Anyone trade in physical PMs?
 

Anyone buy physical PMs and sell when they feel PMs prices are going to take a fall again? If so, how do you do it? Do you deal in bullion bars or coins? Do you buy and sell local or online? Are you making much money at it?

I'm not talking about holding PMs for when SHTF. Lots of threads about that here. I'm interested in those who regularly trade in physical PMs just like any other investment.

Re: Anyone trade in physical PMs?
 

I am interested in this as well. I have a friend that owns a pawn shop. I see this as the only real way to make a great margin. Of course pawn shops are basically taking advantage of desperate people, but if you can buy at half of spot and sell slightly above all day long it seems like a no brainer. Most people have no clue what an ounce of gold is worth or their jewelry.

Re: Anyone trade in physical PMs?
 

Thanks for the reply Scott. I didn't consider the pawn shop business at all. I did consider those who deal in PMs such as coin shops.

The purpose of this thread is to find out if there are investors who buy physical PMs low and sell them when they feel they have reached a price spike high, and take their profits in cash or rebuy even a greater amount of PMs at a lower price and start all over again.

Re: Anyone trade in physical PMs?
 

With the spread on physical PMs it takes big swings in their prices to make a decent profit. It's a pain to take the time off to chase after buyers and sellers too with physical. Just hang on to the stuff and leave it to your gandkids like the rest of us. Then it will be their problem. 'Nuff said.

Re: Anyone trade in physical PMs?
 

PM, especially silver, just lends itself to long positions. It is a bunch of trouble to dispose of hundreds of pounds. You can't do that on a day trading basis. Then many thousands of dollars back and forth would get the IRS' interest.

If you want the quick in and out of the market, use the ETF's, far superior to physical for that purpose.

Re: Anyone trade in physical PMs?
 

I'd agree with Tom.....since you are in and out of fiat anyway, what difference would it make if it were electronic form ?

Re: Anyone trade in physical PMs?
 

"...PM, especially silver, just lends itself to long positions. It is a bunch of trouble to dispose of hundreds of pounds. You can't do that on a day trading basis..."

Hey I got it! How about we start trading electronically and then we won't have to expend time finding sellers, be frsutrated by shipping and insurance costs, taking delivery, storage, and then finding buyers and shipping the stuff out.

This would be fantastic and easy. Wonder why nobody's thought of it? :hahaha:

Re: Anyone trade in physical PMs?
 

That's a great idea. :emotions16: I got lots of room in my basement so you guys can store your PMs down there. It floods sometimes but that won't hurt silver or gold.:yes:

I didn't mean I wanted to day trade when I wrote this thread. But let's say I bought silver at $13 and it hits $18 and I feel it's going to tank down again. What am I suppose to do hold on to it and :cryin2: when it goes down to $12.00 again?

Re: Anyone trade in physical PMs?
 

I did last year, made a bunch of money, too. If you have the option, sell to a private buyer at spot. Otherwise you'd do well to pick one dealer as the dealer you sell to, and another as the dealer you buy from. This avoids the akward situation where you just sold out a few hundred ounces to your dealer, the prices drops in a week, you show up to buy it back and he wants to charge you the same price he paid you. .999+ fine silver beats 90% for this kind of trading, the spread is narrower on bullion.

As others have mentioned, if you want to trade in and out just open an online trading account and trade the ETF's. It's a lot easier and you don't have to wait for such huge moves. My plan at present is to trade the ETF's most of the year, buy and hold physical during the summer dip.

Re: Anyone trade in physical PMs?
 

Thanks for the practical advice.:bear_thumb: The EFT might just laugh at me if they saw how much I can invest at this time. I'm working at it though.

Re: Anyone trade in physical PMs?
 

The problem is, anyone holding PM will eventually want to sell. How about the buy/sell option of GIM, looks like some one recently sold some ASEs using this site. Any feedback on that option?
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Everything I touch turns to crap!

Re: Anyone trade in physical PMs?
 

I had about $700.00 in my Scottrade account just sitting there and bought ten shares of GLD at 61.30 and just sold today at 66.30. Not much but better than just sitting there making .5% interest!! Only held for about 2 months. They don't care if you just buy one share. Go for it!! Silver would be SLV and is running around 137.00 a share.

Re: Anyone trade in physical PMs?
 

AuNuggets has posted a few times on his tradings and 50/50 system in the past. Check out his posts in these threads:
http://www.goldismoney.info/forums/s...603#post223603

http://www.goldismoney.info/forums/s...880#post100880

http://www.goldismoney.info/forums/s...9217#post99217

http://www.goldismoney.info/forums/s...9014#post99014

Just wish AuNuggets posted more often! :coolbeer: :call:

Re: Anyone trade in physical PMs?
 

I recommend against it.

I have personally lost around $2000 trying to swing trade the Gold ETF. I personally think the swings are too unpredicatable to reliably trade it long term. Sure you may make money now but in the long run the casino (ahem, i mean stock market) will make it back and then some.

Re: Anyone trade in physical PMs?
 

Great input. I am still trying to get the physical levels to where I am comfortable. Might take all of this year. After physical then might play the etf game a little.

Re: Anyone trade in physical PMs?
 

Eveytime I even consider doing this, the price of gold and silver both get knocked down. It seems $700 gold and $14 silver scare the begeebbers out of folks and when it touches those levels they drop a good bit and then start climbing back up. It will probably do this two or three times before everyone gets enough courage to cross and make a run for the next begeebers mark.