What is the reason why the "spot" price of silver............

SanctionII · October 22, 2008 8:24AM

.............. is something that you can not find sellers will to sell physical silver close to (i.e. spot plus 3%)?

Is there a much of a difference in pricing depending on the amount of silver you buy (i.e. a single one ounce round vs. a 1,000 silver bar)? If so why?

How about the pricing of junk silver bags? Can a $1,000.00 face value bag of junk silver be purchased for anywhere close to spot? If not, why not?

P.S. Has anyone bought bags of US junk silver to search them for valuable collector coins? If so, did you have any luck? If so, what goodies did you find?

P.S.S. The above P.S. should be enough to keep this thread on the US Coin Forums instead of having it shipped to the PM forums.

ziggy29 · October 22, 2008 8:33AM

I think it's because the spot price represents "paper" trades (futures, ETFs and the like) and most PM advocates don't trust paper assets right now. As a result there is a large premium on the physical metal itself.

rgCoinGuy · October 22, 2008 8:36AM

There is limited available physical supply. Paper traders pushing down the price, and the fact a lot of people who have bought in at twice spot price and don't want to sell at the current spot price, are keeping the supply vs. demand equation clearly in demands favor.

You can get a discount buying 1000 ounce bars, but there is still normally a wait for delivery on those also.

If you look around, and get creative, you can find deals close to spot, if you really are interested in this, there are some great threads on that other forum.

nickel · October 22, 2008 8:38AM

Buy low , sell high .
Supply and demand .
Buyers are calling daily , but sellers are not selling .
There is a large premium on bullion . Some of it is
to entice sellers , another reason is a buffer for buyers .
A buyer may get some bullion , but when the customer
refuses to pay a lot ,the buyer doesn't want to be caught
as the trend is still down .
I will be at a show in two weeks . I have a few gold coins ,
and a few silver eagles . If I decide to put them out , there will
be a premium , if not sold , I will keep them until sanity returnes