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 Replies: 30 / Views: 2,384 |
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Valued Member
United States
487 Posts |
Has anyone else been having trouble finding silver now that the price is so low? One company that I have bought bags off of in the past has none for sale. So I checked another and the same thing. Yesterday silver went down and the company raised the price they where paying by $450 a bag. The last bag I bought I can sell back to the company that I bought it from for $1125 profit even though the price of silver is lower now than when I bought. The same thing is kind of happening with Gold. A month ago the company was selling $20 liberty's for about $20 over spot now they are $300 over spot. I think there is something fishy going on. How can you have a spot price that no one is willing sell at?
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Pillar of the Community
 United States
5953 Posts |
1oz and 10oz bars/rounds are not easy to find and when you do find them they are ridiculous prices. I can still get 100oz bars fairly easily for about $1.50 over spot. and 1000oz bars for less than a buck over spot.
Edited by nohope587
10/16/2008 2:43 pm
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Bedrock of the Community
United States
19935 Posts |
I was talking to my dealer yesterday and he says he can't find any gold or silver to buy. I told him I figured more people would be selling to get money considering the economy, he said NO, people are hoarding it. He said when he does see it, toss the spot market price out the window, on the street it's selling well above spot.
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Pillar of the Community
United States
5318 Posts |
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I told him I figured more people would be selling to get money considering the economy, he said NO, people are hoarding it. That would be my guess too, seeing how people are selling coins to keep afloat. Last time I checked, dealers around here had big bags of melt silver--I'll check today if they're just as "tight" on silver. |
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Pillar of the Community
United States
4541 Posts |
Quote:
1000oz bars for less than a buck over spot. 1000 oz bars are high rolling prices. Anyway I think its a market manipulation.. Everyone knows supply demand drives prices up or down. So for it to be in such high demand and no supply and for spot to be so low is very fishy. I think Gold spot should be around the 1000 dollar an ounce and silver spot should be in the 20 dollar an ounce range.. And it actually is if you think about it b/c noone is buying at spot prices. Only thing I know to tell you is to hit up yard sales they usually have a junk bin of coins that are good and sell for cheap.. |
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Pillar of the Community
United States
2335 Posts |
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Anyway I think its a market manipulation.. Everyone knows supply demand drives prices up or down. So for it to be in such high demand and no supply and for spot to be so low is very fishy. I don't know if it's massive market manipulation or not. I do know it's hard to buy in small quantities at or near spot price. However, if you are ready & willing to buy in LARGE quantities you can buy at spot. My theory is that there are 2 separate markets for silver. The first is the market for people that deal with large quantities. This market is probably 90% of all the silver available, & therefore the spot price is based on supply & demand in that market. The secondary market is people like us that want smaller quantities, & we are left to fight over the remaining 10% of available silver. That causes scarcity of small quantities, & prices above spot. Then again, it's just a theory & I could be completely wrong. |
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Rest in Peace
United States
9104 Posts |
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How can you have a spot price that no one is willing sell at? Because you're unwilling to take the product represented by the spot price. If you look up the price of scrap steel, don't expect to buy a 55 Chevy for that price. |
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Rest in Peace
United States
9104 Posts |
I think your theory is reasonably close. Compare the spot price ofa contract of cocoa or kaughy compared to what you pay for a pound at the store.
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Pillar of the Community
United States
1130 Posts |
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Pillar of the Community
United States
628 Posts |
A lot going on here for sure.
I think the main reason people are not selling is the price is too low. Shops, online stores, regular folks are waiting for the price to go up. I think generally it's that simple.
A different story, I agree, for larger bulk sales. I don't claim to know why this is, simply something I have observed.
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Valued Member
United States
442 Posts |
davisclad. Quote:
1000 oz bars are high rolling prices.
Anyway I think its a market manipulation.. Everyone knows supply demand drives prices up or down. So for it to be in such high demand and no supply and for spot to be so low is very fishy. I think Gold spot should be around the 1000 dollar an ounce and silver spot should be in the 20 dollar an ounce range.. And it actually is if you think about it b/c noone is buying at spot prices. Only thing I know to tell you is to hit up yard sales they usually have a junk bin of coins that are good and sell for cheap.. Your stetement is a real good start to reality.  |
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Pillar of the Community
United States
3294 Posts |
I think those low prices are for paper silver, not real silver. Of course I can sell pieces of paper saying 1oz of silver all day.
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Valued Member
United States
204 Posts |
I have a feeling since silver was around $20/oz in the beginning of the year, and a lot changed hands at that level, that the new owners of silver with a cost basis of $20/oz don't want to sell at a loss. I also think the overall supply of mined silver is increasing and that the massive consumption from Asia that was predicted hasn't come to fruition (and probably won't for a while). I could be wrong, but I have noticed there has been a big drop in the number of people here and elsewhere repeating the line "they say silvers going to $50/oz!  ". |
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Valued Member
Canada
464 Posts |
I agree with inacoffeebuzz. Many people were selling their bullion a few months-a year ago when the price of silver was rising and high. Now that the price has dropped, they don't want to sell at a loss.
Silver at $50/oz? I doubt it. We have deposit insurance nowadays, so I don't see many people jumping to replace their cash with bullion. I don't think we will ever see such a sky high price, unless there is a major disaster, or major war.
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Pillar of the Community
United States
5318 Posts |
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...the massive consumption from Asia that was predicted hasn't come to fruition While there must be some truth there, Asia's consumption was cited for run-ups in everything: oil, lumber, rice, steel, precious metals--you name it. It's a well-worn theme: the old fundamentals don't matter, there is a "new reality", a new plateau of consumption--whatever suffices for a rationale behind higher prices--as people move en-masse to buy into whatever is the investment du jour. People naturally focus on the boom trend and ignore the pre-boom prices. These things run off excitement during uncertain times. The psychology was similar for real estate, which unlike metals is a subject I know something about. As Gxseries pointed out--there are many industry-related factors behind the spot metal markets that are not obvious at first glance--creds to him! Pre-boom fundamentals ----- BOOM! ----- reversion?   Edited by KurtS
10/17/2008 1:56 pm
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Pillar of the Community
United States
2734 Posts |
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I think those low prices are for paper silver, not real silver. Of course I can sell pieces of paper saying 1oz of silver all day.  Don't forget that when the Dow was dropping like a rock recently, mass quantities of 'paper' silver futures were being sold to pay for stock market margin calls, which naturally lowered the 'spot' price. We do have to remember that the 'futures' market and the U.S. 'physical' market are two very different things, with different types of investors, with different goals. If there was some big 'conspiracy' to drive down silver prices, it has completely failed as far as the physical silver market is concerned. One thing that would logically reduce the price of real physical silver (not just 'paper' futures) would be a slowdown in manufacturing industrial silver demand. China and India may be slowing down a bit, but not nearly enough to explain why the 'spot price' is so low as compared to physical silver. The 'spot price' for silver is now just a price for 'paper' silver. Dealers are now even paying premiums above spot for any physical silver being sold to them! We're now in need a "Physical Silver Spot Price" index... |
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Replies: 30 / Views: 2,384 |
Posted 10/16/2008 3:16 pm
