Do you think Greenspan’s quote explains it?
“Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise.”
Alan Greenspan, Testimony Before the Committee on Banking and Financial Services, U.S. House of Representatives July 24, 1998
Via Jesse
Silver Eagles are in the 25+% range, and bags of 90% silver coins are a little over 24%.
These charts are from goldchartsrus.com.
This is my biggest complaint with PMs… the bid/ask spread which would make a Wall St banker blush. IMO the mint should sell coins directly to the public instead of having to go through a small cartel of dealers who rape you on the spreads from spot price. Sure goldprice.com and comparesilverprices.com have helped take some of the mystery out of it, but the premiums are still ridiculous.
The premium is jacked up on 1 oz. Bars and coins, the vig on 100 oz. bars is still in single digits. Trading in junk for bars netted me 22%, and upgraded my silver to .999
I think eagles would be a great buy at 100% premium. Ec3:1 says there is a time for everything and the time to buy silver is now (and farmland, canned food, guns & ammo) and especially gold from The Lord (Rev3:18). PS: francis is selling junk.
Spot prices are for bulk generic silver (big unbranded industrial bars and such), not for specific highly sought after coins.
“WHY ARE PREMIUMS FOR PHYSICAL SILVER 25% OVER SPOT?”
Because the commodities markets refuse to price to reality.
I still think this phase will largely pass but not before it gets worse.
Question: How much, percentage wise of your silver only, would you sell now and attempt to buy back at a future lower price?
I’ve never given it much thought because I’ve never intended to sell any unless I had no other choice. I figure 10% would be doable to reduce my overall cost per ounce. I guess it comes down to what I think my chances will be at buying it back later for less money. If this tight supply keeps up for too long it could spook people into sitting tight.
I’d only be willing to sell generic rounds and bars though. They’re not making anymore 90% coinage and keeping sovereign coin is a no brainer.
Gold at the retail level is still very reasonable and available. Just have to save those frn’s a little longer.
Anon, spot is just a number. Like TC says, it’s a bid/ask situation. What you pay, and the form it comes in, depends on what the dealers have or can get. Right now small stuff is super scarce (hat tip someone here, I forget) demand is huge, and no sellers.
It’s called bifurcation. That’s when the “paper” market and the “physical” market separate. Supply and demand isn’t a factor in the paper market and that’s why it’s bogus as hell. In the physical market, supply and demand fix the price. Got more buyers than sellers? Then something’s got to give and that drives the price.
I hope this clears up why physical is 25 over spot. It may move much higher as buyers get more desperate.
“We are in a world of irredeemable paper money — a state of affairs unprecedented in history.”
John Exter
The premium is way up because availability is way down, in the face of an increased demand.
Economics 101, remember.
Yeah, the price is manipulated; so? When I don’t have any silver to sell, I’ll quote you a lower premium if I ever get any. 🙂
Not quite totally irredeemable. You can still trade in the paper for these:
This is fig leaf they hide behind.
Coins are not quite worthless. Close, but they do have some value.
See here: http://www.coinflation.com/
I think gold/silver is just another form of insurance . its currency insurance . in my career I have always culled the pre 65 silver coins from registers . I take a silver quarter out , I put a base quarter in . etc. tidy sum after 30 years . not really worth a lot atm but if things go to shit it does give me a small hedge . Doctors, lawyers, independent gas stations owned by immigrants from another country say that money is good and will trade services or commodities for those silver dimes etc.
who the fuck is john galt lol