I see so many people on here who must work for someone; or work for some company that have no clue about the need for a business to make an actual profit.If these people ever had to pay the bills they would understand that to come up with physical dollars for rent/mortage /insurance!/help/advertising/ heat /lights/shipping! and dozens of other monthly costs it is needed to make more than miniscule profit! having been full time in this business for 30 years; It's easy to buy; finding someone to buyfrom you is a lot more difficult.
I'm not a PM dealer but if I understand this correctly they buy X amount of silver at spot +y dollars to be delivered in 3 months... so when they set up at shows or in their shop if they work on replacement cost and offer the duel pricing standard option to the public..
for example is silver is 10.00 spot and 3 month delivery is 12.00 sell it for 13.00 to be delivered in 3 months If you have it in the case and they want it now it's spread is 14.00/16.00 buy sell
If Joe the plummer gets 50.00 an hour for an appointment to change a faucet , you bust a pipe in the middle of the night and your house is flooding your going to pay 150.00 an hour for the service and be happy to get it....
It's about having a choice
If you can't swim you better stay in the boat.......
Demand for gold, silver coins exceeds supply "...buyers already have started taking delivery of precious metals from the futures market at the lower price in order to resell it on the physical market at a substantially higher price..."
Demand for gold, silver coins exceeds supply "...buyers already have started taking delivery of precious metals from the futures market at the lower price in order to resell it on the physical market at a substantially higher price..."
Interesting read on actually taking delivery on the physical silver from Comex, seems to have as many fees/hassle as a mortgage closing......has anyone here previously taken delivery on a contract? I'm sure everyone would be interested in the final total cost including all the fees & brokers commission that land on top of the 'spot' price.
buying Rhode Island Nationals please email, PM or call 401-295-3000
Demand for gold, silver coins exceeds supply "...buyers already have started taking delivery of precious metals from the futures market at the lower price in order to resell it on the physical market at a substantially higher price..."
Interesting read on actually taking delivery on the physical silver from Comex, seems to have as many fees/hassle as a mortgage closing......has anyone here previously taken delivery on a contract? I'm sure everyone would be interested in the final total cost including all the fees & brokers commission that land on top of the 'spot' price. >>
I have not read it yet but I am also curious what the final price per Oz ends up being. If spot is 8.75.. do you end up paying 10 due to fees and etc... for a single 1000 Oz bar?
Demand for gold, silver coins exceeds supply "...buyers already have started taking delivery of precious metals from the futures market at the lower price in order to resell it on the physical market at a substantially higher price..."
Interesting read on actually taking delivery on the physical silver from Comex, seems to have as many fees/hassle as a mortgage closing......has anyone here previously taken delivery on a contract? I'm sure everyone would be interested in the final total cost including all the fees & brokers commission that land on top of the 'spot' price. >>
I have not read it yet but I am also curious what the final price per Oz ends up being. If spot is 8.75.. do you end up paying 10 due to fees and etc... for a single 1000 Oz bar? >>
Does anyone here recall the 8 dollar an ounce rounds in another thread.................ever get the feeling that........oh never mind
Walked into "Yea Ole Coin Shop" last Thur Oct 23 08. Checked Kitco price before I went in at 5.88X face, then proceeded to ask about his current bid/ask on junk. He quoted 81/2 - 9!!! I asked him how he could pay 8.5? He said his phone was ringing from his wholesalers begging for inventory. Then being the sharp cookie I am proceeded to ask if he wanted to go in with me and buy 5 futures and take delivery? He laughed and said he could sell junk coins, 1-10-100 oz bars at 8 3/4 but no way could he pawn off 1000 oz bars!!! Then he explained why. Who would have thunk?
I'm sure the price varies by broker but thru Lid Wallock:
Price and Delivery Costs
Once the contract is delivered to you, it is in the form of a certificate. Most of our clients will have Lind-Waldock hold the certificate for them so they can sell the contract(s) back into the market at a later date if they wish. Lind-Waldock can send you the certificate as well. In either situation, the costs for taking delivery would include a:
Commission cost per contract, depending upon your level of brokerage service with Lind-Waldock; and One-time delivery fee of $100 per contract (subject to change),
For 1000 ounce contracts these fees are just north of 10 cents per ounce. For 5000 ounce contracts these fees are just north of 2 cents per ounce.
The exchange mandated fees for taking physical delivery range from $13-20 per bar depending where you pick it up from (e.g. HSBC in NY, Delaware, etc.)
This fee is no more than 2 cents per ounce (for 1000 ounce bars) plus the cost of getting it to you or you to it.
Page 120 & 121 give the DETAILED delivery procedures but in a nutshell, tell your futures broker you want physical delivery and they will get you what you need to pick it up or have an agent pick it up for you.
If you live in NY, e.g., your only expense is a subway, bus, or taxi ride (or the gas and parking if you drive) plus the nominal (i.e. $13-20 per bar) fee.
I would suggest the main point is that if a single dealer does not offer terms you like, then work with someone else. If ALL the dealers are offering the same price, then the market has moved... period. Demonizing someone because you dont like there terms is shallow and if you think the margins are absurd, then become a dealer and face their realities.
I am NOT a dealer, but I do understand markets. We presently have some artificial situations, but the the average buyer/seller, it is their reality. For myself, I choose not to dabble in bullion as it is only a distant cousin to collecting, but that is just a choice.
Retired United States Mint guy, now working on an Everyman Type Set.
<< <i>I would suggest the main point is that if a single dealer does not offer terms you like, then work with someone else. If ALL the dealers are offering the same price, then the market has moved... period. Demonizing someone because you dont like there terms is shallow and if you think the margins are absurd, then become a dealer and face their realities.
I am NOT a dealer, but I do understand markets. We presently have some artificial situations, but the the average buyer/seller, it is their reality. For myself, I choose not to dabble in bullion as it is only a distant cousin to collecting, but that is just a choice. >>
<< <i>Kitco will sell you 1000 ounce bars for $0.30 over spot. Smaller quantities is a sellers' market right now. >>
Try ordering it and see how long it takes to get it. I think a lot of this is being purchased on the COMEX though contracts and that's why when you order you wait and wait. It's unlikely it would show up before 90 days after ordering.
I am having a REAL hard time believing that silver and gold is bought, and then sold to some person who buys the stuff ONLY for bullion content and melts it down right away only to sell it at whatever venue that needs silver/gold for manufacturing, jewelry or such. Is this what is really going on? Is every 1964 silver dime doomed?
In my pea brain I can only visualize a seller with $100 of junk silver coins selling at whatever the price, and the buyer, be it pawn shop or legit coin shop, looks through the stuff and determines if any of the coins are marketable, and then dumps the rest in a bag, and simply waits till some customer who follows the price of silver or gold comes along and wants to buy it. The buyer then holds on to the junk silver until they can brag about making or losing money, and then walks into the next pawn shop/coin shop to sell it, and the entire scenario just keeps going on with not one darn coin ending up in the next piece of electronics I buy because industry is buying their silver from companies who mine the stuff or recycle it from used computers or other industries who deal in metals – not coins.
Now I know over the years a lot of silver was melted down, and I see the adds on TV to send your junk gold jewelry, but somehow I feel things are different today and no one is going to make a heck of a lot of money buying and selling a bunch of ASE’s and that a lot of folks who play this bullion game are just entertaining themselves and none of these coins will see a smelter anytime soon. If this was the case, how come the silver bars, coins, ASE are all still with us?
So for those of you who know, just how does the “System” really work?
WS
Proud recipient of the coveted PCGS Forum "You Suck" Award Thursday July 19, 2007 11:33 PM and December 30th, 2011 at 8:50 PM.
My view on this , is that it's similar to buying a hot stock on wall street . Price changes constantly , and at whatever level , there are buyers and sellers . When the market closes for the day or long holiday weekend , it's the same 100 shares of stock , (or bag of 90%) but with different owners .
<< <i>I would suggest the main point is that if a single dealer does not offer terms you like, then work with someone else. If ALL the dealers are offering the same price, then the market has moved... period. Demonizing someone because you dont like there terms is shallow and if you think the margins are absurd, then become a dealer and face their realities.
I am NOT a dealer, but I do understand markets. We presently have some artificial situations, but the the average buyer/seller, it is their reality. For myself, I choose not to dabble in bullion as it is only a distant cousin to collecting, but that is just a choice. >>
Thank you for the reality check. TD
Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
<< <i>Go to a coin show the other day when silver is in the $9 range and the cheapest I can buy per OZ is at $ 15.... even a 100 oz/er they wouldn't let go for less than $ 1450.... lol... They erally wanted my peace $ au's for $ 10.50 tho..... >>
Even dealers think it's crazy, but what you were quoted is the current going price to pay to take physical delivery of silver.
Follow me on Twitter @wtcgroup Authorized dealer for PCGS, PCGS Currency, NGC, NCS, PMG, CAC. Member of the PNG, ANA. Member dealer of CoinPlex and CCE/FACTS as "CH5"
<< <i> When silver hit $12 dollars on it's way up from $5, I was at a coin/jewlry shop and bought 30 oz in 10 oz bars for about $1/oz over spot. This was silver that the dealer most likely bought in that $5/oz range. My guess is, that there is no shortage of physical silver, it's just that now that same dealer is sitting on silver that he bought when it was in $15 range. >>
I am sure most dealers wish the silver they are selling is physical metal they bought in 2003 for $5 and have been "sitting on." In the real world, what I buy today WAY OVER spot goes out the same or next day to customers on a waiting list.
Frank Provasek - PCGS Authorized Dealer, Life Member ANA, Member TNA. www.frankcoins.com
<< <i>"A principal of VERY MAJOR bullion firm in Dallas told me that it was likely that some of these contracts for future delivery would be in default, because the physical metals do not exist in quantities sold in advance."
Frank "Devlin McGregor" Provasek. How in the world would Chris (or his boss Billy) at Dallas Gold & Silver know anything about the futures market. They've been singing that same song for a while now.
Anyway, what you assert is impossible. >>
Not DG&S. Nice try, though. Leave off the &S
Frank Provasek - PCGS Authorized Dealer, Life Member ANA, Member TNA. www.frankcoins.com
Comments
I picked up a 100 Korona yesterdar for 730$. .98 oz of gold....
siliconvalleycoins.com
for example is silver is 10.00 spot and 3 month delivery is 12.00 sell it for 13.00 to be delivered in 3 months
If you have it in the case and they want it now it's spread is 14.00/16.00 buy sell
If Joe the plummer gets 50.00 an hour for an appointment to change a faucet , you bust a pipe in the middle of the night and your house is flooding your going to pay 150.00 an hour for the service and be happy to get it....
It's about having a choice
Gap Between Paper and Physical Prices Widening Daily
Yes, We Have No Silver
Precious Metals in the Physical Realm
Taking Delivery
Demand for gold, silver coins exceeds supply "...buyers already have started taking delivery of precious metals from the futures market at the lower price in order to resell it on the physical market at a substantially higher price..."
How to Buy Physical Gold and Silver on the COMEX
<< <i>Other good stories right on point:
Gap Between Paper and Physical Prices Widening Daily
Yes, We Have No Silver
Precious Metals in the Physical Realm
Taking Delivery
Demand for gold, silver coins exceeds supply "...buyers already have started taking delivery of precious metals from the futures market at the lower price in order to resell it on the physical market at a substantially higher price..."
How to Buy Physical Gold and Silver on the COMEX >>
Interesting read on actually taking delivery on the physical silver from Comex, seems to have as many fees/hassle as a mortgage closing......has anyone here previously taken delivery on a contract? I'm sure everyone would be interested in the final total cost including all the fees & brokers commission that land on top of the 'spot' price.
<< <i>
<< <i>Other good stories right on point:
Gap Between Paper and Physical Prices Widening Daily
Yes, We Have No Silver
Precious Metals in the Physical Realm
Taking Delivery
Demand for gold, silver coins exceeds supply "...buyers already have started taking delivery of precious metals from the futures market at the lower price in order to resell it on the physical market at a substantially higher price..."
How to Buy Physical Gold and Silver on the COMEX >>
Interesting read on actually taking delivery on the physical silver from Comex, seems to have as many fees/hassle as a mortgage closing......has anyone here previously taken delivery on a contract? I'm sure everyone would be interested in the final total cost including all the fees & brokers commission that land on top of the 'spot' price. >>
I have not read it yet but I am also curious what the final price per Oz ends up being.
If spot is 8.75.. do you end up paying 10 due to fees and etc... for a single 1000 Oz bar?
<< <i>
<< <i>
<< <i>Other good stories right on point:
Gap Between Paper and Physical Prices Widening Daily
Yes, We Have No Silver
Precious Metals in the Physical Realm
Taking Delivery
Demand for gold, silver coins exceeds supply "...buyers already have started taking delivery of precious metals from the futures market at the lower price in order to resell it on the physical market at a substantially higher price..."
How to Buy Physical Gold and Silver on the COMEX >>
Interesting read on actually taking delivery on the physical silver from Comex, seems to have as many fees/hassle as a mortgage closing......has anyone here previously taken delivery on a contract? I'm sure everyone would be interested in the final total cost including all the fees & brokers commission that land on top of the 'spot' price. >>
I have not read it yet but I am also curious what the final price per Oz ends up being.
If spot is 8.75.. do you end up paying 10 due to fees and etc... for a single 1000 Oz bar? >>
Does anyone here recall the 8 dollar an ounce rounds in another thread.................ever get the feeling that........oh never mind
Then being the sharp cookie I am
Edited to say I know bars don't trade X face.
Price and Delivery Costs
Once the contract is delivered to you, it is in the form of a certificate. Most of our clients will have Lind-Waldock hold the certificate for them so they can sell the contract(s) back into the market at a later date if they wish. Lind-Waldock can send you the certificate as well. In either situation, the costs for taking delivery would include a:
Commission cost per contract, depending upon your level of brokerage service with Lind-Waldock; and
One-time delivery fee of $100 per contract (subject to change),
For 1000 ounce contracts these fees are just north of 10 cents per ounce. For 5000 ounce contracts these fees are just north of 2 cents per ounce.
The exchange mandated fees for taking physical delivery range from $13-20 per bar depending where you pick it up from (e.g. HSBC in NY, Delaware, etc.)
This fee is no more than 2 cents per ounce (for 1000 ounce bars) plus the cost of getting it to you or you to it.
Page 120 & 121 give the DETAILED delivery procedures but in a nutshell, tell your futures broker you want physical delivery and they will get you what you need to pick it up or have an agent pick it up for you.
If you live in NY, e.g., your only expense is a subway, bus, or taxi ride (or the gas and parking if you drive) plus the nominal (i.e. $13-20 per bar) fee.
I am NOT a dealer, but I do understand markets. We presently have some artificial situations, but the the average buyer/seller, it is their reality. For myself, I choose not to dabble in bullion as it is only a distant cousin to collecting, but that is just a choice.
<< <i>I would suggest the main point is that if a single dealer does not offer terms you like, then work with someone else. If ALL the dealers are offering the same price, then the market has moved... period. Demonizing someone because you dont like there terms is shallow and if you think the margins are absurd, then become a dealer and face their realities.
I am NOT a dealer, but I do understand markets. We presently have some artificial situations, but the the average buyer/seller, it is their reality. For myself, I choose not to dabble in bullion as it is only a distant cousin to collecting, but that is just a choice. >>
Thanks for saying this so well.
Check out my current listings: https://ebay.com/sch/khunt/m.html?_ipg=200&_sop=12&_rdc=1
<< <i>Kitco will sell you 1000 ounce bars for $0.30 over spot. Smaller quantities is a sellers' market right now. >>
Try ordering it and see how long it takes to get it. I think a lot of this is being purchased on the COMEX though contracts and that's why when you order you wait and wait. It's unlikely it would show up before 90 days after ordering.
I am having a REAL hard time believing that silver and gold is bought, and then sold to some person who buys the stuff ONLY for bullion content and melts it down right away only to sell it at whatever venue that needs silver/gold for manufacturing, jewelry or such. Is this what is really going on? Is every 1964 silver dime doomed?
In my pea brain I can only visualize a seller with $100 of junk silver coins selling at whatever the price, and the buyer, be it pawn shop or legit coin shop, looks through the stuff and determines if any of the coins are marketable, and then dumps the rest in a bag, and simply waits till some customer who follows the price of silver or gold comes along and wants to buy it. The buyer then holds on to the junk silver until they can brag about making or losing money, and then walks into the next pawn shop/coin shop to sell it, and the entire scenario just keeps going on with not one darn coin ending up in the next piece of electronics I buy because industry is buying their silver from companies who mine the stuff or recycle it from used computers or other industries who deal in metals – not coins.
Now I know over the years a lot of silver was melted down, and I see the adds on TV to send your junk gold jewelry, but somehow I feel things are different today and no one is going to make a heck of a lot of money buying and selling a bunch of ASE’s and that a lot of folks who play this bullion game are just entertaining themselves and none of these coins will see a smelter anytime soon. If this was the case, how come the silver bars, coins, ASE are all still with us?
So for those of you who know, just how does the “System” really work?
WS
Price changes constantly , and at whatever level , there are buyers and
sellers . When the market closes for the day or long holiday weekend ,
it's the same 100 shares of stock , (or bag of 90%) but with different owners .
<< <i>I would suggest the main point is that if a single dealer does not offer terms you like, then work with someone else. If ALL the dealers are offering the same price, then the market has moved... period. Demonizing someone because you dont like there terms is shallow and if you think the margins are absurd, then become a dealer and face their realities.
I am NOT a dealer, but I do understand markets. We presently have some artificial situations, but the the average buyer/seller, it is their reality. For myself, I choose not to dabble in bullion as it is only a distant cousin to collecting, but that is just a choice. >>
Thank you for the reality check.
TD
<< <i>Go to a coin show the other day when silver is in the $9 range and the cheapest I can buy per OZ is at $ 15.... even a 100 oz/er they wouldn't let go for less than $ 1450.... lol... They erally wanted my peace $ au's for $ 10.50 tho.....
Even dealers think it's crazy, but what you were quoted is the current going price to pay to take physical delivery of silver.
Authorized dealer for PCGS, PCGS Currency, NGC, NCS, PMG, CAC. Member of the PNG, ANA. Member dealer of CoinPlex and CCE/FACTS as "CH5"
<< <i> When silver hit $12 dollars on it's way up from $5, I was at a coin/jewlry shop and bought 30 oz in 10 oz bars for about $1/oz over spot. This was silver that the dealer most likely bought in that $5/oz range. My guess is, that there is no shortage of physical silver, it's just that now that same dealer is sitting on silver that he bought when it was in $15 range. >>
I am sure most dealers wish the silver they are selling is physical metal they bought in 2003 for $5 and have been "sitting on." In the real world, what I buy today WAY OVER spot goes out the same or next day to customers on a waiting list.
<< <i>"A principal of VERY MAJOR bullion firm in Dallas told me that it was likely that some of these contracts for future delivery would be in default, because the physical metals do not exist in quantities sold in advance."
Frank "Devlin McGregor" Provasek. How in the world would Chris (or his boss Billy) at Dallas Gold & Silver know anything about the futures market. They've been singing that same song for a while now.
Anyway, what you assert is impossible. >>
Not DG&S. Nice try, though. Leave off the &S