With gold / silver dropping precipitously, how do refineries calculate what they pay?
numis1652
Posts: 100 ✭✭✭
With all the gold lower mint state Double eagles and gold / silver collector bars being bought by dealers and investors, how is the $ value agreed upon ? At the market value when submitted to refiners or at the time payment is made by refiners, given the lengthy time ( multiple weeks ) now seen between refiner submission and refiner payments ?
At one or the other end of the process, someone is taking a big loss and I wonder whom ?
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Refineries can hedge and they would have no risk. But I don't know whether they all do it.
I don't think there is a uniform answer to this. It depends on your terms at the time of sale.
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This would be a good question to ask in the Precious Metals Forum here.
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Appx. 0.97 x spot
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I can't see the refiners accepting much risk. Why would they?