Holding the bag?

I've noticed a number of bullion dealers have strong inventories of previous year lunars advertised at prices that are...well a little high.

I wonder why do these dealers want to hold the stock...which seems to have been around forever.

Rather why would they not lower the prices of these earlier year lunars and clear the stocks, get fluid cash back into their business to reinvest in high turn over income generating product.

After all, as the saying goes ...cash flow is like oxygen for a business, without it they will die.

After all to a bullion dealer ... bullion is bullion so why do they treat these lunars any differently... and if they were buybacks surely it would have been purchased at spot.

Any thoughts from other members on this.

Mr.G

 

I've noticed the same thing, but maybe its the Perth Mint (or other mints) that have the stocks and the dealers just order them in? Would Perth Mint give discounts to dealers to shift stocks of older lunars?

 

There are no more older stock. I would know them and clear them out first thing.

 

if they were to do sale on those items, then everyone would just wait until the end of the year to buy.

 

How the turtle would you know
And what makes you think you could get in before the dealers

 

there is a bag, some one must hold on to it. so long that there is something, even air. some one would hold it.

there is old bag to be hold

 

I know you taken your own piss all the time. Thats not my problem.

 

^^^ signature says it all

 

If I were a bullion dealer, and not cash strapped, and knew that sitting on certain stock would gain me a premium much greater than bank interest, I think I would do a little such sitting.
e.g. if on $100 stock normal margin is (say) 25% and I knew I could sell it in 1 years time I could sell that same stock for $150, that far beats what the bank would give me for that $100. Even at only an increase to $125, that's 25% per annum.
Yes, you need cash turnover, but that is not a bad potential investment if you have the opportunity, and some spare cash.

 

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Who is to say that they haven't hedged the price of silver and they are hoping to pocket a fat premium and diversify a small per cent of their sales away from razor thin margins on bullion

 

I really doubt they are actually holding stock for years. If you are talking about the recent switch from horse to goat, then of course a dealer will raise price on stock which is no longer being produced. That would be standard business practice.