Fellow Stackers of PMs

[grenfell]

I was talking about this with my daughter. She has invested in the paper PM market and is well ahead. The paper holdings would seem to be a better bet for selling than the physical ones , no point holding onto something that may lose it's value if this is a bubble that may burst. But then the question is just how long this bubble ( if it is)will last...

[itsybitsy]

I was talking about this with my daughter. She has invested in the paper PM market and is well ahead. The paper holdings would seem to be a better bet for selling than the physical ones , no point holding onto something that may lose it's value if this is a bubble that may burst. But then the question is just how long this bubble ( if it is)will last...

I'm not going down the paper silver market, as I do think it's close to collapse, but I have had a little punt on a silver miners ETF - SILG. Really not much much at all, but I'm interested to see where it could go - it's currently up 3.6% in two days. While it's very volatile so you have to be on the ball with it and I'm trying to not get emotionally attached to it so I can hit the sell button at a moment's notice, it's also very exciting.

[grenfell]

I tend to feel a little uneasy about the paper market but then on the other hand how many of us have shareholdings , bank accounts , or pensions where we simply hand over money and have no physical holdings.
My gut feeling is that as long as the economy continues in something like BAU then the paper market will still work . If and when it does collapse I tend to feel that total economic collapse will be well on the way.

[itsybitsy]

I tend to feel a little uneasy about the paper market but then on the other hand how many of us have shareholdings , bank accounts , or pensions where we simply hand over money and have no physical holdings.
My gut feeling is that as long as the economy continues in something like BAU then the paper market will still work . If and when it does collapse I tend to feel that total economic collapse will be well on the way.

It will definitely be interesting to see how it all plays out over the coming months though. It closed on $103 per troy oz last night!

I'm very long on silver but once it hits $500per oz I'll probably sh&t myself and sell some.

[grenfell]

Historically pm's are currently overpriced in that converting to commodities would give a much better exchange than it ever has. Question is , is it a bubble that will burst or a symptom of something more systematically wrong with our economies...

[ForgeCorvus]

Historically pm's are currently overpriced in that converting to commodities would give a much better exchange than it ever has. Question is , is it a bubble that will burst or a symptom of something more systematically wrong with our economies...

I think its probably a bit of both.
I think the US dollar might not be the single Reserve Currency much longer, mostly due to the current incumbent screwing his own economy with tariffs and destroying any trust that was left with threats to invade both NATO and South American countries.
Quantitative Easing of most currencies and all the Covid era financial juggling are now coming home to roust so money just isn't worth what it used to .


Because of investors doing the classic "flight to safety" that metals have been historically, this over-cooks the paper Gold/Silver market causing the big swings that speculators love. Their interest pushes prices higher, ramping up the feeling that metals are a "Hot" investment and dragging small timers into the mix....... And then throw in China deciding to buy as much physical silver as possible making traders want to actually take delivery of the metal rather then just keep passing paper around.

US refiners refusing to buy, or buying with long pay out times, silver alloys or anything that needs additional processing before it can be made into comex bricks. As well as not making small bars and coins (because they want to make bricks) has created a bottle neck in supply in the US that's affecting all the dealers.

I think the price may drop at some point and quite a lot of small time short term investors are going to be caught out.
But its never going to drop to its 2024 levels

[grenfell]

I suppose that the best outcome ( in some respects) would be for the price to plummet . At least that should mean the economies are stabilising and there's no need to put wealth into precious metals. That would certainly be better than everything going tits up and we have to "spend" our gold and silver to eat.
However , the doomer in me can't see that happening...

[ForgeCorvus]

So, the spot price dropped...... But even so its still higher then it was at the start of the month.

I'm hoping the day-trippers* who bought physical are going to decide to cut and run..... Then we can hoover up a load of only just second-hand coins and bars.

Six months ago £1 per gram was a bit steep, now its dropped to £2 per gram and some people are acting like its Black Monday again



* All the standard advice is that silver is a long hold, anyone who's "lost" money because of a short term drop and is now in a panic shouldn't of bought silver.