Impact of those who purchase small & hold

[KYnyts]

I originally posted this in the wrong forum, so I'm moving it over here.

There are apparently more of us than I had previously imagined, but what, if any, impact do we have on the silver market? In the long term, will what we are doing ever become noticeable in the large scheme of things?

[Silverstacker1]

Does the purchase of 100oz make a difference? Probably not, but having your money in silver will help you keep your wealth in tacked when the dollar dies.

[Dom2012]

purchase of 100oz probably takes 1000oz out of the paper market so yes every little helps :-)

[harbl_the_cat]

(03-14-2012 04:15 PM)KYnyts Wrote:  I originally posted this in the wrong forum, so I'm moving it over here.

There are apparently more of us than I had previously imagined, but what, if any, impact do we have on the silver market? In the long term, will what we are doing ever become noticeable in the large scheme of things?

Harbl's "for dummies" understanding (because Harbl is a dummy):

I'd say us physical stackers have next to no impact on the PRICE, but we have a BIG impact on the actual market.

There's not a lot of physical silver in existence, there are a lot of paper claims for that same physical silver. Those claims for physical, however, can be and usually are settled in cash, instead of demanding actual, physical delivery.

So long as those claims for paper silver are settled with paper currency (which can be and are printed to infinity), don't expect the price of silver to go anywhere significant.

If even a small portion of those claim holders of paper silver ever demand actual delivery of physical silver and it becomes widespread knowledge that there isn't actually the physical silver to back the paper claims for them - the paper market will lose all credibility and it will be the physical supply and demand fundamentals which will set the price (much, MUCH higher than it is now).

[John silver]

You have to convert to our way of thinking, and when you do then you know we are rational, now most folks don't do that, but when they do then we will see major change.to quote a Nazi " As I was you are, As I am , You will be"................most people don't see things the way that we do, when they do then everything changes, but when that happens .who knows?

[cosmyccowboy]

i always remember jesse livermores quote, there in one thing worse than being wrong.... thats being right and out! so i'm 'long' silver and short the fed because i'm just purchasing phyzz silver stacking it in the vault and just forgetting about it!

[cosmyccowboy]

[quote='cosmyccowboy' pid='4995' dateline='1331765838']
i always remember jesse livermores quote, there in one thing worse than being wrong.... thats being right and out! so i'm 'long' silver and short the fed because i'm just purchasing phyzz silver stacking it in the vault and just forgetting about it! i was long the euro at .84 back in '98 a little early, got stopped out in the futures market and lost most of my margin. i had to get out and promptly watched the euro go to 1.50 without me aboard! so this time i'm out of the leveraged paper market and just stacking every chance i get!

[AgShaman]

Since this is a thread that espouses former quotes from Jesse Livermore....

I think purchases will make a difference in the longer term....provided the bulk of that purchased silver is going to strong hands that believe in the long term buy and hold mantra. This is a bull market...and obviously there are those that have cannonballed their way into the precious with perhaps more than they need as an insurance policy component. When the price moves north...they will perhaps let a portion of their stack "go" back into the market...but that will most likely distribute itself amongst those that were too busy with other things in the earlier phases...and will be late to the party with higher price entry points. Granted they will have more trouble amassing sizeable stacks...nevertheless, the dynamic gets spread across a wider range of people....so those oz's will no doubt fall into more hands, but just into smaller sized purchases.

"Be right and sit tight"

It's been confirmed that this is in fact a bull market....the last 10 years is proof positive....but what is forgotten is that the biggest gains are realized in the latter stages. This is what accounts for the volatility and the gross and blatant manipulation. Get shaken outta the tree is a tactic employed by the lovers of fiat. They do not want you to ride this bull to the end and maximize the potential of your holdings.

Shortages cannot be quantified at this stage because so few are involved in the physical...but when 1% involved becomes a thing of the past and the numbers of stackers exposed to PM's doubles and triples....even smaller amounts will affect the market. Supply and demand will be the newsletter writers dream....and many will coin new code words for the precious like "un-obtanium".

"Be right and sit tight"....getting cute is fine for a portion...but have the bulk invested for the life cycle of the entire bull market...or face the grim reality of chasing a runaway train.

Become your own bank..."Stash n Stockpile Weapons of Stack Construction!"

[ColdWarWarriors]

We will make a difference if enough of us are stacking physical, as more people get on the silver bandwagon it will place supplies under considerable pressure afterall its a tight market already.