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Memo to ...ALL....

topstuftopstuf Posts: 14,803 ✭✭✭✭✭
in Precious Metals

Prices on physical "destabilize" .....EVERY.... time the Comex (or any market) quote goes nuts.

Dealers in physical metals do ...NOT.... have piles of the stuff just waiting for panic buyers.
GOOD dealers will still make the delivery.
It may be delayed, but a GOOD dealer will honor his commitments.

Delivered contracts, refined scrap, junk coins,....ALL of that is not converted to retail bars or rounds in 30 miinutes.

This ...has.... happened before.
NONE of my customers "went without."

Buying at these critical swings ....WILL.... mean wider spreads, delayed delivery, hurt feelings, accusations and worse.

You can't expect "instant trades" on anything that has to be shipped.

:)

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    HJPHJP Posts: 423 ✭✭✭

    I am still waiting to hear what the "valid" (i.e. qualified, verifiable, specific) reasons are for the large price disconnect between the spot price quoted by the bullion dealers vs what they will actually sell you metal for.

    FYI, I think the "spot price" determination is where the problem may begin.
    HJP

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    MsMorrisineMsMorrisine Posts: 32,228 ✭✭✭✭✭

    https://forums.collectors.com/discussion/1023467/found-formula-for-taking-futures-quotes-and-converting-to-spot

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
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    topstuftopstuf Posts: 14,803 ✭✭✭✭✭

    @HJP said:
    I am still waiting to hear what the "valid" (i.e. qualified, verifiable, specific) reasons are for the large price disconnect between the spot price quoted by the bullion dealers vs what they will actually sell you metal for.

    FYI, I think the "spot price" determination is where the problem may begin.
    HJP

    I gave you the reasons. If 35 years selling bullion in quantity isn't valid then keep looking.

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    isaiah58isaiah58 Posts: 385 ✭✭✭

    @HJP said:
    I am still waiting to hear what the "valid" (i.e. qualified, verifiable, specific) reasons are for the large price disconnect between the spot price quoted by the bullion dealers vs what they will actually sell you metal for.

    FYI, I think the "spot price" determination is where the problem may begin.
    HJP

    You just need to become better informed.

    Dealers do not quote spot, they report it. Spot disconnected from physical when paper trading became convoluted.

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    jmski52jmski52 Posts: 22,382 ✭✭✭✭✭

    Thank-you for your insight, topstuff.

    I take it that as volatility increases, most dealers protect themselves (and their business) with larger than usual premiums.

    Makes perfect sense to me.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
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    Jinx86Jinx86 Posts: 3,672 ✭✭✭✭✭

    @jmski52 said:
    Thank-you for your insight, topstuff.

    I take it that as volatility increases, most dealers protect themselves (and their business) with larger than usual premiums.

    Makes perfect sense to me.

    Not just protection, its to cover the cost of replacement as well. Any decent size dealer hedges their buying and selling, not free, but offers the greatest level of protection in the industry.

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    HJPHJP Posts: 423 ✭✭✭

    OK, who sets the "spot" price?

    What are the elements that are used to establish the "spot" price?

    Are there any verifiable metrics that are used to set this number?

    What are the "reasons" those who "set" the spot price everyday are influenced by?

    Any chance the futures market "spot price" is based on only hype & hyperbole?

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    topstuftopstuf Posts: 14,803 ✭✭✭✭✭

    Google

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    blitzdudeblitzdude Posts: 5,464 ✭✭✭✭✭

    Now hear this, "Paper investors dictate the price of silver." That is all. Semper Fi!

    The whole worlds off its rocker, buy Gold™.

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    shorecollshorecoll Posts: 5,445 ✭✭✭✭✭

    Warren Buffet once bought and later sold 40 MILLION ounces of silver. I think he lost money, but the point is the paper spot market is for him. The physical market is what most of us play in. The 40 million ounces he bought and sold maybe never existed in the physical word. They (spot and physical) are only peripherally connected.

    ANA-LM, NBS, EAC
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    HJPHJP Posts: 423 ✭✭✭

    So, in essence the spot price is an arbitrary number based on the opinions of 5-6 bullion traders- who are also buying / selling future contracts ?

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    derrybderryb Posts: 36,216 ✭✭✭✭✭

    @HJP said:
    So, in essence the spot price is an arbitrary number based on the opinions of 5-6 bullion traders- who are also buying / selling future contracts ?

    An Introduction To Trading Silver Futures

    The major players in the silver futures market include:

    • The mining industry

    • Refineries

    • Electrical and electronics companies

    • Photography companies

    • Jewelry businesses

    • The automobile industry

    • Solar energy equipment manufacturers

    The above players mainly trade silver futures for hedging purpose aimed to achieve price protection and risk management.

    Another source of the major players in silver futures markets is the financial industry. These players may also be in it for the speculation and arbitrage opportunities and include:

    • Banks

    • Hedge funds and mutual funds

    • Proprietary trading firms

    • Market makers and individual traders

    Give Me Liberty or Give Me Debt

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    topstuftopstuf Posts: 14,803 ✭✭✭✭✭

    Google.

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    fivecentsfivecents Posts: 11,207 ✭✭✭✭✭

    Had a long talk with my local coin shop dealer two days ago, he's a player.
    He is holding from selling ANY of his AU or AG in his shop for now. He's closed right now due to Kung flu. He told me to hold and not to sell. As a matter of fact he told me to buy, buy , buy. :o
    He said last two days before he closed he had like 500 people in and 1,000 people the 2nd day. He said it was epic!!!
    He said he can't replace or find the AG from any of his regular wholesellers, Shits about to hit the fan sounds like.

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    rickoricko Posts: 98,724 ✭✭✭✭✭

    Panic... plain and simple...panic in silver and TP....and other staples as well. Cheers, RickO

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    MsMorrisineMsMorrisine Posts: 32,228 ✭✭✭✭✭

    @HJP said:
    OK, who sets the "spot" price?

    What are the elements that are used to establish the "spot" price?

    Are there any verifiable metrics that are used to set this number?

    What are the "reasons" those who "set" the spot price everyday are influenced by?

    Any chance the futures market "spot price" is based on only hype & hyperbole?

    @MsMorrisine said:
    https://forums.collectors.com/discussion/1023467/found-formula-for-taking-futures-quotes-and-converting-to-spot

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
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    derrybderryb Posts: 36,216 ✭✭✭✭✭
    edited March 20, 2020 7:26AM

    Just sold 5 ASEs on ebay for $24.80 ea. Buyer was even willing to pay sales tax.

    Give Me Liberty or Give Me Debt

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    topstuftopstuf Posts: 14,803 ✭✭✭✭✭

    @derryb said:
    Just sold 5 ASEs on ebay for $24.80 ea. Buyer was even willing to pay sales tax.

    Could he use a sealed 2016 Monster Box?
    I think I'd even carry the shipping cost if he was legit. B)

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    fivecentsfivecents Posts: 11,207 ✭✭✭✭✭
    edited March 20, 2020 10:38AM

    @topstuf said:

    @derryb said:
    Just sold 5 ASEs on ebay for $24.80 ea. Buyer was even willing to pay sales tax.

    Could he use a sealed 2016 Monster Box?
    I think I'd even carry the shipping cost if he was legit. B)

    No won't happen. But I might trade you gold for it :|

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