Should I buy Silver and Gold?

[billyjoe]

Ski,
As of today the melt price is 24X for silver dollars and 22.5X face value for dimes, quarters, halfs. That is the lowest price in many months. Based on 30.98/oz. Wednesday, a pawn broker near here was asking 35X but that was too much even before latest drop.

-------------billy

The above quote was from 9/24/11

Update, little change as of today's close silver dollars 25.75X face and for dimes quarters halfs 24.09X face. Those prices are for 90% silver coins. The 40% silver halfs 1965-1970 are worth 4.92 or 9.84X face value.


-------------billy

[peanuts]

Using some technical indicators that I do not disclose, yet have served me well, silver and gold seem to have made a short term bottom. It would be confirmed at the end of today if they are up for the day. At the time of this post, they are both up, but not convincingly so. I like to see a better confirming day than what we are witnessing. Yet, the indicator is pretty good at spotting price-trend inflections.

It is too early to buy, now. But don't be afraid to jump in tomorrow or Wednesday if either of these start to run higher. The duration of this next move up may be short-lived, so prepare an exit strategy to trade.

Though the main indicators that I use still say there is bullish fuel in the silver tank, conflicting indicators and moving averages tell me that it looks to be a good time to take a portion of your profits off the table.

[peanuts]

Using some technical indicators that I do not disclose, yet have served me well, silver and gold seem to have made a short term bottom. It would be confirmed at the end of today if they are up for the day. At the time of this post, they are both up, but not convincingly so. I like to see a better confirming day than what we are witnessing. Yet, the indicator is pretty good at spotting price-trend inflections.

It is too early to buy, now. But don't be afraid to jump in tomorrow or Wednesday if either of these start to run higher. The duration of this next move up may be short-lived, so prepare an exit strategy to trade.

[em26jamie]

They do look oversold. Both the Ultimate Oscillator and Williams %R are saying oversold. Since it came down 25% it has traded in a range. Bounce back up might be around the corner.

[wooish]

That's a great idea. I don't think silver will fall that much more but even if it does it'll come back since the entire world is printing more $$$ everyday. Selling the Oct $27 put for $1.24 with only 20 days before expiration. I hope it drops more on Monday so I can get more premium. The chart looks oversold, time for a bounce.

[dmk112]

has anyone dabbled in selling puts? If you want to own butat a lower price, that may be a good option (no pun intended)

[billyjoe]

Billy,
there is an outfit here in toms river that is offering 20 times face value for any coins and 30 an oz. for ingot. But that was last week before this recent drop. What prices are you seeing for silver melt.

Ski,
As of today the melt price is 24X for silver dollars and 22.5X face value for dimes, quarters, halfs. That is the lowest price in many months. Based on 30.98/oz. Wednesday, a pawn broker near here was asking 35X but that was too much even before latest drop.

-------------billy

[skiracer]

ski,
The spike in silver wiped out the value in many previously considered semi rare coins. Everything was being thrown in the same pot to be melted. This should be an excellent time for those looking to complete a collection of silver dimes, quarters, half dollars. You'll still pay a premium over face value, but I know for a fact that for instance , half dollars back to 1893 were being sold for current silver melt prices. If people start dumping now who knows what bargains can be had?

--------------billy

Billy,
there is an outfit here in toms river that is offering 20 times face value for any coins and 30 an oz. for ingot. But that was last week before this recent drop. What prices are you seeing for silver melt.

[billyjoe]

ski,
The spike in silver wiped out the value in many previously considered semi rare coins. Everything was being thrown in the same pot to be melted. This should be an excellent time for those looking to complete a collection of silver dimes, quarters, half dollars. You'll still pay a premium over face value, but I know for a fact that for instance , half dollars back to 1893 were being sold for current silver melt prices. If people start dumping now who knows what bargains can be had?

--------------billy

[skiracer]

Boy, glad I got out of the paper silver and gold on Wed morning. I thought I had missed my window of opportunity, but it opened again. I told my father-in-law it would be wise to get out before the Fed statement. Betting on the market reaction to a Fed announcement is like betting on a football game. I almost bought in again today, but the price didn't get low enough to fill the order. Then the CME announces they raised margins on gold, silver and copper after hours. Looks like some people knew something the rest of us didn't, and it's not really a shocker. I still have my physical gold though, and it's not going anywhere any time soon.

I was looking at possibly selling off some of my silver holdings, all physical coin and ingot, this past week when it flirted with $40 and didn't make the decision. Now I have lost 10 points on my holdings. But I think it will return to previous highs and that this is a good time to buy some SLV. It looks to present a bargain at these prices regardless if it goes back up and holds at higher prices.
Looking at the monthly chart it is sitting right on support at it's 20 mva. If it breaks thru that line at $29.47 it could go much lower but I think it will hold at this level. I am considering a buy at the beginning of this coming week.

[em26jamie]

Boy, glad I got out of the paper silver and gold on Wed morning. I thought I had missed my window of opportunity, but it opened again. I told my father-in-law it would be wise to get out before the Fed statement. Betting on the market reaction to a Fed announcement is like betting on a football game. I almost bought in again today, but the price didn't get low enough to fill the order. Then the CME announces they raised margins on gold, silver and copper after hours. Looks like some people knew something the rest of us didn't, and it's not really a shocker. I still have my physical gold though, and it's not going anywhere any time soon.

[billyjoe]

Some days it's good to be in gold and silver. Today is one of those days.

Agreed, but that's what judas said sometime in AD33.

------------billy

[em26jamie]

Some days it's good to be in gold and silver. Today is one of those days.

[hags]

Wouldn't a QE3 be good for gold and silver, or rather drive the dollar down more? A QE3 announcement would probably drive equities up too, just like the previous QE's.

The trade is within the gold to silver ratio....not the affect of QE3 on the commodities, but the affect of QE3 on that ratio.....

hags

[peanuts]

I was also looking at this count, but the ABC hasn't filled in, yet:



Also, the CME is playing around with margin limits in Gold and Silver which acts as a price suppressant.