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 Replies: 32 / Views: 4,005 |
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Pillar of the Community
United States
5855 Posts |
*ouch*
Stopped by my local coin shop over lunch today and asked him what his best selling price was for junk silver. $5 over spot...
That basically makes it impossible to benefit from the recent drop, since the premium totally erases it.
I understand that he can't afford to sell stuff at a huge loss just because the market has dropped, but I also believe he must be buying new stock at the lower prices as well. Sheesh....
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Bedrock of the Community
13014 Posts |
Quote:
@baseball
I think you pointed out to me that the US Mint is going to drop prices for their proofs... which is GREAT news for collectors such as myself that LOVE proof eagles silver and gold. Im hoping so I'm planning on getting the two coins american eagle set with the reverse proof and the proof uncirculated hybrid which is new this year. They may not drop that one though. |
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Pillar of the Community
United Kingdom
1682 Posts |
Atkinsons does seem to have some nice prices. Noticed that on some of the silver procuts, it gives pricing at 10+. Do you know if they sell them as singles?
Ken
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Pillar of the Community
United States
1285 Posts |
When silver spiked above $40 there was a shortage of physical for a few weeks / the premiums were high with a wait list etc.
Wonder if something similar is going on now?
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Pillar of the Community
United States
2168 Posts |
Manipulation I think. When ever there a steep movements there is a shortage it seems since the true physical purchasers try to get what they can. It is the paper PMs I think that cause all the fluctuations. I remember back in early May 2011 when the big spike in price there was a lot of paper due just about then and what a drop to discourage taking possession of silver they probably didn't have. Now I think think high premiums due to higher prices paid for the stock avail. It should settle down once a stalbe price comes I think
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Bedrock of the Community
13014 Posts |
Its not manipulation. Its just the simple fact that dealers bought for around 30 and dont want to be selling in the low 20s now. Its like if you bought a house and then that house lost 25% of its value. You wouldnt want to sell then, youd either ask what you paid for it or hold onto it and not put it on the market hoping prices recover. If youre willing to pay what sellers paid you can find silver everywhere, eBays flooded with it for example. Its just trying to find the newly priced stuff thats hard. Itll normalize as time goes on, give it a week or two
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Pillar of the Community
United States
2168 Posts |
I agree on the issue of why high premiums. I realize that dealers can't sell for less. This issue of manipulation is with spot. The physical market is booming so prices should be up not down. Its the paper market that causes problems. Too much paper comes due and no actual PM if the customer wants to take possession and then what. The physical market has been increasing no matter what sot has been doing it seems
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Bedrock of the Community
13014 Posts |
Its debatable if the physical market is booming. The stuff that gets minted is doing well but not to the point that theres actual shortages, remember theres a difference between a real shortage and a production shortage. Its also not clear how much of it is just product being sat on because of the drop. If there was a real shortage ebay and sites like it would be dry which couldnt be further from the truth. Theres currently over 105k gold listings and over 331k silver listings. I certainly wouldnt call that any type of shortage. The other thing too is remember the paper PMs are designed to take possession. They arent bullion dealers if there were they would sell bullion. You have to have massive amounts far more than the vast majority of investors could ever hope to have in order to call for it. Theres no run on calling for delivery |
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Pillar of the Community
United States
5855 Posts |
I was just checking through my records and reminded myself why I don't buy from APMEX anymore... Back in December of 2011, when silver had "plummeted" to $29/ounce from a high above $40, I bought a $100 face value bag (200 coins) of common date, well circulated Walking Liberty half dollars from APMEX for $2,189. Now, when silver has dropped nearly $6/ounce since then, APMEX is selling the same exact bag for $2,268. I pointed this out to my wife, and she finally agreed that waiting until the price drops even further isn't necessarily the best strategy. |
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Pillar of the Community
United States
5855 Posts |
Oh, yeah -- and the $100 face value bag of common-date BU Peace dollars that I also bought from APMEX at the same time for $3,689 is now selling for $3,799. Grrrr... |
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Bedrock of the Community
13014 Posts |
Let me guess though if you tried to sell on to APMEX they would be buying at spot |
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Valued Member
United States
292 Posts |
On ebay you wouldn't know there was a price drop. And people are buying there. Yet my LCS had 2013 ASEs for $27.39 last week. He had 2009s in the case and I asked if he had any 2013s and he went to the safe and took out a monster box. |
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Pillar of the Community
United States
1285 Posts |
Below are steps to get some silver cheap.
Step 1.
Go to the COMEX and buy 5K oz contract
Step 2
Take delivery of the 5k oz's of silver.
Step 3
Lock it up and call it a day at around 24/25 per oz.
Manipulate this, that and other is just pure nonsense.
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Pillar of the Community
United States
2168 Posts |
I have seen the price a APMEX as well. My local shop has a 15% over spot on dimes and quarters so much less and no minimum purchase or shipping/wire fees. Halves, now are a little higher whereas before a month ago all were 3% over spot. He said basically a selling market for the past few month (on his side) not much coming into the shop. |
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Pillar of the Community
United States
3789 Posts |
haha I LOVE Ceylon's post.
Yes, what he said you can do.....u could take delivery of it.
gold and silver. you might have a logistical nightmare but it is you possible, don't roll that contract over and YOU WILL have delivery lol
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Replies: 32 / Views: 4,005 |
First Page
Posted 04/17/2013 6:38 pm
