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 Replies: 59 / Views: 5,949 |
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Pillar of the Community
United States
1915 Posts |
What difference does no zero make in margain? If it was $4 one year and $8 two years later, it doubled in price in two years. As far as investments go that is pretty darn good.
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Pillar of the Community
 United States
2077 Posts |
Until it goes back to $4. There may be one more mini spike in prices, but I'd say it will be a pretty long time, like decades, until it gets back to $30 an ounce.
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Pillar of the Community
United States
1915 Posts |
You just made my point. Bbuddy was upset because dealers are not selling there coins at spot. My point was that why would they sell it for current spot if current spot is so much less than what they purchased it at to begin with?
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Valued Member
United States
84 Posts |
Agreed. Scale, and ranges basically allow you to find a chart that emphasizes what you want it to look like. But yes, silver is a very volatile market because of the industrial link, and now these ETF's drive up or drive down prices. It's crazy. Got this email today: http://www.silvertowne.com/c-657-si...0e-285169605I think silver proofs are 20% off. Sometimes when I get alot of emails from ebay bullion ( APMEX mostly) I think they somehow know prices are going lower. The stock market correction is stalled because they think earnings for Q2 will be good. I think so too. Unless bond rates go up more (they stalled a little, but fed bond rates can change on a dime [pardonez pun], sometimes dramitically). We need bond rates to stall, some lousy economic projections and money markets will move into metals toute suite. Unfortunately, ETF's have killed supply/demand relationships. . |
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Bedrock of the Community
13014 Posts |
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My point was that why would they sell it for current spot if current spot is so much less than what they purchased it at to begin with? Because you could be waiting years if not decades before you see the next spike where they could get their money back. Sitting on inventory that long generally isn't a good business model |
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Pillar of the Community
United States
1915 Posts |
It took decades for the price to get as high as it did. Silver is LONG TERM, not some penny stock. No matter if you feel it is a bad business model, it is their choice, not yours.
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Valued Member
United States
84 Posts |
Just got this email from the mint. New prices on 5oz ATB: We recently sent out subscription notfication updates for the 2013 America the Beautiful Five-Ounce Silver Uncirculated Coin-Great Basin National Park (NV). The price of silver has since dropped and there has been a price change for this item. This product was originally priced at $179.95 each. The new price is now $154.95 each. Our records indicate you have the following subscription(s): $25 shave. |
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Valued Member
United States
84 Posts |
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Bedrock of the Community
13014 Posts |
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It took decades for the price to get as high as it did. It really only took two years, it wasnt a steady climb it was a massive spike like in the 80s. Its really not a good investment. If you got it before the run up you did well, if you bought in the 80s spike you were under water for almost 3 decades. Even if you bought after the spike its a marginal return for waiting almost 20 years or 10 years buying in the 90s. Things have to go bad for it to bring any return which they do every so often. Quote:
No matter if you feel it is a bad business model, it is their choice, not yours. I never said it wasnt their choice. It doesn't make business sense though to hold onto something for years if not decades because you can only get 25 for it when you paid 30 or 35. Youd more than make that back turning over new inventory in that time, plus youll be making money per ounce when you resupply at the lower price. But youre right people are free to make that choice if they want |
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New Member
United States
39 Posts |
All I know is that I have junk silver and rounds set aside, and I am still accumulating today. It may take a long time, and I wouldn't be surprised if silver gets way the heck down the ladder, but sometime it will spike, and I will make a lot of $$. Could be next month, or 10 years from now, but it will happen.
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Pillar of the Community
United States
1915 Posts |
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I never said it wasnt their choice. It doesn't make business sense though to hold onto something for years if not decades because you can only get 25 for it when you paid 30 or 35. Youd more than make that back turning over new inventory in that time, plus youll be making money per ounce when you resupply at the lower price. But youre right people are free to make that choice if they want. Here is where you do not seem to understand the coin collecting market. Coins do not go up in value drastically very quickly. There is no place for dealers to go buy collectible coins for wholesale. What possibly could dealers sell that would make up the huge difference in the loss they would take if they dumped their silver right now? Resupply at a lower price? Using the money you just took a big loss with? Why would you buy to restock? You just said it will be decades before the price goes up. If they bough 100oz. when silver was $35/oz. and sold it now for $19/oz they are losing $1600. If they bought another ounce at $19/oz they would still have to wait for it to get back to $35/oz. to make back their money. There is no difference or benefit in selling right now as opposed to holding. |
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Bedrock of the Community
13014 Posts |
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There is no difference or benefit in selling right now as opposed to holding. No one sells right at spot that I've seen. Theres always a market acceptable premium to spot generally 3-6 dollars. If they bought a 1000 oz at 35 they could easily sell in the low 20s. Say they sold it for 22 which would be one of the lower markups youll find. So theyre down 1300 hundred. If they resupply and price their product to a dollar above their cost and sell 100 coins a month youll have the money back in a little over a year. Even if it takes 3 years to make it back they make the money back and make profit on it instead of having all that money tied up for a long long time. Right now with so many shops just sitting on it assuming itll be in the 30s again soon, being one selling gives you an immediate market advantage and youd probably be selling more than 100 coins in the month. Those buyers may also pick up other things when they come in. The quicker youre turn around on bullion the less youre exposed to potential losses which is part of the reason why the big bullion dealers like the provident metals and apmexs are still around and making money in a falling market. They turn product over quickly. If youre still trying to sell at a huge markup not to lose money or not selling at all your buyers are going to look elsewhere as well. Some may go to other shops others may realize they can get better prices on the internet and youve cost yourself future business. Meanwhile your still sitting on a large amount of inventory youre underwater on and likely will get further under water on with how the price has been falling for almost two years now. Theres really no advantage to sitting on something for years driving your customers to other sellers just so you can say you sold it for what you paid. |
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Pillar of the Community
United States
1915 Posts |
There is a HUGE difference in big bullion dealers and local coin dealers. This whole thread was about why local dealers are still selling silver coins at prices well over spot. Now you are trying to equate them. You can't. The reason the bullion dealers do is volume. Your local coin deadler is not going to have the volume to be able to do he same thing as the bullion dealer. I do not see many dealers dumping right now. Look at ebay. Most sellers are still not willing to sell for close to spot. |
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Bedrock of the Community
13014 Posts |
They arent the same as huge dealers but the basic practices are. Bullion arent big money makers theyre items with a small mark up that have to keep getting turned over or have a huge run up to be profitable. Either way the losing customers applies much more to the local coin shop than the large bullion house. The local coin shop also doesn't have to do a large volume to make it more profitable to sell for a loss and move on than sit on bullion for years.
Ebays great for a lot of things but bullion isn't one of them unless its some rare hard to find item.
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Pillar of the Community
United States
1915 Posts |
You are still missing the point. This thread was about how coin prices would be affected, and somehow you got off on bullion.
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Replies: 59 / Views: 5,949 |
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Posted 07/08/2013 7:19 pm
