Posted on 03/06/2011 6:27:42 PM PST by Errant
Where’s blam?
Which would make physical $42.81 at this moment.>>>>>>>
That is my take. Take a look at Sprott silver tomorrow for more indications. How about this. The reports of COMEX buying off people to go away and not demand physical silver in settlement. These people are being bribed at a price of 42-45$ an ounce to stop making problems, not 60 or 80. Just my guesstimate.
I have seen this going on for a few years where the silver and gold bugs try to gin up reports of COMEX being really squeezed by demand for silver and gold delivery plus all those guys hate JPM and Blythe Masters. They are making progress but the huge squeeze is not here yet
(ahem) I'm busy counting my nickels.
Market Vectors/Van Eck have been around for decades and are an ethical operation in my book. You know they run KOL, GDX and GDXJ.
As these contracts were, I'm sure, purchased on margin. They simply took the cash, having made a tidy sum for a relatively minor outlay. To have taken actual delivery, had that been the case (if they bought in at say $15 an ounce), they would have needed about 330 million dollars and a really BIG safe!
Sounds about right, which makes eagles in quanity a pretty good bargan. Not sure why, but I’ve always preferred them over bars and rounds. Well, actually I’ve ran the numbers and the extra premium is easily recovered and then some at sale.
I'd use caution as industrial metals depend upon the economy. You have to consider the possibility of an economic collapse as absurd as many think the chances of that happening are.
http://www.apmex.com/Category/160/Silver_Eagles___Uncirculated_2011__Prior.aspx
Eagles are best because are USA and most recognizable. I would consider 10oz silver bars that are stamped not cast. Older ones were cast but the new stamped ones are sharp looking like coins. Lower premium on those 10 ouncers http://www.apmex.com/Category/1186/Sunshine_Silver_Bars.aspx
You can’t stand for delivery on a contract purchased on margin. It needs to be fully paid for, in order to stand.
I personally think as the demand for silver increases, the requirement for the higher end stuff (Eagles, Maples, Kooks, etc) will relax. I’m already seeing this on the boards I frequent. Non primo stuff aka “generic” is now snapped up quickly around spot.
Me, I take it any way I can get it when I have the dough. Here lately I’ve been focusing on Mercury dimes. They’re (dimes)about the smallest bits you can get real near spot.
FYI (for those that don’t know), junk silver value equation is; face X .9 X .715 X spot = value. Its currently about 23.3 X face value.
1 oz APMEX Bar
Cost = 40.40
Sale = 36.28
-------------
Diff = 4.12
1 oz Silver Eagle
Cost = 42.04
Sale = 37.93
-------------
Diff = 4.11
You're 1 cent ahead by going with eagles ( the margin used to be larger), not to mention easier to liqidate and possible tax advantages at time of sale. They're also legal tender and will always be worth at least $1. :)
BTW, Canadian 1 oz silver maple leafs have a face value of $5!
Goldbug ping.
Its funny someone doesnt bow to pressure..and go for “it”.
In 2008 Minn Grain Exchange, supposedly the trade caught the Canadian Wheat Board (a govt entity) short the wheat market....
the “trade” took the wheat market from 8.00 to 22.00 with up daily limits, not letting the Ca. wht board even a chance to get out.
Where are the greedy capitalists on the silver trade?
G. Soros-—here is your chance for some extra pocket change
Bars are cheaper but dealers discount upon sale. Eagles cost more, but are not discounted upon sale, generally. eBay seems to get good sale prices, however. Rolls of Eagles are trending $810 to 850 per tonite, 100oz bars 3.7 to 3.9k. This makes retail spot in a range 37 to 41.!
Amd to think gold was $35 an ounce for over 40 years. Silver crashed to less than $0.50 during the depression, $1.29 was the magic number that made it go bye-bye from the coinage.
It’s been a number of years, so I’ll take your word for that. Any idea what the time frame is prior to end of contract to put up the money?
I’m not certain, but I believe it’s a day or two. At contract expiry, you state whether you intend to stand or not, and if you do, you’d better deposit in full before the deliveries start, which is a few days later.
(Assuming deliveries are going to happen ... three days in a row this month there have been zero deliveries of silver to the standing longs ... makes you go “Hmmmm...”)
IF this story above is true, who's to say Georgie wasn't secretly behind it? It took someone(s) with hundreds of millions and probably inside information on how much trouble JPMorgan was in, with shorting silver and actual COMEX supply on hand.
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