Quote:
Originally Posted by JohnnyB
I was already holding silver anyways and am happy to have it, so I bought more today in case there is a move upwards from this. I was in line for an hour and the line was way out the door the whole time. Everyone was trying to buy silver. They were sold out of bullion so were only taking pre-orders for delivery in 3-6 weeks, though they say they will buy back the pre-order at market rates if you choose to sell early.
If nothing else, it's a refreshing little bit of excitement in what is not generally the most exciting investment space. At the price I got in today, I don't really see much downside anyways. I don't expect to see it explode to the extent suggested on Reddit, but a frenzy that drives up prices for something that's a safe long-term buy at current prices works for me. If it happens, I'll pull it out of the bank to sell off and buy back in again once the prices get back down.
Also, it's kind of more fun experiencing the atmosphere at an actual exchange rather than trading online. Felt like being part of a run on a bank or something.
From my understanding the paper to bullion ratio is more like 125 or 250:1 . In both gold and silver there is far, far more paper gold/silver than there is actual physical metal to back it up.
|
I assume this was in Shanghai? That anecdote is interesting... a physically constrained market will absolutely be able to squeeze these institutions.