PREMIUMS ON SILVER RISING?????

MrOrganic

I called a local coin shop here in L.A. an asked what they were charging for rounds & ASE.

silver rounds were $2.50 over spot
silver eagles $4.25



anyone else seeing these high premiums????? or are they just taking advantage of the public coming in droves?

mkman123

MrOrganic, those premiums are too high and the store must be taking advantage of the public. Were I am at, silver is $1 over spot and silver eagles are 1.75 over spot.

OPA

You've been had .... actually premiums have been dropping for the last 6 month. I would not buy from that Sheister outfit. For rounds or bars, the premium is as low as $.49 on APMEX or NWT Mint.

MillerJW

I have noticed that demand for silver is up and supply is lower with people holding on to thier stash. However, thoes prices are still way too high, i have found a lot of silver eagles in the $2 premium range.

OnlyGoldIsMoney

Try somewhere else. The premiums you were quoted are out of line. I commonly pick up single 10 ounces bars on Ebay (with free shipping) for about $1 over spot. When I factor in discounts like Ebay Bucks and Big Crumbs I can get the premium down to $0.40 to $0.50 per ounce.

MrOrganic

I wasnt looking to buy! I was just seeing what my competitors are doing

there reason

market volatility! lol

OnlyGoldIsMoney

<< <i>I wasnt looking to buy! I was just seeing what my competitors are doing

there reason

market volatility! lol >>




That reason certainly sounds better than "whatever I can get away with"

Norseman88

Sounds way out of line to me, like others have said APMEX sells much cheaper than that but then you have to pay $25 shipping no matter how much you buy.

Greeniejr

Silver premiums actually are rising, or at least have bounced off the bottom. Last week and the week before I could have as many 100 oz eng/jm bars at anywhere from -.10 to +.10 on the wholesale market. I needed to fill an order today and those same people and it is +.25-.50 and there are not a lot of them out there.

Bochiman

Ask them what they are paying for the same.

Greeniejr

For a single piece that is not out of line. For newly minted silver rounds dealers have to pay somewhere between half a dollar and a dollar. If they put it into a capsule thats another half a dollar or dollar. Then of course there is the time it takes to actually sell it to you. They lose money. If you ask them what they pay they will probably say half a dollar or dollar back of spot. Why? Because to wholesale them they might only get spot or a little over. I am sure in quantity the prices are different.
Same deal with USSE. All the big distributors who of course dont collude sell newly minted Eagles at +1.65. Again, if they put it in a capsule thats another dollar. Add in at least a little profit and +4.25 is very reasonable. As far as what people buy them for, the wholesale buy is like $1 over so to buy them and be reasonable you pay spot.
You can't judge prices based on the single piece price. No matter how much you charge, you lose money on a single piece. You want to get the best price buy a case of 500. If not, don't complain about the price especially if you are asking without cash in hand to really negotiate.

CaptHenway

<< <i> or are they just taking advantage of the public coming in droves? >>



What part of the law of supply and demand do you not understand?

We sold a lot of silver this week. We did not buy much in.

Demand is up.

Supply is down.

Premiums are up.

That's the way it works.

Konahead

they are way out of line. Apmex 1.79 over spot!

Norseman88

<< <i>I have noticed that demand for silver is up and supply is lower with people holding on to thier stash. However, thoes prices are still way too high, i have found a lot of silver eagles in the $2 premium range. >>



You can't do much better than that, the last green monster box I bought was $1.89 over spot.