Thursday, June 16, 2011


12.5 grams of paper for over 6oz of silver and 1.15 grams of gold.

This also works to 12.5% under spot overall and considering I spent a nice chunk above spot on the gold the discount came from silver. It's an interesting life in trying to get the best prices possible and technical analysis can let you do this, whether you buy on strength for a breakout move or on the dip after significant selling. I would consider this a dip with significant selling as the price has declined sharply and we now enter the seventh week of lower prices for the long term charts. I already bought twice since the market fell below forty per ounce and today was the third. I didn't want to buy unless I could get a deal I was happy with. Part of winning this silver and gold trading game within' bullion is knowing how to barter. In 2009 I would give offers that I thought was fair for both of us and it was easy to barter with this salesmen. When silver was around $24.30 CAD last year he said if you buy at least four, I can sell Eagles for twenty-five and the only thing I regret that day was not grabbing a couple more at that price from what I got. That is the cheapest I have ever managed to get top bullion that cheap from spot. Long story short is that when you get to know the traders as well as secrets to getting great trades then deals can be had.

Today I was offered pre 63 USA half dollars with the average year at 1944 at 90% silver for ten fiat a coin. It takes seventeen halves to make six ounces of silver and that is exactly what I purchased. There was nothing fancy about these coins as they are pure scrap value with some history and small collectors value attached. I wanted to see which '64 halves he has as those are the coins I like and none available. Because of the indecision in silver right now, it makes it difficult to pay premium on silver right now as the play is to wait on a breakout past forty or a move below thirty, and my number is twenty-nine with fibonacci going as low as twenty-six. The premiums will be a lot more if they go to twenty-six in comparison to the January lows of the same level and more so as it was making new thirty year highs in 2010. Therefore, the premiums are here to stay at these price levels and will stay this way until the price is much higher. Because of my waiting on silver, I got a little bit of gold (1/20oz) and the premium was high with ninety. I may have got it for eighty-five. At least he threw in a 1967 Kennedy Half in really good condition for free.

When you get little bits here and there, then it makes the transaction easier. The sad part about this is somebody sold those seventeen silver coins to him and I can only guess that the price given was well below spot if he turned it for 20% under. I would guess seven a coin and forty percent under spot, but I don't know. If you are ever looking to sell your silver or gold then I don't advice selling it to the dealer. If the dealer is giving you seven dollars a unit for something and you know there people eager to pay ten to twelve then why sell for seven? Use strategy to find buyers and with online advertising and social networking it is not that hard these days to turn them relatively fast for fiat. I am buying with a sell strategy when gold and silver are used as not uncommon trade and most likely common trade. When gold and silver are recognized as money, then I have myself a little. Fiat is held by confidence and right now people are confident enough to keep fiat the primary currency. Key word is held. It's holding on like a thread. There is nothing that can be done to add new confidence in the paper trash and I am surprised the masses don't see it yet, but it's now getting close to the anytime based on a large awareness of currency and politics that will change this world. It's not easy to guess when this will be, but its obvious its happening. Based on this type of an event, gold and silver will hold value over other real things which also have value. Those real things are items people use in their day to day lives and therefore those whom have passed on gold and silver and stored up on products that has maintained value. These people also win and example of this may be someone whom bought thousands of winter coats in a cold part of the region and can sell these back for gold and silver and maybe do better. Some have said this with food, but no matter what it is you are investing in you need to be aware how the changes will transpire. One of my predictions is that of scales both small and big that can weigh money (metal), foods as well as drugs. Whether you agree with drugs or not, it's a potential customer if you buy many of these. The problem you have is technological advancement, where I can buy $5,000 worth of scales and store them and in two years from now when that is the big thing, we could have scales more advanced in so many ways to reduce the value of the ones you held. For every buyer there has to be a seller and because of this you may want to visualize ways of how you are planning on selling any investment you make. I'll try and do more rants like this on the blog every so often but not too often.


If this is your first time popping into the silverlog this chart shows how far the current price action is from the highest highs and lows this market has. The low was $32.30 area and the high was $49.80 area and within' exponential math the middle point is barely above $40.00 per ounce. As long as the price starts with a three then the sellers are in control over this market. I don't see much pressure overall because I know for sure that this ponzi system is collapsing and the daily movements mean nothing. However, it is only price that pays, and we can hypothetically assume that a meal at your favorite restaurant is worth the same as a silver dime, and unless you leave that dime as a tip to the server then then that silver dime is only worth ten cents to them. I may sound a little optimistic or pro silver when I say this, but I am confident that there will come a time where 999 rounds and scrap silver coins will be accepted very commonly in trade.


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  2. Rants as in thinking and typing out loud are always welcome:) As most ounces still carry a big premium, I tend to buy mostly junk as well, except for the occasional Grizzly or Kook that passes by. After all, the costs of melting junk into bars by an acknowledged melter isn't that expensive in fiat. Funny how the silver-world, as all worlds are btw, are so divided. Some say we have hit bottom, according to their research and chart analysis (James Turk), others see it coming to 30 and then take of on a steady rise again, based on their research and chart analysis (Larry Edelson). We'll find out in the coming weeks, when QE2 "stops"... Cheers Derek and keep up with the ranting:)

  3. BTW buying a 1/2 pre '65 dollar at 0,88 US or 0,61 Euro per gram is dirt cheap I might add:) I can get 'em the cheapest over here in the Netherlands for 11 US. I probably will hold on to some Kennedy 1/2's, even after we will have topped in a few years, 'cos of sentimental value:)