How are Bullion dealers staying in Business with no products to sell??

Manorcourtman

I don't get it!! Many of the big Bullion dealers are not even advertising PM's now. Kitco for example has no Silver or Platinum on their website and only Canadian gold 1 ounce rounds. What the heck are they doing for business these days?? I thought they were in business selling PM's? Tell me again there are no shortages going on currently!! No wonder people are paying such big premiums on eBay. eBay seems to be the only place you can buy PM's. Your thoughts on the issue appreciated.

pf70collector

Maybe they don't want to sell at substantial losses considering it was $2K an ounce only a few months ago.

HonoluluDude

Maybe they short the futures (hedges) for income?

fc

they raised the premiums on stuff they do sell.
they quickly sell anything that comes in the door and this makes it appear they
have nothing to sell quite often.

they lay off employees.

etc...

coolest

<< <i>Maybe they don't want to sell at substantial losses considering it was $2K an ounce only a few months ago. >>



Are no sales better that a loss?

Manorcourtman

Ok, I take back what I said......they are selling the following at Kitco:

Product Price Quantity
Gold Maple 1 oz
(Olympic Edition) $858.35

*Gold Bar 400 oz (Please place order by phone) $323,080.00

Silver Bar 1000 oz $9,880.00

Anyone need a 400 oz bar of Gold??

NumbersUsacom

I don't know, seems NWT has a sweet spot, if its actually working for them.

Today thay are buying 90% u.s. coin at 6.95 per 1.00 or 6.95 x face

But they want you to pay 10.71 per 1.00 or 10.71 x Face

Thats a whopping 55% increase over the 6.95xface buy.

They are trying to buy at spot and sell at approximately 5.50 over spot, now thats a deal !!! for them. Is Silver really this RARE ?

sonde79

has this happened before historically?

NumbersUsacom

Wow this tightening of the silver bullion market is beginning to sound like the bank/credit tightening crisis.

I just called a bullion dealer I have done business for years and they are asking 12.00 X Face for U.S. 90%.

Just three weeks ago I bought from this same company at 9.1 X Face and the spot price was a good 1.00 dollar higher than

today.

ziggy29

<< <i>has this happened before historically? >>

I don't know about that with respect to PMs, but there definitely have been times when ANY paper assets have been severely discounted.

Back in the Civil War days, you could try to acquire silver coin for shinplasters and other fractional currency -- at a considerable discount, assuming the holder of the silver would even sell. Merchants would also accept these paper assets at a discount. Something that cost 50 cents at a store might require fifty cents in silver coin, but considerably more than that in paper money.

And in that period of time which shall not be named in the 1930s, there was again widespread distrust of pretty much any paper asset.

bluelobster

I wonder if the big bullion houses wish they would have sold 50% ago even if they didn't charge big premiums at the time, of course I realize many small collectors were buying physical silver aggressively at those big premiums, all the way down, so there really wasn't that much in inventory, most likely. Unfortunately considering the actual inflated prices that many retail collectors have been more than willing to pay, the bullion houses have gotten away with these obscene margins.