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Thread: Why are premiums so high?

  1. #11

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    Quote Originally Posted by Miteysquirrel View Post
    Silver is going to shine again. We are going to see $50 silver again, and soon. Or maybe its value calculated in another kind of currency. It will be queen to the gold king.
    I was surprised, but not shocked that silver did not hit $50+ on the last run up. I see it as probable that it will hit that mark again, but seeing it soon would surprise me. The men who move the mirrors & produce the smoke know their trade well. In the event of a currency collapse/change, which I see as inevitable, I do believe that physical commodities will be likely to get you a steak in the new game. Which ones will be how valuable seems uncertain to me, but the 5,000 year track record of precious metals certainly makes them seem likely candidates as a smart item to hold, if you can afford it.

    PMs are an insurance policy that I don't want to be without.
    “The Federal Reserve is not currently forecasting a recession.”
    Fed Chairman Ben Bernanke, January 2008
    This is no longer posted in the Fed Minutes of January 2008, but still quoted here - https://www.nbcnews.com/id/wbna22592939. The FOMC minutes still quote MR. Reifschneider. as stating the same thing.

  2. #12

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    It makes all the sense in the world. The demand is high, inflation is high, and production/supply chains are still problematic. Think about it for a second; you are a bullion vendor, and your ability to move inventory exceeds your ability to restock it. What should you do?

    Here's a weirder one for you; when silver went to around $13 I sold a bunch and made out like a bandit. The demand got so high because the sky was falling that junk silver was moving at the equivalent of $22 an ounce. So I sold a few lots at $22/oz and used the money to buy into a silver ATF at market price. Basically every ounce I sold bought me the equivalent of 1.65 ounces of paper silver. Eventually when premiums go down ill cash it in and get my silver back. Market up or down is irrelevant, I'll have more silver than when I started the transaction.

  3. #13

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    I don't really get the high silver premiums, I guess they just are not making enough silver bullion to satisfy demand? With gold, you can still get some bars at normal premiums. Well, with silver, there are the 100 oz bars --so maybe we, those who stack for savings, need to stop being prissy boutique consumers of pretty coins, and keep to the more industrial looking stuff -- even from refineries, like silver grain, if needed. Then, the pretty stuff will come back down to normal premiums. Don't let them make you a sucker, not like the buy back price has gone up as much to keep the buy-sell spread as we've known for years.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  4. #14

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    I just unloaded a bunch of well worn junk silver for what I thought was a way overvalued price. Just like ASE's the percentage over spot was crazy. So I took it. I was going to swap the cash for generic silver, but got a decent deal on some .999 gold Buf's. Less filling, more calories. Plop plop fizz fizz oh what a relief it was and they don't cause severe back pains.
    Do your own due diligence

    I stand united with my friends & family in Canada who seek freedom.

  5. #15

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    but got a decent deal on some .999 gold Buf's

    You should let us know what kind of deal you got with the Bufs on the gold score thread....I like to know when others do better than me.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  6. #16

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    Quote Originally Posted by motocat View Post
    --so maybe we, those who stack for savings, need to stop being prissy boutique consumers of pretty coins, and keep to the more industrial looking stuff -- even from refineries, like silver grain, if needed. Then, the pretty stuff will come back down to normal premiums. Don't let them make you a sucker, not like the buy back price has gone up as much to keep the buy-sell spread as we've known for years.
    I like pretty silver as much as the next guy but I just refuse to pay a premium for any of it. The bulk of my silver is generics and so called junk silver, which I love.

    Heck I do own some pretty silver. Do you remember the period around 2013~2016 when demand was in the toilet and vendors kept having sales to entice us to buy? I think the most I paid on premiums was for Mexican onzas at $2 over spot. I did get maples, cast kilo bars, provident prospector rounds, and a number of other pretty things for around a dollar over spot. I still preferred whatever was on sale for .69c over spot if not .50c over spot on the secondary market.

  7. #17

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    Quote Originally Posted by motocat View Post
    but got a decent deal on some .999 gold Buf's

    You should let us know what kind of deal you got with the Bufs on the gold score thread....I like to know when others do better than me.
    When I looked at gold coins from Kitco several days ago, I noticed that buffs were priced lower than eagles. I thought that buffs were the better deal. Historically, I had become accustomed to seeing buffs carry the higher premium.
    “The Federal Reserve is not currently forecasting a recession.”
    Fed Chairman Ben Bernanke, January 2008
    This is no longer posted in the Fed Minutes of January 2008, but still quoted here - https://www.nbcnews.com/id/wbna22592939. The FOMC minutes still quote MR. Reifschneider. as stating the same thing.

  8. #18

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    Quote Originally Posted by motocat View Post
    but got a decent deal on some .999 gold Buf's

    You should let us know what kind of deal you got with the Bufs on the gold score thread....I like to know when others do better than me.
    I would normally do just that, but in light of the drop in PM pricing since last weekend, what I considered a decent price last weekend is no longer a great price today. Hindsight is always 20-20 and so if I had just sold my junk silver and kept the fiat for a week that I most likely would have been able to have done better purchasing gold today. However, I was at a coin show that's not an ongoing event and since the next scheduled coin show isn't until sometime in October there was no guarantee that at that time I would do better there at that future show and so there was no thought of waiting for a future better deal. The main reason for being at the show wasn't in buying gold or silver. It was to take advantage of the crazy markups on cull junk silver that I had in my possession and to lock in that profit and turn it into either cash or PM before that profit turned south. Could I have waited until October or November for a better profit? Sure, but I also could have seen a smaller profit. My decision to then take my profit and buy gold was secondary and only taken since I was able to buy the buffalo's at a price ($1,820) below the price at online dealers on that day. I really had thought I was going to go home with a couple 100 ounce silver bars. But premiums on buying silver bars wasn't all that great, IMHO.
    Do your own due diligence

    I stand united with my friends & family in Canada who seek freedom.

  9. #19

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    I need to add that the population density of the area I live in is between 190 to 350 people per square mile and as such there are no coin dealers for miles and miles. There are a few "We buy Gold" locations around here, many are only open at random it seems, plus they often quote crazy prices and as such are not worth returning to in the future. One such location that I have used after Bronkster1967 suggested it (it was a 90 minute drive) rarely has any silver to sell when I call. If he is even open when I call.
    Do your own due diligence

    I stand united with my friends & family in Canada who seek freedom.

  10. #20

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    Quote Originally Posted by LongDonSilver View Post
    I need to add that the population density of the area I live in is between 190 to 350 people per square mile and as such there are no coin dealers for miles and miles. There are a few "We buy Gold" locations around here, many are only open at random it seems, plus they often quote crazy prices and as such are not worth returning to in the future. One such location that I have used after Bronkster1967 suggested it (it was a 90 minute drive) rarely has any silver to sell when I call. If he is even open when I call.
    This is so true... I even live 10 minutes down the road from the guy and we're friends as I've done business with and known him for years and I don't even get a call most of the time. He says it's so busy where he's at the phone rings off the hook, and the local hunger for PM's is so high that he's got lists of people clamoring for more, and that as soon as he gets something in the door it's gone within hours (sometimes minutes)- usually sold out by the end of the day. He did move his shop recently, about 10 minutes down the road from his old one, in the next town over. He also still sells junk silver (Constitutional 90%) at spot/melt price, too. And he sells his gold coins and jewelry for slightly over melt also- much better than any online offering as well as beating most LCS pricing. Tell you what- I'd be cash poor but loaded in metals if I actually did get as many phone calls from him as I'd like.

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