If silver were $5 an oz..........?

[agmoose]

On another thread here, someone stated they wished AG would drop to $5 an ounce for a year so we could all stack like madmen. I wonder though, if it did take a fairly quick plummet to $5 an oz, how many of "us" would really be buying? What would supply look like? I mean if we were to spend the same $ amount as we do now, we'd be buying 4-5 times as much unless there were crazy premiums on bullion or 90%. Some of us that don't buy 10 or 100 ounce bars would likely be able to at $5 - what would supply look like?

Thoughts?

[Sheikh_yer_Bu'Tay]

$5.00 per ozt???! Ask yourself why do you buy silver and then Buy, BUY, BUY!!!

[Neckro]

I could use a nice door stop.

[beauanderos]

I'm buying at any price, each and every week I convert all my spare fiat to real money. However, I am POSITIVE that there would be numbnuts on this forum that would state assertively that they're going to wait until silver gets to $4 an ounce, or $3 an ounce before buying

[SilverDragon72]

That person that wanted $5/oz for silver must be out of his mind!

Oh wait a second....that would be ME!!!

I would try and secure a significant amount of the shiny if it were that price. (I'm buying regardless, up or down).

I don't want the price to stay that low forever though, just for a period of several months, then the price can go up again.

Supply would be really tight for a while, IMO.

[dakota1955]

that is still higher that when I bought my first silver

[InfleXion]

$5 silver would be great. Miners would go out of business with cost of production at $20. Exchanges would run out of metal (oh wait, that's already happening?). Electronics production would be backlogged waiting for silver to be mined. Oh wait, nobody would be mining at that price. Premiums would probably make the physical price higher than it is today. And the MSM would keep telling everyone the bull market is over.

[Morsecode]

$1000 clad bags for $1550 again? Oh yeah...I'm in. And don't forget the built in 30% max loss

[ZenOps]

Haha, if it was $5 I'd expect dealer premiums to go into complete reversal.

In otherwords, there would obviously be some sort of breakdown - meaning that as of now they typically sell at a premium to spot price. I'd assume that as the price got lower and lower (just like the bear market of the Hunt Brothers) that the dealers may start to panic and sell at a discount to spot price.

Its strange how gold and silver work, if it drops by a significant amount over a short period of time, premiums to spot go up. But if it starts entering a multiyear bear market, there seems to be a period of time where the dealers will sell at a discount to spot.

Sort of like a 2-year German bond at -0.02 percent. Seems illogical, but its reality.

[Sheikh_yer_Bu'Tay]

I could use a nice door stop.

1,000 ozt good delivery bar?

[scyther]

I could use a nice door stop.

1,000 ozt good delivery bar?

If it meant the difference between paying $5 an ounce and $9 an ounce, I'd find the money somewhere...

[agmoose]

Like all of you, I buy regularly, as my budget has a certain $$ amount built in, and I buy whatever I can with it regardless of price every week. I also would buy bags and big bars at those prices, and probably a little more gold than I have now.

I wonder - would CRH be more profitable again, would people just let 90% and 40$ halves go into the wild again, especially 40%ers as they'd be worth just a little over face as compared to now. I was talking to my Coin Shop guy about this scenario, and he stated he didn't think he'd have inventory if it dropped to $5, at least not initially. He said he also thought more people would venture back into numismatics if that happened, as many who previously collected stopped when silver and gold started shooting up a couple years back. Some of those guys went from coming into the shop to look for a certain buffalo nickel or Morgan dollar, to just coming in and buying ASE's or AG.

I certainly don't think we'll see $5. I hope we hang out in this general area for a while. I picked up some really nice modern proof quarters and 14 proof Franklins at my coin shop this week for the best prices I've seen in a couple of years. He had more inventory (90%) than I've seen him have in probably a year. At $5, I just don't think the little old ladies would make the trip to the coin shop to sell their dead husbands stuff - they'd just drop it at the bank.

[barrytrot]

I'm buying at any price, each and every week I convert all my spare fiat to real money. However, I am POSITIVE that there would be numbnuts on this forum that would state assertively that they're going to wait until silver gets to $4 an ounce, or $3 an ounce before buying

+1

[John Reich]

I know that when silver was $5.00 an oz I didn't pay that much attention to it. I did buy some 90% then, but I sure kick myself in the butt for not buying more! In my own defense, at the time it just seemed like the price was going to stay in the 4-6 dollar/oz range forever! The wonders of hindsight!