Get ready for higher silver premiums.

sammysilver

sammysilver

Well-Known Member
Silver Stacker
An email from JM Bullion had a sale on 10oz and 100oz bars. These USA specials usually make us envious. 10oz was $4.29 over spot. The 100oz was $3.29 over spot.
Using the current exchange rate of 0.71 the comparison for 10 and 100
USA to Oz is $381.80 to $375.37 and $3,678 to $3,414. I used ABC bars for comparison.
I expect that the squeeze is being felt in the States more so than over here.
Eventually our silver will start migrating to the USA.
 
heartastack said:
Can someone explain why the bullion dealers don't buy back a decent premium if the market is so tight? They certainly don't seem fussed selling at 44 and buying at 33..
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Its like a pawnbroker- instant transaction for cash, most people selling are doing so because they are in need of the money pronto.Bullion dealers who buy back know 90% of people walking thru the door will offload for spot and below.Also buying at premium exposes the dealer to price downturns and its difficult enough to hedge large sales against spot without adding a risky premium into the mix.
Its also difficult to set a premium buyback price when factors such as collectability come into play. Look at Lunar and Panda's price runs.Premiums fluctuate with the runs in the market depending on years, mintages etc etc.
Coins can also fall out of fashion quickly and eating a price drop is never a nice meal.
Then there's artificial manipulation out of everyones control, yada yada
And turnover is important, moving stock for cash flow becomes easier when your not trying to incubate a higher price on stock because a week later the market dropped by 5%
 
heartastack said:
Can someone explain why the bullion dealers don't buy back a decent premium if the market is so tight? They certainly don't seem fussed selling at 44 and buying at 33..
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From observation dealers sell buy backs cheaper than the equivalent 'new' items. Hence the spread is probably similar.
 
sammysilver said:
Good business practice. They have rent, wages and inventory
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Agree but I would have thought supply/demand dynamics overwhelm 'business practice'. If someone offers double the premium and gets say 200% more business, also taking the business of these sensible businesses then they would need to compete or go broke. However, as Redback and monopolize noted there are a series of other factors (making the 200% gain unreasonable) at play.
 
Davros10 said:
What will physical be when spot hits $12?
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It will be the same as the spot price [$12].

If spot ever goes that low again, all of us long-time stackers will throw in the towel and admit defeat and sell up.

You will then be able to back up the truck and load up with sub$13 silver to your heart's content.
 
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Miners: "Your Honour, Silver is more precious than Gold!"
"It's market is grossly manipulated to keep its price point low"
JP Morgan: "Objection!,here-say! your honour"
Judge: "Over ruled"
(Judge rolls his eyes in disbelief muttering Douche bag under his breath)
 
hardyakkagold said:
It will be the same as the spot price [$12].

If spot ever goes that low again, all of us long-time stackers will throw in the towel and admit defeat and sell up.

You will then be able to back up the truck and load up with sub$13 silver to your heart's content.
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Spot at $12 would be below production cost.
If it gets that low, look me up & I will help lighten your load.
 
4NinesFine said:
Spot at $12 would be below production cost.
If it gets that low, look me up & I will help lighten your load.
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Not that I think it would trade down there for any reasonable time period but the miners who produce silver as ore byproduct will just take what they can get from the market. I’ve worked in a potato (chip) factory that produced granules as a loss for 30 years simply because it was a part of the supply chain that kept customers happy and people employed. Can’t imagine it’s different for other industries
 
Shaddam IV said:
Right now silver is back in the doldrums, with global uncertainty, war in Europe, a likely war in the Pacific region soon and worldwide inflation and energy shortages metals are not doing anything. Looks like the worldwide inflation event forgot about PMs.
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The supposed correlation was never there. One of those tropes so often repeated that it became lore despite the facts.
 
Shaddam IV said:
Right now silver is back in the doldrums, with global uncertainty, war in Europe, a likely war in the Pacific region soon and worldwide inflation and energy shortages metals are not doing anything. Looks like the worldwide inflation event forgot about PMs.
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This one is largely focusing on these themes. Best interview he's done for a while imo.

 
I just ordered 25 ozs from Apmex of secondary market generic rounds so what will they send? Who knows?!

I love the surprise element and have been pleased in the past hehe.

Anyway these rounds a few years ago were .36 cents over spot, now $6 dollars and something.

Im back into an active buying strategy as of the other day so it was fun to buy again. Its been a long few months without and i missed it.

I need to save cash for a garage but i feel that stopping my stacking was a big mistake so im back off the wagon and buying again woop woop.

At least need to always put a certain percentage away into a hard asset regularly i believe. Keep it as a habit and its easy.
 
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