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Premiums dropping at APMEX this afternoon

FountainheadFountainhead Posts: 956
in Precious Metals
As metal shipped from Europe and newly-minted product arrives and overtakes demand. Investor physical demand is the ONLY thing holding up prices now. Once that tapers off - once everyone's appetite is satiated - what remains to keep the PM markets from dropping like a stone once more?
Salute the automobile: The greatest anti-pollution device in human history!
(Just think of city streets clogged with a hundred thousand horses each generating 15 lbs of manure every day...)

Comments

  • derrybderryb Posts: 36,781 ✭✭✭✭✭
    The spot price.

    "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

  • secondrepublicsecondrepublic Posts: 2,619 ✭✭✭
    The spot price of gold dropped to 1325 two weeks ago (end of the bull market, blah blah blah)... now it's back up to 1475. a 10%+ move up. I heard a lot about the drop but hardly a peep about the price bouncing back up.
    "Men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large." Fiat Money Inflation in France, Andrew Dickson White (1912)
  • HonoluluDudeHonoluluDude Posts: 2,167 ✭


    << <i>Investor physical demand is the ONLY thing holding up prices now. Once that tapers off - once everyone's appetite is satiated - what remains to keep the PM markets from dropping like a stone once more? >>



    My WAG on silver: If the paper price further errodes to say, $20/oz, the price to actually acquire physical will still be around $30 (assuming you'll be able to find any).
  • derrybderryb Posts: 36,781 ✭✭✭✭✭
    Appears Apmex premium on an ASE monster box has "dropped" to "Only $6.99 per coin over spot!"

    They are still $2 per coin higher than their competition. Apmex premiums need to drop some more if they want to get business from those that do their homework.

    they want 8.99 over spot for a San Francisco box. Once the mint strap comes off they are no longer "special."

    Edited to correct the numbers.

    "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

  • bronco2078bronco2078 Posts: 10,209 ✭✭✭✭✭


    I looked earlier and they were buying ASE's at $28 in quantity .
  • VanHalenVanHalen Posts: 3,946 ✭✭✭✭✭


    << <i>As metal shipped from Europe and newly-minted product arrives and overtakes demand. Investor physical demand is the ONLY thing holding up prices now. Once that tapers off - once everyone's appetite is satiated - what remains to keep the PM markets from dropping like a stone once more? >>



    Not sure if your analysis is tongue in cheek or serious. "Investor physical demand is the ONLY thing holding up prices now." Uh no, not even close to correct.
  • cohodkcohodk Posts: 19,087 ✭✭✭✭✭
    "Investor physical demand is the ONLY thing holding up prices now." Uh no, not even close to correct.

    Actually, I think he is "spot" on.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • VanHalenVanHalen Posts: 3,946 ✭✭✭✭✭


    << <i>"Investor physical demand is the ONLY thing holding up prices now." Uh no, not even close to correct.

    Actually, I think he is "spot" on. >>



    Really? Just like physical demand pushed prices to $48 two years ago. Or the lack of physical demand knocked the price down $5 (20%) in a week this month?

    Hundreds of millions of "ounces" change hands every month in EFTs. That's not to say SLV won't fall further because it easily could. But stating a drop in physical demand will be the reason is little more than PM bears crying from the mountain tops that PMs are dead.
  • FountainheadFountainhead Posts: 956
    This bounce-back rally feels wrong. Look at this chart: link. A hundred and twenty TONS of gold disgorged in a month. Worldwide physical investment demand has spiked, yes, but as near as I can tell by less than ten tons in the U.S. and probably less than forty tons worldwide - and all of that accounted for by the drop in just one ETF's holdings since 4/15. Coins and bars may be minted like crazy for a few weeks but after that...?
    Salute the automobile: The greatest anti-pollution device in human history!
    (Just think of city streets clogged with a hundred thousand horses each generating 15 lbs of manure every day...)
  • BaleyBaley Posts: 22,660 ✭✭✭✭✭
    If the paper price further errodes to say, $20/oz, the price to actually acquire physical will still be around $30 (assuming you'll be able to find any).

    Well, that will depend on the shape and color of the silver. Fierce dragons and cute pandas always cost more image


    they want 8.99 over spot for a San Francisco box. Once the mint strap comes off they are no longer "special."

    this is because some folks think they are "special" when the strap is still on image

    Liberty: Parent of Science & Industry

  • cohodkcohodk Posts: 19,087 ✭✭✭✭✭


    << <i>

    << <i>"Investor physical demand is the ONLY thing holding up prices now." Uh no, not even close to correct.

    Actually, I think he is "spot" on. >>



    Really? Just like physical demand pushed prices to $48 two years ago. Or the lack of physical demand knocked the price down $5 (20%) in a week this month?

    Hundreds of millions of "ounces" change hands every month in EFTs. That's not to say SLV won't fall further because it easily could. But stating a drop in physical demand will be the reason is little more than PM bears crying from the mountain tops that PMs are dead. >>



    That's not what I'm saying. Physical demand is holding up physical prices, even though demand at those prices really isn't that strong. You will see what happens to physical pricing when the demand to pay 25% premiums quickly disappears.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • BaleyBaley Posts: 22,660 ✭✭✭✭✭
    You will see what happens to physical pricing when the demand to pay 25% premiums quickly disappears.

    You will see sellers trying to convince buyers that the silver they're selling is in such a desirable form, that it's worth a larger premium, despite the lower spot price, and lower premiums for "other" physical silver that's less desirable

    Liberty: Parent of Science & Industry

  • tneigtneig Posts: 1,505 ✭✭✭
    Today, I'd still rather buy a delayed $25.70 2013 Buffalo/or $28.31 Stagecoach than a $32+ apmex eagle as a small buyer.
    Seems the premium is at too high a premium.

    Gold seems like a better price deal though. (goldmart, NTR 1oz bar $22 over spot) Wish I was working!

    Yep, I understand about slowing the small silver buys and saving for a bigger gold buy. But the addiction... the addiction...
    COA
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