| Author |
 Replies: 25 / Views: 4,037 |
|
Pillar of the Community
United States
5833 Posts |
Anyone notice the premium keeps going up every so often with the online dealers, as the price of PM keeps spiralling down.
|
|
|
|
Pillar of the Community
United States
2661 Posts |
They are covering their investment. They have to raise premiums to keep from loosing money.
|
|
Pillar of the Community
United States
4333 Posts |
I don't buy it. I notice local premiums go up also, and "shortages".
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
|
|
Valued Member
United States
258 Posts |
I have definitely noticed, macmercury. We may have reached a floor "retail" price regardless of the spot price that they will not go below.
|
|
Pillar of the Community
United States
1005 Posts |
Let's say the price keeps dropping, how high can the premiums go? I would think at a certain point people will just stop buying if the premiums keep rising, exacerbating the original drop. How elastic is the demand from these retailers? Pretty high I'd suppose...
|
|
Pillar of the Community
United States
3789 Posts |
Yea I have.
It always happens when prices drop and what the dealers are doing is catching the unsuspecting "bargain" buyers who think the the lower PM prices area "steal".
Happens all the time, guess dealers have to make a profit somehow...
|
|
Pillar of the Community
United States
1554 Posts |
One of the reasons premiums have gone up is because dealers are having to pay more in relation to spot price and also there is somewhat of a shortage of physical as collectors/people are holding on to there stashes in hopes of higher prices. One of the larger dealers in my area is having a hard time finding any sellers.
Edited by 1893S
07/03/2015 5:12 pm
|
|
Pillar of the Community
United States
586 Posts |
Usually large dealers are well hedged, they don't have to increase premium. Unless price keeps falling, after they covered their hedge position.  Edited by leon1998
07/03/2015 7:09 pm
|
|
Valued Member
United States
234 Posts |
Good news for the lone ebay seller |
|
Pillar of the Community
 United States
5833 Posts |
APMEX is actually cheaper comparing to other ones now?
|
|
Pillar of the Community
United States
586 Posts |
Probably because APMEX hedges its inventory better than others. :-) |
|
Valued Member
United States
234 Posts |
APMEX is a rip off on insurance and shipping
|
|
Pillar of the Community
United States
1554 Posts |
The fact of the matter is there is a shortage of physical silver available. Dealers are having to pay more for it. People/collectors are not selling to dealers in hopes of higher prices, hence, higher premiums now if you want to buy. If there was a lot of physical silver on the market dealers would be falling all over each other to sell for the cheapest over spot....
Edited by 1893S
07/04/2015 3:46 pm
|
|
Pillar of the Community
Canada
3692 Posts |
A shortage of silver.... uh, what planet is this?
"collectors/people are holding on to there stashes in hopes of higher prices"
I buy this explanation as it is perfectly reasonable, but I don't buy that collectors have ALL the silver. As long as gold alloys get refined there will always be traces of silver floating around. Maybe the supply chain is just "stuck" with regular people holding and regular dealers are not buying their stashes from refiners and relying only on the public. Honestly I wouldn't sell my silver either, it's too cheap.
|
|
Pillar of the Community
United States
1554 Posts |
I should have said A shortage of silver bullion coins, it's just not readily available at close to spot price. As I said above if there was a lot of physical silver bullion coins or silver coins on the market dealers would be falling all over each other to sell for the cheapest over spot. We are talking about the rising premiums on PM's not the availability of silver on planet earth. And yes, collectors have a good majority of the physical silver/PM's, that's who buys and hoards it.
Edited by 1893S
07/04/2015 6:52 pm
|
|
Pillar of the Community
United States
5833 Posts |
Dealers are paying much less then spot, they are only raising premium to pay for the overhead, no shorting of silver, but perhaps shortage of 90% junk silver in the future.
If these were to melt down for other coins or items, every time it does happen when PM goes up...
|
| |
Replies: 25 / Views: 4,037 |
Posted 07/03/2015 05:41 am
