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Minyan Mailbag: My First Bar of Silver

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If there is such a shortage, as indicated by the premiums, then I can't believe silver is still in single digits!

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Laurie,

Ever since holding the gold/silver you passed around in Ojai I had a fixing to buy a bit. I found a dealer at the local flea market who sells 10oz bars for $0.75 an ounce over spot, and bought one. It's tough to pay $9 an ounce when you know spot is around $8.25, but 10oz bars are going for $90-100 on eBay before taking shipping fees into account, so it's not like one can do much better. Plus, if things unfold like we think they will, $9 won't seem like such a bad price in a few years. I intend this to be the first of many purchases, and next time I'll try to find some 100oz bars so I can pay a little less of a premium. I just wanted to send along the delight of a silver owner.

Minyan Conor

MC,

It warms my heart to hear that you have been drawn to the physical metal and that maybe my bringing a few bars to MIM2 helped you in your decision making process. I'm glad that you were able to source some physical metal, although a flea market wouldn't be the first place I'd go looking for precious metals down here. I guess things are different in the US?! I expect that the bar is stamped by a reputable refiner and that you actually weighed the thing. A kilo of silver is 32.15 ounces for the uninitiated.

I note the premiums are getting wider for delivered bars. It was only a year ago that I was paying 25 cents over spot to take bars away from my dealer and I thought that was steep!!. If there is so much silver around, as some contend, how come such massive premiums for delivered bars? If there is such a shortage, as indicated by the premiums, then I can't believe silver is still in single digits!! Paper silver hasn't even made a new high for this move, let alone close to any historic high like copper has recently made. I agree that the $9 you have paid will look bloody cheap in a few years and you'll be thinking "why'd I only buy 10 ounces!" But I'm happy for you that you have taken your first step in real wealth preservation.

Interestingly, today I had the most exercise I have had in years, after I decided to move my personal silver stockpile. Too many people knew about it and some knew/had a good idea where it was stashed. I am not very trusting when it comes to my metals! Anyways, these little old arms and shoulders are aching tonight. But what a good ache!!!

Welcome aboard the physical silver train, mate!

Cheers

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