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 Replies: 20 / Views: 4,466 |
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Pillar of the Community
 United States
2248 Posts |
You gentlemen are correct, if I was a dealer I would not want to sell at a loss either. Businesses can set whatever prices they want. I heard PM dealers can buy insurance to cover fast spot price downturns but I don't know if that's true.
Edited by livingwater
03/17/2020 8:48 pm
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Pillar of the Community
 United States
8938 Posts |
Quote:
I heard PM dealers can buy insurance to cover fast spot prices downturns but I don't know if that's true. Yes and no. Only if they trade futures/contracts. If they do physical metals then no. The assumption being that every sale is consensual between the buyer and dealer, and that the dealer was willingly taking a loss rather than refusing the sale. |
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Pillar of the Community
 Canada
5404 Posts |
When I had my coin shop and dealt a fair bit in Silver Gold and platinum We bought options as insurance . Sometimes you made more on the options contract than you did on the Metals themselves. Also as to this being a bad market for PMs , not even close . I remember back in the late 90s early 2000s , you couldn't even get face for silver maples or 5 and 10 dollar Montreal Olympic silver coins until the RCM and Royal Bank partnered on a buy Program . If silver prices stay low , there will eventually be a corresponding correction in bullion , not now ! |
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Pillar of the Community
United States
4085 Posts |
Yes, no reason to sell at the bottom if you are a dealer with some money to carry you; at some point if silver prices don't go back up you will see the ask price come down as people are forced to liquidate silver holdings to raise cash.
Edited by KenKat
03/17/2020 7:44 pm
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Pillar of the Community
United States
4333 Posts |
I've seen this same thing a half dozen times over the last 40 years, it happens.
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Pillar of the Community
United Kingdom
2135 Posts |
When the stock market falls, precious metals normally rise.
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Pillar of the Community
Canada
5404 Posts |
Not so in 2008 /09 a quick check of Goldsilver.com. Has a good article on why both fell in that crash .
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Pillar of the Community
United States
3843 Posts |
How long are dealers going to wait for a potential recovery in the silver price? I agree that holding may be the best bet in the short term but if silver remains under $13.00 for much longer than a few months they may go bust waiting and hoping for someone to come along to bail them out. I certainly won't be me bailing them out and if that means no silver for a while then so be it.
Edited by Joe2007
03/17/2020 11:36 pm
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Valued Member
United States
245 Posts |
I love my coins, but these spreads are exhibit A in why you MUST not buy coins from these jokers right now. If you pay absurd premiums, hell, good luck making a profit in the future!!
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Pillar of the Community
United States
2248 Posts |
So paper/physical is apples and oranges, or perhaps modern term electronic/physical. The former affects the latter, if not immediately, eventually for buying physical. Obviously I should avoid dealers with highest premiums no matter what spot prices are.
As for stocks, I moved some cash to stock mutual funds yesterday, great time to buy stocks IMO for long term investing. I may have missed buying at the bottom of the virus crisis. Congrats to anyone who succeeds in timing the markets.
Edited by livingwater
03/18/2020 06:07 am
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Pillar of the Community
United States
4333 Posts |
Physical silver. Bought at $12.50.
Ten years ago.
It's still $12.50 today.
An investment in the future! /s
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Pillar of the Community
Canada
5253 Posts |
Quote:
How long are dealers going to wait for a potential recovery in the silver price? That depends on the dealer's resources and how long the price stays low. After a few months of low silver, I would think that people will be starting to sell at the new low price and competition will prevent anyone from selling at a much bigger premium. My guess only. |
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Valued Member
United States
160 Posts |
Quote:
How long are dealers going to wait for a potential recovery in the silver price? It depends on the dealer I guess. If they are mainly a bullion dealer instead of a numismatic dealer, they probably will need to get some of their money back in order to continue buying at the lower prices, or they may just sit on what they have until prices rise again. If they deal mostly in numismatic coins, then the price fall of silver doesn't affect much of anything for them. |
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Pillar of the Community
United States
1120 Posts |
This is the first time I've encountered this. Most dealers are not selling or "Out of Stock". I'm quickly learning that it's even hard to capitalize on falling prices. Yes, I bough SLV in stock but it's not the same. Ironically, it wasn't difficult for the dealers to sell to me when silver was over $50 an ounce. Man - you live and learn  Edited by travelcoin
03/18/2020 10:34 am
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Valued Member
United States
392 Posts |
I like the SLV for the ease of buying and selling. Don't expect to have any silver sent to you if the SHTF scenario but you can get as much SLV on paper as you like and sell later paying a small commission for the trade. I sold some SLV recently at 16 but then bought more at 12. If spot rises again I'll sell again and get silver eagles but the price for eagles is too high for me knowing the spot price.
Just to clarify SLV is only a trade while silver Eagles are an investment. Never hold on to a trade beyond your initial timeframe hoping it will get better according to "Mad Money".
Edited by Lionel90
03/18/2020 5:14 pm
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Posted 03/17/2020 6:37 pm
