disconnect between paper and physical

[Silver bullitt]

Set a profit margin according to current market conditions.

Haha some dealers I know that profit margin can change minute to minute depending on who just walked in the door !

Yep, that's "supply and demand."
A successful business man recognizes and acts on opportunity.
If the punter is prepared to buy for that price at that moment or simply walks out and goes somewhere else, free choice, free will, free dom.
It's one of the principals that used to separate us from the socialists but that separation is somewhat blurred today.

 

[Rinchin]

There's no disconnect between paper and physical as far as I am concerned.

This is just dealers not wanting to sell at a loss... I guarantee you that if spot price rose to $40/oz tomorrow, the disconnect would be VERY minimal.

I honestly think things would be quite different if it went to $40 tomorrow. Think about the trading section in this forum, how much premium are sellers attracting at this price? How much with an almost $20 rise overnight? This place would be buzzing with hype, there'd be pictures of rockets and moons. The silver scene would have an influx of investors rushing to get in before its too late,

This is the real reality of the market for physical. On a rising market buyers are often happier to pay premiums since there is belief that spot will continue rising and cover the "loss' paid as premium.

Comparing limited mintage issues is a disastrous measure to use too. How have past releases of similar coins survived the latest series of drops? dropped as a function of spot? Who wants to pay premium if you try to offload now? how about those kooks and lunars? premium work as insurance a bit?

imagine if spot was reflecting the actual supply and demand of physical silver. the drop in price would be a reflection of less buyers and more sellers. premium should drop too shouldn't it? My measure would be private sales not dealers. the dealers are tied into the market where paper supply has equal effect as physical. Check out premiums for generic silver of forum trades and ebay sales to get a more accurate picture. Even if the deals are not as good here this is where a lot of new stacker's begin their stacks, this is their entry price and what they are paying for their first silver.

 

[SilverSpurs]

All I know is that the premium being charged at silver gold bull has been hovering around 2 to 3 dollars an ounce on the cheapest stuff and it goes up from there depending on what's stamped on it. So as far as I can tell there is absolutely no disconnect.