Why are there so many discounts recently on gold and silver?
tincup
Posts: 5,445 ✭✭✭✭✭
Just curious. I have been seeing multiple offers of some of the big boys..... offering silver... and gold.... at melt. Even some 90% at below melt. Earlier this week, one was offering ASE for melt. Are they just trying to stay liquid in a market that has been rather stagnant over the summer? Or... do they know something... such as a further decline coming up? Just does not seem to make sense to me.
----- kj
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And... seems strange that there is so much interest in US Mint products and hefty premiums.... but different story on the other silver and gold?
My guess would be cash flow-related.
Was it an offer of just one ASE coin (to bring in new customers) or multiple?
Yesterday received an email from J.M. Bullion to buy up to 3 gold Eagles at spot price with free shipping. Maybe they are also predicting a slight downturn and decide to get out now and free p cash flow.
Supply and demand. Retail is and has been weak since the big run up in metal prices. For demand to pick up again either prices need to drop, or people need to get used to the current levels being the new "normal". RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
The big boys do not have a crystal ball, only constantly revolving inventory. They buy a lot from the public at a huge discount, when their inventory is up they sell at lower prices still making a profit.
No Way Out: Stimulus and Money Printing Are the Only Path Left
Hmmm. No one ever thought that would happen
Knowledge is the enemy of fear
Yeah... quite a change from a couple of years back.
It was actually tor two.
sometimes a simple question requires a simple answer
No Way Out: Stimulus and Money Printing Are the Only Path Left
The correct answer is usually the most simple, not one that is wrapped around some conspiracy, manipulation, or nefarious narrative..
Knowledge is the enemy of fear
Maybe you should answer his question rather than provide your usual critique of someone else's answer.
No Way Out: Stimulus and Money Printing Are the Only Path Left
I think I would have taken that deal. I just went to JM Bullion today and the lowest priced tenth oz gold eagle was $419. And that is if you buy 500. For one it is $427. I used their site to sell a customer a tenth oz gold for $380 out of the shop. I don’t see a low premium there. Maybe silver. I don’t know
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I just paid full CC price for a 1/10 AGE at Provident $369/delivered via CC (Yikes!!!). The $67 in CC rewards I was able to redeem this month made it a bit more bearable but still it hurts.
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Good for you blitz. Not sure what hurts, but good for you to suffer a bit too.
``https://ebay.us/m/KxolR5
What hurts? Paying $302 net for a 1/10 of the physical AU when my overall DCA is less than half that. This inflation affects us all. THKS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
When the big boys have a lot of inventory they sell stuff cheap to get rid of it and they are still profiting.
.> @derryb said:
If that answer is incorrect or insufficient then it should be critiqued. Don't you agree?
But yeah, to the OP, the higher prices go, the more volatile they become, which increases risk, and therefore demands greater hedging from buyers. Thus premiums disappear and discounts become more prevalent. Many have previously argued this premise as incorrect but are now realizing it to be true and factual.
Knowledge is the enemy of fear
Local show today, one dealer had 1/10 AGEs for $360. Many generic 10 oz silver bars for $390.
ohhhhh. wish i could have picked up 1/10, but ... money
It's just the market doing its thing. If you sell at this time, it will be discounted as well.
I knew it would happen.
Rickards is saying that there's no liquidity in the stock market. If true for the stock market, it is most likely true for precious metals as well at least in the short term (my opinion). China is selling bonds for more than one reason but mainly because they need cash in an illiquid market.
He also expects the yields on 10-year Treasuries to drop "a lot", which translates to a large price move upwards. (Now is when we should be hearing from coho to be buying bonds.)
Rickards also expects gold to make a strong move to the upside, so the question becomes gold vs. bonds - if he's right. He also talks about the tariffs, manufacturing jobs in the US and China's problems with youth unemployment. Interesting discussion.
I knew it would happen.
Has this rickards ever been right about anything? I wouldn't put much faith into his doomsday newsletters. Just saying. THKS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
No need for a snarky comment. If you don't know anything about Jim Rickards, I'm going to let you do your own research. Good Luck.
I knew it would happen.
You and your newsletter salesmen keep preaching all this doom and gloom that never comes to fruition. At some point you you have to come to the realization that it's just a bunch of made-up malarkey. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Professional analysis based on experience and knowlege is far from preaching gloom and doom. These professionals publish at a cost to their readers, it is how they support their research. Keep reading the "free stuff" and see where it leads you. LOL
No Way Out: Stimulus and Money Printing Are the Only Path Left
Looks like JM is still trying to push gold with little premiums. His came this morning.
Just checked one seller website..... 9 different gold deals (including U.S. coins) at spot; and 3 deals under spot.
And 7 deals of silver at spot.... and 4 below spot. Including constitutional silver. So it continues...
Maybe because smart buyers of gold avoid the bars
No Way Out: Stimulus and Money Printing Are the Only Path Left
It seems to be either an opportunity or a snare. I’ve been doing this for so long that my motto is “it is worth how much it costs”. And it not worth selling unless there is a need or opportunity.
``https://ebay.us/m/KxolR5
crypto rotation?
Demand for physical is down, lots of sellers, so wholesale premiums are negative right now.
This sounds stupid when I say it out loud but I never could have expected so much volatility in this sphere. Or I guess I should say, so many different facets of the different types of volatility that make up this sphere.
I don't remember who gave me this advice but buying the best I could afford at the time has really paid off a lot. The higher end stuff and collector pieces stand strong when things get weird. People always want nice stuff and I appreciate that a lot.
I think these deals are direct at small retail buyers that even with the cuts in premiums find $3,400 gold and $38 silver expensive. If you're older and purchased at $1,800 and $18 the current price don't seem like a bargain and drive up your cost average.
Locally,
Only thing selling right now is small american 1/4 oz or less bullion gold, not world or commems or oddity stuff.
silver eagles selling somewhat, no generic .999, no 90%. Junk silver dollars selling decent, but I have them at spot minus 2.00, if I were to raise it even a dollar, they would quit selling.
taking thousands of dollars weekly to the wholesalers & or refinery
I can relate, and my dry powder pile is not so big anymore
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You are currently selling morgans $2 back of melt? Man, I'd take em all at that price. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
As a scrap guy I have never before melted, or shipped off as scrap so many $5's, 10's, and 20's. These are jewelry grade, vf/xf even AU material, nothing unc or at the moment, but I still get them in scrap from others who need the cash flow.
No this will not make them rare.
No one is lining up to buy them at melt.
what's the buy rate for scrap?
https://forums.collectors.com/discussion/1116388/whats-the-cure-for-high-commodity-prices
Are folk at least getting spot for ASEs?
Knowledge is the enemy of fear
taking thousands of dollars weekly to the wholesalers & or refinery
Of which? 90%, or silver rounds, or just jewelry?
I knew it would happen.
I bought some convincing artificially toned ASE back when it was 18. Sold at my local B&M. Last time I sold there I unloaded maples for +2 over spot. We have a good working relationship and he told me he just can't take them at any more than a few bucks back of spot.
I trust him and we've done good business so I believe him. I made money so it wasn't that big of a deal but it was kind of startling to hear. I guess I just didn't expect it.
Got a $31 offer on a vintage silver round on an online platform Friday. Currently listed for sale at $39.
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That sounds just a little low!
I agree. There are lots of people I’ve met over the years that have a price that they “believe” something is worth. No matter what the current market price is.
A price that they used to pay. Coins are no different. I have people make me offers that are way lower than the exact items are currently selling for, and tell me it’s only worth what they offered. Good times.
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