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Author Topic: Kilo Silver - For Sale - Tucson  (Read 1011 times)

TyrantT86

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Kilo Silver - For Sale - Tucson
« on: February 04, 2021, 05:51:01 pm »
I have 7 open contracts with JMBullion.com
Each contract is 1 Kilo....32.15 oz

4 contracts expire 2-6-21.
3 contracts expire 2-13-21

$1100 per Kilo, with a 2 week waiting period due to extreme sales.

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    CMore

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #1 on: February 04, 2021, 06:35:41 pm »
    I have 7 open contracts with JMBullion.com
    Each contract is 1 Kilo....32.15 oz

    4 contracts expire 2-6-21.
    3 contracts expire 2-13-21

    $1100 per Kilo, with a 2 week waiting period due to extreme sales.

    So when can you take delivery on the metal? 

    I would take a kilo if it was delivered today but, today's spot is only $26.10 so that would be $885 per kilo.  If you have to wait 2 weeks to have metal in hand then I might be interested depending on what spot is then...  If you are just selling paper I am not interested.
    K1CJM

    TyrantT86

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #2 on: February 04, 2021, 07:19:24 pm »
    Before we negotiate...

    Do me a favor....

    Find a kilo of silver....

    Spot has nothing to do wirh anything anymore.

    Dullahan

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #3 on: February 04, 2021, 08:08:42 pm »
    I respectfully disagree. Spot prices on commodities like silver reflect supply and, more importantly, demand. The spot price  is quite meaningful in that sense. That doesn't mean you can't sell something you own for whatever you choose to ask, of course.
    "This gun is Liberty. Hold for certain that the day when you no more have it, you will be returned to slavery." - Toussaint L'Ouverture

    coelacanth

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #4 on: February 04, 2021, 11:06:51 pm »
    I think the question is what is being negotiated for.  If it is a contract for physical metal it ought to have a description and a delivery date.  As for finding silver its gotten more difficult but it isn't impossible.  Not many 90% bags around these days but .999 bullion coins and 100 ounce bulk bars can be had.   :coffee
    " A republic, if you can keep it. "
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    CMore

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #5 on: February 06, 2021, 08:29:52 pm »
    Before we negotiate...

    Do me a favor....

    Find a kilo of silver....

    Spot has nothing to do wirh anything anymore.

    Actually it is pretty easy to find silver for sale right now online and at local sellers.

    So back to my main question do you have physical silver or just paper?
     
    K1CJM

    GTGallop

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #6 on: February 07, 2021, 07:11:07 am »
    So I'm a little curious here.  I'm interested, but not enough to buy - yet.

    The web site he references is here - https://www.jmbullion.com/
    They state:
    Quote
    M Bullion is an online retailer of precious metals products, established in 2011. We deal exclusively in physical bullion, selling gold or silver that is delivered directly to your door. Quality products are one of our top priorities. JM Bullion works directly with mints and distributors, and we inspect all new inventory carefully, ensuring that the products our customers receive are of the highest quality. JM Bullion is located in the United States, in Dallas, TX. We have proper and full accreditation from the state, federal government, and distributors alike.
      Emphasis Mine.

    Now that Ma and Pa have had their Covid shots, I'm due for a visit to check in on them.  It's been over a year and they are in their mid to late 70's.  And...   They live in Dallas.  I might stop into the JMB Location for more research and intel.  I'm currently considering diversifying funds or types of funds I keep around.

    As near as I can figure by self educating, contracts on metals are like a futures bet on any commodity.
    What are Silver Futures Contracts and how do they work?
    Quote
    Commodities like silver (as well as gold, oil, natural gas, palladium, platinum, coffee, sugar, cotton, wheat, and others) have both privately negotiated forwards contracts and futures exchange standardized futures contracts traded on their fluctuating values.

    There are many futures contract exchange market acronyms you have likely come across before. Names like the NYMEX, CME Group, CBOT, SGE, COMEX, and more. Futures contract exchanges are purportedly regulated by their national governmental or semi-governmental regulatory agencies.

    Today the silver spot price is a combined indexing using many of the world futures market prices. But based on trading volumes, the silver spot price is currently mostly influenced by the highly fractionally reserved COMEX and London Silver Market.

    Silver derivatives (silver futures contract bets) are traded in daily volumes which dwarf the daily physical silver bullion supply. Basically 100s of theoretical silver ounces traded versus 1 real ounce of physical silver brought to market every day.

    Since my working knowledge about commodities and futures trading comes mostly from the landmark case of Mortimer and Randolph Duke trying to short the Frozen Concentrated Orange Juice market in 1983 only to be bested by upstart trader Billy Ray Valentine and his adviser Louis Winthorpe III, I decided it was probably time for a better understanding.
    Commodity Futures, How They Work With Examples
    Quote
    Commodities futures contracts are agreements to buy or sell a raw material at a specific date in the future at a particular price. The contract is for a set amount. It specifies when the seller will deliver the asset. It also sets the price. Some contracts allow a cash settlement instead of delivery.

    The three main areas of commodities are food, energy, and metals. The most popular food futures are for meat, wheat, and sugar. Most energy futures are for oil and gasoline. Metals using futures include gold, silver, and copper.

    How They Work:
    If the price of the underlying commodity goes up, the buyer of the futures contract makes money. He gets the product at the lower, agreed-upon price and can now sell it at today's higher market price. If the price goes down, the futures seller makes money. He can buy the commodity at today's lower market price and sell it to the futures buyer at the higher, agreed-upon price.

    If commodities traders had to deliver the product, few people would do it. Instead, they can fulfill the contract by delivering proof that the product is in the warehouse. They can also pay the cash difference or provide another contract at the market price.

    So what I would say at this point is that there are people who understand this space, like my wife who has all sorts of Securities and Exchange Licenses and works on the back end helping Financial advisors put together plans and strategies to make people wealthy - and there are people like me who have to look at the warning on the top of a toaster each time I use it to remind myself not to stick a knife down in there while the toaster is on.  If you are more educated, and know what this is all about then hopping in with some guy on a gun site to buy silver is probably going to be a good deal for you because you understand all of the risks and upside potential.  And if you are like me, you keep watching from the sidelines but not jumping in because the nuances that make this profitable escape you and you don't want to lose your shirt in a risky venture.

    In either case it's a good topic and event for us to all focus on for a second, so thanks to TyrantT86 for posting up the opportunity and thanks to CMore, Coelacanth, and Dullinhan for posting up questions - without which I wouldn't have known where to start researching.  I'm certainly not telling the wife I don't understand this because I'm sure she has told me 99 times already and it didn't stick.

    So Good Luck! Game On! Caveat Emptor! And May the Odds be Ever in Your Favor!
    I'm kinda interested to see where this goes.  Silver is spotting at $27.03 as of this posting and if I'm starting to understand this stuff it might mean a loss of $164 per kilo but then that depends if these were puts or calls.  I might be completely stoopid so I want to see this out to the end to better help my understanding.  I'm still trying to figure out what happened to Game Stop and why Reddit got involved - but it got AOC's panties in a twist and that's OK by me.
    The only thing that separates man from animal is our affinity for toilet paper.
    Once we, as a society, lose that affinity, we begin to descend back into the animal kingdom, and after three or more days you will find the food chain beginning to invert on itself.

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    CMore

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #7 on: February 07, 2021, 12:28:10 pm »
    GT, thanks for the insight...   So buying at 1100 could be a great deal if silver goes way up by the delivery date.   If it tanks then it would be a bummer...

      I have several hundred ounces now but, I have always bought it at local shops or refined it myself.  I have a really cool 2.5 pound 98% silver bar with an estimated ounce of gold and other PGM metals in it I picked up for $250

    OP thanks for posting the offer and good luck with your sale..
    K1CJM

    GTGallop

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #8 on: February 07, 2021, 12:45:33 pm »
    GT, thanks for the insight...   So buying at 1100 could be a great deal if silver goes way up by the delivery date.   If it tanks then it would be a bummer...

      I have several hundred ounces now but, I have always bought it at local shops or refined it myself.  I have a really cool 2.5 pound 98% silver bar with an estimated ounce of gold and other PGM metals in it I picked up for $250

    OP thanks for posting the offer and good luck with your sale..

    That's my understanding.  But then I'm also the reason we can't have nice things.  I'm so out of my depth on this it scares the crap out of me.  So take it with a grain of salt. 
    The only thing that separates man from animal is our affinity for toilet paper.
    Once we, as a society, lose that affinity, we begin to descend back into the animal kingdom, and after three or more days you will find the food chain beginning to invert on itself.

    https://www.qrz.com/db/n5mkh

    coelacanth

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #9 on: February 07, 2021, 06:46:39 pm »
    The snapshot - thumbnail description of commodities trading you posted is woefully short of reality.   Everything that has a a market value is a commodity.  It may not be traded on a major commodities exchange here is the USA but its traded somewhere.  For the purpose of this thread let's focus on silver. 

    The "spot" price of silver is established by the commodities exchanges for the purpose of allowing silver contracts to be traded.  The contracts are a market representation of actual silver metal stored somewhere or in the ground in some mine.  Silver is a bit complicated because it is simultaneously a currency issued by governments in the form of coins or bullion.  It is also an industrial metal that is used across a broad range industries and manufacturing processes every day.  You would be astounded at the range of products that require silver in some form either as a component ingredient in the product or as an integral part of the manufacturing process.  Automotive, electronic, pharmaceutical and many other billion dollar industries use silver everyday. 

    It gets complicated because silver in its refined metal form is expensive to produce and transport.  To deliver an actual contracted quantity of silver requires it to  be mined, smelted, or recovered from scrap and recycled.  Then refined to an assayed purity and fabricated depending on the contract specs. .  All that costs money - sometimes a lot of it depending on the quantities required.  The presence of governments and major industrial users tends to tie up a lot of it at one time and if the amount produced is insufficient to meet contract demand it can lead to price spikes that try to produce it from existing stocks by offering a higher price to sell that existing metal.  Mines will not produce it at a loss unless they are bound by a contract to do so and only then to fulfill that contract obligation.

    You and I playing in the commodities markets against governments and entire industries is foolish and a good way to get crushed by market fluctuations driven by technical factors and market moves we aren't privvy to.  This is particularly true in commodities trading which is sensitive to nearly everything from the weather to the price of fuel.  The recent kerfuffle in the markets surrounding the GameStop trading illustrate the concept nicely.  I think it was the economist John Maynard Keynes who observed;  " The markets can stay irrational longer than you can stay solvent.".  Yup.   :coffee

    If you seek to own and hold physical silver I wouldn't try to steer you away from it but I would ask you to define you goal(s) for that investment and establish an actual budget for it.  How much are you willing to invest in it per day, week, month or year?  It is probably unwise to let that become your largest investment because of its inherent volatility.  What I have done over the years is to simply buy silver when I had the money accumulated to do so - regardless the price of the silver at that moment.  Buying it over time in smallish quantities allows your average cost per unit to reflect the average cost of silver over that time frame and such a s strategy is, oddly enough, known as dollar cost averaging. 

    Understanding silver as an historic inflation hedge rather than as a day to day currency has been my strategy so far and I have never approached 5% of my total investments as physical silver metal in my possession.  It simply doesn't spend well on a day to day basis and even today the run up in price of factory loaded ammunition has dwarfed silver's performance over the last year, no?  Would you rather try to find somebody to take a thousand rounds of 9mmP off your hands or say, a hundred ounce bar of .999 fine silver?   :hmm

    Today those two are closer in price than anybody would have guessed 18 months ago.  Welcome to commodities trading.   :yes

    " A republic, if you can keep it. "
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    GTGallop

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #10 on: March 04, 2021, 04:18:39 pm »
    Just following back up here because I'm curious about how this panned out.
    The only thing that separates man from animal is our affinity for toilet paper.
    Once we, as a society, lose that affinity, we begin to descend back into the animal kingdom, and after three or more days you will find the food chain beginning to invert on itself.

    https://www.qrz.com/db/n5mkh

    TyrantT86

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #11 on: March 05, 2021, 04:41:22 pm »
    Nothing happened....
    Noone was interested....
    Contracts cancelled after 10 days with no payment.....
    No harm......No foul.......

    GTGallop

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #12 on: March 06, 2021, 05:51:13 am »
    But now that the silver price is in the past, how would it have turned out?  I'm still learning here.

    If I bought one contract, what was the price I would have paid and what would it be today or what would the profit have been?

    And please do not be frustrated with me.  My wife is in this business and she can't explain it so that t makes sense either.  25 years she has been trying to get me to learn.
    The only thing that separates man from animal is our affinity for toilet paper.
    Once we, as a society, lose that affinity, we begin to descend back into the animal kingdom, and after three or more days you will find the food chain beginning to invert on itself.

    https://www.qrz.com/db/n5mkh

    CMore

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #13 on: April 06, 2021, 10:44:38 am »
    But now that the silver price is in the past, how would it have turned out?  I'm still learning here.

    If I bought one contract, what was the price I would have paid and what would it be today or what would the profit have been?

    And please do not be frustrated with me.  My wife is in this business and she can't explain it so that t makes sense either.  25 years she has been trying to get me to learn.

    I am rounding off to the dollars here...

    You would have bought the silver at $34. per oz. ($1100) and hopefully received it.   That price was established by the contract and has nothing to do with spot price on the day projected.  It is a speculative purchase, in other words you are gambling/betting the price was going to go up from $25 to at least $34 per ounce by the seller"s delivery date.  If it went up you win, if it stayed the same or went down you lose..

    In this case you would have paid $1100 for silver worth $803 at today's and yesterdays spot price.   Your loss would be $296. It is very fortunate no one bought any.  It was only worth around $800 the day this was offered up for sale so the seller would have made $296.

    I am not saying Tyrant would have made this money but, whom ever made the contract would have. My guess is Tyrant was just being a middleman and offering an opportunity he felt was a good deal or he was selling off a contract he had already bought and decided to get rid of it. 

    If the contracts were cancelled like he mentioned in his post then it was good for everyone...

    K1CJM

    GTGallop

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    Re: Kilo Silver - For Sale - Tucson
    « Reply #14 on: April 07, 2021, 05:17:26 am »
     :thumbup
    Thank you!
    The only thing that separates man from animal is our affinity for toilet paper.
    Once we, as a society, lose that affinity, we begin to descend back into the animal kingdom, and after three or more days you will find the food chain beginning to invert on itself.

    https://www.qrz.com/db/n5mkh

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