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PM status in Toronto.....

DoubleEagle59DoubleEagle59 Posts: 8,315 ✭✭✭✭✭
in Precious Metals
I just spoke with two large PM dealers in Toronto and they report they have no gold but a good supply of silver.

They also said people are buying gold, not silver.

As of my phone call, Kitco spot price for silver in Canadian dollars was $23.90 and both dealers were selling 100 ounce silver bars for $2730 to $2760.

FYI, this in no way changes my opinion of silver.
"Gold is money, and nothing else" (JP Morgan, 1912)

"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

"I only golf on days that end in 'Y'" (DE59)

Comments

  • PerryHallPerryHall Posts: 46,140 ✭✭✭✭✭


    << <i>I just spoke with two large PM dealers in Toronto and they report they have no gold but a good supply of silver.

    They also said people are buying gold, not silver.

    As of my phone call, Kitco spot price for silver in Canadian dollars was $23.90 and both dealers were selling 100 ounce silver bars for $2730 to $2760.

    FYI, this in no way changes my opinion of silver. >>



    With that kind of mark-up over spot I'm not surprised they have a good supply of silver.image

    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

  • DoubleEagle59DoubleEagle59 Posts: 8,315 ✭✭✭✭✭


    << <i>

    << <i>I just spoke with two large PM dealers in Toronto and they report they have no gold but a good supply of silver.

    They also said people are buying gold, not silver.

    As of my phone call, Kitco spot price for silver in Canadian dollars was $23.90 and both dealers were selling 100 ounce silver bars for $2730 to $2760.

    FYI, this in no way changes my opinion of silver. >>



    With that kind of mark-up over spot I'm not surprised they have a good supply of silver.image >>



    That's what I said to my friend who is looking to buy also.

    You'd think if they have a good supply of something with a low demand (albeit short term) that they would do everything possible price-wise to sell it.
    "Gold is money, and nothing else" (JP Morgan, 1912)

    "“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)

    "I only golf on days that end in 'Y'" (DE59)
  • BaleyBaley Posts: 22,660 ✭✭✭✭✭
    You'd think if they have a good supply of something with a low demand (albeit short term) that they would do everything possible price-wise to sell it.

    You would think that? Or would you think the opposite? (don't try to hard to sell it at the new lower prices, but leave your prices high, and sell it to someone who's "gotta have it" at that price, or wait for the market to rise and make it a good deal again, and then it will move)

    Liberty: Parent of Science & Industry

  • PokermandudePokermandude Posts: 2,713 ✭✭✭
    It all depends on how quickly and cheaply they plan on replacing their inventory.
    http://stores.ebay.ca/Mattscoin - Canadian coins, World Coins, Silver, Gold, Coin lots, Modern Mint Products & Collections
  • mrpaseomrpaseo Posts: 4,753 ✭✭✭


    << <i>You'd think if they have a good supply of something with a low demand (albeit short term) that they would do everything possible price-wise to sell it.

    You would think that? Or would you think the opposite? (don't try to hard to sell it at the new lower prices, but leave your prices high, and sell it to someone who's "gotta have it" at that price, or wait for the market to rise and make it a good deal again, and then it will move) >>



    This^

    I would suspect that the higher premium will sit for while until they know exactly what is going on with the SPOT price. Once it is determined that it is staying lower (Not back at $30 and ounce), and all the "I gotta have it now" buyers are broke (From buying every piece of Silver that they can get their hands on) the demand will dwindle and the supply will force the price down.

    If the SPOT price crawls back up, then they will either lower their premiums to be more competitive or will raise the premiums with the SPOT price to develop a new "Norm" of five dollars over spot for actual the privilege of actually handling the metal hat you own.

    If the SPOT price goes down, after the "Gotta have it" people buy their share, the dealers will have to lower their cost to a competitive price to stay in business.

    With all three situations... only time will tell.

    Best,
    Ray
  • BochimanBochiman Posts: 25,382 ✭✭✭✭✭


    << <i>It all depends on how quickly and cheaply they plan on replacing their inventory. >>



    That and how far they expect it to fall? Do they need the capital back right now? Etc....
    They don't lock in a loss, or a minimal profit, until they sell image

    I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment

  • rickoricko Posts: 98,724 ✭✭✭✭✭
    Dealers are still trying to curb losses (I do not blame them)....some have stopped selling with the hope that prices return quickly. Cheers, RickO
  • derrybderryb Posts: 36,825 ✭✭✭✭✭


    << <i>Dealers are still trying to curb losses (I do not blame them)....some have stopped selling with the hope that prices return quickly. Cheers, RickO >>


    If they follow the metals market (most of them do) they would only hold back inventory if they felt strongly that prices would go back up. Otherwise they would be dumping at any premium they could get just to close their position. Their educated perception is another plus for future price expectation.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

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