Mojofabulous' Thoughts On Buying and Selling Silver, and BJF's "Silver Update 12/19/12 Stack The Smack"Submitted by Cyril on Sat, 12/22/2012 - 19:58
Found on BJF's "Silver Update 12/19/12 Stack The Smack" :
"My thoughts on buying and selling silver"
"[...]Many people actually throw away gold and silver jewelry when it breaks(for example a broken necklace) because they think it has lost it's value. They completely fail to recognize that the metal itself has value. The only value they recognized was the (now) ruined form it was in (jewelry). Further, most of the ones that DO realize the metal still has value completely fail to understand how much value it DOES have. I cannot tell you how many people have walked in to my store and literally passed me a handful of broken gold jewelry and said "I have no idea how much this is worth, I Just hope I can get some gas/beer money for it." Literally 90% of the customers I see haven't even bothered to look up the spot price of gold or silver in their life time. They had in their hands $100-$500 worth of gold and silver and they expected it to pay for their $20-40 gas bill ![...]
I'll tell you what these people are going to do. They're going to buy WHAT IS AVAILABLE AND SIMPLEST. The most recognizable things will go first. Then the 'cheapest' will go second. Then whatever is left will go last. When the frenzy buying for precious metals truly begins, premiums will go up. This is true. But it will be true for ALL PHYSICAL SILVER AND GOLD. The premiums will go up rapidly but will simultaneously compress until there is little difference between generic, semi-numismatic and full numismatic silver. All will be expensive and all will be considered equal (even if it is also considered somewhat confusing and strange)[...]"