Silver price spread

Antalon

Antalon

Active Member
Silver Stacker
Silver is sitting around AUD $131/oz, yet the lowest‑priced round on Bullion Now, traditionally the Perth Mint Kangaroo is now roughly $30 above spot. This is the first time I’ve seen the premium stretch this far. It raises the question: is the gap between spot and physical no longer just a theoretical spread, and will we see silver trade closer to spot again?

Ant
 
Antalon said:
Silver is sitting around AUD $131/oz, yet the lowest‑priced round on Bullion Now, traditionally the Perth Mint Kangaroo is now roughly $30 above spot.
Click to expand...

What surprises me more is that the same markup per oz is applied for larger coins too. I mean the difference between buy and sell for a kilo coin is now $800!

This can only be possible if buyers are willing to pay this much over spot - so the buying demand must be there I guess.
I would expect when the price trend eventually turns down, people will lose interest and all the bullion dealers now making bank will be competing with each other for business again.
 
I think the dealers are worried about replacing their stock. I have been looking to buy the new Kookaburras which apparently were going to be released in January. No sign of them at my usual dealers. If the dealers can't replace stock then they are going to sell out and have nothing on the shelves when the price increases.

More worryingly for me, I have been waiting for the Gold to Silver Ratio to hit 45 so I can swap some silver for gold. It nearly made it, 46 before it got smacked down. Currently the GSR is 56, however if you go to the dealer where my allocated silver is held, the GSR is 61 (Their Gold sell price: Silver buy price). A difference of 5 and it has been higher. Their buy/sell spread has also risen, currently 72 cents difference, it was closer to 20-30 cents previously.

It is good to have a plan but it all hinges on your dealer.
 
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