Mon, Oct 20, 2014, 7:37 AM EDT - U.S. Markets open in 1 hr 53 mins

Recent

% | $
Quotes you view appear here for quick access.

Silver Wheaton Corp. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • gpawx3 gpawx3 Aug 15, 2008 11:26 AM Flag

    YOUR GOVERMENT AT WORK...

    Anyone who believes the bullion dealers are "sold out" of metals needs their head examined! THEY CAN'T SELL NOW. They bought their metal at prices that would render NO PROFIT if they were to sell it now {they bought at say, $17 silver, $900 gold}. So now they must play this WERE OUT OF METALS GAME, desperatly hopeing that the prices return, so they can sell at a profit. For cash flow reasons, soon they will have to sell at any price, and some will go under. All will lose money, bigtime.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • think it will not recover and they will lose money and go under. Thats the dumbest thing i have heard in a while.

    • "Many of the dealers above will buy paper futures to offset the silver that they sell. They don't take delivery, since the public never buys 1000 oz. bars from them. Instead, they use futures contracts to offset any losses. They intend to sell the futures for the cash to buy the physical silver "from the public" when it "comes in the door". Thus, they can sell physical product if they have it, even if they paid more for it, simply by buying futures contracts. So, it's not a case of them being unwilling to part with silver that they bought at higher prices. They make money on the immediate spread of the immediate buy and sell."

      http://silverstockreport.com/2008/shortagesmean.html

      Dealers are hedged... They don't lose money on their inventory when the price goes down. But nice try shortie.

      • 1 Reply to subprime_suicide
      • Have you even bothered to look at the Comex, Einstein? They are short at a margin of almost 3-1! Yes, they play this little game everytime the PMs tank {and sometimes, they have reasons for not buying when the prices are soaring}. There has been a sea change this time around. Deflation is begining to replace inflation. July was the high water mark for inflation, now withthe USD headed back above 80 on the index, you can kiss your PM "investments" goodbye. I have been following this trade since 2003, and I know a top when I see one. This trade {inflation} has played out. All downside from here....

    • IMPORTANT NEW NOTICE: Due to market volatility and higher demand in the entire industry, we are anticipating delays in supply of all bullion products. Please note that you can continue to place orders and prices will be guaranteed; however, cancellation fees will still be applicable regardless of the length of the delay. Consequently once inventory is received there may also be delays in processing and shipping by our vaults.
      You are wrong GPAW. This is the message from Kitco, notice they guarantee the price but do not have the stock. BTW, they won't sell anything under $800 p/oz, that's a $24 premium p/oz, even on 100 oz bars.

    • <Anyone who believes the bullion dealers are "sold out" of metals needs their head examined! THEY CAN'T SELL NOW. They bought their metal at prices that would render NO PROFIT if they were to sell it now {they bought at say, $17 silver, $900 gold}. So now they must play this WERE OUT OF METALS GAME, desperatly hopeing that the prices return, so they can sell at a profit. For cash flow reasons, soon they will have to sell at any price, and some will go under. All will lose money, bigtime.>

      Well that's not quite right. Most of these guys don't carry very large inventories from what I understand. They're essentially just market makers. One of their big problems working with retail customers is not getting paid for a trade once they've set up a deal because the customer got nervous the price was going to drop more.

      I can imagine during times of extreme volatility some of these guys saying they'll only work with existing customers, and new customers please come by when things settle down. Just a guess on my part. But no, these guys have been doing this for a long time and most, probably all, will weather a storm like this just fine.

 
SLW
19.50-0.29(-1.47%)Oct 17 4:00 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.