Why I'm Not Buying Any Extra Silver at the Present

Added: 2026-05-10

[00:00:00]My name is Rick Bworth. This is the Common Sense Christian financial channel. And I wanted to look at three reasons why I'm not purchasing any extra silver at the present time. We want to look at what the market has done. Before we do that, today is Tuesday, May the 5th of 2026. The market has had extremely light volume today. One of the lowest volume days we've had for this entire year. and it's traded in a fairly narrow range. We opened up at $7260.

[00:00:33]We've been as low as $7229 and as high as $74.31.

[00:00:40]And then we closed the day at about $72.71.

[00:00:45]So just up 10 or 11 for the day and again on extremely light volume. I do want to point out that we have certainly been testing this lower support line now for about a week, maybe a little over a week. Uh we haven't been able to just break down all the way through it. As a matter of fact, we've just kind of been toying with it. Sometimes when you see the market bouncing off support like this or bumping its head against resistance, sometimes that's showing that there could be a change in direction. It doesn't have to be that way. And of course, we've got some uh geopolitical events going on in this world that could change the market in a heartbeat. So, just kind of keep an eye on this line. If we break down from this point significantly, and by that I mean with conviction, more than a dollar or two for more than a day or two, uh on pretty good volume. Well, then the next support line's very close, $70. And then after that, we're looking at a support somewhere between 62 and 64. And then after that, we're going all the way back to our breakout point from last year of about $55 an ounce. So, right now, we don't look like we're in danger of doing that, but we're certainly getting close.

[00:02:03]So, just kind of keep your eye on that.

[00:02:06]But I want to go ahead and take this chart down uh now and talk about some of the reasons why I am not uh buying anything extra right now. And when I say not buying anything extra, I mean at the market prices. Uh there are certain times where uh throughout uh my life, I've dollar cost averaged in at the market or maybe even above the market if it was time for me to buy silver. I'm not at that point uh in life anymore.

[00:02:37]I'm retired. My wife and I are. And so we no longer dollar cost average with a percent of our income uh each month because we just we're not at that point.

[00:02:47]We're not only not dollar cost averaging, but we have not hit any buy points lately. Uh back in January, we sold a little bit of silver when the market was up pretty high. Since that point, we have bought it all back at different points on the way down at $80 and then at $75 and $70. We've even been able to pick up a few bargains around $65 and $60. U and so my next buy points all the way down at $55 an ounce.

[00:03:19]Clearly, we're not anywhere near that.

[00:03:21]If I see a good bargain uh somewhere, maybe I'll pick some up. But right now, I'm not hitting any of the buy points that I would typically be looking at.

[00:03:31]And so, that's the first reason. I'm just not at that part uh of my plan. Uh the second reason is what we've been talking about a lot in the last month and a half, and that is the geopolitical events that are going on right now, particularly in the Middle East. We are in the middle of of what appears to be uh a full-blown war that may be extending for a while. And when I say full-blown, I realize we don't have troops on the ground, but we do have military action going on every single day. They're shooting at us, we're shooting at them. By definition, that's a war. And it unsettles everything. It seems like on a daily basis, we'll get out some piece of news. um from one side or the other giving hope that maybe there's a ceasefire going on. Uh and then just a few minutes later we'll have the news that somebody has bombed somebody else. And so with the market this unsettled, it's hard to really um want to invest in anything right now.

[00:04:39]Maybe if you're an oil trader, that may be a market uh that you're interested in, but I'm primarily focused upon silver. I've been doing this for 45 years. I'm very comfortable uh with trading in this market, but when you get into situations that are as uncertain as they are right now, I really don't like to trade back and forth in it. So, I've got a buy schedule on the way down. I've got a sell schedule on the way up. Our next sell points $80 an ounce, and that's net. So that means the market's probably going to have to exceed $80 an ounce by at least $5 an ounce, if not 10, depending on what type of silver that we sell. So again, not real active right now. And unless I see some bargains or unless the market changes pretty drastically, I won't be very active. But this geopolitical uncertainty that's going on right now has created such havoc on the worldwide energy markets, the oil market, the natural gas, liqufied natural gas uh market, and all the things that are associated with this. And so we've been seeing the the rate of inflation drastically going up as far as our fuel bills in the last month. And so that has caused a lot of people not to have extra money to be investing in any item right now, much less silver. And so a lot of the people that were dollar cost averaging simply don't have the money to be doing that right now. And so when you take that demand out of the retail side of the equation, uh then again, it softens the market. And for me, it makes me want to just kind of step back for a while and just see what's going to happen. I've mentioned before, I'm certainly not selling anything right now that I wasn't planning on selling at a predetermined sell point, but I'm not buying anything extra right now either. And so, the second reason is the geopolitical uh conditions that are going on around the world that have caused so much havoc. So, right now, my wife and I really are focusing more on spending any extra money that we do have on just kind of stocking up on some items that we would typically use. Uh we're getting a little bit more food put aside in a strategic pantry and not just food at that matter. Today, I just ordered I think uh 20 quarts of oil. We've got several vehicles and I like to to make change my own oil and oil is going to be as cheap right now I suspect as it's going to be in the next year or two. I could be wrong, but we're stocking up on that right now. We stock up on certain non-p perishables. Everything from garbage bags to toothpaste and on and on. You know, uh what your own strategic pantry would consist of. And so we're much more focused upon that right now than we are on accumulating any extra silver. And so the second reason again are the geopolitical events and the uncertainty that that has created and the inflation it's created on all sorts of energy and food commodities as well as other items that we buy on a regular basis. So again I am uh buying certain things right now. mentioned in yesterday's video, I'm more concerned about stocking up a little bit more on food. I'm not wanting to hoard food, but we've got a fairly big extended family when it comes to our kids and our grandkids who might not be able to store up for themselves. And so, we're getting a little bit extra in that area. And certainly if I was going to be advising anybody, which I'm not, but if I was going to be recommending to a good friend what to do, I would probably recommend they concentrate more on some of these food items and other items that, you know, you will need in the future that from my perspective is on sale today compared to tomorrow. So, just kind of uh keep that in mind. The third reason uh that I'm really not buying any extra silver right now is because of uh what we have been dealing with really in the last several months and that's been the refinery backup and the hesitancy because of the refinery backup uh for our dealers to really be able to buy a lot of silver at close to market prices. I want to recommend a video that I saw today. It's probably the best information on the refiners that I have seen probably in the last 6 months. And it's by a gentleman by the name of Brian Kuzmar. He's out of Fort Lauder Fort Lauderdale, Florida. Has a coin shop there, I believe. And commercial rare coins and precious metals is the name of his shop. But he has a YouTube station. And today he he did a video that was entitled why dealers stopped buying your silver, the inside story on major refiners and naked short silver contracts. And so uh really what he talked about in that was the two major refineries in America that produce Comx bars, 1,000 ounce bars. One of those uh refiners is called Metalor and that's the one he has dealt with for a number of years and he had noticed about two years ago them really starting to slow down on their being able to process the scrap metal he was sending to them.

[00:10:29]And then as it turned out they eventually met Metalor eventually stopped taking any scrap metal uh from the dealers around the nation. And that's been going on now for over a year. It's not just the things that we have noticed in the retail market in the last six months, but this has been going on for quite some time. And the other one is is a Sai Metals. And that is again the other major refiner in America that produces these ComX good delivery bars. And apparently what happened is both of them from what uh rumors that are in the market uh nothing that that I've confirmed for myself. So you do your own due diligence on this. But apparently Metalor and Asai both contracted with some mines out of Mexico, Latin America in order to refine their Doré silver. Doré silver is a partially processed silver about 90% or more. And apparently some pretty big players in the business contracted with Metalor and Asai in order for them to uh refine as much silver as they possibly could into delivery good bars. And the the thought behind that that many have in the industry is that they had some naked shorts out there. A naked short is when you sell a contract on the COMX or LBMA or any other exchange, but it's when you sell a contract that you don't already have that commodity in hand. And so apparently some of these uh big players got way overextended on their naked shorts and now they have been scrambling in the past two years uh to recover as much of that silver as they had already sold. I can remember one of my economics teacher uh telling me a commodities uh axiom that had been in in place for quite a number of years and it simply said he who sells what isn't his buys it back or goes to prison. And so we've got some big players right now who have sold some things that they didn't have. And so they made arrangements about two years ago with our big refiners in America to contract through them to provide a certain amount of ComX delivery bars. That was the understanding. And again, the uh the rumors that are going around are because they were so far short on these things that they had to get as many as these ComX bars as they could so they could actually make delivery on these bars.

[00:13:18]Well, that has shut down the two major refineries in America from a lot of our coin dealers. There are still some refiners that are that are in business, but they don't provide the uh Comx good delivery bars. These are ones that may sell to different industries and and different uh uh commercial uh buyers, but certainly these are not going to be refiners that can provide the ComX bars.

[00:13:46]And so that has really put a uh bottleneck in the system that does not look like it's going to ease anytime soon. And so this is the third reason that I'm not buying anything extra right now. at least nowhere near uh market price is because the refiners are so backed up right now that we could see another situation like we did at the end of January and the 1st of February where none of them are buying anything. And if that happens, that will essentially uh shut down the retail market except for just the coin shops that are able to take care of everything in house to buy and sell. I heard a a major dealer out of Florida that said that just the other day that he is buying about 20 times as much from customers as he is selling back to them. And so you can see that there's some imbalances right now. You take those imbalances that we have going on. I believe because people are so strapped for money that they're having to sell their silver even though it's below market value right now. And so this leaves me very little interest on buying anything extra at for the time being. Now I do want to say this uh I like 90% silver. It's something I have dealt with for a number of years and this is the primary uh form of silver that I trade in my trading account uh for the physical part. Well, right now the best price I have seen for physical 90% silver from a dealer is an offer to buy it from me for $9 under spot. So today at $72 an ounce, that would be $63 an ounce. We're about 12.5% below the spot price. Well, for me, uh, for that to make any sense at all to me to buy the silver right now, I would want to make sure that I was going to have at least a 10% margin on that. And so, if he's paying me $45 today for 90%, I don't want to buy anything for more than $40 times uh, times face. And there are some dealers I was just looking before I started this video today. One dealer was offering $3610 uh times face. Another was offering $3750 times face. Another was offering I believe $42 times face. And then the best I've seen today was offering a little over 45 times face. And so that being the case, I've got to be able to buy it for no more than 40 times face.

[00:16:38]And as you know, that's kind of tricky to do right now. And so since I can't find any bargains, and since the refiners are so backed up, and since that could put an additional pressure on a market that's already significantly under pressure, I really have no desire to buy anything extra right now. Now, the reason I wanted to do this video is because as things change in my own investing strategies, I like to at least pass them on uh to other people so that they've got that information for themselves and they can compare it to their own plan. You probably already have a plan, I hope you do, in place.

[00:17:20]And that plan may include um dollar cost averaging in every month. And I'm not suggesting that you stop doing that, but I would suggest to you that you really bargain hunt for any silver that you pick up right now. I wouldn't just go down to my local dealer and take the first price uh that I was offered on that silver. I would shop around and make sure I was getting the very best price on that. The second uh thing is I I really uh since uh this uh channel has really focused on silver investments for the last several months. Since this to me is a relatively big change in the way that I'm viewing silver right now, I thought maybe that would be something that as far as your plan goes, might not be a bad time to just step back and reassess what you're doing as well. you may come to a completely different conclusion than I do. And I do want to say this, I am not pessimistic for the future price of silver. As a matter of fact, I'm one of those that's fairly wildly optimistic on the future price of silver. But as far as what it's going to do in the next week or the next month or even the next six months, I have no idea if it's going to be $20 higher or $20 lower from where it is right now or even uh more of a swing than that. And so I'm just going to keep to my normal buy and sell schedule on that. I'm not buying anything extra. I'm not selling anything extra. But these three reasons I believe on the plans that we should be making as far as our silver investments. Now I do want to uh mention this. I am going to include a link uh to this video by Brian Kuzmar. I believe it's something that you will enjoy. You're going to get much better information from that video than anything you're going to get from me today. And so if you're interested in what's been going on with the refiners, especially the two major refiners that provide the ComX bars in America, I would really go and look at that video.

[00:19:29]I think you'll be interested in what he has to say, and I think it may make an impact as far as some of your own uh thoughts as far as what you're doing on your own silver plan. Well, that's the video for today. Hopefully, it'll give you some information perhaps that you didn't have. Uh, I wanted to let you know what I was doing, not because I think you need to be doing that. I don't at all, but I did want you to at least have some other considerations uh in your own plans to to be able to think about for a little bit. Let me know what you do think about that. I've really enjoyed the comment section. There's been some excellent comments, by the way, especially recently. If you have time, I think if you read down through those comments, you will be glad that you did. You'll you'll get some information that perhaps you did not possess already. But thank you so much for watching today. I genuinely appreciate that and I hope we'll see you again next time. Take care and God bless.