Keeping tabs... Ainslie Bullion online site closed. Called this morning and told overload of orders. Any other goings on please advise?
I doubt any dealers are holding inventory they paid less than 30 for. Only the committed, professionals are still selling. Btw, I would be closed too if I were a dealer LOL
This is a classic example of the discussion we had previously and I did state quite simply that in the event of a drop a lot of dealers will simply shut up shop and refuse to trade. Look at it simply. If you are purchasing stock at X price, why would you be expected to sell it at under what you paid for it and expect to stay in business? A sharp drop in spot will simply mean no active trading on physical (even if there is stock present) until a profit can be realised on trades. Unless you have an extremely quick turn over of stock or very deep pockets, you are largely restricted to your sale price based on what you paid for your stock in the first place. If 'spot' rises above your paid price to buy the stock in the first place, you can claim the margins as profit. But if spot falls below those prices you paid and you face a loss, you can simply put up a 'closed' sign under any guise you wish and wait for the price of your stock come within profit. Hence, regardless of what spot does on the open market, there's a floor price on physical silver and this rush of stores putting up the closed signs are exactly what I predicted would happen. Let this be a practical example of why I expout the cost average stacking strategy being a better method for the smaller volume stacker than trying to time the dips. In the event of a BIG dip like we're seeing now, you'll be scratching to locate physical - especially physical following spot in realtime.
Perth Mint has no problem supplying 10oz sizes right now, nor Materion for the stacker bars... I've just sold a bunch of stuff through Gold Stackers at up to $7/oz less than I paid for it, but seeing as I'm expecting to replace it this evening at spot at that time, there's still a trading margin - just means the value of the capital tied up in the inventory has decreased. Not everyone is reselling Perth Mint product though - so if your product line includes self-branded product, replacing it might be a tad more difficult unless you've got decent hedging practices in place.
Shop at bullion money or bullion bourse. They are both still trading. Simple answer. I bought dragons over the weekend from bb. Payment went through and haven't got any email saying your payment was refunded etc.
+1 to what GP said... there really isn't that much shortage. Smart dealers will lock in the margin by selling and instantly restocking, not looking at spot trading. Off the top of my head I can think of the following places that would gladly sell me Silver (tracking spot): Ozbullion Bullionmoney Bullionbourse Bullionclub Roo GoldStackers (HOW COULD I FORGET? ) Among others who are not site sponsors so not worth the mention
Just went to Perth Mint this morning for the first time. Bought a decent amount of 10 oz silver bars, and had no dramas with supply.
In all seriousness though I just did a quick check - it looks like all Silver Stackers site sponsors are still open for trading. Having a foot in that game though it's very understandable if some do pull the shutters for a day or so - if the business was purely a "buy low sell high" affair, there's orders going out the door this week I would have lost over $2,000 on (each). That's some stomach churning stuff.
That can be a worse situation for a dealer - selling stock, and watching the margin evaporate in the face of higher spot prices before you can lock in replacement stock.
No no no.... you are saying that the dealers rely on ever increasing higher prices to stay in business. That is wrong and dangerous. Dealers would buy their initial supply with capital, and as they sell it, they replace it at the prevailing spot price. Does that make sense?
yep dealers hedge...or as i said before any dealer worth their weight in salt will hedge you would be crazy trying to play the buy low sell high game....
The life of a bullion dealer.... Its great that you explain it for the masses so they understand how it works. Im sure many on here dont really understand it enough & the fickleness ;small margins & risks involved.Pm me your address if you want a delivery of beans :
Dealers that can replenish their supplies immediately at current rates can sell metal that they have previously bought at a higher price IF they can replenish it with matching quality silver immediately. In that case they will be thinking of their stock in terms of ounces, not dollars, and the simple purpose is to make a profit. No sell, no profit. If you are a dealer you have to think of ounces held, turnover and profit, not fiat value. This only works of course if the dealer can replace what is sold immediately from their suppliers. If they can't get fresh supplies from the PM or wherever they usually source then I imagine that they would hold onto their stock that they purchased at a higher price and wait for a turn around.
