An amateur's efforts to ensure his finances survive early retirement.
Friday, November 09, 2012
Silver purchased
I tried to purchase some physical silver and was told that the bank was "out of stock" so I added a little more notional silver to the portfolio instead.
I paid HKD251.60 per ounce (approximately USD32.36).
4 comments:
Anonymous
said...
Have you read/heard about the JPMorgan Silver manipulation/scandal? Looks like its happening?
People have been banging on about conspiracies to suppress the price of silver (and gold) for decades. The evidence is usually pretty underwhelming (at best).
JPMorgan has denied the allegtions and provided an explanation for their apparently large short positions.
Given the political environment of bashing banks at every possible opportunity (sometimes justified and sometimes not), if there was any substance to the allegaions, I would have expected some politicians to have made an investigation and major silver producing countries like Mexico to have acted as well. They didn't, so, on balance, I'm inclined to dismiss the allegations.
Then there's the fact that silver has risen along with gold by similar orders of magnitude and over much the same time frame. Gven the historical relationship, this makes it hard to believe that one metal is being manipulated and the other is not.
Happy to listen to anything which suggests otherwise.
For notional, I have more faith in the credit standing of a major bank than I do for a non-bank (unless it has a government guarantee like Perth Mint last time I checked).
For physical, it's all about (i) the spreads and (ii) how much confidence I would have that they would repurchase from me if things got really bad. I didn't look at Lee Chong, but BOCHK had much better spreads than Kitco last time I checked (which was quite a while ago so things may have changed).
4 comments:
Have you read/heard about the JPMorgan Silver manipulation/scandal? Looks like its happening?
Hi
Thanks for dropping in.
People have been banging on about conspiracies to suppress the price of silver (and gold) for decades. The evidence is usually pretty underwhelming (at best).
JPMorgan has denied the allegtions and provided an explanation for their apparently large short positions.
Given the political environment of bashing banks at every possible opportunity (sometimes justified and sometimes not), if there was any substance to the allegaions, I would have expected some politicians to have made an investigation and major silver producing countries like Mexico to have acted as well. They didn't, so, on balance, I'm inclined to dismiss the allegations.
Then there's the fact that silver has risen along with gold by similar orders of magnitude and over much the same time frame. Gven the historical relationship, this makes it hard to believe that one metal is being manipulated and the other is not.
Happy to listen to anything which suggests otherwise.
Cheers
traineeinvestor
Is there a particular reason why you buy from a bank and not from one of the local bullion dealers like Lee Cheong or Kitco?
For notional, I have more faith in the credit standing of a major bank than I do for a non-bank (unless it has a government guarantee like Perth Mint last time I checked).
For physical, it's all about (i) the spreads and (ii) how much confidence I would have that they would repurchase from me if things got really bad. I didn't look at Lee Chong, but BOCHK had much better spreads than Kitco last time I checked (which was quite a while ago so things may have changed).
Cheers
traineeinvestor
Post a Comment