Fractional silver

Have not been into a dealer for years and happened to be in one a week ago, they said they are run off their feet and demand is high. The dealer was in Buderim, Queensland (not exactly high street)

Interestingly have sold a decent volume here recently in response to WTB requests. Silver ranging from kilos to fractional oz.
 
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Last time I remember hearing about queues outside the bullion dealers and six week waits for bullion to come in, you could buy it, you just couldn't take it home with you, something about having the silver but not having it in a saleable form.

Glad to hear the dealers are doing well but I have been doing most of my buying off this forum.
 
Not all premiums are fixed.

Gold sovereigns being sold via a dealer have a premium of around 6% at the moment. Gold sovereigns being sold privately on this site were being sold with a premium of 0%.
The buyer would have bought them from a dealer and paid the premium but chose to sell at spot without a premium, possibly to ensure a quick sale.

Junk silver is the same. in 2006 I was buying it just under spot, recently it has been selling at spot and now it is being offered for 5% under spot. Premiums change depending on how keen the seller is to offload it. Dealers make their money on the spread, buying it slightly cheaper and selling it with premiums, they need to shift volumes to keep ahead. Private sellers make their money off the rise in spot, and as they don't have to replace their stock, they can afford to drop the premiums.

Plus, if you sell to a dealer you will likely get spot and no more, any premiums will dissapear.

So paying the least amount of premiums when you buy is where you make the most money (Unless spot is going to the moom)
 
You can make a profit or a loss on Premiums alone.

The market feels like "radiator springs" at times... like theirs just dusty tumbleweeds floating down the road...
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I'm happy to post sales threads that have no bites at what I consider valid premiums I've certainly paid higher than in the past.
And wait.

But at some point you gotta wonder. is Stackers even visible online anymore? how are the visitor counts going?
Is someone buying the cheaper physical under-spot and just putting the same Short on the market until the premiums go back up?
Its an arbitrage opportunity that should put a floor on premium drops.

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I mean we could do with a bit more visibility online at this time.
 
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I'm not sure why there's such a high premium for fractional .999 when you can get fractional as predecimal silver coins at spot? For the SHTF scenario I'm guessing that predecimal silver coins might be more readily accepted for barter?
 
Australian Junk Silver was selling at Spot - 7.5% for post-46 and spot -5% for pre-46 on this site very recently. I picked up a couple of kilos of the stuff. Negative premiums makes it the cheapest silver around. However, when you go to sell it you have to expect not to get much in premiums.

It was the prepping movement that got me into stacking junk silver, there is a use for it and if the S does not HTF then you always have a market with people who think it will someday. Also storage is easy, no concerns over fingerprints or scratches, no capsules, no albums or pages, just a moconna jar if you want to sort them into percentages or a wooden box if you don't care.

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The current low prices for Australian predecimal are probably due to someone (on this site) trying to offload a huge amount. I expect prices will return closer to spot once this is gone.
 
I prize my junk more than any of my silver and it would be the very last id ever sell.
Id let all my different rounds, bars and Eagles go before my junk.
I'll also hold onto the awesome Mexican stuff till the end.
 
I had to let alot go a few years back to secure a house deposit, and had to prioritise what I wanted as a core stack, vs what to let go.
I sold from the smallest to the largest to be honest. i let it go from post-45 to 100oz bars...
But yeah i did keep:
- Round 50s 80% ~(1/3rd),
- Pre-45 6-pence 92.5% ~(1/12th)
- Post-45 50% threepence ~(1/48th)
as part of a core stack.

I'm not prepper; but TBH if your ever looking to barter for anything with silver, this just makes it A1 simple.
+ ...poker chips, treasure box, show and tell, and its not complicated to store/break up or hide.

IMO, the premium drop is purely a Shock (reaction to upward focused and sustained volatility)
if silvers trading within 1 standard deviation range on 100 day moving average (outside of topping multiyear highs)
then spot for predecimal, should be a given.
 
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