Skip to comments.SILVER: Everything You Need To Know
Posted on 04/25/2011 11:11:41 AM PDT by SeekAndFind
In case you're not paying attention, the silver market has gone nuts today, surging until near $50, before collapsing to around $46.
It's the most controversial, hotly-followed asset class in the world.
So what's the real story.
Earlier this month, Philip Klapwijk of GFMS presented a very through, complete look at the silver market: from its demand, its production, and where the current market stands in history.
It's definitely a great, complete lesson.
CLICK ABOVE LINK FOR THE REST
(Excerpt) Read more at businessinsider.com ...
I’m in iShares Silver Trust (SLV)....need to buy some physical silver. OR gold for that matter. Good post!
I’ve seen analysts predict $40 and it’s blown past that with no problem. I’m thinking this won’t stop going up for a while.
saving this one
Looking for a bit of advice ... I’ve convinced my 6 year old daughter to not spend her savings on cheap, Chinese plastic things. She wants to buy silver. The wife and I support the idea. I think it’s a great way to teach her investing at a young age and it’s something tangible she can hold for her money.
I wanted to buy online by the fees and shipping are nuts for such a small order. What would be the best way to proceed? We live in a smaller area, I was thinking a coin collector shop or something like that would be the most economical. Pawn shop? Any advice?
Ebay!!! That’s where I buy my silver. I buy the older silver American coins minted before 1965.
Buy us coins on Ebay the shipping charges are clearly stated and once in a blue moon you can actually find some below spot.
Ask around for recommendations. When dealing with them be polite, honest and ask questions; if they don't respond well then you're probably at the wrong place. Keep in mind their lives are crazy now too with all this activity.
I don't have any experience in dealing with pawn shops and silver, but I can't imagine it's better than working with a coin dealer.
So, am I ignorant in assuming .999 silver is .999 silver? Since she really wouldn’t be interested in any collectability of the silver (just the value), I suppose it really doesn’t matter what form (what type of coin, bar, etc.) it is. Am I correct in assuming this?
The coins are 90% silver 10% copper. And they can be used in an emergency like if the dollar collapses. But, yes a troy ounce of silver, is a troy ounce of silver. I’m not an expert, best to check it out for yourself. I started buying silver coins last year. With the way things are going who knows if the dollar might completely collapse and be worth nothing. The the precise number of dimes it takes to make one troy ounce of silver is 13.8236. If you want quarters, half dollars, dollar, it’ll be different.
A freeper suggested this site to me.
If you go to my FR home page I have a guide to buying Gold and Silver there that I wrote a few years ago.
Presentation does not account for price increases due to currency debasement and the trend silver is acting more like money as well as an industrial metal. Much of the price increase is due to QE1 and QE2.
RE: Much of the price increase is due to QE1 and QE2.
So, with QE2 just about to end pretty soon, do you think that Silver prices will retrace downwards a little? Maybe so.
But then we have this 1.6 Trillion dollar deficit we have to fund which the feckless Republicans only fought to trim by a mere $38 Billion.
The obvious question is this -— where are we going to get the rest of the money if we don’t borrow more? (this Congress thankfully isn’t going to raise taxes and with the Bush tax cuts in place until end of next year, new Fed taxes are not in play ).
So, the only two weapons left to fund the 1.6 Trillion deficit are to borrow and print.
Therefore, I can’t see why there would not be a QE3 and of course more devaluation in the USD and (unfortunately for those who are not into precious metals), the continued rise in Gold and Silver prices.
The scuttle butt I heard was the Feds might raise interest rates a bit (1/4 pts max) just to assure the markets and hopefully stabilize the dollars fall. The Fed also has made some money on its toxic assets, mortgages and loan repayments and will not withdraw that money from the system. Rather it will be used to buy more T Bills. The remaining shortfall will be met with a mini QE (QE3) which will be disguised in another name. June is going to be an interesting month. What will kill us is the overseas higher interest rates will attract money and leave us with very little capital to work with. Definitely there will be more inflation.
Be careful about Ebay. There are fake US silver coins appearing on the market.
A local coin shop works. Or Apmex or Kitco or .....
On a long enough run, the tradeoff in premium and shipping you pay to Apmex or its competitors is balanced by the safety of using a better known source.
Buying from random strangers on Ebay doesn’t seem the thing to do for a first time buy.
We will probably see a short-term drop of about $10-$15 it wouldn’t surprise me. Then it will be off to the races I had set my sights on $50 by year end but all bets are off now...we could be looking at well north of $100 even this year.
Old pre-65 silver coins? I buy from only repeatable people on ebay. You can look at their history.
S&F, thanks for all the interesting graphs and info.
If you find a reputable source of Sterling Silver, marked 925, meaning it is 92.5% silver, it might be nice for a child to invest in jewelry that can be used in adulthood or given as gifts to their children. I think eBay has a ranking system for sellers, I don’t know how reliable it is or how it works. Someone else know??
I have been buying from ebay for years. You do have to be careful but, the rating system is accurate. You can see how long the person has been selling, what they’ve been selling and any positive to negative feedback, including the percentage of said ratings. Also, if you use paypal to pay for your item and you have a problem, paypal will freeze the persons account for that amount of money until it is settled. If you have a paypal account they also have at least one credit card on record that they can use to freeze an amount too. Not that you can never get ripped off, but, there are certainly plenty of safety measures in place. I’ve had a few deals that weren’t that great but, it wasn’t for silver coins. After complaining the problems were resolved. I’ve bought a lot on ebay. My hubby can attest to that ;)
Here is a new story at Market Watch on the silver drop and all the other commodity drops. Over 300 comments, many very interesting and market strategy oriented. Perhaps someone could post this as an FR post. I have to leave for work now, but it is a really interesting story.
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