Pm investment groups dumping 90% bags?

MrOrganic

Anyone hear of this?


"I just heard from a very trusted source that an investment group has dumped a couple thousand bags($1000 face) of 90% silver coin on to the open market. 90% had been enjoying a nice premium recently ($1-2 over spot per oz) but in light of recent offering this premium has disappeared. As early as Thursday the major buyers had been offering buy prices at 10X face. Now they are selling at 9.7x face even in light of a recent silver run up (up 15% in two weeks). This seemed like useful information for GIM faithful. I figure that would make this a pretty ripe time to back up the truck and help absorb this excess. Any thoughts on this?"

OPA

Not me ... my PT Cruiser won't do much of a dent. When the "so called smart money" is starting to unload PM, it's time to ask ... why?

Weiss

Makes sense if the leading buyers in the market are ETFs and other institutional buyers. Those who hold physical metal want and need good delivery bars. Silver's in a nice range now for those who bought it cheap, and 90% does have a very nice premium. So the big buyers are dumping 90%, skimming a profit plus premium for 90%, and probably shifting into 1000 oz bars.

guitarwes

All I need to know is where they're selling it at 9.7X face......

Coll3ctor

<< <i>All I need to know is where they're selling it at 9.7X face...... >>




+1

MrOrganic

+2



trust me I already asked!!!!!!!! lol

jmski52

Your information seems to be correct. Tulving's premium is now $0.89 for 90% bags.

illini420

I was at a local show this weekend and there was a lady selling $300+ face of 90%, lugging it from table to table seeking out the best deal. Ran into her a couple of times and overheard one of her conversations with a dealer. The dealer said he was hesitant to even make an offer given that the markets were closed on a Sunday and who knew what would happen with silver when they opened on Monday. (Of course I knew that the melt value is about exactly 10x face right now and 90% has been selling for 10.5x-11.5x face right now.) The dealer said that he would pay 9x face for the lot and even then he'd probably be losing money!!! (What???, the guy had a box of junk merc dimes on his table for $1.25 each!!!) The lady was very polite and said that she had an offer from another dealer at 9.1x face for them all and that she would probably take that cause she needed the money and every dollar counts!

After hearing that dealer's offer, I walked away from his table and decided not to support his business. The whole situation made me feel sort of sick that in a room full of coin dealers the best this lady was able to get was 9.1x face. It was hard for me not to just walk right up to her and pay her 10x face for the lot, knowing that I'd have some fun sorting through it all trying to fill up my coin folders and I'd still be able to flip it the next day online for at least $100 or more profit. If I had the heart of a coin dealer, I could have easily got it all for say 9.2x face and flipped it the next day for $300-$500. Of course, I didn't say a word as I've learned that it's not cool to get in the middle of other folks transactions at a show and that the show promoters don't like when the collectors do deals with each other w/o greasing the palm of a dealer.

That said, there are people out there selling for 9.7x face and even much less... seems like all that you need to do is pay a small fee at local show, call yourself a coin dealer and wait for the old lady who needs a few bucks!!! Whatever, and for the dealers out there please save your breath with the you need the pay the bills too sob stories.

OPA

I can understand the dealers hesitation ... a couple of years ago, 2007 I believe, I sold $200 face of circ common date walkers at the Balto Coin show. This was on a Sat & silver had closed at $8 that previous Friday. The sale was based on $8 spot, I can't remember what I got, but it was a decent price. That Monday, silver dropped $.50 an ounce & kept dropping for several more days. Buying bullion on a weekend, in a volatile market is a crap shot to say the least. Also dealers do have an "overhead" cost that the average Joe keeps forgetting.

MrOrganic

<< <i>Your information seems to be correct. Tulving's premium is now $0.89 for 90% bags. >>



now its $0.75! lol

Coll3ctor

<< <i>I was at a local show this weekend and there was a lady selling $300+ face of 90%, lugging it from table to table seeking out the best deal. Ran into her a couple of times and overheard one of her conversations with a dealer. The dealer said he was hesitant to even make an offer given that the markets were closed on a Sunday and who knew what would happen with silver when they opened on Monday. (Of course I knew that the melt value is about exactly 10x face right now and 90% has been selling for 10.5x-11.5x face right now.) The dealer said that he would pay 9x face for the lot and even then he'd probably be losing money!!! (What???, the guy had a box of junk merc dimes on his table for $1.25 each!!!) The lady was very polite and said that she had an offer from another dealer at 9.1x face for them all and that she would probably take that cause she needed the money and every dollar counts!

After hearing that dealer's offer, I walked away from his table and decided not to support his business. The whole situation made me feel sort of sick that in a room full of coin dealers the best this lady was able to get was 9.1x face. It was hard for me not to just walk right up to her and pay her 10x face for the lot, knowing that I'd have some fun sorting through it all trying to fill up my coin folders and I'd still be able to flip it the next day online for at least $100 or more profit. If I had the heart of a coin dealer, I could have easily got it all for say 9.2x face and flipped it the next day for $300-$500. Of course, I didn't say a word as I've learned that it's not cool to get in the middle of other folks transactions at a show and that the show promoters don't like when the collectors do deals with each other w/o greasing the palm of a dealer.

That said, there are people out there selling for 9.7x face and even much less... seems like all that you need to do is pay a small fee at local show, call yourself a coin dealer and wait for the old lady who needs a few bucks!!! Whatever, and for the dealers out there please save your breath with the you need the pay the bills too sob stories. >>





I don't think his offer was too far out of line as dealers have bills and have to put food on their table just like the rest of us.

Weg

Having bills is irrelevant, everyone has them.
What I can see, is that she probably saved or bought the 90% as investment which usually takes some amount of time for profit.
The dealer does not have the investors time frame, they need turnover. To make a living as a dealer, inventory needs to be purchased at some discount to be sold for a profit as soon as possible. Unlike the investor, the dealer can not sit on inventory and stay in business.

For this reason I do not think the offers were unfair. What I do think was a lowlife transaction, was the pawn shop that paid 4.5X to a 90 year old lady that drove in with an old Lincoln, the trunk FULL of 90%.

To get top dollar, the gal at the show needed to sell to another investor.

illini420

Yeah, maybe it really wasn't so bad in thinking about it some more... still just seemed very low when I compare to folks here who are regularly paying around 11x face and where anything at 10x face is gone in a matter of minutes.

coynclecter

I just heard from a very trusted source that an investment group


That's called "A Rumor"


and Wall Street floats about 1000 of those a day