Saturday, April 30, 2011

Bond Market and a refusal to buy my physical Silver

I have a decent amount of physical gold and silver. Yesterday, I took 300 ounces to the local coin dealer - you know, the guy that seems to be in every downtown these days - here in Lebanon, TN. There was a big sign:


So I walk in with a 100 oz. bar, and 200 Silver rounds. I wait 45 minutes, very courteously and patiently I might add, while the porprietor was in the back room talking on the phone. What I didn't know was that he did not want to buy my metal going into the weekend at these prices, so he was calling other dealers.

Guess what?

I left his establishment with the silver I walked in with. None of these people wanted to buy my metal.

This is NOT indicative of anything good for silver. (I think).


The corporate bond market does not appear too concerned with inflation, if I may make use of understatement.  Bonds rally while physical silver dealers refuse to buy? That just does no compute.


Anonymous said...

No one wants to buy high and sell low. Silver and gold aren't quite the investment so many like to think they are.

You want commodities? Try things people actually NEED like food and energy. Gold looks pretty and has had a history of value but you can't eat it nor warm your house with it nor propel your car with it. And as such its value is entirely based on how much others are willing to give you for it.

Of course there is a sucker born every day. So you just need to find one.

Stephen B. said...

I just wonder, how do we know there won't be a QE 3, 4, or ....?

I am not buying precious metals here. Indeed, I have sold some.

Still, I think that now that the government and feds have done the unthinkable - a huge electronic printing of $$$, several times now - they won't be able to keep themselves from doing it again and again and again.

Waldow said...

I'd bet Anonymous hasn't got a pot to piss in, but would be long on lentils, given, GIVEN, a chance.

Silver is clearly overextended above the 200 MDA. It will correct and then continue beyond 100/ounce. The dealer wants to turn his inventory around in a few weeks, probably. An investor looking to hold on to the hoard for a year or two could buy now and come out smelling not like Anonymous (mostly maccaronni & cheese) but like a nice red rose.

Good luck to you. You shall find a buyer soon I'm sure.

Anonymous said...

> I'd bet Anonymous hasn't got a pot to piss in

Is that what you use your bullion for space cadet? I never thought of silver and gold as a material for fashioning piss pots with. I prefer toilets myself but to each their own.. ;)

Anonymous said...

Wonder if he wouldn't buy because you had so much and he didn't have that many Federal Reserve Notes?

Do you think he would have bought some if you had walked in with 10 ounces?

Idaho Homesteader

Anonymous said...

Was it an independent dealer? There are several small fly by night operations that have recently set up shop to buy broken gold jewelry and underpay. Buying bullion at spot is not what they are interested in and a large transaction would probably overwhelm most of them anyway. Also, I don’t think the local dealers carry much inventory. I use a local APMEX affiliate and on larger orders I usually call it in then they call me a few days later to come in and settle up when it’s ready. I reckon that if they can’t instantly fill 100 oz out of inventory then they probably don’t regularly keep 100 oz in inventory. E.g. if they can’t instantly foist it off on a larger exchange, who will in turn instantly hedge, they won’t be interested. These guys aren’t interested in risk, their bread is buttered on the spread between the buy and sell price. Not sure though because I have only been on the other side of the trade so far. Anyway, if that’s what you want to do I’d call APMEX and I’d also ask if they have a local affiliate you can deliver to in order to avoid shipping and insurance.


Anonymous said...

Sell on ebay.

Anonymous said...


Check out this article "Facts on Silver" by Bob Moriarty from April 27......

Moriarty points out that the silver shortage claims are not accurate.

I am personally going bearish on silver(mainly an industrial metal) for a number of factors ie Commodity King China turning over, Fukushima causing disruption in global supply chains, silver's parabolic price curve, WAY too much bullish sentiment, etc etc.

However, looks to me like lots of serious volatility in silver to follow a possible 2008-style major correction re $21 to $8.


Anonymous said...

Of course I could be very wrong in these confusing markets. And I would note that the parabolic silver price curve has not been matched by gold.

You can buy/sell all types of silver at They are great to deal with and are very reliable. Buy/sell prices listed for everything from junk coins to 1000oz bars.

And they also now have a current silver stock of 450,000oz. Let that sink in for a moment.

Good luck.

Best, Marshall

Donal Lang said...

As someone old enough to remember Bunker Hunt......... ;-)

Joseph said...


Refiner by me will take any quantity I want to sell and pays between 92-95% of spot. Not great but if you bought under $10/oz who cares right?

Also, craigslist has been used in the past and anything under 200 oz. sells pretty quick.