Hi, Lalit, may I bend your ear for uno momento? It bugs me what a BIG deal some folks are making outta Warren Buffett buying 130ish Million Troy Oz of silver and taking delivery of same...
First of all, seems no one is asking WHY he really bot it, but have made huge assumptions.
Secondly, very few knows where WB's storing it and that's ONE VERY EXPENSIVE FACT, especially since he bought it via Berkshire Hathaway.
Thirdly, majority are making the assumption that those 130M oz is going to stay in good delivery bar form. How silly. Based on what fact(s)?
Let me explain myself:
Let's look at "the 1st Assumption:"
Q: WHY HE BOT IT...
THE ASSUMED ANSWER: Price was low and headed higher?
My Questions/facts?
1)Why begin buying in July 97? It was below $4 per oz not too much before that...
2)Why stop by delivery by March 6, 1998?
3)Supply/Demand imbalances in Silver Market certainly were documented prior to July 97, AND price of Silver was lower.
Now let's look at Assumption #2
Where is he storing it and at what cost to his BH stockholders?
ASSUMED ANSWER: Haven't heard anyone address that but me on SI...
My Questions/facts?
1)I know what the cost is of a medium size SD box in the US; that would hold a max of 100 oz. for "cost comparison purposes."
2)129M oz is 129,000 X that cubic experiential/visual dimension/cost.
3)Plus a safety deposit doesn't require "physical guards" if you get my drift...another expense to the BH funds???
4)Since these expenses of storing "dead money" by the world's biggest buy/holder fanatic are decretive to BH...how is that going to be offset?
Now let's take a look at the 3rd common Assumption"
Everyone thinks it's going to stay in good delivery form.
ASSUMED ANSWER: Because that's the way he bought it and they don't know much about silver in various forms.
My questions/facts?
1) Silver is more valuable in other forms than "good delivery bars."
2) Since Warren didn't buy "THEEEE rock bottom price of Silver," he has a project in mind. WHAT IS IT?
3) If it's good enough for Warren, then what are the other 3 dudes doing with theirs? The 3 that haven't announced themselves. Are they also involved in the "same project."
I have my own ideas...
When will we get our next clue(s)?
This amount is only double what Kodak buys in one yr...
What ones did I "stir up" in your fertile mind?
O/49r |
