What's going on with silver?
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Raybob15239
Posts: 1,359 ✭✭✭
Spot price for today (4/7/21) is a little over 25/oz. That would mean the melt value of a Morgan or Peace Dollar would be about $18.50. I am seeing low grade, common date Morgans and Peace Dollars (including problem coins i.e., cleaned or damaged) routinely selling for over $35 in Facebook coin group auctions. I don't understand the disconnect. Can anyone explain it to me? Is there something else going on that I am missing here?
Successful B/S/T transactions: As Seller: PascoWA (June 2008); MsMorrisine (April 2009); ECHOES (July 2009) As Buyer: bfjohnson (July 2008); robkool (Dec 2010); itsnotjustme (Dec 2010) TwoSides2aCoin (Dec 2018) PrivateCoin Jan 2019
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Comments
A fool and his money...
Demand for “Constitutional Silver”, especially dollars is very strong. Good old supply and demand.
A: The year they spend more on their library than their coin collection.
A numismatist is judged more on the content of their library than the content of their cabinet.
That was my first thought.
Some people on Facebook will buy anything at any price. They do not educate themselves to a coin's condition, scarcity or the going market price. All that glitters is not gold or silver. There are so many misleading listings that I report 2 -3 times a day. They show you genuine coins graded by the top grading companies, and their value and then try to sell you look a like coins. When was the last time you saw a 2.50 dollar Indian Head coin for under $18.00? Same goes for silver coins. Don't use Facebook as a guide for precious metals. Try researching eBay past auctions to see what the going rates are and what people will pay.
Best of luck
Wayne
Kennedys are my quest...
I use Facebook primarily for keeping in touch with some family members and getting news about my kid's school. I dropped most of my "friends" and unfollowed most pages because of all the politics. I decided to fill my newsfeed with coin related groups. Several are sales groups. I don't use FB for anything to do with valuation. (I just like to look at coins. I have purchased a few modern commems, but don't get involved with the silver stuff because of the insanity.) I am just trying to figure out why anyone would spend $35 plus shipping (often $4-5) for an 1921 P in VG or F or a cleaned, circulated, 1922 P?
They just don't know better and they listen to the hype. I saw a dealer on FB sell a coin for $430.00 over what he paid for it do to the hype. The coin showed its PCGS certification# and was very easily traced back to its recent sale on Heritage. PCGS listed value was almost $300.00 less than the realized auction price.
Wayne
Kennedys are my quest...
Raybob,
The market is indeed a bit crazy right now. I’ve been wanting to pull the trigger on some gold, but demand is just too strong right now. Premiums are stupid. So, I wait.
I’m happy to pay well over spot for non-cull Morgan and Peace dollar. Even though they are super common, I consider them to be of numismatic interest.
notwithstanding ignorant pricing and ignorant purchases, demand for silver across all product classes is high and premiums are stupid high. look at spot then look around at what bullion ASE prices are.
This can't last and the only possible outcome is more silver will be diverted from the futures markets. Everything flows to the highest buyer.
Watch for the tail to wag the dog in the next few months. Don't be surprised if industrial silver buyers don't get in on a buying panic along with the big banks who are short. Don't be surprised if we learn the depth of silver supply is far thinner than believed because the financial institutions have sold every ounce to several buyers.
more demand for physical silver than for paper silver
Agree. But is it more demand or that physical silver is very limited right now and there is an infinite supply of paper silver?
Morgans have always been bought for a premium over bullion. How much depends on the unique set of circumstances re the particular transaction.
"Seu cabra da peste,
"Sou Mangueira......."
Morgans, ASE's and junk silver coins all are selling for premiums right now. Seems people want tangible goods. Just a year ago, it was under $16/oz....today over $25/oz. on Kitco.... Meanwhile most Morgans go for around $30 unless slabbed specials. Look at the Mint price for ASE's... Gold and silver stackers are feeling good... Cheers, RickO
Just stop and remember how many people think their worn out coins are worth the Highest price. They just see the big $ sign and make no attempt to study grade, quality, or overall condition. These same people occasionally buy also.
Jim
When a man who is honestly mistaken hears the truth, he will either quit being mistaken or cease to be honest....Abraham Lincoln
Patriotism is supporting your country all the time, and your government when it deserves it.....Mark Twain
Sellers of physical PMs realize that the spot price (determined on the futures paper market by bullion banks who can easily control the price) is not the price of real silver. Higher premiums indicate they are becoming more resistive to the influence of spot price in the physical market.
There is no limit to the supply of paper contracts. Bullion banks can buy unlimited paper shorts to reduce the spot price to what works best for THEM. This has allowed them to make obscene profits in the the futures market. However, there is a limited supply of physical PMs. They are two different markets and should not rely on one another for pricing. One day they no longer will.
No Way Out: Stimulus and Money Printing Are the Only Path Left
Nicely worded.
Wayne
Kennedys are my quest...