Discussion in 'Silver' started by SilverDJ, Mar 14, 2020.
12.00 was the options exercise price when spot was 8.50 back then
Is now a good time to buy?
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First story covers gold. 2nd covers silver.
12.89 USD spot as of now.....
Aud went down...
Silver down 2.63 in aud (gold down $7)
Silver down 1.77 in USD ( gold down $20)
Obviously this makes no sense, nice creative balance sheet work there with paper contracts.. or the Perth mint is behind the giant plunge.
Physical metal is being cleaned out or vendors are jacking their prices. The price in AUD terms is roughly where it was this time last year. In USD terms it is a good buy.
If the price stays down I think supply is going to dry up and that will propel the POS up and ultimately the miners when we get the great reflation.
it's funny how a lot of bullion sellers have all of a sudden withdrawn all their silver they had for sale on their webpages , particularly aussie webpages.
It’s a rational business decision. They won’t be in business long taking a loss.
Are they taking a loss? Thought they are hedged?. I remembered Joe said something like this?. Any bullion dealer care to share with us some insights?
My impression is they do volume and if they can’t replenish stock - shortages worldwide, they have to raise premiums to make up for the loss in volume.
Don’t know...there were some very steep discounts in the US (all stock picked clean off the online shelves now)
Re:replenishment - I see ABC Australia now looks out of stock for kilo bars and a few minted rounds eg the roo. 5kg bars are still there and their own minted round at a premium. Maples still there for a fairly low premium.
I'm sure all bullion dealers hedge. They make money on the premium only
Only the mature ones are hedged like abc
There is not a single bullion dealer that isn't hedged. They wouldn't last a week otherwise. They make their money on premiums otherwise what is the inventive to open doors when spot is so low?
It's only due to how rapid spot is moving and how many buyers are chasing physical. How can they fairly hedge when spot silver moves $5/Oz overnight while they sleep?
Looks like we could go sub $20 again!
Even if they hedged, they don’t have to sell using spot price. BS is a good example, selling 40-50% above spot yet people are still buying. They are making millions in gross profit a week.
Today the gold/silver ratio is 120:1 on spot price.
Approx 90:1 in the physical market.
30 oz premium or spread I figure.
I dont how it is there but here in the us that spot price doesnt mean very much.
It could drop to $8 and bullion premiums just go up. Silver eagles are still $20 everywhere that has them. Silver dollars are still high.
It's not like buying now will really save you anything.
Even generics and secondary is $3-5 mark up, from a 39 cent normal.
I saw the bag of 90% halves priced at $1400+ at $14.79 spot.
When I ordered during $14.88 spot last year the same bag was $1170.
With the premiums you are still paying $17-19.
$248.9 for 10oz ABC bar, with a $21.25 spot price makes it 17.1% over spot.
At Perth Mint you can buy silver at $21.59oz and have it converted to a 1kg bar for $34, so $694.14 + $34 = $728/kg
That's only 6.1% over spot.
1kg bar at ABC is $741.70
So unless yu absolutely need your bar in your hands tomorrow, you can still buy physical for a reasonable price over spot.
Only problem with that is Perth mint charges arms and legs for shipping and insurance.
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