guess this is the time to do it but hey I've had mine for a couple of years now. Now it's time to get your protection equipment. Lol

 

[fistfulladirt]

Does anyone care for Zombucks

 

[Marchas45]

Does anyone care for Zombucks

Yea I'll take some if their cheap. Lol

 

[jim4silver]

Yea I'll take some if their cheap. Lol

I was at one of my local coin shops and grabbed a couple of zombucks. I paid 1 dollar over spot just to have a couple but I am not a fan of the whole "zombie" theme. I can't see any real upside to these except for the silver in my opinion.

Also got a few Australian Kooks (random 1990's) for 4 over and they look great. Got a Fiji coin with a turtle on the back ($1 over spot), never saw one of those.

Jim

 

[fistfulladirt]

I was at one of my local coin shops and grabbed a couple of zombucks. I paid 1 dollar over spot just to have a couple but I am not a fan of the whole "zombie" theme. I can't see any real upside to these except for the silver in my opinion.

Also got a few Australian Kooks (random 1990's) for 4 over and they look great. Got a Fiji coin with a turtle on the back ($1 over spot), never saw one of those.

Jim

Jim, I have seen the Zombuck walker selling for double what I originally paid, on eBay.

I only bought 10, wish I'd purchased 100 -

 

[SilverHoarder07]

Jim, I have seen the Zombuck walker selling for double what I originally paid, on eBay.

I only bought 10, wish I'd purchased 100 -

This has been the theme of every design so far. Mintage stops and prices soar...good investment even with the premiums what they are...as long as buyers hold steady its all good. I will probably sell out soon after the final release....before everyone forgets them lol

I imagine the hype is short term and only renewed with newest releases.

 

[jim4silver]

Went to one of my local stores today and picked up some great modern silver dollar commems in boxes with papers for $15 (all were fairly recent years). The store was out of ASEs and Maples and had not much left in silver bullion. I did see some customers buying silver that had to be ordered (I would never do that). Apparently these low prices are bringing out buyers locally.

Jim

 

[jim4silver]

Actually bought some gold and platinum today, all in the same coin if you can believe that! I paid $750 (includes orig mint packaging, etc) although they sell on ebay and online stores for $1000+. They melt at under $600.

This is an example of what I got. Neat coin. I got the proof. The Unc version sells for $2500+.

2000 Library of Congress $10 Bimetallic Gold and Platinum Commemorative Coin

No more gold/platinum though until the ratio gets to 35 or so. As Uncle Charlie (Marchas) says, "keep stacking"!

Jim

 

[jim4silver]

Premiums at my local stores are way up on Eagles, Maples and other gov silver (including junk silver). The generic is still decent (1.50 over) but I don't want any of that stuff anymore. The Eagles are 4 bucks over spot. A 25% premium is too much to pay for high mintage modern gov bullion. If I wanted to pay that much premium I would get some old gold instead of silver and buy a nice MS 64 Saint Gaudens.

They say hardly anyone is selling them silver now so anything they get to sell is what they buy from their supplier.



Jim

 

[jim4silver]

Bought some cool stuff today. One of my coin dealers I hadn't heard from in a while bought a nice collection from an estate. Had lots of US silver commem dollars and Canadian proof (modern) silver dollars (plus a bunch of stuff I am not interested in but still neat stuff).

The Canadian proof silver dollars I bought below melt by a few cents. They only contain around .375 of an ounce of pure silver and are only .500 pure but come in nice cases with paperwork, etc. Paid a few bucks over melt for the US commems but could dump them on ebay for a nice profit if I want to do that (will keep them instead though). Also bought some Canadian silver proof sets that have one of the modern silver dollars and other non silver coins and paid 2 bucks or so over the silver price for the set. These ebay for around $20+ for the set depending on year I got mine for $8 per set. Was able to get almost the entire set of sets in one deal (not that these will ever be worth much except silver). Kind of having buyer's remorse on the complete sets since I didn't get them at melt but sometimes you gotta buy a few things extra to make the coin dealer think that HE got a deal selling me the stuff instead of the other way around.

This stuff better go up soon!

PS These are some examples I found online of what I got (I got the 1993 and 1992 sets which are still unopened). All other sets are 1980's and before.


http://www.ebay.com/itm/like/200854591574?lpid=82

http://www.ebay.com/itm/like/200885133199?lpid=82


Jim

 

[Backstrap80]

My local shop is cheap for US coins. Currently $13.xx face. They do online sales. Jim, can you tell me where you're getting gwnwric for .75 over spot please. Also, I can get a 21 Morgan PCSG MS64 for $65 should I grab it? I'm not into numismatics.

 

[Marchas45]

My local shop is cheap for US coins. Currently $13.xx face. They do online sales. Jim, can you tell me where you're getting gwnwric for .75 over spot please. Also, I can get a 21 Morgan PCSG MS64 for $65 should I grab it? I'm not into numismatics.

Not that great of a price on a regular Morgan, what is the mint? check on ebay for the average sold price and expect to get it cheaper outside of ebay.

1921 morgan silver dollar ms64 | eBay

 

[jim4silver]

My local shop is cheap for US coins. Currently $13.xx face. They do online sales. Jim, can you tell me where you're getting gwnwric for .75 over spot please. Also, I can get a 21 Morgan PCSG MS64 for $65 should I grab it? I'm not into numismatics.

Backstrap,

I have a few local dealers that I developed business relationships with that treat me pretty much like a fellow dealer, meaning they will sell to me instead of shipping off items wholesale sometimes. So if I go to a store they might have cheapo generic or BU rolls or commemorative silver, etc, that they want to send off and I take it instead. Sometimes they have nothing for me and sometimes they have so much I cannot afford it all.

So I can't direct you to a store that has stuff at that price all the time for joe public so to speak.

Jim

 

[skeeterd]

it's' good idea to keep a good relationship with your LCS. I've mentioned on here before that I only have one store within reasonable driving distance and he takes full advantage it. Right now he's selling 90% coins at 16.5 times face. I stop in and buy something every month or so just to see what he has and to visit. He had a pair of earrings some had sold him as scrap silver. They were indian made with real turquoise, not very big but nice earrings. My wife asked to see them, and the owner just gave them to her. That didn't directly increase my silver stack, but my wife doesn't complain when I buy silver either!

 

[Marchas45]

it's' good idea to keep a good relationship with your LCS. I've mentioned on here before that I only have one store within reasonable driving distance and he takes full advantage it. Right now he's selling 90% coins at 16.5 times face. I stop in and buy something every month or so just to see what he has and to visit. He had a pair of earrings some had sold him as scrap silver. They were indian made with real turquoise, not very big but nice earrings. My wife asked to see them, and the owner just gave them to her. That didn't directly increase my silver stack, but my wife doesn't complain when I buy silver either!

Heck Skeeterd, that is high (16.5 x ) heck I'll sell it to you for 14.5x plus shipping Lol Keep Stacking

 

[skeeterd]

Like I said, Charlie, he is the only coin dealer in a 150 miles and he takes full advantage. I only buy one or two dollars face every month or two. And thats just to keep a good relationship with him. I get most of my stuff from provident. And silvertowne when they have something I like on sale.

 

[TheCoinKid]

Ok, I spent a fair amount of my rainy day watching football and reading this thread.

I know a fair amount about the business of extracting natural resources (not silver mining specifically), and quite frankly think that most, if not all, of the data presented on this thread isn't worthy the digital space it occupies.

First and foremost, the location, climate, and geological formations that contain silver are wildly different and this has a major influence on the cost of extraction.

Second, most of the productive silver mines are outside of the US, and thus, face wildly different regulatory environments, which, believe me, also has a major influence on costs.

Third, reliable financial data that covers the spectrum of worldwide silver production simply can't exist in any reliable form. Many of the largest silver producers are privately (even govt) owned and are under no obligation to provide public financial information. Many of the firms that are public are either conglomerates or foreign-owned, which makes isolating or interpreting financial data to be problematic, at best. Also, TP is correct on one front, certain deferred maintenance and related costs can be turned on and off to achieve/mask financial results. Keep in mind, though, a fair amount of that maintenance requires production to be shut-down, which is less likely when prices are up. A bit counter-intuitive.

I do not buy into the concept that silver prices have a floor equal to the cost of production. There's just too much inventory out there for that to be true, not to mention the problem in determining that floor.

I, personally, will never be convinced that the current cost to extract and bring silver to market averages $20 or even $15. No empirical evidence offered here (as accurate support either way simply doesn't exist), but that price is just intuitively way too high. Those prices are just a silver pundit's way to justify their assertions.

Has anyone considered that silver production may be controlled in a manner similar to that of de beers and the diamond cartel? Makes more sense to me than believing in a hard price floor, based on production costs.

My opinions,

TCK

 

[jim4silver]

Ok, I spent a fair amount of my rainy day watching football and reading this thread.

I know a fair amount about the business of extracting natural resources (not silver mining specifically), and quite frankly think that most, if not all, of the data presented on this thread isn't worthy the digital space it occupies.

First and foremost, the location, climate, and geological formations that contain silver are wildly different and this has a major influence on the cost of extraction.

Second, most of the productive silver mines are outside of the US, and thus, face wildly different regulatory environments, which, believe me, also has a major influence on costs.

Third, reliable financial data that covers the spectrum of worldwide silver production simply can't exist in any reliable form. Many of the largest silver producers are privately (even govt) owned and are under no obligation to provide public financial information. Many of the firms that are public are either conglomerates or foreign-owned, which makes isolating or interpreting financial data to be problematic, at best. Also, TP is correct on one front, certain deferred maintenance and related costs can be turned on and off to achieve/mask financial results. Keep in mind, though, a fair amount of that maintenance requires production to be shut-down, which is less likely when prices are up. A bit counter-intuitive.

I do not buy into the concept that silver prices have a floor equal to the cost of production. There's just too much inventory out there for that to be true, not to mention the problem in determining that floor.

I, personally, will never be convinced that the current cost to extract and bring silver to market averages $20 or even $15. No empirical evidence offered here (as accurate support either way simply doesn't exist), but that price is just intuitively way too high. Those prices are just a silver pundit's way to justify their assertions.

Has anyone considered that silver production may be controlled in a manner similar to that of de beers and the diamond cartel? Makes more sense to me than believing in a hard price floor, based on production costs.

My opinions,

TCK

TCK,


You actually posted in the wrong thread but I will respond. For all I know it costs $1 to mine an ounce of silver. But what I have said, and will say again and cannot be disputed, is that many PUBLIC mining companies have not been posting profits for the past quarters. I can only consider public companies since they have to post profits/losses- I have no clue on private companies but would ask you, why would private companies all be profitable when many public ones are not lately?

By the way, these are the companies that bring silver to market. If they cannot operate profitably in time they will either mothball mines or sell. Over time if the price stays low production will be less. Maybe that won't matter if the demand for physical does not pick up.

The magic silver fairy does not bring silver to market, mining companies do. Like any company they have to make a profit at some point something has got to give since they cannot print money like the gov to stay afloat.

I don't believe the bottom for silver has to be cost to produce in the short run, but over time it will matter.

Just my opinion.

Jim