Silver Smackdown

[Recyclersteve]

At about 5:26am EST I see the quote on Kitco for silver is $13.63, down $1.06.

At the start of the Coronavirus related collapse (Feb. 24th) silver closed at $18.77 per Kitco. So it is down 27% in just 3 weeks. That is remarkable and may be an opportunity for some.

Of course, you have to find silver available at a reasonable price. If a dealer tells you he will sell it at what is the equivalent of $16.50/oz., what good is that? Also, if they sell you a bunch of slicks (heavily worn coins) and want something like 12.9 times face, what good is that?

You might need to call around some because it will likely be hard to find a decent quantity anywhere near the market price. What could help is if you stumble into a dealer who just made a large purchase. If their inventory was purchased mostly several weeks ago, it may be sitting in the back room and unavailable until the price goes way back up or until someone is willing to pay a very high premium to get it.

I remember Sept./October, 2008 very well when silver fell below $10/oz. for the first time in a long time. I went into a local dealer that I'd known well for many years. He told me he was limiting buys to just 2 silver American Eagles per customer- not 2 monster boxes or 2 rolls but just 2 coins! I did manage to go across town to another dealer who sold me a nice slabbed set of NGC MS-69 ASE's (20 coins from 20 consecutive years). But it was really difficult to locate any decent quantities. I hope you have better luck than I did in 2008.

P.S. As I am ready to hit the Submit button I looked at silver again and see it is 5:37am EST and the quote is now $12.98, down $1.71. I wish I could buy some of this right now, but the premarket (stock market) session isn't open as yet. Wow!

[68Camaro]

Well, we're back in 2007-2011 territory it seems. Sigh...

The silver market is dominated by paper and paper futures. Good luck buying physical at these prices - few will be selling anything of consequence. TPM just announced minimum buys of $1000 and no shipping (storage only).

[Cu Penny Hoarder]

HURRY!

Inventory is disappearing, and I predict today, most of it will be gone. Also, premiums are going to SOAR!

Unbelievable buying opportunity right now if you can get it... don't have cash, use a credit card... just get some!

[Cu Penny Hoarder]

Apmex and many other dealers just raised their premiums again. Their 90% is now $5.00 over spot. Got some more this morning before they raised it. Most of their inventory is now sold out, like many other online dealers.

Just last year, the premiums on 90% ranged between 0.29-0.49 cents. What a deal.

Haven't been to my LCS in a while, but I'm hearing that the majority of them are sold out too.

[Thogey]

Maybe cheap silver will be vomited up in the coming weeks from people who bought silver for a crisis. A crisis is here.

[Recyclersteve]

For those who have the correct level of comfort/expertise, you can also buy silver in the stock market without paying big premiums. There are a number of ways to do this (stock in miners, ETF's, options, etc.). Each has their own pros and cons. Don't get sucked into thinking that paying a big premium at a coin shop is the only thing that can be done. But, of course, you can still lose and lose big in the stock market.