monopolize said:
Pirocco said:
Do you think dealers bother about quantities coins sold?
They bother about amounts dollars selling delivers, which is a function of ounces AND price per ounce, and they crank up the price (along futures) as much as they can.
Of course, until demand dries up and / or customers sales back increase.
Then they quickly crank down the price, as to have to give less dollars for the back sales and lure again demand.
Until the opposite happens and the story repeats.
What are "through the roof" (a more accurate claim, for ex, 1.3 times previous has more substance) sales anyway, compared to a futures bogus order of last week 550 Moz?
Clearly ppl DO did at $20, otherwise it wouldn't have been there. Yesterday I've seen a post about silver bars purchased last week, with sequential serie numbers. That's 1 purchase, in the peanut scope that this forum delivers.
About sales back, well another peanut element: SilverSale sold for a tidy profit. Well, some1 bought there too.
There is some general logic in things, but sometimes (often?) it's missed due to too narrow scopes for the trend of the subject.
Higher total sales amount does not equal higher profit. You clearly do not understand business. Of course they care about quantity. They want volume. Not higher total sales amount. It matters not to them what price they buy it because it's all hedged. What they want is to move volume. If they can move a million coins at $14 and make $1 per coin that's $1 million on sales of $14 million. If they move a million coins at $20 and make $1 per coin that's still $1 million on sales of $20 million. And with the current lower physical demand they've actually had to reduce their premiums to move that same million coins.
If you want evidence of physical demand read this post I made on Indian demand.
http://forums.silverstackers.com/topic-76030-next-two-weeks-pivotal-for-precious-metals-page-2.html
And listen to this interview with CEO of sunshine mint.
http://www.silverdoctors.com/silver...sunshine-minting-ceo-tom-power-silver-prices/
What do you mean people clearly do buy at $20 otherwise it wouldn't be at that price? How is a price of $20 a reflection of people buying physical silver. The price of silver is based on the Comex futures contract. I never claimed physical demand is the primary determinant of silver price so I'm not sure why you mentioned the sequential numbered bars or silversale making a profit on a small sale. I simply stated that your claim that dealers prefer $20 silver rather than $14 silver is incorrect.
Your said earlier "sales went through the roof".
Sales expressed in what?
I assumed ounces, like ASE / Perth Mint etc report.
So I answered that it's not ounces alone that determines the dollars that come in, but ounces AND price.
And now you state
"of course they care about quantity".
AND
"volume"
AND
"not higher total sales amount".
AND
"moving million coins"
Can you follow yourself here?
I can't.
I see what a dealer receives, simply as ounces x price per ounce, as a dollar sum of all sales, at the sale specific price / ounce.
What else?
And of course dealers prefer to sell at higher prices. $20 preferred above $14. Every seller prefers a higher price. Every buyer prefers a lower. I can't grasp how you can deny this.
You said that demand dried up at $20. Well, there are people that bought / buy there. Otherwise that price wouldn't have been there in the first place.
