Monday, June 27, 2011

'Flash sales' and fiat currency cash cows


11:59 am (Hawaii) I slept through nearly the entire session. Yeah, after being jolted by an energy drink on top of my normal nocturnal hours, I slept precisely between 4 am and 9:45 am, which is when the market is in action during Hawaii time zone hours. I didn't miss much, from what little I've seen, other than seeing that a small position in ZSL (silver ultra bear) would've been nice. I am 80% cash, have a small position (still) in DGP and a growing pile of physical metal.

With that said, Apmex has another "flash sale" going. Catching up on e-mail (I'm in summer slumber mode and I deserve that), Apmex sent a long, long e-mail recently. I just read it and was surprised by the tone of it. Didn't expect something like that from a big metals dealer. It was refreshing. Yet, the sense of urgency has me thinking that like all dealers, Apmex does not want to be washed out to sea for days or weeks or months at a time. They're no different from you and me. When they buy their metal, they don't want to see the spot price manipulated by some "invisible" entity without TRUE price discovery. Anyone who says otherwise, fuck 'em. It is what it is. Not a complaint. Just the truth. And yet, no matter what the puppet masters do, in the long run (one week, one month, one year, one decade), silver and gold will float to the surface no matter who severe the wreckage inflicted by the banksters/Fed/Wizard of Oz/(you fill in the blank).

The fact that Apmex, which charges quite the premium on its American Silver Eagles, has presented several flash sales in the past few months is cool. I haven't taken full advantage yet, not because I don't like the flash sales, but because of timing and better offers (not always in price) elsewhere. Today, they have their own Apmex 1-ounce silver bars at 99¢ above spot. Can't really go wrong with that. Of course, the dilemma for any silver bug right now is whether to buy with spot price at $33.62, or wait for a drop to 29. Or Jeff Christian's 26 level.

Common sense says to average in. Buy a bit here. Buy a bit more at a lower level, if price gets there. Nobody can really know what's going to happen. Maybe 33 is a bottom. Maybe not. Part of me wishes I'd held all my dry powder and waited for sub-30 to get any physical silver. But the truth is I have no regrets whatsoever about my silver buys, and it really is a small amount to this point, being a latecomer to the "revolution."

So no, I don't recommend buying physical silver at 33.62 if you're looking for the ultimate bargain. I do suggest getting silver here to start the process of protecting your hard-earned dollars against the perils of inflation and hyperinflation. The Euro scored a small victory today with Greece's vote in favor of pseudo-austerity measures. That works against the US Dollar and in favor of precious metals. But whatever the case, a 5-10% slice of the pie should be in PMs, if not more, and that's where I'm going.

They cannot milk gold and silver like a fiat currency cash cow. Eventually, cows die. Gold and silver last forever.

Apmex: Flash sale (June 27 2011)

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