I’m a Buyer and it’s my market!

I visited a few coin dealers today. I bought about 25 oz. from one (2-10 oz. bars the rest in small rounds) at a good premium (20/oz.) and then another 25 ounces (all in small rounds) from another (at around 18.25/oz.

Both gave me the same market explanation that those like Jason Hommel of the SilverStockReport.com has been advocating – that is a broad supply glut relative to demand in the silver market. But I began to think, maybe the dealers themselves are the ones who are hoarding all those 100+ oz/kilo bars warranting much higher prices before parting with their metal. These coin dealers are the last thing from stupid. They see the market and when they see hundreds of visitors daily seeking silver, and many more phone calls frantic to find even one 100 ounce bar, they get the feeling that the silver owner has all the advantage for the time being.

Now the only thing pretty much that is left in the stores are the small rounds (1 ounce bullion) and coins (many which start at 50 and go straight through 5000).

This is a market where the small investor has the advantage. Remember the fund manager who can’t even find silver to allocate 4% of his portfolio? I say we – the small investors – clean these dealers out! Buy out every bar in sight – a premiums of even $3-5 above spot. With no physical metal in the market all that financial paper will hit the fan.

This is the epitome of a buying opportunity – even if prices go yet lower!

As Gus Levy, a once senior partner and trading tycoon of Goldman Sachs, would yell at his traders in his bond-arbitrage department: “Buy until your hands bleed!”


eBay Silver

I thought it would be interesting to note that while Silver on the Open Market (Kitco, etc.) is selling for less than $18/oz. sellers on eBay seem to be reluctant to part with any silver for less than $21-23 (more if you include shipping)!



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