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 Replies: 12 / Views: 2,170 |
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Pillar of the Community
United States
4867 Posts |
How can profit be made on precious metals when there is such a high premium over spot that is charged? Seems as prices drop the premium goes up.
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Pillar of the Community
United States
919 Posts |
You have to find deals and hope for big moves up. The LCS I visit charges more for silver now then they did when spot was $16. Looks like they use premiums to cover items they bought at a higher price.
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Bedrock of the Community
Australia
21786 Posts |
Perhaps there is a high premium above spot because of
1. price volatility, and because
2. previously bought silver has been bought by the dealer at higher prices, and has to cut his losses somehow.
For perhaps the next six months there will be little prospect for upside prospect in pricing, but here is also little downside risk in pricing.
Some of the general commentary I have heard on the news (not promoters of bullion) is that stockmarkets around the World have levelled out despite volatility. This leads me to think that the next six months or so is a window in which to buy bullion silver in small purchase lots of a few ounces each per buy.
Edited by sel_69l
09/29/2015 09:47 am
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Pillar of the Community
United States
509 Posts |
According to my LCS. He says his price for 90% is based on what wholesalers pay. They'll pay him 14x now so he charges 15x. I asked what he was charging at $20 spot and he said around 17.5x bc wholesalers weren't offering him as much.
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Pillar of the Community
1153 Posts |
I just bought a full set of Roosevelt dimes for $78. My LCS has them at $2 each. That still comes out to what, 16x face? I don't pay attention to what the price is over face, just look for a good deal. Your LCS and sellers on ebay are looking to make money too, so you're not going to find amazing deals too often. |
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Pillar of the Community
United States
4333 Posts |
@CSOTOS, that's not a bad deal for the full Roosevelt set.
$2 ea. for singles at the LCS is 20x face. Melt value is about $1.07ea.
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
Edited by fistfulladirt
09/29/2015 6:44 pm
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Valued Member
Canada
147 Posts |
The reason premiums are up is because there IS a real shortage. Here in Canada, the ability to get pure silver has gotten ridiculous -- with (US based) suppliers now quoting fulfillment times as far out as January because they just can't keep up with that demand. If I want 500 oz of silver, the earliest any of my suppliers is willing to say is mid November and that is on an allocation basis.
Now that's not to say that all LCS' supply of junk silver is scarce. They are simply responding to the market pricing (and will always sell to customers at a higher rate than the wholesale melter prices). For what it's worth, the scarcity pricing in junk silver hasn't happened up here. If you happen to live near the border, I might suggest this as an avenue for junk silver.
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Pillar of the Community
Canada
3692 Posts |
Universal, maybe you're looking in the wrong places. I can get maples, 10 ounce bank bars, and grain in a snap. All $22 an ounce regardless of form because a metal will always just be a metal. Maybe the perspective most here take is from the small purchases like 1 ounce at a time?
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Valued Member
Canada
147 Posts |
If you're getting them all for $22/oz, then you've got a great source that isn't part of the usual supply chain. I'm referring to companies like Dillon Gage and the RCM, as the wholesale suppliers not having the supply to be able to keep up with the demand. |
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Bedrock of the Community
Australia
21786 Posts |
My local suburban coin dealer in Sydney is selling 1oz. pure silver rounds for AU$40 (U.S.$28).
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Pillar of the Community
Canada
2019 Posts |
Quote:
My local suburban coin dealer in Sydney is selling 1oz. pure silver rounds for AU$40 (U.S.$28). Wow thats a bit high, does he sell any ? Edited by Northerncoins
10/01/2015 8:46 pm
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Pillar of the Community
Canada
3692 Posts |
Lol, and that's a semi-sketchy refinery, too. There are worse ones out there for sure. This was the price a couple of months ago, I haven't gotten any orders for silver lately so I don't know last week's price. Of course one must remember that I cannot choose what years I want because metal is metal. I can, however, choose if I want grain, coin, or bar, but not years of coin nor types of coin or bar. The usual brands that come through there are RCM coins (.9999 gold coins circa late 1990s to mid-2000s, and silver maples), Scotiabank, valcombi, credit Suisse, and refinery made bars, which actually look like chocolate when you cut them up for industrial use. Universal: I don't know what the jewellery industry is like in Ottawa, but give some calls to refineries in Montreal and Toronto. Avoid Perth Mint products for the time being because there are some fakes going around in Southern Ontario - they are half a gram overweight in the one ounce bars and can only know that if you open the real assay certificate. |
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Pillar of the Community
Japan
666 Posts |
Buy quality coins instead of quantity
Stay away from low premium bullion
For me Semi-numis is a place to stay until we know for sure the PMs are going to the moon
Don't be scared to trade some coins for other coins to increase the value of the whole collection
Do not rush with both buying and selling
Then you have good chance to get good profit either in $ or in coins
Edited by bekiz
10/04/2015 05:54 am
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Replies: 12 / Views: 2,170 |
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Posted 09/29/2015 09:41 am
