Page 1 of 3 123 LastLast
Results 1 to 10 of 27

Thread: Premiums on PMs

  1. #1

    Default Premiums on PMs

    This is for people who has been buying bullion since early 2000s

    presently we are paying higher premium %tage wise than a few months ago,

    what was premiums like when silver was around this price in say 2008-09 times or early 2000s when silver was actually in single digits ? anyone remember?

    also what was premium like when silver peaked during 2011- people was paying same %, say around 6-10% for generics and 12-15% for coins( thats what it was a few months back say early 2015)

    thanks to all for reading

  2. #2

    Default

    Quote Originally Posted by ulanbator View Post
    This is for people who has been buying bullion since early 2000s

    presently we are paying higher premium %tage wise than a few months ago,

    what was premiums like when silver was around this price in say 2008-09 times or early 2000s when silver was actually in single digits ? anyone remember?

    also what was premium like when silver peaked during 2011- people was paying same %, say around 6-10% for generics and 12-15% for coins( thats what it was a few months back say early 2015)

    thanks to all for reading
    Verb tense is no longer a thing? Forgive me if English is your second language.

    Welcome to the forum. Premiums suck.
    "Compulsory altruism is none too altruistic." - me

    "All of us necessarily hold many casual opinions that are ludicrously wrong simply because life is far too short for us to think through even a small fraction of the topics that we come across." -- Julian Simon

  3. #3

    Default

    forgiven ....

  4. #4

    Default

    Premiums?
    I just paid $2 per oz, over spot, for some 10 ounce bars
    Used an online price checker, then calculated the S/H...

    Same system I've used before...same typical results

    There were quite a few other deals that were close...real close

    eh...
    What, Me Worry?

  5. #5

    Default

    Paid $1.09 over on Monday for 5 oz bars free shipping.
    Utah, Get Me Two!

  6. #6

    Default

    Premiums at online dealers have been kept in check. Traditional brick and mortar dealers are another matter. Overall, I expect premiums to decline as gold/silver prices continue lower.

  7. #7

    Default

    Premiums measured as a percentage are always going to go up as prices fall, even if the actual dollar amount of the premium remains constant.

    Don't look at premiums as a percentage. Look at the actual dollar amount over spot.

  8. #8

    Default

    The premium is MUCH more than a function of absolute price per ounce.

    The cost of labor to process, display, sell, track, etc. a 10 ounce bar is the same, if it is $2 an ounce or $50 an ounce, so the premium is proportionately higher with a lower price.

    For sake of argument, let's assume I charge $2 an ounce premium, and pay $1 under spot, leaving me a $3 raw profit.

    However, the larger driver is market direction and populace demand.

    If I have 1000 ounces, and the market is going down, and no one is coming through the door to buy, only to sell, the premium may go to ZERO to clear out something that is losing value by the minute.

    If I have 1000 ounces, and the market just dropped $2 an ounce, and I expect it to pop back up, and buyers are pounding on the door, I may raise my premium to $4, as I am not going to give up the ship as I expect, in 2 days, the price will be back up.

    If I have 1000 ounces, and the market is going straight up, and NO ONE is selling, only buying, and I cannot replenish my supply, and do not want to be sold out, as people buy other than silver at the store, then I might raise the premium to $5, and enjoy the ride.

  9. #9

    Default

    funny thing about premiums, the average joe is led believe that's a sure sign of a silver shortage after all premiums are a result of demand. Well if there's so much demand it should be the POS going up not the premiums. The counter argument is the jacked up price is the "real" price or something and the spot price is just the icky "paper" price. Avoid getting suckered into paying higher premiums
    "Great minds discuss ideas. Average minds discuss events. Small minds discuss people." - Eleanor Roosevelt
    "Guru's are liked not for being right but for saying what you want to hear" - me
    "Paper" investors dictate the price of silver - blitzdude
    "Fear and greed drive the Demand portion of investment Supply and Demand" - me
    "Silver can't be subject to classical supply and demand of silver and be driven by gold at the same time" - me
    "What's next for silver? Nobody knows" - APMEX email

  10. #10

    Default

    Quote Originally Posted by BuyLowSellHigh View Post
    funny thing about premiums, the average joe is led believe that's a sure sign of a silver shortage after all premiums are a result of demand. Well if there's so much demand it should be the POS going up not the premiums. The counter argument is the jacked up price is the "real" price or something and the spot price is just the icky "paper" price. Avoid getting suckered into paying higher premiums
    Physical purchasing has no merit or effect on the spot price...you know this...

Page 1 of 3 123 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •