Coin Shop Report 9/26/2011

[k-os]

I went to my local coin dealer on Saturday (9/24/2011), and he said they had been wiped clean on Friday, and that he doesn't sell bullion when the markets are closed. Fair enough, I thought. I did buy a little silver walking liberty money clip. This was the first time I had purchased anything from them, although I did sell to them previously (to buy the RV). So, what I am saying is that we are basically strangers.

I went back today and discovered that they still had no silver except for those in cases with numismatic value. After small talk about premiums and what not, he magically appeared with a small zip lock bag with some old generic rounds. (I guess I passed the test.) I couldn't help myself, and I picked up a few ounces of silver (Mexico, generics, and one lonely SAE) for $2 over spot.

He said that they won't be getting any SAE's until mid-October, and that they'll be charging between 12% and 15% over spot for them. I must have made a funny face, because he went on to talk about volatility, etc. I understand. You can't blame them for making a living.

Just like all of you know . . . paper price doesn't matter all that much.

[mamboni]

I went to my local coin dealer on Saturday (9/24/2011), and he said they had been wiped clean on Friday, and that he doesn't sell bullion when the markets are closed. Fair enough, I thought. I did buy a little silver walking liberty money clip. This was the first time I had purchased anything from them, although I did sell to them previously (to buy the RV). So, what I am saying is that we are basically strangers.

I went back today and discovered that they still had no silver except for those in cases with numismatic value. After small talk about premiums and what not, he magically appeared with a small zip lock bag with some old generic rounds. (I guess I passed the test.) I couldn't help myself, and I picked up a few ounces of silver (Mexico, generics, and one lonely SAE) for $2 over spot.

He said that they won't be getting any SAE's until mid-October, and that they'll be charging between 12% and 15% over spot for them. I must have made a funny face, because he went on to talk about volatility, etc. I understand. You can't blame them for making a living.

Just like all of you know . . . paper price doesn't matter all that much.

Obviously, the dealer is a sucker for a pretty face.;D

[Large Sarge]

URL: http://www.dollarvigilante.com/blog/2011/9/26/gold-silver-bubbles-panics-and-stink-bids.html



September 26, 2011



With gold falling more than $300 in the last three weeks from highs over $1,900 to under $1,600 and silver plummeting from over $42 to under $30 in the same time period, the mainstream media was ablaze with talk of popping bubbles. Of course, the fact that mainstream media has never, in its history, called a bubble top correctly - or even recognized a bubble - is besides the point.

Charles Sizemore at Marketwatch.com raced to his keyboard, "Is it Time to Call the (Gold) Top?" he questioned, although it sounded more like a statement. Marketwatch has been dying to call a gold collapse for a while. Remember, Cody Willard's brazen call in June 2009 to "Sell Gold Now - It's Headed Below $500/oz"? Nice call, Cody.

If/when we do reach the end of this gold bull market there is one thing that is certain: it will not be called by the mainstream media. In fact, the nightly newscast will likely lead off with the "news" readers telling you to rush out and buy gold.

For now, gold and silver haven't even entered into a bubble yet. They are still catching up to the price of everything else... and lag dramatically the one true bubble. The bubble in government debt.



PANIC IN PHOENIX

The sentiment on the street also does not signal any sort of top in the gold/silver market.

In Phoenix, on Thursday and Friday of last week, after gold and silver had fallen dramatically there was a panic. A buying panic!

According to a good friend and Dollar Vigilante subscriber who lives in Scottsdale, the Coin Gallery (off I-17 in Dunlop) had lines stretching well outside of the store on both Thursday and Friday. Our friend has visited the store on many occasions to purchase gold and silver coins and told us that on any given day there are usually a decent amount of people buying and selling.

But, when he arrived on Thursday he couldn't believe his eyes. The lines were long and every single person was there to buy. By the time he reached the front of the line they were sold out of almost everything except for a few silver bricks. He ended up getting into a pushing match to be able to buy them as the crowd fought over them.

Finally, he prevailed and asked management what was going on. They told him that they had sold over 12,000 ounces of gold and silver in the last 24 hours (note: entrepreneurs, open precious metals coin stores!).

As the crowd began to filter off after hearing that there was nothing left to buy, my friend headed to the parking lot where someone offered to buy his silver at a profit over what he bought in the store.

If gold and silver were going up dramatically in price and we heard of this type of panic buying at physical shops we would be wary. But, the fact that this type of panic buying comes in AFTER a large correction shows the amount of real physical buying power that underpins the metals.

The Coin Gallery says they won't have any new supply until Wednesday or Thursday of this week.I arrive in Phoenix on Friday night as I am speaking at the Casey/Sprott Summit, "When Money Dies". I am hoping that gold and silver remain at these levels or below until Monday and I will go to the Coin Gallery myself to see if they have any physical left to sell.

It is my belief that this is probably the last chance to buy physical gold and silver at these levels. As the bull market moves on it will become increasingly difficult to buy any physical metals in quantity.

STINK BIDS

The Canadian junior markets have all kinds of colorful colloquialisms. Dead cat bounce and "stink bids" are typical market-speak around the old Vancouver Stock Exchange (now called the TSX Venture Exchange, or TSX-V).

A "stink bid" is a term for putting in a ridiculously low bid on a stock on the off chance that market illiquidity and a distressed seller (usually on a margin call) makes it so that you get the stock at a truly cheap level.

Times like we have had last week and possibly for the next week or two are prime "stink bid" environments. Friend, and TDV subscriber, Danny Deadlock of the excellent Microcap.com newsletter, recounted how some lucky stink-bidder hit the jackpot last week:

In one of the harshest cleanouts I have seen yet - and it was so aggressive I wonder if it wasn't a margin call and a forced sell - Lignol Energy (LEC.V $0.11) which I was just discussing last night.

The stock has been trading at 0.12 and 0.13 all morning. Mid day someone through QTrade dumped 240,000 shares "at market" - what an idiot !! They collapsed the stock from 0.12 to 0.03 within seconds and someone sitting with a stink bid of 60,000 shares at 0.03 was filled.

It didn't take long for the stock to clean back up 200% with buyers trying to get cheap paper near 0.08 and 0.09 - myself included with no luck. I am leaving the buy order sit there till month end and maybe I will get equally lucky. I am just mad I wasn't the guy sitting at $0.03 who just had someone hand him 60,000 shares.

CONCLUSION

If prior to last week you hadn't bought your full allotment of gold/silver and precious metals stocks, you've been given a gift. A short term "sale" on those assets.

And for those who follow our newsletter and recommendations, we have been very clear about keeping a 20% cash cushion for exactly times like these. Put in stink bids on any/all of the stocks in our portolio for the coming days and see if you can take advantage of the imprudence of others who bought on margin - something we NEVER recommend in these markets... they are just too volatile.

A number of the stocks in our portfolio were hit over the last few days so use this time to purchase some more with the 20% of your portfolio that is in cash. As well, in our October 1st Premium issue of The Dollar Vigilante (sign up to receive it today), Ed Bugos will be featuring an exciting near-term Canadian gold producer that has also been hit by the recent turbulence.

As Steven Saville of Speculative-Investor.com recently stated, "Buying gold stocks following a multi-month decline into the October-November timeframe is one of the surest ways to make money in the financial markets. At least, it has always worked that way over the past 10 years."

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Regards,


Jeff Berwick
Chief Editor

[1970 silver art]

I went to my local coin dealer on Saturday (9/24/2011), and he said they had been wiped clean on Friday, and that he doesn't sell bullion when the markets are closed. Fair enough, I thought. I did buy a little silver walking liberty money clip. This was the first time I had purchased anything from them, although I did sell to them previously (to buy the RV). So, what I am saying is that we are basically strangers.

I went back today and discovered that they still had no silver except for those in cases with numismatic value. After small talk about premiums and what not, he magically appeared with a small zip lock bag with some old generic rounds. (I guess I passed the test.) I couldn't help myself, and I picked up a few ounces of silver (Mexico, generics, and one lonely SAE) for $2 over spot.

He said that they won't be getting any SAE's until mid-October, and that they'll be charging between 12% and 15% over spot for them. I must have made a funny face, because he went on to talk about volatility, etc. I understand. You can't blame them for making a living.

Just like all of you know . . . paper price doesn't matter all that much.

$2 over spot is very good IMO. In the last 3-4 months, the dealers in my area usually charge around $3 over spot for .999 generic silver bars and rounds.

[Twisted Titan]

went to my local dealer today to grab some mercs

after exchanging plesantries

in walks a friend of his he knew for over 35 ;years tells the owner he wants to some gold coins and ingots without batting a eye owner tells his buddy to pound sand.

friend wasn't to happy to say the least and soon left

I was just taken aback by the courseness of the exchange and the owner said a line I wont forget.


I'm a dealer ........not a dummy


I didnt get to own a business by selling my goods at a loss.......


He said if this continues for any lenght time he will just shut down the coin part and run the antiques and high end numis.

he said junk is a good buy because his entry point is still below cost.

a wild day for sure

[MAGNES]

So far this is exactly like 2008.

Kos, they guy has to pay the bills and pulls out generics that don't command premiums.

He's keeping the silver that can command $8-$10 to spot.

We should post reports in one thread to be effective in real time,
less chatter, just reports from people, I'll do some screens later.

[Gaillo]

Hmmm...
I was in town on Friday for a business meeting, and stopped by the coin shop on my way home. He had 2 trays of Generic 1 Ozt bullion (probably 25 coins in each tray) and a tube of Australian Kukaburra's on display, next to a few SAE's. He also had a BEAUTIFUL 2 Ozt Kukaburra in what looked like mint condition - I'd never seen one before... but he wanted $95 for it and wouldn't budge on the price.

I picked up one bullion round at $35, and a dozen mercs, at 26x face. Would have bought more, but I was pretty tapped out, all my spare income has gone toward food storage lately. The dealer didn't seem distressed or seem to care about spot price, transaction went smoothly and with no comments. Only one other guy in the coinshop at the time, he was looking at slabbed numi coins.

[Plastic]

Magnes, here's my report from today if we are gonna keep everything in one thread for better intel collection/dissemination.

http://gold-silver.us/forum/showthread.php?54517-coin-shop-report-26-sept-11

[Sparky]

So far this is exactly like 2008.

Kos, they guy has to pay the bills and pulls out generics that don't command premiums.

He's keeping the silver that can command $8-$10 to spot.

Agreed, Magnes. I saw this in 2008 at a local dealer here when silver dropped from $20 to $8. He didn't pretend to not have it. He told me flat out that he had plenty, but wasn't going to sell it at that price.



We should post reports in one thread to be effective in real time,
less chatter, just reports from people, I'll do some screens later.
Good idea. And I continue to encourage more "sell" stories, so that we can get a better idea of what the true spread is.

[ximmy]

And I continue to encourage more "sell" stories, so that we can get a better idea of what the true spread is.

The true spread is...
http://barbsblast.files.wordpress.com/2011/07/tartine_et_pot_de_nutella-1.jpg

[Buddha]

Where are you guys getting your silver from? I paid $1 over spot today, and that's how it's always been.

[MNeagle]

Where are you guys getting your silver from? I paid $1 over spot today, and that's how it's always been.

question is where are YOU finding that deal??

[1970 silver art]

Where are you guys getting your silver from? I paid $1 over spot today, and that's how it's always been.

Hey Buddha, that $1 over spot is an excellent deal. You have it good with the low premium of $1 over spot silver. It is a low premium to me anyway.

[sirgonzo420]

I get all my silver for $50 under spot.

[milehi]

Shop report for 9/27. I went in at noon and there wasn't a soul in there. I hung out for 45 minutes shooting the shit with the owner. As I was leaving, someone walked in to pick up a check for a previous sale.

Inventory was the same as it's always been and I walked out with some silver buffalo rounds and a 1/10 gold Maple.

The day before, I bought some bars and Mercs, but can't tell you the climate of the shop as I texted in my order and had it dropped off in the evening

(The owner is my friend, mentor and neighbor.)

[mick silver]

Agreed, Magnes. I saw this in 2008 at a local dealer here when silver dropped from $20 to $8. He didn't pretend to not have it. He told me flat out that he had plenty, but wasn't going to sell it at that price.


Good idea. And I continue to encourage more "sell" stories, so that we can get a better idea of what the true spread is.

thats what my dealer told me also . it all in the safe

[chad]

my dealer has probably 200 ounces of generic. $42 an ounce if you want it.

[Sparky]

my dealer has probably 200 ounces of generic. $42 an ounce if you want it.

Yup. This dealer said that if he had tried to sell silver at $20 when the paper price dropped to $8, it makes him look bad in the eyes of his customers. Rather than go through that, he just took it off the market.

[1970 silver art]

Today after I left work, I went a local dealer on my way home. When I got inside, they did not have any silver art bars. Overall, they did not have a lot of silver. This also did not have any gold. The only things that I saw were a single SAE and a few Morgan silver dollars and the rest of their inventory was numismatic items. I did not buy anything from this dealer today. While I was in the shop, I was just shooting the breeze with the owner and the 2 female employees that were there.

I plan to go to another dealer tommorrow that is located just over the state line in Georgia to see what silver art bars they have (if any) but I will call first before going down there.

Overall, it has been dry bullion-wise in my local area since last Friiday afternoon.

[ximmy]

Today after I left work, I went a local dealer on my way home. When I got inside, they did not have any silver art bars. Overall, they did not have a lot of silver. This also did not have any gold. The only things that I saw were a single SAE and a few Morgan silver dollars and the rest of their inventory was numismatic items. I did not buy anything from this dealer today. While I was in the shop, I was just shooting the breeze with the owner and the 2 female employees that were there.

I plan to go to another dealer tommorrow that is located just over the state line in Georgia to see what silver art bars they have (if any) but I will call first before going down there.

Overall, it has been dry bullion-wise in my local area since last Friiday afternoon.

It's a good thing you mentioned, on your way home, or Mamboni would be all over your ass... "a local dealer on my way home." :p

[solid]

Today after I left work, I went a local dealer on my way home. When I got inside, they did not have any silver art bars. Overall, they did not have a lot of silver. .

Art, your local shop didn't have any silver art bars..what a shock. :) Did it occur to you that perhaps 'you' were the reason for the artbar shortage locally? ;D

I'd just like to add that the coin shop reports have to be my favorite threads on this forum. Nothing like honest reports from folks, from all over, to really paint a picture of the true pricing in metals.

[mamboni]

It's a good thing you mentioned, on your way home, or Mamboni would be all over your ass... "a local dealer on my way home." :p

I'm taking everything down m'am - just the facts, just the facts.

[Buddha]

Ok, since Solid likes these reports so much I'll actually give one rather than say "I GET MY SILVER 1$ OVER SPOT I WIN!" Oh i just said it...... the truth sucks, j/k of course ;)

So a man walks into a coin shop.... I go in and sit down on the coin side. He has a peninsula of counters where one side is jewelry and the other is coins. So I'm sitting there while hes putting batteries in these peoples watches and he looks over at me. When he frist sees me he always looks at me with this "awww shit" expression. I say "I am here for your silver." He says that he doesn't know if he has any left, he sold all of it at $45. LOL He immediately puts this 1 oz "Happy Birthday 1982" bar in front of me and says he'll have to look for more. I make a face. :-\

He starts talking about how pople are still worried about inflation, I say something about QE3 etc, and he agrees. One of the older guys next to me starts talking about LRP BS and I tune him out. Coin man dissapears.

He comes back later and puts down several of these 1 oz "Du Pont" rounds (Du Pont :-\) I say thats good but ill wait to see what else you have, I know he kinda likes to hold out. It's then that this other guy sitting there says "You been buying silver long?' I say about 4 years. He says that he is just getting into it and wishes that he knew about it when it was $4 an ounce. I tell him it's good to be aware now and it's not too late. He makes a discouraged face.

Coin man comes back with some better looking rounds, some older mexican ones with an eagle on a cactus eating a snake, and some decent looking American ones. He also had a Libertad unopened in plastic that said "Choice Uncirculated." I took most of what he had, $1 spot on all and said thank you, he was on the phone. Told the new silver guy good luck.

That was Buddha's trip to the coin shop.

[mamboni]

Ok, since Solid likes these reports so much I'll actually give one rather than say "I GET MY SILVER 1$ OVER SPOT I WIN!" Oh i just said it...... the truth sucks, j/k of course ;)

So a man walks into a coin shop.... I go in and sit down on the coin side. He has a peninsula of counters where one side is jewelry and the other is coins. So I'm sitting there while hes putting batteries in these peoples watches and he looks over at me. When he frist sees me he always looks at me with this "awww shit" expression. I say "I am here for your silver." He says that he doesn't know if he has any left, he sold all of it at $45. LOL He immediately puts this 1 oz "Happy Birthday 1982" bar in front of me and says he'll have to look for more. I make a face. :-\

He starts talking about how pople are still worried about inflation, I say something about QE3 etc, and he agrees. One of the older guys next to me starts talking about LRP BS and I tune him out. Coin man dissapears.

He comes back later and puts down several of these 1 oz "Du Pont" rounds (Du Pont :-\) I say thats good but ill wait to see what else you have, I know he kinda likes to hold out. It's then that this other guy sitting there says "You been buying silver long?' I say about 4 years. He says that he is just getting into it and wishes that he knew about it when it was $4 an ounce. I tell him it's good to be aware now and it's not too late. He makes a discouraged face.

Coin man comes back with some better looking rounds, some older mexican ones with an eagle on a cactus eating a snake, and some decent looking American ones. He also had a Libertad unopened in plastic that said "Choice Uncirculated." I took most of what he had, $1 spot on all and said thank you, he was on the phone. Told the new silver guy good luck.

That was Buddha's trip to the coin shop.

OK Buddha, I'm calling bullshit on your coinshop story. Because that silver coin with the eagle on a cactus eating a snake is vanishingly rare and could easily fetch $10,000 at auction. Only a handful were minted and most were melted down. So I'm calling bullshit! Is this the coin you saw?

http://ts2.mm.bing.net/images/thumbnail.aspx?q=1237461963421&id=0f041e15879daf3f03322ef2e5bd8da8

[Buddha]

OK Buddha, I'm calling bullshit on your coinshop story. Because that silver coin with the eagle on a cactus eating a snake is vanishingly rare and could easily fetch $10,000 at auction. Only a handful were minted and most were melted down. So I'm calling bullshit! Is this the coin you saw?

http://ts2.mm.bing.net/images/thumbnail.aspx?q=1237461963421&id=0f041e15879daf3f03322ef2e5bd8da8
I'm calling bullshit on your bull shit., I'll find a pic.
http://ny-image3.etsy.com/il_570xN.59763687.jpg
this one is from 1950, mine is 1983

(http://ny-image3.etsy.com/il_570xN.59763687.jpg)

[mamboni]

I'm calling bullshit on your bull shit., I'll find a pic.
http://ny-image3.etsy.com/il_570xN.59763687.jpg</a> (http://ny-image3.etsy.com/il_570xN.59763687.jpg)

This one is from 1950 mine is from 1983.

I don't see no picture of no coin, blood! I'm calling bullshit on your bullshit call on my bullshit, got it?!?! Now, is da d'coin? 'Cause if dat is, I need the address of that coin crib, you dig?
(http://ny-image3.etsy.com/il_570xN.59763687.jpg)

[Buddha]

I don't see no picture of no coin, blood! I'm calling bullshit on your bullshit call on my bullshit, got it?!?! Now, is da d'coin? 'Caue if dat is, I need the address of that coin crib, you dig?

LOL sorry I'm a little special y'dig. MAh Bonie? check that post again. posted the link as a url instead then tried to [img] it and the world exploded.

[chad]

my god, it's full of stars.

[platinumdude]

Just buy online.

[mamboni]

LOL sorry I'm a little special y'dig. MAh Bonie? check that post again. posted the link as a url instead then tried to [img] it and the world exploded.

Damn, that coin ain't worth jack shit! 'You ain't holdin' out on me, are ya? You trying to Buddha me?

[mamboni]

Just buy online.

You butt out, platinum dude. You had your shot but now gold is top dog and you ain't nothing but an also ran. I heard rhodium is looking for a loser to hang with.;D>:D;D

[mamboni]

my god, it's full of stars.

Yer ass is full of stars. You stay outa dis thread bro. Your ship already came in. You got your big gold rocks so leave something for the rest of us, OK? That coin is mine! Oh, BTW, Chad is a funny name, y'know like Bruce or Percy. Y'catching my drift? You should change to a real manly name like.....mambono.8)

[Buddha]

Damn, that coin ain't worth jack shit! 'You ain't holdin' out on me, are ya? You trying to Buddha me?

Yes, I'm trying to Buddha the Boni.

[mamboni]

Yes, I'm trying to Buddha the Boni.

Ouch! That smarts!

[k-os]

Yer ass is full of stars. You stay outa dis thread bro. Your ship already came in. You got your big gold rocks so leave something for the rest of us, OK? That coin is mine! Oh, BTW, Chad is a funny name, y'know like Bruce or Percy. Y'catching my drift? You should change to a real manly name like.....mambono.8)

I always liked the name Chad.

[mamboni]

I always liked the name Chad.

Actually K-os, I've never told anyone this before; but Chad is my middle name.:-*:-*:-*

[Buddha]

Actually K-os, I've never told anyone this before; but Chad is my middle name.:-*:-*:-* And you shouldn't have started....

[chad]

Actually K-os, I've never told anyone this before; but Chad is my middle name.:-*:-*:-*

too late, magic man!

[mamboni]

And you shouldn't have started....

OK, OK: you keep the coin - I'll take the pretty lady.O0

[Buddha]

OK, OK: you keep the coin - I'll take the pretty lady.O0

:D ok, I can't give up silver, not even for that. My hands are strong for a number of reasons ;)

[chud]

I always liked the name Chad.

Well I'm off by one letter, but still...

[Neuro]

:D ok, I can't give up silver, not even for that. My hands are strong for a number of reasons ;)

Is it the exercise? ;D

[SLV^GLD]

My local dealer quit the shop to do estate buys and hired a gang of douche bags to handle the coin business.

I very rarely go in there anymore.