jim4silver
Silver Member
- Apr 15, 2008
- 3,662
- 495
Over the past few days the price keeps going back in the 26 zone. In the past when the price bounced off the 26 zone it shot back towards 29, but it is not doing that now.
It may sound crazy but nowadays I actually get more excited to see silver correct than go up. The reason for this is I know I will not be buying anymore at some point in the future if/when it takes off again. But as long as it stays in the 20s I am buying whenever I have the extra cash.
Some online sites are talking about junk silver shortages at some of the larger online dealers, but my local dealers have lots of it available. I don't buy junk silver except on rare occasions since I can get .999 generic for a few pennies more and if/when silver rockets up it will hold its value better than junk in my opinion, based on what happened in the early 80s. If it ever gets to the point that so much silver is being sold due to its high price it is getting sent to the refiners instead of being resold to collectors (like what happened in the 80s), the junk silver will take a hit because refiners pay less for it than .999 due to its lower purity. However, if we have any scares here like we did with the y2K deal, junk will gain in premiums because people will believe they can "barter" or use it for survival purposes. I am betting against that scenario myself although I do have some junk silver stashed.
The good thing for now is that it seems the hedge funds and large speculators are ignoring silver and/or shorting it for the most part, so anything that hits the stock market negatively now shouldn't really hurt the PMs since they won't need to sell the PMs to offset their losses in stocks like they did in 08.
PS Tomorrow may be a wild day with respect to the Obama healthcare decision being announced by the Supreme Court and the Holder contempt vote taking place. Don't really think either will affect silver but will have the news sites working overtime I imagine.
All just my opinion.
Jim
It may sound crazy but nowadays I actually get more excited to see silver correct than go up. The reason for this is I know I will not be buying anymore at some point in the future if/when it takes off again. But as long as it stays in the 20s I am buying whenever I have the extra cash.
Some online sites are talking about junk silver shortages at some of the larger online dealers, but my local dealers have lots of it available. I don't buy junk silver except on rare occasions since I can get .999 generic for a few pennies more and if/when silver rockets up it will hold its value better than junk in my opinion, based on what happened in the early 80s. If it ever gets to the point that so much silver is being sold due to its high price it is getting sent to the refiners instead of being resold to collectors (like what happened in the 80s), the junk silver will take a hit because refiners pay less for it than .999 due to its lower purity. However, if we have any scares here like we did with the y2K deal, junk will gain in premiums because people will believe they can "barter" or use it for survival purposes. I am betting against that scenario myself although I do have some junk silver stashed.
The good thing for now is that it seems the hedge funds and large speculators are ignoring silver and/or shorting it for the most part, so anything that hits the stock market negatively now shouldn't really hurt the PMs since they won't need to sell the PMs to offset their losses in stocks like they did in 08.
PS Tomorrow may be a wild day with respect to the Obama healthcare decision being announced by the Supreme Court and the Holder contempt vote taking place. Don't really think either will affect silver but will have the news sites working overtime I imagine.
All just my opinion.
Jim
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