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- - I was at this coin store today.... (http://goldismoney.info/forums/showthread.php?t=6699)

Maple Leaf Steve | 01-08-2004 04:00 PM
I was at this coin store today.... The Dealer had about 200 junk silver quarters. He wanted 5 times face for them or $1.25 each Most of them were WA quarters with some slick SL Quarters mixed in. We are all pretty sure that silver is going to take off pretty soon. Would you have boughten some or all of those quarters? MLS

hoarder | 01-08-2004 04:34 PM
Re: I was at this coin store today.... Heck, no. Not at that price.

kleinphi | 01-08-2004 04:49 PM
Re: I was at this coin store today.... Maybe I should become a coin dealer.

BarnacleBob | 01-08-2004 04:50 PM
Re: I was at this coin store today.... Lets do the math.... Tulving.com offers $1000 face value (fv) silver quarters (4000 quarters total) 1964 & older for $4,497 delivered. About $6.29 Per Oz. for 715 Ozs. Of Pure Silver.... $4497 / 4000 = $1.12 ea. delivered Each quarter contains about 0.18 oz. of silver.....6 quarters is the equivalent of 1.08 ozs. 200 quarters X $1.25 = $250.00 200 quarters X 0.18 = 36 ounces silver 36 ounces silver X $6.26 (current spot) = 225.36 Not a good deal, but not a bad deal either, just a deal! Keep in mind spot is very close to the X5 fv, IOW inflation has been almost 500% since 1964. WHY WORK for a living? JMO NIA/DYODD REF: http://www.tulving.com/goldbull.html

Bullionaire | 01-08-2004 05:09 PM
Re: I was at this coin store today.... Quote:
Originally Posted by kleinphi Maybe I should become a coin dealer.
AFTER 17 years as one, I read your comment and fell on the floor laughing...... .....every goober in the world wants to be in business for himself.....its just not a matter of openning a retail location and counting the profits, trust me....GLTU

AuNuggets | 01-08-2004 06:25 PM
Re: I was at this coin store today.... ....."every goober in the world wants to be in business for himself"..... You got that right! Unfortunately, there are alot of those goobers who ARE ! This example of a bullion and/or coin dealer is a good example. If you want to buy coins for the sake of bullion content, do your homework and stick with the lowest mark-up coins in either gold or silver "IF" bullion or metal content is your only concern. You will always do better buying in quantity than in nickel-and-dime purchases from the local coin or pawn shops. The 90% silver bags are a good case in point. Hannes Tulving is offering them at less than 4.5 times face in comparison to the 5x face the dealer quoted in this example. That's quite a spread, and you are really not doing yourself any favor in buying small quantities to "make up" a bag later on. Save your investment funds and buy the whole bag, and unless prices are really escallating fast, then you will probably be better off. As far as being a coin dealer, there are many more thousands of "former" dealers than there are those still in business. Alot of folks just see the glimmer of "BIG PROFITS" and think it is a simple matter to just throw something out there for sale and someone will come along and pay you some big profits with little effort on your part. Running any kind of business takes alot of planning, preparation, and hard work, not to mention alot of let down when things don't happen "like they were supposed to". I think anyone involved in or considering selling coins, whether bullion or numismatics these days, without a multi-million dollar financial backing, would do well to consider the internet as their primary outlet, using one of the online auction services like eBay as a working base for bringing in new customers. Tulving and other bigger names have done just that in the past, and some continue til this day. The advantages are obvious, but would include a much lower overhead expense base, things such as rent, utilities, advertising, and so on. An internet-based business can be run on a shoestring, compared to a full-blown retail outlet. And having such a business would also give you the freedom as a dealer to attend the local and larger regional or national coin shows and bourses without putting a strain on the "open doors" end of the business that most shop retailers have to contend with. With a little computer savy, running your own server with plenty of space for a full inventory pictorial catalog would go a long way in making sales and getting your wares seen by the public. Search engine listings are another matter that could be used to increase business in such cases, and when all was said and done, the entire business would require little more than a good computer operation, and area to do your photography work, and a packing/shipping station, all of which could be ran from one room of your home in comparison to an expensive retail space, and a safe place to store your inventory, perhaps via safety deposit box rentals from the local bank. There are alot of possibilities in addition to the net for advertising, such as advertising in CoinWorld and other similar publications, though costs of such are prohibitively high for larger ads and smaller dealers on a budget. Next time you are in a dealers shop, just take a look around and try to see the amount of overhead that is being paid to keep the place open and on a profitable basis. Then you will begin to understand where those "higher than expected" prices on his merchandise come into play. This is especially true of the little mom and pop shops that sell nothing but coins and bullion, and really have nothing else to fall back on as far as supplemental incomes that other shops such as a pawn shop might have. As anyone who has ever been in business for themselves is well aware, depending on the whims of a finicky public, or the ups and downs of hobby or collector markets, is a hard thing to depend on to make a living. There is alot more to it than just hanging out a sign and offering something for sale. You better know your stuff (and yourself) before you get involved, or you will eventually (probably sooner than later) just end up as another statistic of those who didn't succeed in what they thought was "a good idea" at the start of it all. Look at the amount of capital you have to start with, including stock or money available to keep things going. Can you survive a full year with little or no profits ? And considering what you have to work with in the way of stock and capital, if you were someone else looking for someone to manage the whole affair for you, would YOU be willing to hire YOURSELF for the job ? If not, you still have alot of planning and thinking to do before you even consider starting out on your own.

Bullionaire | 01-08-2004 06:44 PM
Re: I was at this coin store today.... You got that right! Unfortunately, there are alot of those goobers who ARE ! This example of a bullion and/or coin dealer is a good example. If you want to buy coins for the sake of bullion content, do your homework and stick with the lowest mark-up coins in either gold or silver "IF" bullion or metal content is your only concern. You will always do better buying in quantity than in nickel-and-dime purchases from the local coin or pawn shops. The 90% silver bags are a good case in point. Hannes Tulving is offering them at less than 4.5 times face in comparison to the 5x face the dealer quoted in this example. That's quite a spread, and you are really not doing yourself any favor in buying small quantities to "make up" a bag later on. Save your investment funds and buy the whole bag, and unless prices are really escallating fast, then you will probably be better off. As far as being a coin dealer, there are many more thousands of "former" dealers than there are those still in business. Alot of folks just see the glimmer of "BIG PROFITS" and think it is a simple matter to just throw something out there for sale and someone will come along and pay you some big profits with little effort on your part. Running any kind of business takes alot of planning, preparation, and hard work, not to mention alot of let down when things don't happen "like they were supposed to". I think anyone involved in or considering selling coins, whether bullion or numismatics these days, without a multi-million dollar financial backing, would do well to consider the internet as their primary outlet, using one of the online auction services like eBay as a working base for bringing in new customers. Tulving and other bigger names have done just that in the past, and some continue til this day. The advantages are obvious, but would include a much lower overhead expense base, things such as rent, utilities, advertising, and so on. An internet-based business can be run on a shoestring, compared to a full-blown retail outlet. And having such a business would also give you the freedom as a dealer to attend the local and larger regional or national coin shows and bourses without putting a strain on the "open doors" end of the business that most shop retailers have to contend with. With a little computer savy, running your own server with plenty of space for a full inventory pictorial catalog would go a long way in making sales and getting your wares seen by the public. Search engine listings are another matter that could be used to increase business in such cases, and when all was said and done, the entire business would require little more than a good computer operation, and area to do your photography work, and a packing/shipping station, all of which could be ran from one room of your home in comparison to an expensive retail space, and a safe place to store your inventory, perhaps via safety deposit box rentals from the local bank. There are alot of possibilities in addition to the net for advertising, such as advertising in CoinWorld and other similar publications, though costs of such are prohibitively high for larger ads and smaller dealers on a budget. Next time you are in a dealers shop, just take a look around and try to see the amount of overhead that is being paid to keep the place open and on a profitable basis. Then you will begin to understand where those "higher than expected" prices on his merchandise come into play. This is especially true of the little mom and pop shops that sell nothing but coins and bullion, and really have nothing else to fall back on as far as supplemental incomes that other shops such as a pawn shop might have. As anyone who has ever been in business for themselves is well aware, depending on the whims of a finicky public, or the ups and downs of hobby or collector markets, is a hard thing to depend on to make a living. There is alot more to it than just hanging out a sign and offering something for sale. You better know your stuff (and yourself) before you get involved, or you will eventually (probably sooner than later) just end up as another statistic of those who didn't succeed in what they thought was "a good idea" at the start of it all. Look at the amount of capital you have to start with, including stock or money available to keep things going. Can you survive a full year with little or no profits ? And considering what you have to work with in the way of stock and capital, if you were someone else looking for someone to manage the whole affair for you, would YOU be willing to hire YOURSELF for the job ? If not, you still have alot of planning and thinking to do before you even consider starting out on your own.[/QUOTE]AuNuggets....thank you, you summed that up nicely....sounds like you been there,done that....

AuNuggets | 01-08-2004 06:59 PM
Re: I was at this coin store today.... Actually, been there but DIDN'T do that.... Helped run the family business for years prior to dad retiring, but never saw bullion or numismatics as a viable "local" business idea. The internet has changed alot of things in recent years, and made it possible to succeed at such an undertaking, but it would still be work. Lots of possibilities out there these days that didn't exist in the recent past, and even with their exorbitant fee structure, I still think eBay is one of the best marketing tools available to the little guy, no matter what he happens to be selling. Good comparative tool on the buyers end of the deal too.

gpond | 01-08-2004 07:24 PM
Re: I was at this coin store today.... At some point in this PM bull market it will again become a good business to be buying junk gold/silver as it was in the very late 1970's. Easier to sell cash to not-so-well informed public than to sell gold or numismatics. I am not goober enough to disrespect those of you who have run your own businesses. I have the utmost respect for you. I have tried to run the numbers on various businesses (back of napkin) and am hard pressed to see how most small businesses survive, much less profit. There was once a PM smelter somewhere in Virginia where most of the junk that I/we bought was sold. However, many many smelters in US are gone. Not sure where a business of this nature would dispose of junk purchased at retail prices at this time... Any ideas? JMHO and 2 cents and keep the change. PS. "Junk" in this case refers to class rings and silverware.

Bullionaire | 01-08-2004 08:10 PM
Re: I was at this coin store today.... Quote:
Originally Posted by AuNuggets Actually, been there but DIDN'T do that.... Helped run the family business for years prior to dad retiring, but never saw bullion or numismatics as a viable "local" business idea. The internet has changed alot of things in recent years, and made it possible to succeed at such an undertaking, but it would still be work. Lots of possibilities out there these days that didn't exist in the recent past, and even with their exorbitant fee structure, I still think eBay is one of the best marketing tools available to the little guy, no matter what he happens to be selling. Good comparative tool on the buyers end of the deal too.
A GOOD POSSIBILITY FOR A BUSINESS....BUY or LIST Ebay items.....I have no desire but....lots of people do not know how to EBAY.or like me, do not have the time to ...open a small storefront, and advertise to ebay list higher end small antiques, coins, watches,sterling flatware,paintings, etc and offer to list it for a percentage of sale price less ebay fees...or if they are in a hurry,offer an immediate cash buy price...it would take the knowledge and computer savvy but it is a novel opportunity.....

AuNuggets | 01-08-2004 08:51 PM
Re: I was at this coin store today.... Bullionaire...... not a bad idea at all !! I like it ! And you would have right there at your fingertips a good referrence for determining similar recent sale values for anything listed, or to research for possible listings for customers. gpond..... no offense meant by referring to anyone in particular as a "goober", but at least you are one of the few that looks at things from an analytical standpoint by "putting it to paper" before taking the plunge. I think if more had the common sense to do so, there would be far fewer failed business endeavors on the books. I remember well the '79-'80 period and the business of a close friend who ran a coin and pawn shop during that time period. His purchases and sales were phenominal, and we used to laugh at those who would stand in lines of dozens of people, changing their minds 4 or 5 times while in line as to whether they were going to buy or sell once they reached the counter...... this was especially true of the coin buyers/sellers. Good point as well concerning the lower number of active refineries these days. But as things heat up, setting up shop is really not that big of an undertaking other than EPA type permits. The equipment is basic and simple for the most part. Did that Virginia refiner happen to be Hoover and Strong in Richmond ? Have used them extensively in the past. Personally though, I would rather be in the wholesale "buying from the public" end of things than the refining end. Talk about tight profit margins !! At least on the buying end, you have room to breathe and to hedge things against the market moving against you in a quick moving environment. That was a major problem back in the peak days, when dealers were paying only a percentage of spot, especially so on silver that had to wait for weeks to make the round trip to the refinery and back in "marketable" form. One of the advantages to bullion coins over scrap..... no assay problems as with bars, and no question as to content as with scrap jewelry, flatware, etc.

gpond | 01-08-2004 10:27 PM
Re: I was at this coin store today.... Quote:
Originally Posted by AuNuggets gpond..... no offense meant by referring to anyone in particular as a "goober", but at least you are one of the few that looks at things from an analytical standpoint by "putting it to paper" before taking the plunge.
Absolutely no offense taken. In fact, I am tipping my hat sincerely to small business people everywhere. No sarcasm here -- my respect goes out to them and you. I worked for a brief period as a buyer for a fly-by-night buyer of junk gold and silver. We would set up in a hotel, advertise, and then wait for the line of people to come.. And come they did. We paid a "retail buy" price (which was cheap -- perhaps I should call it wholesale? because it was LOW) for class rings, silverware, etc.., all by weight. Very few coins -- although we did buy junk silver coins -- at non-astute prices. The company would turn the purchases immediately to the smelters. It was a business that couldn't last long -- but they went for the gusto while the conditions permitted. I was a peon -- no owner. But I thank my lucky stars that I was in that business at that time, because it taught me the lesson of physical metal in hand. I would most likely not be here now if not for that experience. I saw the top come and go. I would probably not be in a position to understand what is going on now, if not for that lesson. Richmond sounds about right. Usually it wasn't I who made the "run" but I did once. Seriously enjoying your posts. gpond

Maple Leaf Steve | 01-09-2004 07:48 PM
Re: I was at this coin store today.... Here is the conclusion to this story... So after silver had a great day today and after the markets had closed I went back down to that coin store again. I noticed all the silver quarters were still there and that nobody had boughten any of them. But the coin dealer had raised the price on them from 5X Face to 6X face! Now he wanted a $1.50 apiece for all those junk silver quarters. I explained to him that I was going to buy all of them yesterday at $1.25 apiece and would still do so if he wanted to make a deal with me. I am a good customer of this coin dealer and he knows my face... So he sold all 210 of them to me for $1.25 apiece total of $262.50 In the lot were many BU quarters and a slick 1912 Barber. In the end both party's were happy! :ARMS1: :coolbeer: MLS

kleinphi | 01-10-2004 12:53 PM
Re: I was at this coin store today.... Quote:
Originally Posted by Bullionaire AFTER 17 years as one, I read your comment and fell on the floor laughing...... .....every goober in the world wants to be in business for himself.....its just not a matter of openning a retail location and counting the profits, trust me....GLTU
17 years ago I was attending an Austrian elementary school. Nevertheless, I do not have to trust you on this one, because I have built a couple of businesses, and I know it is never as easy as sitting back and counting the money while your slaves keep bringing it in. I also know how I could make approximately $10 per hour by essentially being an internet coin dealer. What I do NOT know, and this is where you come in, is how in the world a dealer like Tulving can turn a profit by selling bullion coins over the internet at the prices he is offering. I mean, how low can his cost be? He probably pays $70 less for a 10 oz gold coin lot than his customer pays him. Subtract from that his shipping/insurance cost of, say $20, and you are left with $50 per order. According to the information posted on his website, he does some 10,000 transactions per year, give or take. This means $50,000 per year, from which he has to subtract his computer/electricity/capital/security costs, and if he has no employees, 365 x 24 hours of his own time. Somehow I have a feeling he is not doing what he is doing for what would be basically minimum wage. On the other hand, he can certainly buy junk silver for 20% below spot if he knows where to look. Maybe that's where he makes his real money, and the gold bullion coins are just a way to make a little extra while he is tied up in front of his computer or on the phone all day and all night anyway.

AuNuggets | 01-10-2004 01:59 PM
Re: I was at this coin store today.... Hannes (Tulving) sells more than just bullion. He's also quite involved in the numismatics end of the business, and I believe he and one other family member actually run the entire operation. Located where he is, he has access to some of the major wholesalers of bullion material, and I'm sure he has a "deal" with one or two of the largest. That being the case, he may "float" orders after they are received rather than keeping a huge amount of bullion stock. But again, bullion is only "part" of the business. I also don't think he has a retail establishment or store front, so that would account for a much smaller overhead. Most of his advertising these days is purely "word-of-mouth" since he has built the reputation of having some of the lowest prices around on bullion. But even at the smaller spreads, he seems to do a pretty large volume of business. Assuming he does only $50,000 a year (gross profits) on bullion sales, that still leaves the numismatics side of the business which I'm sure does that much and substantially more. Whatever he does, he has a good system for doing it. I've purchased from him several times, and he always delivers very quickly, usually within 2 or 3 days tops on gold, a little longer on bulk shipments of silver.

Bullionaire | 01-10-2004 03:23 PM
Re: I was at this coin store today.... [QUOTE=kleinphi]17 years ago I was attending an Austrian elementary school. Nevertheless, I do not have to trust you on this one, because I have built a couple of businesses, and I know it is never as easy as sitting back and counting the money while your slaves keep bringing it in. I also know how I could make approximately $10 per hour by essentially being an internet coin dealer. What I do NOT know, and this is where you come in, is how in the world a dealer like Tulving can turn a profit by selling bullion coins over the internet at the prices he is offering. I mean, how low can his cost be? He probably pays $70 less for a 10 oz gold coin lot than his customer pays him. Subtract from that his shipping/insurance cost of, say $20, and you are left with $50 per order. According to the information posted on his website, he does some 10,000 transactions per year, give or take. This means $50,000 per year, .,.................My math shows $50.00 times 10,000 shows $500,000.00 not to mention numismatics, profit in that is much greater....what kind of businesses have you built at that young of age?? Your math says you are 25-30?? Very impressive I might add!!! GLTU

AuNuggets | 01-10-2004 03:52 PM
Re: I was at this coin store today.... Better yet, the Tulving website itself states: "Sales In Excess Of 145 Million Dollars Since Jan, 1999. This Represents 38,221 Separate, Completed Transactions." Assuming a miniscule 2 percent profit spread (looking at bullion alone), we're still looking at 2.9 million over 5 years time, or $580,000 per year (since January 1999). Breaking things down even more, he would be averaging about $76 per sale, here assuming gross at the same 2% spread on the bullion side. Once you work in the numismatics, which will avarage something closer to 25-30% spreads, then it looks to me like he's doing pretty well for himself "just answering the phone". :call:

kleinphi | 01-10-2004 04:33 PM
Re: I was at this coin store today.... Quote:
Originally Posted by Bullionaire My math shows $50.00 times 10,000 shows $500,000.00 not to mention numismatics, profit in that is much greater....what kind of businesses have you built at that young of age?? Your math says you are 25-30?? Very impressive I might add!!! GLTU
Ahh! Thanks for catching my mistake. I knew it must have been something elementary like this. I was never good with numbers. But believe it or not, I am actually a derivatives dealer. That was the first "business" I developed. Couldn't do it without my computers doing all the math for me (obviously). The other thing I am just starting up now is importing, putting together, and selling trinkets online and through word of mouth. Again, it doesn't sound like much, but lately that alone has been bringing in enough to support a person or two, and that's with an hour of work per day, no employees, and not even a corporation. I think I learned how a business is built and maintained at a very young age when I showed a friend of the family how to utilize the power of computers in his business, and he in turn showed me from the ground up how he comes up with a product idea, gets the supplies, teaches his employees how to make it, creates a good sales pitch, and finally watches the money roll in. As soon as my personal circumstances stabilize, I plan to follow in his footsteps and launch a "real" business with full-time employees. Right now I do almost everything myself, so I guess most people would not consider what I do a business at all, but I am sure you understand that all the necessary concepts are there, perhaps even more so than someone who starts his business by investing a couple of hundred thousand dollars and playing "big boss" right from the start. I would consider such a person more of an investor. What I am trying to say is, I know how to come up with ideas, I know that no matter how hard you think about it, you will never be able to determine whether a given idea will cost you $100 or yield $100,000 a year; I know if you try often enough and hard enough, you eventually find a few things that work; I also know most good things come to an end. Probably all good things, but there are strategies that have worked for me for several years and still work as well as in the beginning. Maybe I will have an update on that 20 years from now. And finally, I know how to do calculations right so that I am not left holding the bag. (I obviously don't attempt to do these computations in my head like I did in my previous post.) So anyway, I was not being 100% serious when I said I wanted to become a coin dealer, I even said "Maybe", but rather I was amazed that people would pay a dealer $1.25 for a quarter at a time when silver was still trading under 6. It's also that I am used to tighter spreads in other financial instruments (obviously silver coins are being viewed more as a "trinket" than a financial instrument), and if that dealer quotes (I am guessing on the bid) 0.90 x 1.25 now, I can only imagine what it will be like in a couple of years or whenever silver hits 50. I don't know, but of all the markets I am familiar with, the one that seems to resemble junk silver most is US stock options. While the option is far out of the money, spreads are often 0.10 x 0.25 or 0.05 x 0.20 and you have a really hard time guessing when or if at all you will be able to buy/sell. Then comes a phase (or not, depending on the particular option) when there is good volume, spreads tighten, and pricea are very reasonable. And finally, sometimes it reaches a point where a few dealers run to cover and prices spike. From what I see so far, silver seems to be in phase 1 going on phase 3. That's what I think would make being a dealer in junk silver so interesting: You go right from the phase where your risk is minimal and your rewards are erratic, but ok, to a phase of euphoria in which you can make a lot if you control your emotions and manage your risk. All this is just my impression of junk silver, formed by reading a little bit about it online, talking to a friend who works at a bank and briefly to a couple of local coin dealers, all in the last couple of months (after I realized my dollars were worth 30% less than last year and there is nothing I can do to prevent that from happening over and over again). Now you know the story of my life, and if you want an opinion as well, it has been interesting at times, but if I had to decide whether I wanted to be born or not I think I would prefer not. But now that I'm here I am not giving up hope that I might be able to reach a state where the benefits of being alive outweigh the pain. II really didn't want to talk about myself, because I don't think what I have to say is of much interest to anyone here, but I would like to know more about the junk silver market, precious metals in general, maybe even numismatics. Because if I there is one thing I truly know, it is that I don't know much, if anything, about your specialty.

kleinphi | 01-10-2004 04:42 PM
Re: I was at this coin store today.... Quote:
Originally Posted by AuNuggets Better yet, the Tulving website itself states: "Sales In Excess Of 145 Million Dollars Since Jan, 1999. This Represents 38,221 Separate, Completed Transactions." Assuming a miniscule 2 percent profit spread (looking at bullion alone), we're still looking at 2.9 million over 5 years time, or $580,000 per year (since January 1999). Breaking things down even more, he would be averaging about $76 per sale, here assuming gross at the same 2% spread on the bullion side. Once you work in the numismatics, which will avarage something closer to 25-30% spreads, then it looks to me like he's doing pretty well for himself "just answering the phone". :call:
That's true. And what I also keep forgetting is that he probably has minimal or zero problems with customers, especially on the bullion side. I mean, either the customer gets the coins he ordered or not. And if not, the insurance pays and everyone is happy, right? The one thing I have always wondered about America, though, is what exactly does it mean when a check clears? Couldn't the bank still be forced to reverse the transaction pending an investigation if either party claims it was fraudulent? The same thing for money orders, bank wires etc. I am used to a completely different kind of culture from Europe where (besides the fact that checks are not very common there) writing a bad check is on the same level as stealing a car: You can't really get away with it, and only true criminals even think about it. Over here, writing a bad check is more like maxing out your credit card or making a late payment on your electricity bill: You are almost encouraged/expected to do it occasionally.

silverwood | 01-10-2004 06:31 PM
Re: I was at this coin store today.... At some time anyone who has accumulated silver coins and related items should consider becoming a coin dealer of sort to liquidated one's position. Over the years I have amassed many items that I could sell when I feel the price silver has risen enough. At some time the silver price will peak, when that will occur is anyone guess. Because of this I believe it is important to have a selling/trading strategy. I'm open to suggestion on this subject. When do you believe it will be time to sell?

lhslancers | 01-10-2004 07:39 PM
Re: I was at this coin store today.... When you truly believe it will never stop going up it will be time for you to sell. But that ain't for a long time.

silverwood | 01-10-2004 08:14 PM
Re: I was at this coin store today.... Quote:
Originally Posted by lhslancers When you truly believe it will never stop going up it will be time for you to sell. But that ain't for a long time.
What would you do if the price of silver spiked up here in the near term. Let's look at what is happening . In the past 30 days silver has gained $1. If we were to extrapolate this and add a momentum factor it's possible silver could be $15 by May 2004. Would you sell some into a rally like this? If you had 90% and 40% US coins where would you sell them?

lhslancers | 01-10-2004 08:21 PM
Re: I was at this coin store today.... If you are talking about physical silver I would not sell. but most of my money is not in physical metals. A good portion yes but most is in stocks. This bull market has just gotten it's ass out of bed and we are nowhere near a top either in time or in price.

AuNuggets | 01-10-2004 08:58 PM
Re: I was at this coin store today.... Food for thought....... You never know when the bottom has been reached or the top of the market attained until "after the fact". Only you can decide what level of profits you are satisfied with, or how much loss you can stomach on the down side. Buying when nobody wants it and selling when everyone is trying to buy is the best strategy.......

silverwood | 01-10-2004 09:13 PM
Re: I was at this coin store today.... Quote:
Originally Posted by AuNuggets Food for thought....... You never know when the bottom has been reached or the top of the market attained until "after the fact". Only you can decide what level of profits you are satisfied with, or how much loss you can stomach on the down side. Buying when nobody wants it and selling when everyone is trying to buy is the best strategy.......
Having been active in silver 1979/1980 I will admit that I got caught up in the mania that occured. And from reading some of your posts I know you were there. When silver hit $50 it could have went to $100 but the comex officials stepped in behalf of the shorts who were bleeding profusely. And nobody knew this was going to happen. By the time I knew anything, silver was trading for $12or $13 I think. I did have gut feeling and sold some 40% halves for 10.5xface!

Halophyte | 01-10-2004 09:45 PM
Re: I was at this coin store today.... I'm wondering what's going to be different this time around? What monetary policies are in place that would affect the price spike to come? Do we extrapolate 24 years of inflation index into the guess of the peak price of silver? I need to find out when to stop buying before I worry about when to dump - if the dollar doesn't dump me first. .

silverwood | 01-10-2004 10:47 PM
Re: I was at this coin store today.... Quote:
Originally Posted by Halophyte I'm wondering what's going to be different this time around? What monetary policies are in place that would affect the price spike to come? Do we extrapolate 24 years of inflation index into the guess of the peak price of silver? I need to find out when to stop buying before I worry about when to dump - if the dollar doesn't dump me first. .
The current monetary policy of keeping interests rate at 1% with as far out in the forseeable future is the fuel being loaded into the precious metal price rocket. Add to that all the debt, trade inbalances, and you have the recipe for a price spike. How high can silver go is anyones guess. TO DA MOON, ALICE! is a good guess. :woohoo: Stop buying when the guy in the next barstool tells you he's buying.

AuNuggets | 01-10-2004 10:58 PM
Re: I was at this coin store today.... Silverwood....... BINGO ! Those pulling the strings changed the rules then, just like they can this time around, anytime they feel threatened. That is one of the "unknowables" I keep harping on, among others. The rules will always be made or changed to the advantage of whoever they want them to the advantage of. Anyone who thinks the metals have ever been or ever will be allowed in a totally "free market" is just fooling himself.

Bullionaire | 01-10-2004 11:32 PM
Re: I was at this coin store today.... Quote:
Originally Posted by AuNuggets Silverwood....... BINGO ! Those pulling the strings changed the rules then, just like they can this time around, anytime they feel threatened. That is one of the "unknowables" I keep harping on, among others. The rules will always be made or changed to the advantage of whoever they want them to the advantage of. Anyone who thinks the metals have ever been or ever will be allowed in a totally "free market" is just fooling himself.
ESPECIALLY this being an election year.....the dollar will probably rebound...what will that do to the metals??? Shortage-Shmortage its all about the dollar.....

silverwood | 01-10-2004 11:42 PM
Re: I was at this coin store today.... Quote:
Originally Posted by AuNuggets Silverwood....... BINGO ! Those pulling the strings changed the rules then, just like they can this time around, anytime they feel threatened. That is one of the "unknowables" I keep harping on, among others. The rules will always be made or changed to the advantage of whoever they want them to the advantage of. Anyone who thinks the metals have ever been or ever will be allowed in a totally "free market" is just fooling himself.
Are the shorts covering? Is the 25 cent bump up friday showing this? Or are they hanging tuff knowing that they got the rule makers on their side? Can Butler be right and the existing supply vanish causing the shorts to bleed to death? Can the CFTC say "because of the silver crisis facing us we will only accept liquidation."

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AuNuggets | 01-10-2004 11:44 PM
Re: I was at this coin store today.... "Shortage-Shmortage its all about the dollar....." Up to this point in time, I'll have to agree. When we still have the metals going up against some currencies and down or steady against others, this is anything but a true "bull market". Once the metals are rising against ALL of the currencies, then start paying attention ! :afraid:

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