Bullion Dealers Need to Increase Their Silver And Gold Buyback Prices - a Bullion Dealer's View

Discussion in 'General Precious Metals Discussion' started by ozcopper, Mar 19, 2020.

  1. ozcopper

    ozcopper Administrator Staff Member

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    By Gregor Gregersen

    Given the unprecedented nature of events surrounding us currently, I would like to make public what we at Silver Bullion are seeing and the course of action that we have decided to act upon.

    Over the last week, the prices of gold and silver as traded on future exchanges have fallen drastically, while the demand for physical gold and silver has spiked to exceptional levels in a manner that is reminiscent of 2008, 2011 and 2013. As an anecdote, Silver Bullion (we are based out of Singapore) has sold more than 10 tons of silver in the past week alone, which is five times our usual sales volume. To put things in perspective, that is equivalent to 650 monster boxes of silver. Other metals that we offer such as gold and platinum are experiencing similar demand spikes.

    When a product experiences increased demand amid falling prices, shortages are the natural consequence. To address the shortage, an increasing number of suppliers and virtually all bullion dealers have raised their premiums, sometimes drastically.

    Despite the increase in sales premiums, most dealers are still buying metal from their customers around or below spot rates. This means that spreads at some dealers typically reach 40%, even exceeding 100% in some cases.

    While we at Silver Bullion are unable to keep premiums low on the sell side while preserving supply, we have raised our buyback prices. This ensures that holders of metal on a whole enjoy the strong increases in premiums for their physical bullion.

    Readers can visit our site for updated buyback rates here

    The Bigger Picture

    This is an important opportunity for our peers in the industry on a whole. We need to collectively show the markets that physical bullion dealers can reliably make our own prices in time of crisis. By adjusting both sell and buyback premiums to reflect physical supply and demand, we would essentially create a market driven physical price. Only in this manner can we partially detach the physical market from the highly leveraged paper markets.

    We are working around the clock to ensure that our products remain in stock during these exceptional times.
     
    kilo, SilverSurfer77, dross and 5 others like this.
  2. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    "Despite the increase in sales premiums, most dealers are still buying metal from their customers around or below spot rates."

    Folk would have to be nuts to sell physical silver below spot.
     
    JohnnyBravo300 and ozcopper like this.
  3. dross

    dross Active Member

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    We need more of this type of integrity from bullion dealers across the board & i hope many more follow this outstanding example.
     
    ozcopper likes this.
  4. 66rounds

    66rounds Well-Known Member Silver Stacker

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    I wonder are they buying back at above spot or is spot their cut off? Spot buybacks are the new gold standard since Bullion Now came to town.
     
    shinymetal likes this.
  5. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    Never accept dealers published buy back price; that's for dummies. In times like the present, dealers are hungry for your silver because they have it sold before you walk-out the door. Always haggle, if they won't come to the party, go somewhere else or sell it on Silver Stackers. We are fair and honest folk, well, I am! :D and ozcopper.
     
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  6. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    From BS:

    "Announcement
    We are currently paying the spot price of silver plus 28% for Silver Eagles & Merlions if you sell to us. We are paying spot + 25% for all other major silver coins like Maples/Kangaroos/Philharmonics/Britannias/Krugerrands/Pandas."
     
    kilo and GoldenEye like this.
  7. mongrelmaple

    mongrelmaple Well-Known Member Silver Stacker

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    If it’s to be believed at face value, and there’s no sneaky conditions such as minimum buyback volumes being 500+ oz, then that’s a game changer.
     
  8. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Only for Singapore where we have to pay ridiculous premiums. You can arbitrage by buying in Australia and shipping it in 5kg express boxes to BS?
     
  9. bubblebobble2

    bubblebobble2 Well-Known Member Silver Stacker

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    Pretty sure they're not getting my bars!
     
    Holdfast likes this.
  10. alor

    alor Well-Known Member Silver Stacker

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    stating the price would be fairer
     
  11. Eureka Moments

    Eureka Moments Well-Known Member Silver Stacker

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    Be good for all to get a break on paying cgt for profits over spot instead of being punished for selling higher quality or wisely purchased metals.

    Highly likely some will have to sell portions of their stack if their not still working or worse if their job/employer no longer exists. Letting them keep all profit instead of throwing a chunk to the govt would result in more money getting spent/circulated in areas or communities which would help keep us from flatlining.

    Taxing stacker sellers, many who have waited years with no interest or dividend from their investment will pay ATO wages with part of their sale revenue for their efforts. A tax break would bring a lot more supply onto the market and fiat into economies.

    *I think the ATO employees are possibly ok people so no offence intended or auditing of me required.
     
    66rounds and Argentumiser like this.

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