Thursday, November 6, 2008

how safe is my silver?

Q: There is always a concern that gold and silver could be confiscated by the US government.
Is this possible?

A: No, there are a couple of ways to view this. During the confiscation of gold in 1933, silver was left alone. There is no formal law out there that existed for silver. Second, silver as an investment only amounts to 10% or less of the silver demand, and the government would have a hard time confiscating something that is basically an industrial commodity. I’ve been in the silver business for 30 years and I’ve always thought it was a tiny market. But until I got to the point where I’m at now, having traveled the world and talked to industry experts, from the commodities guys and the smallest mining companies and everyone in between, I hadn’t realized it’s smaller than even I imagined. It’s such a small market that the logistics of a confiscation would be a nightmare and the cost enormous per ounce and it would hardly be worth it.

Tuesday, November 4, 2008

election day

Silver closed at $10.12 today, seems like its holding still for a bit, but who knows. If you read the stuff I have been writing then you probably know that if you save up your silver and wait a while then the price will go up then you sell it and pocket a nice chunk of money. Nice.

As good as it sounds if the election results turn our country into a socialist society the all of the silver you can sell won't be enough to let you rise to the top because there won't be a top.

Monday, November 3, 2008

where is all the silver at?

For as long as there has been coin shops around it has been relatively easy to walk on in and pick up a few ounces in one of a few forms.(bullion bars, rounds, or or government backed coins) When doing this the coin dealer would take the spot price of silver and charge a small premium to cover his cost of running his shop and in turn if you were to go to the same dealer and want to sell some silver he would take the spot price of silver and short you a small premium, again keeping the lights on and giving himself a cushion for change in the market.

But to today if you go to your neighborhood coin shop provided he even has any silver in his store you will most likely hear a price of five to seven dollars over spot. And if you ask why the premium is so damned high he'll say something like all of my suppliers are out right now.(they don't want you to know that average people selling silver at under spot prices are there biggest suppliers)
If they buy from a wholesaler then they pay a premium.

A bunch of silver is definitely going to an assortment of industrial uses but in these uncertain times people that have silver are just holding on to it real good.

With the stock market experiencing some mini crashes every few weeks and the American dollar in the toilet I don't blame them.

Sunday, November 2, 2008

silver is silver

Some people believe that in order to be able to make any money off of silver that you have to buy well preserved coins or bullion or some really nice proof sets with a mirror like finish in the striking.

At one time that may have been pretty close to the truth but these days we live in a totally different world where people that are purchasing silver are doing so for a couple of reasons.

1. quick buck( retarded)
2. long term market rising(smart)

because of the shortage of silver, coin and metals dealers are charging such a high premium that it in order to brake even on your silver the market has to rise seven or eight dollars just to break even.

So I believe that for your best chance at making a profit you should buy silver in the cheapest form that you can which in most cases is 90% silver(US. quarters, dimes and halve dollars dated before 1965). you can usually get them for a pretty low premium and each dollar of face value contains .715% of an ounce of pure silver.

So in the end, when the stuff is all getting melted down to be used for one of many industrial uses, it doesn't matter how pretty it is.

Saturday, November 1, 2008

silver, am I crazy?

I, like you don't know where the silver market is going. I do believe that the market price of silver right now doesn't come close to representing the supply and demand relationship of silver.

Everything you read says that each year we as a world consume more silver than we bring out of the earth yet the price of silver is in the toilet. Why? there is definitely some tricky stuff going on but it really doesn't matter because eventually the price will go up be fore we run out. and he who holds some silver will be happy.

I'm not telling you to run out and buy some silver, but instead to walk out and buy it all.

all investing is risky but as long as you don't put all of our eggs in one basket you should be fine.