Someone has to point it out :)

The pundits may finally be right.... Price Disconnect!?

Below spot phys.... and no takers! :lol:

The silence regarding it's existence is conspicuous.....

 

at a guess is whatever you are referring to not 999?

 

Weird I don't see those listings! Unless you're talking about florins and pre-dec coins (no interest in them whatsoever)

 

Limited pool of buyers all with full safes and no liquidity?

 

Oh?
Fineness never made a difference in the past?
Stackers favourite quote is "silver is silver".!
Have we been converted to SS - silver snobs? :lol:

 

Im a relative newbie sorry wrcmad and have never professed an interest or desire for silver in any form other than bullion.
Seems Altima would agree.
Throw a 10 ounce bar up at under spot and Im sure it would be swamped like a flock of seagulls on a chip.

 

you have to teach us newbie here on how valuable those low finesse silver coins, and pre-dec.

 

Funny that the post-46 pre-dec is all over 50 years old (and generally still in pretty good nick) and the pre-46 pre-dec is over 70 years old (lot of it is scrappy but a lot too is in pretty good nick...)
Historical pieces from a time when we still had "real money" and people can't even get the scrap silver spot for it...times they are a changing :/
*Remember that "spot" refers to the price for 5000oz purchase (bulk-buy) for a might be/may be delivered in 3 months lump of silver *

 

No arguments there.... I have always agreed it is worth spot. In fact I have argued that point many times.
But my point is it is not selling below spot.

However, if you are now telling me it is fair that phys silver in that form is not worthy of fetching the equivalent of the allegedly synthetically-depressed paper price..... then..... ?

 

Well played sir.

 

I am in the "silver is silver" camp.
When i am buying i may use the lesser purity work in my favour and try to talk it down , but when i sell to my main guy it can be 40% or .999 and i still get paid the same on "actual silver weight"

 

I am guessing you guys deal with other stackers and i have gone to the effort of forming relationships with dealers and refiners.
And if you can find me dirt with a definite 100% accurate silver percentage then i would probably buy it.
Your question on buying dirt is a wee bit like telling people to eat orange SEEDS instead of the orange they grow.
Having once read one of your blog entries i can easily see how someone managed convince you to hand over your silver below spot, i should maybe have used sour grapes in my example instead of orange

 

I would pay over spot for .999 silver but not under spot for junk silver, just saying.

 

I already have about 23kg of pre dec silver, mostly 50% and mostly bought for below spot.

I was buying it for below spot when spot was $15. Now below spot is $23.

Unless you are buying world junk or USA Junk it doesn't often attract any sort of premium unless silver is going to the moon.

As someone who is not watching the spot price very closely, scrappy pre dec that most refiners won't touch with a bargepole for $23 is not particularly enticing.

You reach saturation point after a while and storage is a pain, you can put it in plastic boxes but if you stack them too high the lids cave in and the pile gets too heavy to move around.

 

A spot price is "disconnected" (in the context that those using this word mean) when its futures market based component is zero.
Not really the case now, with a 75000x5000 ounces paper orders for silver that aren't even ment to be delivered.

It's thus rather the opposite: a strong connection. Without the "paper boys" (actually hedgers) the price would be $5 lower than it is.
And it will be, when dealer stocks finally got sold, and replenishment needed, requiring the "phys boys" to hesitate / doubt / negative / etc haha, so that the most ounces can be bought (and again hedged) per price dollar.
Strategy...

 

yep silver is a waste of money atm

better investment opportunties elsewhere

 

"silver is silver" works for pre-decimal coins because they have a reliable 500 or 925 fineness which allows them to be traded with reference to the spot price for their known silver content.

Which is just fine for the purpose of swapping pieces of metal and fiat currency around.

But all forms of a metal have the potential to be "used", whether that be to exploit its unique properties, or simply to reform it into blobs of different shapes and sizes. Such use will nearly always require the pure form of the metal, so it must be refined if not already pure.

Thus, pre-decimal coins (and sterling, etc.) always carry the inherent disadvantage of potential refining cost, which the 999 forms do not. And this should be reflected in the price, as a discount from spot.

If funds weren't so tight for me right now, I'd be buying pre-decimal under spot, if available...

 

I like a bit of 925 predecimal. A cheap fractional with historic tones. Dammit I like all silver!
My buying swings around the 10oz and smaller lunars and some low premium just to add ounces to the pile. Hope trump wins should give us a little push along.

 

I just sold 1.3 ounces of gold and 40oz of silver over spot in like 4 hours. I was very surprised to see it all fly off the shelf. Not seeing an issue.

 

NIL interest in anything less than .999! Usually in ASE and CML form, but PAMPS etc too.

Running out of space in the SCV.


OC