Silver is on a tear!

[John4cam]

crazy, it's happening before our eyes.

[phillysrt4]

46.30 this morning in overseas before settling in the upper 35's!

[John4cam]

Gonna start using cash to wipe my ass with.

[phillysrt4]

you never know...

http://www.kitcosilver.com/

[Viper_ed]

I just purchased 900 troy oz. last week. That was a nice little bill!

[John4cam]

I just purchased 900 troy oz. last week. That was a nice little bill!

I can imagine! Did you through an online company?

[phillysrt4]

wow... you already beat the spot + commission on that then. congrats on joining the ranks of us who partially hold real, consitutional money!

[Viper_ed]

I can imagine! Did you through an online company?

Purchased from Umicore as Silver Strip. We braze it onto casting produced for GE where I work.

[phillysrt4]

I just purchased 900 troy oz. last week. That was a nice little bill!

its hit 49.85 before settling in at 49.08 as of this post.

[phillysrt4]

Don't believe the BS. People are taking advantage of the new margin rules to drive the price down. Margin rules don't change the fundamentals. This bull is far from tired

EDIT: http://www.commodityonline.com/news/...38740-3-1.html

[phillysrt4]

This just in my email regarding silver prices. Hang in there and use this dip to go long.

This past week's dip in the price of silver from nearly $50 per ounce down to below $37 per ounce is exactly what we predicted would happen a week ago on NIAnswers.

A week ago on NIAnswers we said, "The gold/silver ratio has declined during the past year from 70 down to 32. We projected it to decline to 38 this year, so there is a chance silver has run too far too fast. It wouldn't surprise us to see a large dip in silver prices with the gold/silver ratio bouncing back up to 40. However, we are 100% sure that the gold/silver ratio will decline to at least 16 this decade. Therefore, we think silver is a buy here for the long-term, but it is probably best to be buying gold here even more heavily than silver so that if silver dips in the short-term, you can sell some gold to buy more silver."

With gold now at $1,503 and silver at $36.81, the gold/silver ratio is now back up to 40, which is exactly what we predicted would happen a week ago when the ratio was 32.

With a gold/silver ratio of 40, silver is starting to once again become very attractive. Silver will likely remain very volatile in the short-term, but it is best for us to ignore this short-term noise and focus on the long-term. There is simply no better asset to own during hyperinflation than silver. We are 100% sure that the gold/silver ratio will return to its historical average of 16 within the few years, which means that those who buy silver today will see a 2 1/2 increase in their purchasing power.

Most of the people who are taking profits on silver today are going long U.S. dollars, which is the riskiest asset of all. Even though we knew silver was going to dip, we didn't sell any of our silver. We simply stopped buying silver in recent weeks and focused on accumulating gold. If silver continues to dip in the short-term, we will strongly consider selling some of our gold and using the money to buy a lot more silver.

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us

[Stangman701]

So I'm a total newb to this sort of thing. But all of your silver talk has got me interested. Where would I go to buy silver if I wanted it, and what are the general associated costs other than the actual $30-$50 per ounce(or whatever unit of measure they're using)? I don't have a ton of extra cash right now since I'm in the process of buying a house, but it might be worth throwing $500 or so at just to see what happens.

[phillysrt4]

i gotta hit the hay, but i'll give you some websites and tips tomorrow.

The long and the short of it is you will pay the "spot" price plus a small premium for each ounce. You can buy silver in several ways such as American Eagle silver 1 oz bullion coins ($1 face value), Silver Maple Leaf bullion coins ($5.00 face value) or bullion bars in 1 oz, 5oz, 10 oz, 100oz, and 1000oz sizes. Some companies also offer 1 kilogram bars as well.

Although they are in Canada, you can get an idea of what a typical online gold/silver website looks at buy perusing www.silvergoldbull.com and when I get online tomorrow I'll provide links to some online places that have a great reputation with a relatively low premium over spot in the US so you dont have to deal with cross-border shipping.

[phillysrt4]

Sorry... took me a little longer than expected... lots of work to do yesterday.

Here's a link to a site that did some reviews of online bullion stores:

http://inflation.us/reviews/

My folks bought their American Eagles from Gainesville Coins IIRC and they were quite happy with the purchase. It seems there are far more reviews on that site than there were when my folks bought in. Check the reviews and their websites to see who is offering the lowest premium over spot.

keep in mind that everyone is going to charge something like 2-3% on top of the price if you choose to buy with a credit card. To get the best price you will have to send a certified check or bank wire.

[Stangman701]

Sorry... took me a little longer than expected... lots of work to do yesterday.

Here's a link to a site that did some reviews of online bullion stores:

http://inflation.us/reviews/

My folks bought their American Eagles from Gainesville Coins IIRC and they were quite happy with the purchase. It seems there are far more reviews on that site than there were when my folks bought in. Check the reviews and their websites to see who is offering the lowest premium over spot.

keep in mind that everyone is going to charge something like 2-3% on top of the price if you choose to buy with a credit card. To get the best price you will have to send a certified check or bank wire.

Cool, thank you for the info. So do you actually get the silver shipped to you or you just have an account saying you have X amount of silver?

[phillysrt4]

Cool, thank you for the info. So do you actually get the silver shipped to you or you just have an account saying you have X amount of silver?

No problem.

I actually have physical silver shipped to me. I went through the aforementioned Canadian site to buy silver and hold physical silver as part of my investment position for a few reasons: 1) their great reputation, 2) their relatively low premium, 3) they buy back at a dollar over spot, and 4) buy backs of 1000 CAD or more = they pay for shipping back to them. You can also hold silver "on paper" through various ETF's if you have a discount brokerage account should you choose (which does make it easier to buy and sell), but since I am buying long I prefer to have the physical in my possession. If you're interested in exactly how I've decided to break down my position and my rationale feel free to PM me.

There is also the art aspect, in that the American Eagles and Canadian Maple Leafs to me are works of art that I enjoy looking at every now and then to appreciate the detail and craftsmanship that was put into the coins. There are also mining stocks and precious metal/mining mutual funds if you are interested in metal "derivatives" (i use quotes because im not using the word in the true financial sense). As always do your research before investing. Some people might be shitting bricks because of the recent "correction" in the spot price of silver, but IMO the "correction" is just an excuse to get people into a panic sell due to the scarcity of physical. The rise in price to cover a futures contract doesn't change the fact that the US economy is in the crapper, China is a net importer, and the physical is in such short supply you can expect a 3-4 week wait from when you place a physical order to when you actually get product.

In my opinion (and this is SOLELY MY OPINION, usual disclaimers apply), this "correction" is an opportunity to either average down or to get some physical at a reasonably good price. But again, do your research to see if you agree/disagree with me and keep in mind my position is very long (i.e. over a year) on physical.

[95DropTop]

Are there any tips or tricks to avoid dealers reporting purchases of gold or silver to the government to prevent a government seizure in the future?

I thought that purchases of precious metal coins above a certain lot would trigger a dealer report to the government.

[phillysrt4]

Are there any tips or tricks to avoid dealers reporting purchases of gold or silver to the government to prevent a government seizure in the future?

I thought that purchases of precious metal coins above a certain lot would trigger a dealer report to the government.

The only thing I can think of that would get reported to the gov't would be a transaction over 10k USD. However, I'm uncertain if it would be reported because gold and silver coins that have a face value would mean you are just exchanging currency to a different form. Like if you wanted your 100's converted to 20's that doesn't get reported to the govt.

I'd do a google search to check that. Being in Canada I don't have to worry about reporting to the US federal govt.

[phillysrt4]

Here's an email that I got from silvergoldbull.com regarding silver availability. Don't let the "on paper" price fool you.. there's still a supply squeeze...

SilverGoldBull.com Market Update

In an effort to keep our clients aware of current market conditions reflecting physical bullion we are putting out an update!

Silver Gold Bull has gone to great lengths to work with many suppliers which has kept our bullion supply uninterrupted, even when other dealers have been completely without inventory. However, with the "paper" prices of precious metals having been forced down to these levels the market is experiencing a tremendous amount of heavy buying from large investors, both private and institutional. The result has seen much of the remaining bullion removed from the market. This means that Government Mint (Canadian Maples, American Silver Eagles) delays are effecting our supply. The average wait time for products into us is now upwards of 3 weeks on NEW orders processed after today May 12, 2011. This means we are moving our delivery commitment to 4 weeks out. This is a safety mechanism to prevent frustrations of our clients waiting for delivery of the goods… we would rather be open and up front then to incur damage to our strong relationships that we have built with our customers.

As market developments continue, we will respond with our customers best interest in mind. Please remember to join us on Facebook and use the client feedback opportunity on our site. We look forward to our continued growth together.



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