If Silver Spot drops under $20, no need to rush to buy, you won’t see any of it.
March 2019 was a lesson to America, in more ways than one. President Trump signed a bill that would slash interest rates in effort to pump the American economy though the Novel Corona Virus. This caused the stock market to plummet, as precious metals. The silver spot price hit a low of $12 that week. Amazing right! However most of us never had a chance to purchase due to online bullion dealers hiking up minimum purchase orders to $299., $399. and even $1000 dollars. This basically pushed out all the hobbies and small silver business from purchasing and taking advantage of the spot price drop. When “supposed” inventory finally came in, premiums remain high as the sky.
This is basically what I exprienced March and the summer of 2019. This is what I personally observed. With that experience in mind, I feel concerned for precious metals when the Trillion dollar Infrastructure Bill is signed as early as tomorrow. I’m not here to play politics. I am what I am: A forty-six year old husband and father with a career that has a melting and pouring hobby. And yes, I try to make money off my pours. (But that’s an entire other blog.) I have a Master’s degree in Interpersonal Relationships and am a licensed Drug and Alcohol Therapist in the state of Texas. I try to keep up with the news, but it’s usually a quick peek here and there on my phone. We cut cable news out 6 months ago, so its pretty much phone surfing. I tell you this, just so you know where I’m coming from in regards to the silver spot price, which as of now is at $23.55 according to Kitco.com.
So here’s the deal. Anytime I hear the word “Trillion”, especially twice in one year I can’t help but think of the American Dollar value becoming just a bit more weaker. I learned back in my sports gambling days that the only thing that moves the line, is money. Money makes the line move. The fear of money makes the stock market move. When the market moves, precious metals move. In this case, the move is down, not up. Call it a gut feeling, but I feel like there is going to be big moves in the precious metal market this week. I’ve been watching JMBullion.com all day. They are posting “Not in Stock” buttons throughout their sight, especially on silver. If this thing goes south this week, silver prices will drop. I would say close to $20 an ounce. However, we will never see it. Like March 2019, the online bullion dealers like Apmex and JM will not respect the spot dip, and put up out-of-stock signs and/or just raise their premiums.
Two things to counter this. I bought 10 ounces today. Nothing crazy, just in anticipation of a major spot dip. I can put it away for September as I am medium leveled stocked with silver for melting and pouring already. Second, buy from you local dealers on Instagram. There is an entire community of amazing people who love to trade, sell, and buy .999FS. Look me up on Instagram @Bet_on_silver or search the hashtag #Silverstackingcommunity.