Do premiums get cheaper on the way up or down?

smallchange

I have purchased ASE's for 3.00 over spot all last year and most of this year but just recently my local dealer raised the premiums to 4.00 over spot. Silver rounds have also raised to 2.00 over spot. I know the spot price has been falling so do dealers do this to make it up for purchasing at a higher price. I have also heard of premiums being raised when supplies were tight. The question I have is should premiums rise or fall when spot prices are falling. I guess in a perfect world they would stay the same.

Jim

Pokermandude

Generally premiums will go up when the spot price drops. Especially on government issued/collectible value silver like maples, eagles, engelhard bars, etc.

OPA

Premiums on spot will go up temporarily when prices fall or go up, until supply and demand and competition kicks in.

jmski52

Premiums tend to shrink when the prices have been stable for awhile, i.e., in a boring market. When prices are jumping all over the place, you can expect premiums to be larger.

BigE

I would find another dealer----------BigE

cohodk

Definition of PREMIUM

a sum over and above a regular price paid chiefly as an inducement or incentive

a high value or a value in excess of that normally or usually expected



Over and above, excess.


I dont like premiums.