Today at my LCS

[silverstacker]

I stopped at my LCS today on the way back from a meeting downtown and wanted to look for some art rounds and odds and ends. While there I noticed the art round box and generic box was completely empty. I obviously asked if they had more or decided to hold some back due to the drop of silver.

They told me that a certain guy came in and sold them $275k of silver at $46 or $47 an ounce years ago when price was high. Now today of all days he comes back in to the shop and buys every single 1, 5 , 10, 50 and 100 oz generic silver for $360k essentially wiping them out completely. They now have to wait for more generics to come in and re-order from their suppliers.

The guy (who by the way I asked if his name was Chris ) was able to sell at the peak and then come back years later and wipe them out of silver today. Hmmmm

Wanted to share this with the community as it's an amazing story.

[tdtwedt]

The guy (who by the way I asked if his name was Chris ) was able to sell at the peak and then come back years later and wipe them out of silver today. Hmmmm

I didn't know doc Rodebaugh lived in your neck of the woods.

[pennypicker]

Buy low and sell high--some people are fortunate enough to do so at a much larger scale than most of us!

[theo]

What did he use to buy the coins? A cashier's check perhaps? Such a large purchase would likely draw the attention of the Feds. Since he is buying, there would be no repercussions for now, but the authorities have a good idea where a fair-sized stash (20,000 oz?) of Ag is; not to mention any bank employees who see a 360K check written to ABC Coins.

BTW I,m pretty sure my little LCS could be cleaned out for less than 15k

[silverstacker]

What did he use to buy the coins? A cashier's check perhaps? Such a large purchase would likely draw the attention of the Feds. Since he is buying, there would no repercussions for now, but the authorities have a good idea where a fair-sized stash (20,000 oz?) of Ag is; not to mention any bank employees who see a 360K check written to ABC Coins.

BTW I,m pretty sure my little LCS could be cleaned out for less than 15k

They didn't divulge that detail to me but I'm sure any purchase like that has to involve multiple people a truck with security of some sort.

[theo]

True, 20,000 oz is well over half a ton. Too much for your average car but well with in the capability of a heavier truck. I didn't consider the logistics of such a transaction. Again, loading up a truck outside a gold/silver shop with security personnel would have drawn far more attention than I'd be comfortable with.

Forgive me, but I''m starting to wonder if this isn't a tall tale spun by your LCS owner to drum up sales in a depressed market. I don't think it was much more than a week between the time when silver crossed $45 and when it crashed into the low 40s on May 1st 2011. His timing would have had to have been impeccable. Sorry, I guess I'm getting too cynical.

[NDFarmer]

Buy low and sell high--some people are fortunate enough to do so at a much larger scale than most of us!

Damn it. NOW you tell me. I've always been buying high and selling low. No wonder I've never been very successful.

[pennypicker]

Buy low and sell high--some people are fortunate enough to do so at a much larger scale than most of us!

Damn it. NOW you tell me. I've always been buying high and selling low. No wonder I've never been very successful.

It's hard to buy "low" in North Dakota when those worn Morgans are bringing $40 to $50 each, LOL

[silverstacker]

True, 20,000 oz is well over half a ton. Too much for your average car but well with in the capability of a heavier truck. I didn't consider the logistics of such a transaction. Again, loading up a truck outside a gold/silver shop with security personnel would have drawn far more attention than I'd be comfortable with.

Forgive me, but I''m starting to wonder if this isn't a tall tale spun by your LCS owner to drum up sales in a depressed market. I don't think it was much more than a week between the time when silver crossed $45 and when it crashed into the low 40s on May 1st 2011. His timing would have had to have been impeccable. Sorry, I guess I'm getting too cynical.

I thought about that same thing initially and even asked them if they pulled back all their generics because they've lost so much on the decline. They denied my comment. Furthermore, there were two older guys that spend their days at this store going through old coins day in and day out and they were discussing it as well which made me believe it that much more.

[Mr Paradise]

No disrespect intended but I think their pulling your leg. My guess would be they moved the Ag into the back for the time being. I doubt your LCS would still be in business if it dropped 275k on $47 silver.

[68Camaro]

Silver was in the upper 40s for plenty long enough for profitable trades to be made by the lcs and the fall away from 49 was not precipitous.

[Mr Paradise]

The historical silver charts don't lie.

April 21 2011 to April 28 2011 was the peak. Silver was above $46 for 3 days during that time period. By May 5 2011 it sank back to $34.

There was another run up to the $38-$43 range from 14 July 2011 to 21 September 2011 before nose diving back into the low 30's by the end of September.

If true that man truly timed the market.

[68Camaro]

Your point is taken but you're counting wrong. It was above 46 from the 21st until the bloodbath on Sunday night 1 May.

[theo]

There are a lot of things about this sale that don't make sense. It sounds like this guy just walked in with a cashiers check for 360k and walked out with almost 1500 pounds of silver. Wouldn't this transaction have taken at least several days of coordination and negotiation? Also when you clean out a vendor like that you limit your buying options to his inventory, with no room for preference. You are also forced to accept all those cruddy and odd rounds that LCS's often have. Finally, why limit the transaction to just one LCS?

[daviscfad]

And what kind of LCS has that much silver on hand?

[silverstacker]

There are a lot of things about this sale that don't make sense. It sounds like this guy just walked in with a cashiers check for 360k and walked out with almost 1500 pounds of silver. Wouldn't this transaction have taken at least several days of coordination and negotiation? Also when you clean out a vendor like that you limit your buying options to his inventory, with no room for preference. You are also forced to accept all those cruddy and odd rounds that LCS's often have. Finally, why limit the transaction to just one LCS?

Again, this is what I was told and I persoanlly witnessed many regulars and employees gossiping about what they just witnessed. I wasn't there personally I just thought I would share with all of you as I thought the story was pretty amazing.

[silverstacker]

No disrespect intended but I think their pulling your leg. My guess would be they moved the Ag into the back for the time being. I doubt your LCS would still be in business if it dropped 275k on $47 silver.

Man this has turned into a "no disrespect" issue now? The place is massive and this WHAT I WAS TOLD. I'm sorry to even have brought this up.

[Cu Penny Hoarder]

I have to agree. No disrespect to the OP, but this "story" sounds a bit bogus and does not make sense.

[theo]

There are a lot of things about this sale that don't make sense. It sounds like this guy just walked in with a cashiers check for 360k and walked out with almost 1500 pounds of silver. Wouldn't this transaction have taken at least several days of coordination and negotiation? Also when you clean out a vendor like that you limit your buying options to his inventory, with no room for preference. You are also forced to accept all those cruddy and odd rounds that LCS's often have. Finally, why limit the transaction to just one LCS?

Again, this is what I was told and I persoanlly witnessed many regulars and employees gossiping about what they just witnessed. I wasn't there personally I just thought I would share with all of you as I thought the story was pretty amazing.

I doubt that anyone thinks you were vouching for the veracity of this story. In fact, I had the impression that you had a few doubts. I think its been an interesting discussion and I'm glad you posted it. It just reminded me of a pond shop I used visit occasionally. They were always low on silver because someone had made a big purchase the day before. After the third time I became suspicious.

[Treetop]

I know several cowboys out here who would have done something like that without thinking much of it.