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When spot goes up, premiums do immediately, when spot goes down, meh...

phantom1701phantom1701 Posts: 129
in Precious Metals
So Scottsdale this morning is at $458.99 for a 10 oz bar when silver is trading at $41.48. Granted Scottsdale is usually a bit higher in premium anyway, but it seems to me that all of these sellers are quick to raise premiums and slow to bring them down when the market corrects.

APMEX is at $451.66 for their stacker bars, which is a little better. And the check or wire price is $438.50 which is much more reasonable.

Still blows my mind though that these higher premiums are being asked for non-governmental silver.

Comments

  • jmski52jmski52 Posts: 22,824 ✭✭✭✭✭
    It's a normal reaction to a fast changing market when premiums rise.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • Coins101Coins101 Posts: 2,602 ✭✭✭
    Hey, if the gas stations can do it, why not the silver dealers. Same with the guys we buy aluminum and copper wire from.

    When it is rising, they say they have to pay a higher price to replace their current stock. When it is declining, they say they bought at a higher price - don't say anything about replacing at a lower cost.
  • ttownttown Posts: 4,472 ✭✭✭
    Could it just be that paper silver isn't physical silver? They've been separating from each others for years now it's just getting worse. The last time silver dipped below 9 bucks you couldn't touch physical for less the 12 bucks for an ASE.
  • pragmaticgoatpragmaticgoat Posts: 853 ✭✭✭


    << <i>Could it just be that paper silver isn't physical silver? They've been separating from each others for years now it's just getting worse. The last time silver dipped below 9 bucks you couldn't touch physical for less the 12 bucks for an ASE. >>



    I recall having to pay around 14/oz at that time silver dipped to 9.
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  • phantom1701phantom1701 Posts: 129
    Just always seems like a win-win for dealers. Spot goes up, prices go up. Spot goes down and premiums stay at or near recent highs.They should be working on replacement cost and cost averaging.

    Either way it's good to see silver back in the $30's if only to have a little buying opportunity again for testing $50 again in the fall. This close to summer I just don't see it going back anywhere near recent highs unless some world event occurs in the mean time.
  • CaptHenwayCaptHenway Posts: 32,117 ✭✭✭✭✭
    Everybody wants dealers to load up on physical at the top of the market so they can have it on hand immediately after metals crash so they can sell it at the new, lower price.

    What's wrong with this business plan??????

    image
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • ttownttown Posts: 4,472 ✭✭✭


    << <i>Everybody wants dealers to load up on physical at the top of the market so they can have it on hand immediately after metals crash so they can sell it at the new, lower price.

    What's wrong with this business plan??????

    image >>



    Sure sounds great to me.....image
  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭


    << <i>Everybody wants dealers to load up on physical at the top of the market so they can have it on hand immediately after metals crash so they can sell it at the new, lower price.

    What's wrong with this business plan??????

    image >>



    We lose a little on every sale, but we make it up in volume!!!image
    theknowitalltroll;
  • phantom1701phantom1701 Posts: 129


    << <i>Everybody wants dealers to load up on physical at the top of the market so they can have it on hand immediately after metals crash so they can sell it at the new, lower price.

    What's wrong with this business plan??????

    image >>



    It's also the same plan where dealers buy ASE's $3-$4 under spot and sells them for $3-$4 over to the next guy who walks in the door. Market fluctuations are the nature of the beast. But that same dealer can hold his stocks if he chooses and wait for the price to go up, which they often do. So they have no problem making money and taking advantage of market gains, but when prices drop sharply you get comments like the one above and the "woe is us" nonsense. If you know what you are doing, you can make money as a dealer regardless of spot.
  • JCMhoustonJCMhouston Posts: 5,306 ✭✭✭


    << <i>the "woe is us" nonsense. >>



    Spoken like a true business person. People go in to business to make money, and that does not mean selling what you want, when you want it, and at the rpice you want. When markets are moving 5-10% in either direction in a matter of minutes (and for no apparant reason) it seems to me the smart money sits on their hands for while. Particularly in a downward moving market.
    JCM-Houston
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  • PokermandudePokermandude Posts: 2,713 ✭✭✭
    Yup... Spot +$5.60 for a monster box of maples at Apmex right now. That's not even including shipping and insurance.
    http://stores.ebay.ca/Mattscoin - Canadian coins, World Coins, Silver, Gold, Coin lots, Modern Mint Products & Collections
  • 57loaded57loaded Posts: 4,967 ✭✭✭


    << <i>

    << <i>the "woe is us" nonsense. >>



    Spoken like a true business person. People go in to business to make money, and that does not mean selling what you want, when you want it, and at the rpice you want. When markets are moving 5-10% in either direction in a matter of minutes (and for no apparant reason) it seems to me the smart money sits on their hands for while. Particularly in a downward moving market. >>



    smart money never sits in a paper market.
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