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Slightly confused
BobSav
Posts: 913 ✭✭✭
I'm still trying to get my head around the outrageous premium's for silver. Today on Providents site, 5 oz. silver bars are around $5.69 over spot. 90% silver is almost $10.00 over spot. Why on earth would anyone pay double the already high premium for 90% vs Bars. ?
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Lordmarcovan, WTCG, YogiBerraFan, Phoenin21, LindeDad, Coll3ctor, blue594, robkoll, Mike Dixon, BloodMan, Flakthat and others.
Lordmarcovan, WTCG, YogiBerraFan, Phoenin21, LindeDad, Coll3ctor, blue594, robkoll, Mike Dixon, BloodMan, Flakthat and others.
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As always it’s all about supply and demand in the physical world
there’s limited supply and limited demand
forget spot where things are unlimited
Give Me Liberty or Give Me Debt
Definitely hard to make sense of it, based on what we have traditionally used to.
Welcome to the paradigm shift in physical metal pricing
Delivery of real metal is no longer the same as delivery of paper promises
This is something that some have been predicting and something that all stackers should welcome
Give Me Liberty or Give Me Debt
Why would we welcome sky high premiums that you dont recover when you go to sell ?
Lordmarcovan, WTCG, YogiBerraFan, Phoenin21, LindeDad, Coll3ctor, blue594, robkoll, Mike Dixon, BloodMan, Flakthat and others.
why should any actual item go down in price if its owner refuses to take less than a certain number and is not forced to sell? in most tangible things , the seller sets the price the buyer decides if a sale occurs . now the sellers may be forced to lower prices if they need cash but if they can wait a dip out thats usually what they try to do
if you want it at spot it will be the paper variety
You’re assuming that premiums are going down.
They continue to go up Even in the face of falling spot. there is no indication that premiums are coming down anytime soon
Anyone not recovering more than their premium paid is selling too low
Smart Buyers will learn to quit using spot as their reference and start using Yesterdays physical price to make their purchasing decisions
For too long we have let bullion bank paper traders tell us what we should pay for physical metal. they are two entirely different markets and it appears this reality is evolving.
Give Me Liberty or Give Me Debt
We had thos same discussion 11 years ago.
Knowledge is the enemy of fear
Seller floats a Price, last hammer price determines the current value
Give Me Liberty or Give Me Debt
Here we go again...
Click on this link to see my ebay listings.
Not today.
I presented the reality, floor is all his for some more fantasy
Give Me Liberty or Give Me Debt
i dont mean in a long term down trend. If spot goes down buyers except sellers to reprice lower and get upset when there are no fire sales. the big dealers freeze at the higher price or put out of stock signs up. The little guys do the same if they can.
until one side can force the other side to move there is no sale.
if the buyer is a small fry he pays up or does without.
most of the silver in question isn't being used by the purchaser so no harm done just be patient and keep your powder dry is my routine.
There is no way that my physical silver is worth 15% LESS this week than it was on April 18.
I would never sell for this hugely manipulated current price. And it looks to be going under $20.
The lost decade. Gutter premiums will be back in the gutter before too long. For now if you must, trade the paper variety. RGDS!
The whole worlds off its rocker, buy Gold™.
Yet buyers continue to pay the higher premiums. LOL
I guess everyone is wrong about silver except for you. Have you ever been right about silver?
Give Me Liberty or Give Me Debt
I've got a few heavy green boxes that I will gladly transfer over to you anytime you are willing to take them at the current premium. Heck for you, I may even knock off a buck or $2. Interested?
The whole worlds off its rocker, buy Gold™.
The confusion about silver "premium" can be reduced one thinks of it as collector premium.
The "nicer" the silver, (rarer, prettier, more popular, more liquid, etc) the more it tends to cost above melt value.
Collector premium fluctuates over time, and varies depending on the type of item.
Thought experiment: take any silver item, smash it flat with a sledgehammer. What you're destroying is "premium"
Liberty: Parent of Science & Industry
As physical silver it will still sell for a premium over spot just as do completely worn out pre-1965 silver US coins. The premium is for added value over a paper promise. Amount of premium is determined by demand. And yes, "pretty" adds to premium but nowhere near what perceived quality adds.
Give Me Liberty or Give Me Debt
did you take off for a while ?
Thought experiment: take any silver item, smash it flat with a sledgehammer. What you're destroying is "premium"
Part of what you're destroying with your sledgehammer is utility, because now you will have melt it down, assay it, and re-fabricate it into a more recognizable form in order to make it easily tradeable. Almost the same as taking a sledgehammer to a Chevy or even a Tesla.
I knew it would happen.
perceived quality
Perception is fact.
Knowledge is the enemy of fear
What's the frequency Kenneth?
The price of silver includes the production cost of the metal, the manufacturing cost to get the metal into a condition attractive to buyers and a premium based on the supply and demand of that finished item.
To the perceiver, but that doesn't mean you are correct.
Give Me Liberty or Give Me Debt
.999 cant keep it in the shop, usually sells within 15 min. 90% cant give it away locally. I have to carry 50-100 face weekly to the refinery.
Sure did! With the comfort knowing that I can visit a year or two later and find the same old friends having the same old conversation 🤗
Liberty: Parent of Science & Industry
What's the frequency Kenneth?
I knew it would happen.
Great thread title, Bob. Seems youre not the only one confused.
Knowledge is the enemy of fear
So much for silver and gold being a hedge against inflation 😂
Edited to add if it’s going to turn around it better hurry up😊
The worst hedge imaginable. I will not fall for the stupidity of it being an inflation hedge again. I fell for it once in 2011, and now again. lol
Silver is down to $20.90 this morning. 😳
Even though I accept that the paper market is manipulated and a bit rigged it's still amazing to me how quickly it can be smacked down.
Click on this link to see my ebay listings.