Posted 07/03/2022 03:50 am
General rule of thumb: when prices are going up, the price dealers charge for bullion goes up, pretty much straight away, and premiums are generally low. The dealer can afford to be generous with the premiums, since they make a clean profit just selling at the spot price if they bought when it was several dollars lower.
When prices are falling, the dealers aren't going to be wanting to sell at a loss. Prices don't come down anywhere near as quickly, or as far, as they rose. Dealers will either hold onto their stock and not sell (hoping prices improve soon), or if they need to sell, they'll try to charge premiums high enough for them to still make a profit (or at least, not an egregious loss) compared to how much they paid for the silver.
When prices are falling, the dealers aren't going to be wanting to sell at a loss. Prices don't come down anywhere near as quickly, or as far, as they rose. Dealers will either hold onto their stock and not sell (hoping prices improve soon), or if they need to sell, they'll try to charge premiums high enough for them to still make a profit (or at least, not an egregious loss) compared to how much they paid for the silver.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
