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Thread: Online retailers taking advantage of premiums

  1. #11


    I think the dealers are quite aware of the disconnect between paper and physical and don't want to be caught holding physical if the two prices merge. They're in the business of making money and holding ASE/AGE's that they paid physical minus a few bucks if and when that happens and physical tanks down to the paper price is a good way to go out of business. They have about as much of a clue as to what the future demand will be as the rest of us. All we all know is that for now the demand is off the charts. Will if continue or will TPTB be able to smash the demand and once again control the PM markets. Thee dealers are hedging their bets. They have to in order to stay in business. Plus if someone wants to sell now they'll take the profit and run with it. But from what I hear, see and smell, there's nobody selling. It's all buy, buy and buy. The mints are either not able to keep up or are throttling the supply hoping to quash the demand. Only time will tell who's going to come out on top. The dealers sure don't. I've got one dealer that I've told call me if he's got any inventory and so far my phone hasn't been ringing off the hook. There's a witching hour coming in June and it will be interesting to see if TPTB have to cover their shorts in the next couple of months. All of this is showing up in mining stocks too. Some silver miners are holding back selling their production thinking that the POS is being held down and they're planning on holding out for higher prices. Crazy times ahead.

    So if I was a betting man, I'd say TPTB are under the gun and the government is trying to kill the dollar all suggests that PM is on the bottom of a good price movement. But GOK's what's going to happen next.
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  2. #12


    Quote Originally Posted by and4rik View Post
    Worth noting that I am not selling here as well. Point is there is no disconnect. If there were,the buy sell spread would be the same as pre oandemic levels, even though a much inflated dollar amount. Call it something else but disconnect it is not.
    There was no disconnect before the pandemic. How would a pre-pandemic like spread be considered a disconnect? You lost me. Evidence suggests the buyback has partially disconnected and increased over pre-pandemic levels. Maybe it's the glasses...

  3. #13

  4. #14


    I see no problem with online retailers taking advantage of premiums.

    Silver is about $27.40 per ounce now.

    On Compare Silver Prices, Kitco has the lowest price for American Silver Eagles at $37.51, approximately a $10 per ounce premium.
    Others seem to be selling in the $38.xx and $39.xx range.

    Why can't private sellers advertise their American Silver Eagles for Spot + $9 or as high as $12 per ounce?
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  5. #15


    For more clarification on my example: 2021 perth mint silver rectangular dragon bullion coin. Listed at 42.50$-44.25 depending on payment method for single - 20 coins. Called to get a quote on buyback price: 35$ for any ammount. That is a 7.50$-9.25$ spread. Pre pandemic levels were a three dollar spread, spot +3$ sell; spot buy, if I remember correctly. I stand corrected on the original amount I posted, yet this still represents a 60-100% increase on premium buy sell spread. What supply chain issues are there exactly to cause this? Answer is it has nothing to do with the supply chain disconnect. Retailers have either simply decided to pay less to buy, sell for more, or a combination of both.

    Spot today is 27.39$

  6. #16


    I think the high premiums more reflect the loss of faith in the dollar and their willingness to bail on it. You need to take into account how undervalued it is compare to all other assets. That has an effect on premiums as well.

  7. #17


    US Dollar/USDX - Index - Cash (DX-Y.NYB)
    NYBOT - NYBOT Real Time Price. Currency in USD

    90.90-0.41 (-0.45%)
    As of 6:04PM EDT. Market open.

    The ole grey mare just ain't what she used to be>>>>
    Last edited by vertical1; 05-06-2021 at 06:12 PM.
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  8. #18


    i don't understand all that fuss about premiums, if they are too high, just don't buy.

    I see an artificially organized inflationary hystery pendemia on the run. There is absolutely NO reason why prices should rise. It is the artificial URGE which is at the origin of the pricerises in lumber, steel, and other commodities. The money printing is a fake reason why there should be inflation. Debt money needs to be paid back in due time too, so the money printing is partly absorbed by the repayment of debts.

    Easy money on the other hand allows the links in a chain to hoard stock ( aiming at a windfall premium) and that is the reason why we see nowadays " inflation", but that tension is only leading to overproduction and THAT overproduction will finally trigger off the REAL crisis.

    I have seen how the folly of fearing to miss the profit pans out now almost exactly fifty years ago.


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