ECON Silver question of the day?

20Gauge

TB Fanatic
Okay for many you know I have been buying junk silver for the last year or there about. Over that period of time the following thing occurred to me.

When ever the price of silver drops, there is more silver available at the pawn shops to buy. If the price goes up, there is less.

My question is why?

I may be dense today, but it really strikes me as strange.
 

Earshel

Contributing Member
I would assume that it comes from paperhands who aren’t committed to holding long-term and get scared in to selling when the price starts dropping. These same people FOMO in when the price starts to go up, causing the supply to dry up again. Fair weather investors.
 

Dozdoats

On TB every waking moment
Hoarding vs dishoarding. Measured by market price. People hold on to what is perceived as valuable and let go of what is not. Even if it is the same thing at a different price and time.
 

phloydius

Veteran Member
One possibility:

When prices are *expected* to rise, there is an incentive for dealers to hold, buy more & sell less.
When prices are *expected* to fall, there is an incentive for dealers to move what they have quickly.
 

West

Senior
I call it the "butt hurt syndrome".

Peoples stack silver then they see it dropping in FRNs and sell. Never realizing they haven't lost a single gram or penny weight in real coin.

Peoples stack when prices goes up, thats called "the butt head syndrome".

:D
 

Quiet Man

Nothing unreal exists
You're right -- It does seem strange, but then you 'get it'.

We Americans, as a group, are pretty ignorant when it comes to PMs. We have no concept that PMs 'are money' and have 'intrinsic value' and, therefore, we should buy when the price drops.

We generally buy when the price goes up.

It comes along with the brainwashing. You know, the 'pet rock' and 'everything is fine' and 'Inflation is transitory' and all that stuff.
 
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The Snack Artist

Membership Revoked
You're right -- It does seem strange, but then you 'get it'.

We Americans, as a group, are pretty ignorant when it comes to PMs. We have no concept that PMs 'are money' and have 'intrinsic value' and, therefore, we should buy when the price drops.

We generally buy when the price goes up.

It comes along with the brainwashing. You know, the 'pet rock' and 'everything is fine' and all that stuff.
The mkt is run on fear and greed.
 

SpokaneMan

Veteran Member
Okay for many you know I have been buying junk silver for the last year or there about. Over that period of time the following thing occurred to me.

When ever the price of silver drops, there is more silver available at the pawn shops to buy. If the price goes up, there is less.

My question is why?

I may be dense today, but it really strikes me as strange.
I'd be curious to know if you are ONLY buying junk silver. I tend to diversify because I don't know how the future will look when it comes to money conversions and our dense public. So I try to buy an equal amount of rounds and ASE's as well just to make the math easier. And when it comes to the junk I really don't bother with anything less than the 90% value coins. (Morgans, Franklins, and Walking Libs mostly). Or a few rolls of mercury dimes is good too.
 

20Gauge

TB Fanatic
I'd be curious to know if you are ONLY buying junk silver. I tend to diversify because I don't know how the future will look when it comes to money conversions and our dense public. So I try to buy an equal amount of rounds and ASE's as well just to make the math easier. And when it comes to the junk I really don't bother with anything less than the 90% value coins. (Morgans, Franklins, and Walking Libs mostly). Or a few rolls of mercury dimes is good too.
I have a few rounds and will buy them as they are available, but around here they tend to have the highest by far of the premiums. Other than that, I get 90% as a rule.
 

day late

money? whats that?
I will say that when Dennis was asking this question I gave the following advice. Think practical. You may have a couple of hundred gold double eagles. BUT how is the guy at the gas station going to make change for you even if gas is $50 a gal.? Same goes for anything and everything you buy to fill your daily needs. If you can afford the gold, go for it. There will be higher ticket items you will need and can use them then. But in my opinion for the average day to day buying and selling, when it isn't barter, is going to be done in junk silver.
 

Squid

Veteran Member
In the fwiw department. The local dealer sells not only retail but on-line. When the market is hot the inventory doesn’t just get picked up by the walk-in trade but they get some bulk orders possibly even from some smaller retailers.

Also the other piece of this is their suppliers. Recently they have been having trouble getting new stock from some types. In normal times they would have choice, Chinese, Astralian, US, Canadian, even Austrian silver coins. The only steady new inventory recently has only been Canadian.

I imagine production, and distribution would impact coins just like everything else.
 
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