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Thread: Silver premiums are high.

  1. #21

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    Quote Originally Posted by joeinnj View Post
    Physical PM purchasing would be the one and only area of investment I DON'T look at percentage premiums.
    Of course with low spot we have higher percentage premiums yet in Real Dollar Terms premiums have never been lower.
    Assuming we don't forever stay in flat to falling markets PM premiums most certainly are retrievable and in heated markets multiples of premium paid at that.
    Not to jump on your lovefest with rawteam1 but not looking at premiums is one of the surest ways to end up with a lot less bullion when everything is said and done. Would you throw away two silver eagles out of each tube? How about fifty out of a monster box? That's the effect of 10% premium tax on your stack.

    I don't flip stuff to make a buck here out of a hundred, I flip stuff to shrink my premiums away. It is a fun hobby and it pays. On the last JMBullion sale of 1 kilo Johnson Matthey bars at .89 over spot I found a local person that paid me .89 over spot for my generics, and I got those on another sale for .49 over. The end result? I end up with a brand name product that usually retails for 1.83 over spot (cheap enough as it is) for .49 cents over.

    You can rightfully say that a hundred bucks here and there is not that big a difference, but over the long haul it builds up, not to mention of the skills you build up in the process. To me all those generic rounds you don't like are nothing but American Eagles; every time I find Eagles and Maples and everything else at the right price, I dump the rounds I found on the cheap and pick them up.

  2. #22
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    Quote Originally Posted by DBCooper View Post
    Not to jump on your lovefest with rawteam1 but not looking at premiums is one of the surest ways to end up with a lot less bullion when everything is said and done. Would you throw away two silver eagles out of each tube? How about fifty out of a monster box? That's the effect of 10% premium tax on your stack.

    I don't flip stuff to make a buck here out of a hundred, I flip stuff to shrink my premiums away. It is a fun hobby and it pays. On the last JMBullion sale of 1 kilo Johnson Matthey bars at .89 over spot I found a local person that paid me .89 over spot for my generics, and I got those on another sale for .49 over. The end result? I end up with a brand name product that usually retails for 1.83 over spot (cheap enough as it is) for .49 cents over.

    You can rightfully say that a hundred bucks here and there is not that big a difference, but over the long haul it builds up, not to mention of the skills you build up in the process. To me all those generic rounds you don't like are nothing but American Eagles; every time I find Eagles and Maples and everything else at the right price, I dump the rounds I found on the cheap and pick them up.
    Despite you and I rarely agreeing on much I'll explain my point on premiums as I at least can respect you for clearly having an attached head to your shoulders.
    I've been full bore into metals only since late 2011. Since that time I've witnessed gyrations in spot from the high 30's into the 20's back to the 30's so on until finally climaxing with a near waterfall since 2014 time period.
    Premiums you're not going to argue are based on demand period end of story (basic sh!t there).
    When physical demand spikes which pieces are going to lead the premium barrage, the most sought after pieces (ASE, U.S. 90% etc) or the lesser known pieces "Rounds" etc ... (and this either by laymen demand or deeper pocket demand)
    Matter of fact you and I have had this debate and I remember posting premium tracking of ASE's, 90%, Bars, Rounds etc ... The most recognizable and desired pieces always lead the premium boom, why, because they're just that, in demand more so than generics. (look at buy back prices today if need be ... ASE / 90% a couple bucks over, generics nearly under spot, why's that?)
    Maybe one of the around in the 2007-09 period will chime in.
    Premiums I've read at that time where in excess of 100% if there was any metal to buy in the first place.
    I'm not denying Generic premiums would rise also (investment grade Silver shortages would lift all boats in premium realm) but the most recognizable and desirable pieces always lead the way and in multiples.

    As far as my "Real Dollar" philosophy paying today $2.50 over for what had been $7-8 over in the past is a bargain in my book .... and yes because when heated markets return those premiums will also return and are beyond retrievable.... high spot days are buy bottom shelf days, low spot and premium means load up on premium pieces ......... IMO
    That's enough for now ....
    I don't like posting a book ..... nobody bothers reading those.

    O yes, and You and I where debating this same debate in 2013 or 2014 back when the spot takedowns ignited physical buying (obviously igniting premiums also)
    Unfortunately spot takedowns no longer ignites physical buying and we'll need to wait for a spot heat up to see the next premium jumps.

    Hey RawBOY ........ That's the way two adults who don't necessarily agree converse. (and let me guess, you now think I'm talking sneakers)
    Last edited by joeinnj; 06-28-2015 at 05:00 PM.

  3. #23

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    Quote Originally Posted by SilverBones View Post
    I see a Mint Roll of 20 ASE's on the A*MEX ebay store for $384.65. That's $19.23 per oz. with shipping included. I'm not sure where the $25.00/oz price comes from.

    .
    Strange, the listing was there a few hours ago ($368 delivered). G***mart has them listed for $373 delivered.
    Plata O Plomo

  4. #24

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    Quote Originally Posted by Bobmhey View Post
    Silver premiums are high. Local dealer wants almost 25% premium on eagles. Ebay and other sites are running about 37% markup. Apmex is looking for 25.03 on the bay. That is ridiculous. Kitco isn't even listing prices. The price should rise based off this simple observation. Because spot doesn't seem to matter.
    Seems to me like premiums rise when spot falls . .
    Attached Images Attached Images

  5. #25

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    Quote Originally Posted by maxwellsilverhammer View Post
    wow, some huffing and puffing going on round' here. lolz
    I had one back and forth go around with another menber in my time on Kitco and felt like an idiot as I realized what was happening. now I just put out my view and let others agree-ignore-refute as they please, no need to get personal or have the last word or "prove" I'm right for me.

  6. #26
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    Quote Originally Posted by The Sage View Post
    Seems to me like premiums rise when spot falls . .
    I agree that had been the case in the past ....
    The cartel had to walk a tightrope of taking down spot yet risk igniting physical investor demand.
    (and that's exactly what had been happening in 2012-14, lower the price the more physical buying went up + premiums)
    Seems the past year+ or so their plan has worked though.
    Their consistent and persistent price takedowns have worked as designed .....
    They've BUSTED investor sentiment and lower and lower prices no longer light up physical buying.
    Every one here has a wait and see philosophy now + they've managed to scare off new investors and long shook off the weak hands.

  7. #27

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    compare silver prices has a little % marker beneath prices, I see the only way to get 5% premiums are generic or bars, ASE premium are 16%.

  8. #28

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    Lol, oh no the "cartel" did it, lol, fantasyland.... Watch out everyone... BOO!!!!.....
    keceph `anah

  9. #29
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    Feb 2012
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    Honestly the opposite can happen too. People were really trying to buy and the most busy I ever saw the store was when I cashed in my meager silver stash the day before Easter in 2011. When it is cold like it was nobody seems to want to buy. Now with Greece and possibly every other PIIGS and France and The USA in massive debt with Japan, etc. There is a different feel. But the price is stable or going down. Curious. But premiums do seem high, that is all I am saying. Yes you can get good prices. Maybe the premium is just high for those of us buying 1-9.

  10. #30

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    My theory...Vendors bought their stock at a higher price and are somewhat reluctant to take a lose as spot falls. Price stays sticky, giving the appearance of higher premiums. I see that on a micro-economic level at my little local shops. I would guess it works that way to a degree with the big sellers, too.
    Ain't nuthin gonna stop me now but my innate inabilitree to progress cognatious thunk.

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