WHAT IS THE TRUE SILVER SPOT PRICE?

S

SULLA

Active Member
Silver Stacker
Comex and related sites with the paper price?

OR

The Shanghai exchanges.

Local bullion dealers appear to be playing / selling closer to the Shanghai physical price than the Comex paper price?

Any thoughts?
 
100%
Could go on and on about how theirs not a single reference price... every market has its own makers...
they just AIR their prices far and wide and much of the western world uses it as a baseline.

Comex is just an exchange that tees up a certain pool of buyers and sellers FOR: specificly: the 5000oz silver contracts.
trading to cover hedging, so much of the "paper" are in fact... promises in the MARKET, that lay claim on the inventories attributable to the members who have open sales eligable to be claimed.

its just like a bullion shop, for the BIG guys.
instead of adjusting the premiums.. they adjust the margins, because unlike a bullion shop. they dont accept 100% funding for "allocated and unallocated... they manage to grant the exposure, on a partial payment... based o nthe levels of BOTH pools, for delivery.

and if your paperisnt honored with "allocated"/eligable... then its a claim on the "unallocated", and your basicly prompted to roll into further futures for delivery, even if they run out.. on the basis of the market being open.... not sure what happens in force majore...

in the use as a hedge, its potentially also leverage... on 5000oz bars.
justified as a partial payment, because FWIW your paper is only partiall and abstractly allocated....

we pay premiums for higher quality fractions of this volume. for immediate actual delivery of physical on the SPOT.
so for 10oz and kgs im surprised we are not more often trading at premiums to the 5000oz contracts.
the bullion dealers charge more for physical in the vault allocated, than unallocated.
and id dare you to try to claim delivery of unallocated with physical and see what happens...
even with ETPMAG shares theirs a physical fabrication fee and it then ends up as a premium to spot for whatever coins /bars are untimately produced and delivered to you.

IMO, not a shanghi price... but considering SPOT is the price of a 155.5kg bar.
and pricing the smaller stuff accodingly to a more realistic definition of what "on the spot" means..

SPOT on EBAY... is at a premium as to the ebay fees, and also. the stock levels and competition in THAT market.
consider what happes to silver on EBAY when the fees for sales listings change... or when theirs only 1 seller.

Shanghi premiums are likely more often claimed for delivery, contributing to higher physical flow, higher eligable turnaround and stress impacting the fabrication demand.. which they probibly bank heavily on the silver refiners to ensure that the supply is provided.

i cant imagine what its like if they run out of eligable and resort to flowing silver fabricated for external customers, and push out their delivery times.
i can however imagine that some of the reasons for perth mints delays may be because refinement overseas is laggy because its been delivered locally in china to keep their industry moving.
"its there. its just not in the right form...
sure.. its not in transit back from being refined. and the blanks they make are shipped back offshore.. so...
we dont have product for locals.
china export restrictions.... im assuming it supports assurance for the promises they make and the limitation of risks associated with ANY excess refined product movements out of country that might impact the flow issues thay have.

But yeah Shanghi is the new Ask and Comex is the new Bid. For pretty much anyone who is advertising open to trade these days.
if your a seeker... good luck... your going to likely find high prices and minimal offers without doing the haggling required to get something that makes both parties happy.
 
Last edited:
Azure said:
100%
Could go on and on about how theirs not a single reference price... every market has its own makers...
they just AIR their prices far and wide and much of the western world uses it as a baseline.

Comex is just an exchange that tees up a certain pool of buyers and sellers FOR: specificly: the 5000oz silver contracts.
trading to cover hedging, so much of the "paper" are in fact... promises in the MARKET, that lay claim on the inventories attributable to the members who have open sales eligable to be claimed.

its just like a bullion shop, for the BIG guys.
instead of adjusting the premiums.. they adjust the margins, because unlike a bullion shop. they dont accept 100% funding for "allocated and unallocated... they manage to grant the exposure, on a partial payment... based o nthe levels of BOTH pools, for delivery.

and if your paperisnt honored with "allocated"/eligable... then its a claim on the "unallocated", and your basicly prompted to roll into further futures for delivery, even if they run out.. on the basis of the market being open.... not sure what happens in force majore...

in the use as a hedge, its potentially also leverage... on 5000oz bars.
justified as a partial payment, because FWIW your paper is only partiall and abstractly allocated....

we pay premiums for higher quality fractions of this volume. for immediate actual delivery of physical on the SPOT.
so for 10oz and kgs im surprised we are not more often trading at premiums to the 5000oz contracts.
the bullion dealers charge more for physical in the vault allocated, than unallocated.
and id dare you to try to claim delivery of unallocated with physical and see what happens...
even with ETPMAG shares theirs a physical fabrication fee and it then ends up as a premium to spot for whatever coins /bars are untimately produced and delivered to you.

IMO, not a shanghi price... but considering SPOT is the price of a 155.5kg bar.
and pricing the smaller stuff accodingly to a more realistic definition of what "on the spot" means..

SPOT on EBAY... is at a premium as to the ebay fees, and also. the stock levels and competition in THAT market.
consider what happes to silver on EBAY when the fees for sales listings change... or when theirs only 1 seller.

Shanghi premiums are likely more often claimed for delivery, contributing to higher physical flow, higher eligable turnaround and stress impacting the fabrication demand.. which they probibly bank heavily on the silver refiners to ensure that the supply is provided.

i cant imagine what its like if they run out of eligable and resort to flowing silver fabricated for external customers, and push out their delivery times.
i can however imagine that some of the reasons for perth mints delays may be because refinement overseas is laggy because its been delivered locally in china to keep their industry moving.
"its there. its just not in the right form...
sure.. its not in transit back from being refined. and the blanks they make are shipped back offshore.. so...
we dont have product for locals.
china export restrictions.... im assuming it supports assurance for the promises they make and the limitation of risks associated with ANY excess refined product movements out of country that might impact the flow issues thay have.

But yeah Shanghi is the new Ask and Comex is the new Bid. For pretty much anyone who is advertising open to trade these days.
if your a seeker... good luck... your going to likely find high prices and minimal offers without doing the haggling required to get something that makes both parties happy.
Click to expand...

Nailed it.
 
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