Which dealers are actually lowering prices and selling close to spot?

Earthjade

Earthjade

Member
The way I'm seeing it, most dealers are charging prices as though the spot was still around $35 - $36/oz instead of being closer to $30.
Now, the physical market should lag behind the paper market as dealers obviously don't want to sell at a loss, but doesn't it seem like they're dragging their feet on bringing those prices down?

So...when silver bottoms out at $24-26 before rising again, who are you actually going to be able to buy from at close to those prices?
It may only touch $24-26 for a few days but if you're after physical at close to those prices, I have the feeling you're not going to find any to take advantage of those discounts.
It may be forums like these will be the only decent sources!
 
You will get close to 30 for bars, generic rounds and maybe ase and phillies.

The rest are still expensive, I'm still hunting lunars.
 
just depends on where people (dealers and lay ppl alike) really value silver... people may not be willing to sell at lower prices. I guess it just comes down to meeting halfway. Apparently there are sources other than SS and dealers that are selling lower than dealer prices (closer to spot). Whether or not these sources can continue to supply the growing demand at these current spot prices only time will tell.

From my experience, people dont want to pay a dealer price from someone who isn't a dealer. Where they will be getting their silver from is anyone's guess. I'v seen gold sold at the same price as dealer price and ppl thought it was fair. Apparently this rule doesn't apply for silver.

..maybe people want their cake and eat it too! for the same spot price, people want a low buy in and a high sell price. I'd like to see some conformity between dealer prices and the prices we see on here as well. make it a more level playing field. it then becomes fairer to those who need to sell but dont have the premium ripped from them if they choose to sell privately.
 
Because spot price is the international wholesale price for large bars. A coin or a small minted bar is a different animal. Think of it this way - do you check the price per ton of maple before you go into Ikea looking for a dining table and then ask them why the table costs more than the value of the planks that it was made from? A mint has to melt the silver and press it into coins, the dealer has all of his rents and overheads to cover, same as any other business. And, like any other business, there is supply and demand. Spot price does not reflect the price of silver really, it is the "value" of paper silver. I would suggest that more and more sellers will look at the availability of real metal when determining prices, not spot price, which really has nothing to do with most real silver products. Spot can go to $1.00, who cares except the people who own virtual silver. The actual metal will not follow.
 
I think that as time goes by spot price will have less and less relevance to the street price of silver from dealers.
 
Jonesy said:
I think that as time goes by spot price will have less and less relevance to the street price of silver from dealers.
Click to expand...

I think what you really mean is on the downside when we get substantial dips like the one we recently experienced.
Do you think that if the paper silver price shot to $48 tomorrow that bullion dealers would not be jacking up their prices accordingly?
 
Everyone is free to teach the dealers a lesson and offer their silver for spot or spot + 2%

I am sure many would appreciate that.
 
I went to a local show today that normally has 70+ dealers. Today, maybe 30-40. Most had very little in their cases. Only thing close to spot was generic bars. They don't want to sell at these "low" prices.
 
Earthjade said:
Jonesy said:
I think that as time goes by spot price will have less and less relevance to the street price of silver from dealers.
Click to expand...

I think what you really mean is on the downside when we get substantial dips like the one we recently experienced.
Do you think that if the paper silver price shot to $48 tomorrow that bullion dealers would not be jacking up their prices accordingly?
Click to expand...

Good point.
 
I don't really understand this 'dealers making a loss' thing.


If price drops to $1 tommorow, and dealers sell their silver for $2 and immediately re-order for $1.

Then they are left with the same amount of silver, and have made 100% profit on the silver the sold, even if the day before silver was at $1,000 an ounce.
 
grinners said:
I don't really understand this 'dealers making a loss' thing.


If price drops to $1 tommorow, and dealers sell their silver for $2 and immediately re-order for $1.

Then they are left with the same amount of silver, and have made 100% profit on the silver the sold, even if the day before silver was at $1,000 an ounce.
Click to expand...

That's the theory, and I think that it used to work well. But dealers have to get their supplies somewhere, and I think that they are having trouble sourcing replacement stock in a timely manner.
 
Dealers first responsibility is providing for their families, not providing PMs cheaply as a public service. I support any business owner's right to sell their wares for whatever they want.
 
Jonesy said:
grinners said:
I don't really understand this 'dealers making a loss' thing.


If price drops to $1 tommorow, and dealers sell their silver for $2 and immediately re-order for $1.

Then they are left with the same amount of silver, and have made 100% profit on the silver the sold, even if the day before silver was at $1,000 an ounce.
Click to expand...

That's the theory, and I think that it used to work well. But dealers have to get their supplies somewhere, and I think that they are having trouble sourcing replacement stock in a timely manner.
Click to expand...

It is now over 6 weeks since I place an order for the lunars; almost half of that order still hasn't arrived.
Thank God I have another source of income! :(
 
A couple of weeks ago spot went from $31 to $27 to $31 in a couple of hours.

Volatility like that is a nightmare to manage for most, which is why a lot of dealers shut shop for a few days.
 
Looks like Perth Mint unable to capitalise on the dragon popularity, since the coins are not available to order in smaller sizes. When the new press was installed we all thought the nightmare will be over and they are prepared for the increased demand.
They will have increased sales and the management will be awarded instead of penalised for the lost sales. This is a typical example how government run business works.
 
Common sense dictates that if you buy something to sell and the price you are offered makes you a loss, then perhaps you don't sell it.
If you also firmly believe your inventory will appreciate after a dip then you hold and if cash allows you buy more to stock at the lower price.
Many dealers have priced some of their coins at a fixed profit ( 1oz Dragons for example ) and don't adjust - someone will buy if not today then tomorrow.
Common bullion coins like Maples, ASEs, Phillies etc seem to follow the spot curve as they are no doubt bought and sold continuously in bulk.
Same pattern with oil and gas - contracts placed and sold at the previous price, quick to price in increases and very slow to drop prices ( if at all ) on the downside.
 
The best deal is one that leaves a bit of value for the next guy. If you don't leave something in the deal they won't be there next time you want to buy or sell something.
Sometimes forming a relationship with a dealer is better than spot prices.
Ie. If you are looking for a certain coin you can't find, they may help. In my case they sold it to me out of their personal collection and at the price they paid.
 
Don't forget for new coins you are paying an added mintage fee. Mints buy at spot and charge a premium for minting. If you want near spot buy junk silver coins. In the us u can buy 90% silver junk silver coins for as little as .80 over spot
Of course there's absolutely no numismatic value and never will. Whereas many unc bullion coins u may find later there is a numis value I.e 1996 ASE. Wouldn't u love to have 100 rolls of those @ 1.00-2.00 over the spot price of $5-6 back then
 
interested to know some name as topic stated.
want to know which one provide best service.
ordered mine on 25/9, paid in 24 later, but until now the order still has not arrived.
kinda disappointing, they should write the ETA else first time buyer like me will assume it is ready stock.
 
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