Why are people doing this??

Delorean

Hi Everyone,

I collect coins but want to buy some silver bars. Why in the world are people on Ebay paying 5-9 dollars over spot per ounce???

Chuck

Cladiator

MSNlive.com cashback offer is helping to sustain the high realized prices you see on eBay, in my opinion.

JeremyDie1

Can't find 1 oz. or 10.oz bars anywhere else with quick delivery. Best way for ebay is to keep looking for a lot of 20 or more with a reasonable bin. Then use the cashback.

mkman123

go to your local B&M store and see if you can buy silver at all for spot. Doubt it. Most likely have to pay 3+ dollars over spot.

There is a big disconnect between paper silver and physical silver.

Danny9995

None of the b&m's around here have any silver bullion, and when they do get some in, its closer to double spot. No way any b&m around here would think of selling for $3 over spot, I think they are paying that much. In fact, I just checked out local b&m who has a website and they are paying $13.10 for ASE's so that is almost $3.50 over spot. In the Tacoma/Seattle area, the cheapest you are getting ASE's for is $18 and rounds/bars about $15 per ounce.

CaptHenway

<< <i>Hi Everyone,

I collect coins but want to buy some silver bars. Why in the world are people on Ebay paying 5-9 dollars over spot per ounce???

Chuck >>



The Law Of Supply And Demand.

MoneyLA

CaptHenway wrote: "The Law Of Supply And Demand."

I think its more of "the law of supply and panic."

consumers are in a panic over getting their silver (and gold and other precious metals) NOW which is why the articificial premiums for "getting it now" have soared.

Once supply catches up with the panic (which it will) the premiums will evaporate, then prices will closely follow the "true price" of the bullion.

It's one thing to buy gold or silver at today's market price, but it's a totally different thing to buy with today's "panic premiums" added on. Do you want to risk 30% to 50% of your money ON A PREMIUM??

roadrunner

CaptHenway wrote: "The Law Of Supply And Demand."

I think its more of "the law of supply and panic."

consumers are in a panic over getting their silver (and gold and other precious metals) NOW which is why the articificial premiums for "getting it now" have soared.

....Do you want to risk 30% to 50% of your money ON A PREMIUM??

Notice how the theory has changed around here. When prices fell sharply during the year, the gold-bashers attributed that to true market supply and demand...of course. But with prices still down on paper and up on physical, well now it's something other than supply and demand. The "disconnect" in silver has been with us since March. How much longer do we have to go before this is considered real? 1 year? 2 years? Longer?

Anywhere here ever pay a 30-300% premium over CDN for coins? (ie paper price guides created by those not in the market day to day). I know the bust and seated series in the CDN are filled with prices that are off by up to a factor of up to 4X. Supply and demand at work.

"Supply and panic" may be an appropriate monicker for dollar strength.

roadrunner

Coll3ctor

<< <i>MSNlive.com cashback offer is helping to sustain the high realized prices you see on eBay, in my opinion. >>





I don't think it's that at all as the auction style format is bringing more than many "buy it nows".

Cladiator

<< <i>

<< <i>MSNlive.com cashback offer is helping to sustain the high realized prices you see on eBay, in my opinion. >>





I don't think it's that at all as the auction style format is bringing more than many "buy it nows". >>

Valid point.

jmski52

It's one thing to buy gold or silver at today's market price, but it's a totally different thing to buy with today's "panic premiums" added on. Do you want to risk 30% to 50% of your money ON A PREMIUM??

This all depends on whether you think that the paper prices are true market prices, or whether you think that the physical market prices are the true market.

And we all know that you sold your pms earlier, don't we? Always negotiate from a position of strength, and if I were selling to you, it would be "no deal".

ttown

Panic? I haven't seen any panic just fiat flag waviers that think the dollar just can't go bye-bye and the stock market and ecomony will rocket back. We'll see whos misguided soon. You can fool some of the people some of the time but you can't fool everyone all the time and if you haven't seen how the big banks and elites are raping the US ecomony you'll never see it until it's too late. But I'm sure it won't keep you from growing old and bitter. JMO

ttown

SILVER PRODUCTION FALLS BY 70%

MoneyLA

So, if I had a gas station with a posted pump price of $2.90 a gallon, but there was a long line of motorists waiting to fill up, and I said I would move you to the front of the line if you would pay $5.80 a gallon.... would you pay?

what would you call that kind of price?

what would you call that kind of gas dealer?

what would you call the consumer who would pay that premium?

now... substitute gold for gas.

ttown

<< <i>So, if I had a gas station with a posted pump price of $2.90 a gallon, but there was a long line of motorists waiting to fill up, and I said I would move you to the front of the line if you would pay $5.80 a gallon.... would you pay?

what would you call that kind of price?

what would you call that kind of gas dealer?

what would you call the consumer who would pay that premium?

now... substitute gold for gas. >>



I call it simple minded and right where they want you. Good Job

Cnitas

I would say that the dealer needs to update his posted price to reflect the demand he is experiencing. He should update it to $4 and see if his line fades away. $4 and still a line? Up the price to $5. Everntually, the consumers find a better deal and will go elsewhere. Good pricing puts you right at that point.

Law of supply and demand insists that if there is more demand for a product than supply, the price rises.


A more accurate description of the current silver market would be:
You are in line to pay the posted 2.90 for gas. As you pull up to the pump, the owner tells you that the posted price is for a gas coupon redeemable in 3 months, and you must take 1000 gallons at a time if redeeming a coupon. If you want gas for your car today the price is $6.

What do you do?

clouisejewelers

<< <i>
A more accurate description of the current silver market would be:
You are in line to pay the posted 2.90 for gas. As you pull up to the pump, the owner tells you that the posted price is for a gas coupon redeemable in 3 months, and you must take 1000 gallons at a time if redeeming a coupon. If you want gas for your car today the price is $6.

What do you do? >>



Throw myself on the ground, kick and scream and demand my gas NOW at 2.90/gallon because someone on TV said I could get all I want at that price. Of course that person has no actual gas for sale, but HE SAID....

garsmith

<< <i>Hi Everyone,

I collect coins but want to buy some silver bars. Why in the world are people on Ebay paying 5-9 dollars over spot per ounce???

Chuck >>




The spot price is for paper silver which has not real value, the 5-9 dollar premiums are being paid for physical silver.

rube26105

25-30% of micrsoft cashback is a pretty good incentive