High premiums are like a broken record 2008, 2010, 2011, 2014, 2019, 2020, 2022, LOL Within the next 2 years gutter will be available everywhere at or under spot. Doesn't matter if it's some fancy hundreds of millions produced ASE or some rare ebay RCM bar. lol Strange world! RGDS!!
High premiums indicate that people who hold silver in a physical (commercial) form do not want to sell when the paper contract price drops. And when the silver price spikes upwards, fewer people want to buy so that puts downward pressure on premiums.
The net effect is that the price of physical silver items is less volatile than the paper contract price.
@blitzdude said:
High premiums are like a broken record 2008, 2010, 2011, 2014, 2019, 2020, 2022, LOL Within the next 2 years gutter will be available everywhere at or under spot. Doesn't matter if it's some fancy hundreds of millions produced ASE or some rare ebay RCM bar. lol Strange world! RGDS!!
If you think silver premiums are going to zero (or negative), then sell all your silver now and move on.
Vote with your feet, unless crawling along in the "gutter" is your favorite pastime.
@derryb said:
They are saying something very important to those who listen.
Are they saying the same thing as they did 18 months ago?
Yes they have been saying the exact same thing… stay bent over…
physical silver prices are telling us that it is in strong hands. Strong hands are seldom "bent over."
Appears you are also in the gutter metal camp? lol Appears biltzboy is on longer alone.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
While these premiums may be a bit high, these numbers don't support a theory that there's some big disconnect between physical and "paper". Physical seems to be plentiful, if you look beyond silver eagles.
While these premiums may be a bit high, these numbers don't support a theory that there's some big disconnect between physical and "paper". Physical seems to be plentiful, if you look beyond silver eagles.
A $3.90 per oz. premium is high for a 100 oz. bar when you consider not long ago silver eagles could have been bought for a lessor premium.
We can spend all day and a long forum thread bantering about "are premiums high?" They are higher than they were one, two years ago. The real discussion should be "why?" The correct answers to that can be a great influence on whether we buy now or later, or sell now or later.
A good understanding of "why" can lead one to understand what to expect with premiums when the "whys" change in the future. Understanding cause and effect on this subject can be a valuable tool.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
"physical silver prices are telling us that it is in strong hands."
derryb. I totally disagree with you on that presumption. If that was the case, silver would be above $30 and would have remained above $20 for the last 24 mos. Silver appears to be vacillating between week, speculative and short term profit motivated hands, but not strong hands.
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
derrby, I agree we could quibble indefinitely over whether premiums are high, and whether that suggests there's some weird imbalance or manipulation that is unsustainable.
If you can buy as much silver as you want in small units for four dollars over spot, the markets don't seem too out of kilter.
@OPA said:
"physical silver prices are telling us that it is in strong hands."
derryb. I totally disagree with you on that presumption. If that was the case, silver would be above $30 and would have remained above $20 for the last 24 mos. Silver appears to be vacillating between week, speculative and short term profit motivated hands, but not strong hands.
apparently you are referring to spot price. As stated I'm referring to physical silver that with some products is above $30 and with other products has remained over $20 for the last 24 months.
Spot prices are not determined by the strength of the hands that hold the silver contracts. They are determined by manipulative bullion bank traders who profit on the volatility that they create with their orders.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@Higashiyama said:
derrby, I agree we could quibble indefinitely over whether premiums are high, and whether that suggests there's some weird imbalance or manipulation that is unsustainable.
If you can buy as much silver as you want in small units for four dollars over spot, the markets don't seem too out of kilter.
compared to the past? LOL
Kilter is a word used to compare two different periods of time.
My records show that in Jan. 2016 I purchased five RCM 10 oz. silver bars for $1.38 over spot per oz. resulting in a 9% premium. Those same five bars, at the cheapest place I can find, will today cost me $6.37 over spot resulting in a 35% premium. And we all know silver eagle premiums are through the roof.
The physical silver market is way out premium kilter. Again, the question should be "why? The second question should be "will it continue to grow?"
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@derryb said:
Spot prices are not determined by the strength of the hands that hold the silver contracts. They are determined by manipulative bullion bank traders who profit on the volatility that they create with their orders.
I was going to just click the little LOL icon, but this is really more deserving of a.....
what's really funny is how some people refuse to accept truth.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@Higashiyama said:
derrby, I agree we could quibble indefinitely over whether premiums are high, and whether that suggests there's some weird imbalance or manipulation that is unsustainable.
If you can buy as much silver as you want in small units for four dollars over spot, the markets don't seem too out of kilter.
compared to the past? LOL
Kilter is a word used to compare two different periods of time.
My records show that in Jan. 2016 I purchased five RCM 10 oz. silver bars for $1.38 over spot per oz. resulting in a 9% premium. Those same five bars, at the cheapest place I can find, will today cost me $6.37 over spot resulting in a 35% premium. And we all know silver eagle premiums are through the roof.
The physical silver market is way out premium kilter. Again, the question should be "why? The second question should be "will it continue to grow?"
You're the only dude I know that gets excited when spot gutter drops $10 but your phantom ebay premiums rise $4-$5. That's not #winning. lol
You're the only dude I know that gets excited when spot gutter drops $10 but your phantom ebay premiums rise $4-$5. That's not #winning. lol
Am winning if I'm a buyer. "Buy low, sell high" includes buying.
Stop pretending you know me. LOL
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@Higashiyama said:
derrby, I agree we could quibble indefinitely over whether premiums are high, and whether that suggests there's some weird imbalance or manipulation that is unsustainable.
If you can buy as much silver as you want in small units for four dollars over spot, the markets don't seem too out of kilter.
compared to the past? LOL
Kilter is a word used to compare two different periods of time.
My records show that in Jan. 2016 I purchased five RCM 10 oz. silver bars for $1.38 over spot per oz. resulting in a 9% premium. Those same five bars, at the cheapest place I can find, will today cost me $6.37 over spot resulting in a 35% premium. And we all know silver eagle premiums are through the roof.
The physical silver market is way out premium kilter. Again, the question should be "why? The second question should be "will it continue to grow?"
Lol, you answered your own question but put in the wrong info- quote - Spot prices are not determined by the strength of the hands that hold the silver contracts. They are determined by manipulative bullion bank traders who profit on the volatility that they create with their orders.
so physical is determined by the manipulative physical dealers who profit on the con of premiums …
Shoot a year ago or so generic silver was 5-6 bucks over wholesale, with the fake silver eagle premiums the fact is indisputable that everyone is buried in their silver most likely til 35-40spot price and that most likely includes all buyers from the last 2-3 years and to boot thru the greatest inflation in decades…
@Higashiyama said:
derrby, I agree we could quibble indefinitely over whether premiums are high, and whether that suggests there's some weird imbalance or manipulation that is unsustainable.
If you can buy as much silver as you want in small units for four dollars over spot, the markets don't seem too out of kilter.
compared to the past? LOL
Kilter is a word used to compare two different periods of time.
My records show that in Jan. 2016 I purchased five RCM 10 oz. silver bars for $1.38 over spot per oz. resulting in a 9% premium. Those same five bars, at the cheapest place I can find, will today cost me $6.37 over spot resulting in a 35% premium. And we all know silver eagle premiums are through the roof.
The physical silver market is way out premium kilter. Again, the question should be "why? The second question should be "will it continue to grow?"
Lol, you answered your own question but put in the wrong info- quote - Spot prices are not determined by the strength of the hands that hold the silver contracts. They are determined by manipulative bullion bank traders who profit on the volatility that they create with their orders.
so physical is determined by the manipulative physical dealers who profit on the con of premiums …
No, read what I said. Nowhere did I apply the comment about manipulated paper silver to the physical market or physical sellers. Sure you're not coho's apprentice? He is reknowned for changing what people actually say.
Shoot a year ago or so generic silver was 5-6 bucks over wholesale, with the fake silver eagle premiums the fact is indisputable that everyone is buried in their silver most likely til 35-40spot price and that most likely includes all buyers from the last 2-3 years and to boot thru the greatest inflation in decade.
Or until rising premiums bring physical prices to your 35-40 spot price. Silver eagles are on the doorstep and it remains to be seen in the rest of physical follows. Premium bars such as RCM 10 ouncers are on their way.
The future of silver is not dependent on spot prices. It is dependent on premiums over spot. The lower spot goes, the higher premiums will rise. The future of silver will be a severing of the cord on physical's dependency on using spot price as a "base" price. The day will come when physical silver will not be priced with a "premium" over spot. There will be a price for physical metal that is set completely by the physical market. Then other PMs will follow suit.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@derryb said:
The day will come when physical silver will not be priced with a "premium" over spot. There will be a price for physical metal that is set completely by the physical market.
So you are saying to buy spot (paper) silver. If physical is 35 and spot is 18, then it would seem the play is to buy spot, no?
@derryb said:
The day will come when physical silver will not be priced with a "premium" over spot. There will be a price for physical metal that is set completely by the physical market.
So you are saying to buy spot (paper) silver. If physical is 35 and spot is 18, then it would seem the play is to buy spot, no?
Seemed logical to me. I've sold high premium physical and replaced with the paper gutter. Hasn't worked out in the past few months but I'm a patient man and Groundhog Day has already shown me the outcome 500 times over. EZ street.
Come to Punxsutawney in early February. I'll supply a few ICE cold beers and some of that Alaskan Salmon Q says you like. RGDS!
Lol no you didn’t comment that I don’t understand how people are so blind, it’s ok to make up your paper comment and I applied the same as you and made the physical comment there is no difference…
Interesting thread. I'm not a stacker so I have no real experience with this buying and selling metal. I thought that silver used to buy/sell at tight margins. Like +/-5% of spot or something. With silver at $18.50 I thought I might pick up a couple bars. Learned that premium was $4.25 over spot, about a 23% premium over spot. I looked at the big metal sellers and this is actually a fair price compared to what's available. So here is this talk about paper silver and physical silver and each being worth a different value. Seems very questionable to me. Isn't spot based on a global value of metals? Is paper metal messing up the real metal value?
If a dealer is selling physical silver at $4 over spot, what would you expect them to be buying at?
@Batman23 said:
Interesting thread. I'm not a stacker so I have no real experience with this buying and selling metal. I thought that silver used to buy/sell at tight margins. Like +/-5% of spot or something. With silver at $18.50 I thought I might pick up a couple bars. Learned that premium was $4.25 over spot, about a 23% premium over spot. I looked at the big metal sellers and this is actually a fair price compared to what's available. So here is this talk about paper silver and physical silver and each being worth a different value. Seems very questionable to me. Isn't spot based on a global value of metals? Is paper metal messing up the real metal value?
If a dealer is selling physical silver at $4 over spot, what would you expect them to be buying at?
Spot price or daily prices posted are nowhere close to acquisition price. Call it premium. I can't find eagles for less than $10.75 (premium) over spot ( I'll sell at $12.50 and buy at $10.75 over ). I mean I have to ..... that is;?if I want them. Buy back from customers ? $5-$7 over ? How much over spot does a guy want ? If I sold to a customer at $4 over , the margins are already thin when I pay $2.85 to $3 over on generic stuff for acquisition. We dealers pay dealers. It's an arena of thin ice.
I don't recommend selling back. I recommend trading wealth among other like minded thinkers (buyers in the club) . Keep the money in the family, so to speak. The circle of trust is surrounded by a crust of rust. Outsiders beating drums of doom.
What a great day for blinders to fall off and the end of the carnival barking… Slv bought Friday is up approx 5-9% today, physical bought down big still, silver eagles bought Friday still down 25% plus, pretty simple and straight forward…
@rawteam1 said:
What a great day for blinders to fall off and the end of the carnival barking… Slv bought Friday is up approx 5-9% today, physical bought down big still, silver eagles bought Friday still down 25% plus, pretty simple and straight forward…
If you bought silver at a relatively high premium and then sold it the next day at zero premium, then that is dumb and obviously it is not going to work out so well. Before buying or selling, go to a coin show and shop around to see what is the lowest premium that you can buy for and/or the highest premium that you can sell for.
But also consider days when "spot" silver drops by $1. If you bought SLV before the drop and then sold after the drop, you have lost $1 per "share" (ounce). But when silver drops, the premium on Silver Eagles tends to go up, so that has the effect of cushioning your position. In other words, the market price of Silver Eagles is less volatile than the silver "spot" price.
Like I said in the other thread, SLV is ok for short-term trading if that is your thing (not for me). But it is a poor long-term holding due to the dilution of shares over time.
@rawteam1 said:
What a great day for blinders to fall off and the end of the carnival barking… Slv bought Friday is up approx 5-9% today, physical bought down big still, silver eagles bought Friday still down 25% plus, pretty simple and straight forward…
If you bought silver at a relatively high premium and then sold it the next day at zero premium, then that is dumb and obviously it is not going to work out so well. Before buying or selling, go to a coin show and shop around to see what is the lowest premium that you can buy for and/or the highest premium that you can sell for.
But also consider days when "spot" silver drops by $1. If you bought SLV before the drop and then sold after the drop, you have lost $1 per "share" (ounce). But when silver drops, the premium on Silver Eagles tends to go up, so that has the effect of cushioning your position. In other words, the market price of Silver Eagles is less volatile than the silver "spot" price.
Folk lose $4 or more on an ASE as soon as they walk out the door.
@rawteam1 said:
What a great day for blinders to fall off and the end of the carnival barking… Slv bought Friday is up approx 5-9% today, physical bought down big still, silver eagles bought Friday still down 25% plus, pretty simple and straight forward…
If you bought silver at a relatively high premium and then sold it the next day at zero premium, then that is dumb and obviously it is not going to work out so well. Before buying or selling, go to a coin show and shop around to see what is the lowest premium that you can buy for and/or the highest premium that you can sell for.
But also consider days when "spot" silver drops by $1. If you bought SLV before the drop and then sold after the drop, you have lost $1 per "share" (ounce). But when silver drops, the premium on Silver Eagles tends to go up, so that has the effect of cushioning your position. In other words, the market price of Silver Eagles is less volatile than the silver "spot" price.
Folk lose $4 or more on an ASE as soon as they walk out the door.
Yup a 20%+ haircut right out the door and they think the done good. Crazy world!
With the exception of 5 -2021 T2 last year for my Dansco albums (and the 2011 25th anniversary sets) I don't recall ever paying over $3 for an ASE and I've owned thousands. Pretty sure I know how and where to shop but thanks for the advice. RGDS!
@blitzdude said:
With the exception of 5 -2021 T2 last year for my Dansco albums (and the 2011 25th anniversary sets) I don't recall ever paying over $3 for an ASE and I've owned thousands. Pretty sure I know how and where to shop but thanks for the advice. RGDS!
Wow. No wonder it's gutter metal. Copper costs more per pound than you're paying per ounce of silver. I'd like to buy where you do. PM me the contact info , will ya ?
Folk lose $4 or more on an ASE as soon as they walk out the door.
But you were smarter when you bought that new truck? LOL
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@blitzdude said:
With the exception of 5 -2021 T2 last year for my Dansco albums (and the 2011 25th anniversary sets) I don't recall ever paying over $3 for an ASE and I've owned thousands. Pretty sure I know how and where to shop but thanks for the advice. RGDS!
Wow. No wonder it's gutter metal. Copper costs more per pound than you're paying per ounce of silver. I'd like to buy where you do. PM me the contact info , will ya ?
@blitzdude said:
With the exception of 5 -2021 T2 last year for my Dansco albums (and the 2011 25th anniversary sets) I don't recall ever paying over $3 for an ASE and I've owned thousands. Pretty sure I know how and where to shop but thanks for the advice. RGDS!
Wow. No wonder it's gutter metal. Copper costs more per pound than you're paying per ounce of silver. I'd like to buy where you do. PM me the contact info , will ya ?
I think he meant he's never paid more than $3 per ounce over spot for ASEs. It is unlikely that any arms length transaction for ASEs at $3 has ever taken place. I did manage to win one last year, lol.
I too have purchased many ASEs at less than a $3 premium. Mostly on ebay with ebay bucks.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Then you should sell it, or is that the same truck you backed up and filled with bonds that are losing value faster than your truck is gaining in dollars?
Q: Are You Printing Money? Bernanke: Not Literally
Then you should sell it, or is that the same truck you backed up and filled with bonds that are losing value faster than your truck is gaining in dollars?
Not sure where you got your info from. My bond mutual fund is doing a hell of a lot better, then most PM's. Increased dividends have offset minor losses.
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
Then you should sell it, or is that the same truck you backed up and filled with bonds that are losing value faster than your truck is gaining in dollars?
The bonds have actually increased in price.
And why should I sell the truck? It's a 4x4 with mud tires and helps me get through all the BS you spread. 🙂
@jmski52 said:
Rates are going up and you say that bonds are increasing in price?
It's almost like magic then, and I'd like someone to explain it to me how that works. Make me a believer.
Mine did. You should learn about different types of bonds. And you need to understand time. We spend so much time on this forum discussing premium while ignoring discount.
The only folk who believe in magic are the naive, uneducated or ignorant.
Comments
High premiums are like a broken record 2008, 2010, 2011, 2014, 2019, 2020, 2022, LOL Within the next 2 years gutter will be available everywhere at or under spot. Doesn't matter if it's some fancy hundreds of millions produced ASE or some rare ebay RCM bar. lol Strange world! RGDS!!
The whole worlds off its rocker, buy Gold™.
Yes they have been saying the exact same thing… stay bent over…
To me it seems very simple.
High premiums indicate that people who hold silver in a physical (commercial) form do not want to sell when the paper contract price drops. And when the silver price spikes upwards, fewer people want to buy so that puts downward pressure on premiums.
The net effect is that the price of physical silver items is less volatile than the paper contract price.
.
If you think silver premiums are going to zero (or negative), then sell all your silver now and move on.
Vote with your feet, unless crawling along in the "gutter" is your favorite pastime.
Well, that is what the creditor class wants the general population to do.
physical silver prices are telling us that it is in strong hands. Strong hands are seldom "bent over."
Appears you are also in the gutter metal camp? lol Appears biltzboy is on longer alone.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@derryb said: The most important question when it come to high premiums is "Why?"
Isn't the most important question: are the premiums really very high?
Although the premium for silver eagles is high, they are far less for other forms of physical silver, e.g,, from kitco a few minutes ago:
Spot price: 18.43
100 ounce bars: 22.33
Silver rounds: 24.28
While these premiums may be a bit high, these numbers don't support a theory that there's some big disconnect between physical and "paper". Physical seems to be plentiful, if you look beyond silver eagles.
A $3.90 per oz. premium is high for a 100 oz. bar when you consider not long ago silver eagles could have been bought for a lessor premium.
We can spend all day and a long forum thread bantering about "are premiums high?" They are higher than they were one, two years ago. The real discussion should be "why?" The correct answers to that can be a great influence on whether we buy now or later, or sell now or later.
A good understanding of "why" can lead one to understand what to expect with premiums when the "whys" change in the future. Understanding cause and effect on this subject can be a valuable tool.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
"physical silver prices are telling us that it is in strong hands."
derryb. I totally disagree with you on that presumption. If that was the case, silver would be above $30 and would have remained above $20 for the last 24 mos. Silver appears to be vacillating between week, speculative and short term profit motivated hands, but not strong hands.
derrby, I agree we could quibble indefinitely over whether premiums are high, and whether that suggests there's some weird imbalance or manipulation that is unsustainable.
If you can buy as much silver as you want in small units for four dollars over spot, the markets don't seem too out of kilter.
Lovely quarter!
Packed with "premium" 👍
Liberty: Parent of Science & Industry
Very nice circulated cameo on that one! No question that it deserves a premium!
apparently you are referring to spot price. As stated I'm referring to physical silver that with some products is above $30 and with other products has remained over $20 for the last 24 months.
Spot prices are not determined by the strength of the hands that hold the silver contracts. They are determined by manipulative bullion bank traders who profit on the volatility that they create with their orders.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
compared to the past? LOL
Kilter is a word used to compare two different periods of time.
My records show that in Jan. 2016 I purchased five RCM 10 oz. silver bars for $1.38 over spot per oz. resulting in a 9% premium. Those same five bars, at the cheapest place I can find, will today cost me $6.37 over spot resulting in a 35% premium. And we all know silver eagle premiums are through the roof.
The physical silver market is way out premium kilter. Again, the question should be "why? The second question should be "will it continue to grow?"
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I was going to just click the little LOL icon, but this is really more deserving of a.....
Knowledge is the enemy of fear
The best cure for high prices is high prices. 😉
Knowledge is the enemy of fear
what's really funny is how some people refuse to accept truth.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
You're the only dude I know that gets excited when spot gutter drops $10 but your phantom ebay premiums rise $4-$5. That's not #winning. lol
The whole worlds off its rocker, buy Gold™.
Indeed. While quite frustrating it is entertaining.
Knowledge is the enemy of fear
Am winning if I'm a buyer. "Buy low, sell high" includes buying.
Stop pretending you know me. LOL
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Lol, you answered your own question but put in the wrong info- quote - Spot prices are not determined by the strength of the hands that hold the silver contracts. They are determined by manipulative bullion bank traders who profit on the volatility that they create with their orders.
Shoot a year ago or so generic silver was 5-6 bucks over wholesale, with the fake silver eagle premiums the fact is indisputable that everyone is buried in their silver most likely til 35-40spot price and that most likely includes all buyers from the last 2-3 years and to boot thru the greatest inflation in decades…
No, read what I said. Nowhere did I apply the comment about manipulated paper silver to the physical market or physical sellers. Sure you're not coho's apprentice? He is reknowned for changing what people actually say.
Or until rising premiums bring physical prices to your 35-40 spot price. Silver eagles are on the doorstep and it remains to be seen in the rest of physical follows. Premium bars such as RCM 10 ouncers are on their way.
The future of silver is not dependent on spot prices. It is dependent on premiums over spot. The lower spot goes, the higher premiums will rise. The future of silver will be a severing of the cord on physical's dependency on using spot price as a "base" price. The day will come when physical silver will not be priced with a "premium" over spot. There will be a price for physical metal that is set completely by the physical market. Then other PMs will follow suit.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
So you are saying to buy spot (paper) silver. If physical is 35 and spot is 18, then it would seem the play is to buy spot, no?
Knowledge is the enemy of fear
Seemed logical to me. I've sold high premium physical and replaced with the paper gutter. Hasn't worked out in the past few months but I'm a patient man and Groundhog Day has already shown me the outcome 500 times over. EZ street.
Come to Punxsutawney in early February. I'll supply a few ICE cold beers and some of that Alaskan Salmon Q says you like. RGDS!
The whole worlds off its rocker, buy Gold™.
Lol no you didn’t comment that I don’t understand how people are so blind, it’s ok to make up your paper comment and I applied the same as you and made the physical comment there is no difference…
premiums = tulips…
Interesting thread. I'm not a stacker so I have no real experience with this buying and selling metal. I thought that silver used to buy/sell at tight margins. Like +/-5% of spot or something. With silver at $18.50 I thought I might pick up a couple bars. Learned that premium was $4.25 over spot, about a 23% premium over spot. I looked at the big metal sellers and this is actually a fair price compared to what's available. So here is this talk about paper silver and physical silver and each being worth a different value. Seems very questionable to me. Isn't spot based on a global value of metals? Is paper metal messing up the real metal value?
If a dealer is selling physical silver at $4 over spot, what would you expect them to be buying at?
Spot price or daily prices posted are nowhere close to acquisition price. Call it premium. I can't find eagles for less than $10.75 (premium) over spot ( I'll sell at $12.50 and buy at $10.75 over ). I mean I have to ..... that is;?if I want them. Buy back from customers ? $5-$7 over ? How much over spot does a guy want ? If I sold to a customer at $4 over , the margins are already thin when I pay $2.85 to $3 over on generic stuff for acquisition. We dealers pay dealers. It's an arena of thin ice.
I don't recommend selling back. I recommend trading wealth among other like minded thinkers (buyers in the club) . Keep the money in the family, so to speak. The circle of trust is surrounded by a crust of rust. Outsiders beating drums of doom.
Oh, and since eagle premiums on silver rose so high, I've sold very few in '22
What a great day for blinders to fall off and the end of the carnival barking… Slv bought Friday is up approx 5-9% today, physical bought down big still, silver eagles bought Friday still down 25% plus, pretty simple and straight forward…
If you bought silver at a relatively high premium and then sold it the next day at zero premium, then that is dumb and obviously it is not going to work out so well. Before buying or selling, go to a coin show and shop around to see what is the lowest premium that you can buy for and/or the highest premium that you can sell for.
But also consider days when "spot" silver drops by $1. If you bought SLV before the drop and then sold after the drop, you have lost $1 per "share" (ounce). But when silver drops, the premium on Silver Eagles tends to go up, so that has the effect of cushioning your position. In other words, the market price of Silver Eagles is less volatile than the silver "spot" price.
Like I said in the other thread, SLV is ok for short-term trading if that is your thing (not for me). But it is a poor long-term holding due to the dilution of shares over time.
Folk lose $4 or more on an ASE as soon as they walk out the door.
Knowledge is the enemy of fear
Yup a 20%+ haircut right out the door and they think the done good. Crazy world!
The whole worlds off its rocker, buy Gold™.
Not if you shop around at a coin show.
With the exception of 5 -2021 T2 last year for my Dansco albums (and the 2011 25th anniversary sets) I don't recall ever paying over $3 for an ASE and I've owned thousands. Pretty sure I know how and where to shop but thanks for the advice. RGDS!
The whole worlds off its rocker, buy Gold™.
Wow. No wonder it's gutter metal. Copper costs more per pound than you're paying per ounce of silver. I'd like to buy where you do. PM me the contact info , will ya ?
But you were smarter when you bought that new truck? LOL
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I think he meant he's never paid more than $3 per ounce over spot for ASEs. It is unlikely that any arms length transaction for ASEs at $3 has ever taken place. I did manage to win one last year, lol.
I too have purchased many ASEs at less than a $3 premium. Mostly on ebay with ebay bucks.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Actually I've driven it for over 2 years and added 55k miles and can sell it for more than I paid.
Super smart!!!
The value of utility is lost among some.
Knowledge is the enemy of fear
Actually I've driven it for over 2 years and added 55k miles and can sell it for more than I paid.
If you sold it now, you would need to plow those dollars into something else real before the purchasing power of those dollars decides to evaporate.
I knew it would happen.
Irrelevant.
Knowledge is the enemy of fear
Irrelevant
Then you should sell it, or is that the same truck you backed up and filled with bonds that are losing value faster than your truck is gaining in dollars?
I knew it would happen.
Not sure where you got your info from. My bond mutual fund is doing a hell of a lot better, then most PM's. Increased dividends have offset minor losses.
The bonds have actually increased in price.
And why should I sell the truck? It's a 4x4 with mud tires and helps me get through all the BS you spread. 🙂
Knowledge is the enemy of fear
Rates are going up and you say that bonds are increasing in price?
It's almost like magic then, and I'd like someone to explain it to me how that works. Make me a believer.
Next, you'll be telling me that we're not in a recession.
I knew it would happen.
Mine did. You should learn about different types of bonds. And you need to understand time. We spend so much time on this forum discussing premium while ignoring discount.
The only folk who believe in magic are the naive, uneducated or ignorant.
Knowledge is the enemy of fear
Double post
Knowledge is the enemy of fear
It's because they are the super-special tax free bonds that pay 9%...
I would like to see the specific bond he's talking about, and a chart of its price history.
Maybe he has a special connection with the bond fairy, or he's just blowing smoke as usual.
I knew it would happen.