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Thread: Premiums on silver are unacceptable. Starting to resemble fractional gold.

  1. #1

    Default Premiums on silver are unacceptable. Starting to resemble fractional gold.

    I haven't purchased any Silver bullion in some time now and actually sold a couple hundred ounces at the $27 mark. I can't buy at the current premiums. Seems standard now to charge over $5 in just a premium and then you have taxes and if you use credit there is an additional fee. That's for generic bullion. Eagles are $16 over spot?

    It used to be that bullion was a couple bucks over spot and if you were lucky you found some just a buck over. Your Silver Eagles were three to five dollars over spot max.
    I havent been keeping up on the premium prices because I haven't been a buyer since the pandemic. Hopefully, some balance will be restored.

  2. #2

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    I have started buying junk silver instead of bullion. The last time I went to buy PM I decided to buy Pt instead of Au or Ag. The premium was high, but Pt I believe is comparitively cheap.
    Now there's no more oak oppression
    They passed a noble law
    Now the trees are all kept equal
    By hatchet, axe and saw.

    I will not comply.

    The Tea Party... quietly plotting to take over the world,
    and leave you the hell alone!

  3. #3

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    Quote Originally Posted by t00nces2 View Post
    I have started buying junk silver instead of bullion. The last time I went to buy PM I decided to buy Pt instead of Au or Ag. The premium was high, but Pt I believe is comparitively cheap.
    Pt premium is about halfway of silver (~40%) and gold (~5%) and take up less space than silver

  4. #4

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    Quote Originally Posted by t00nces2 View Post
    I have started buying junk silver instead of bullion. The last time I went to buy PM I decided to buy Pt instead of Au or Ag. The premium was high, but Pt I believe is comparitively cheap.
    junk in my area has a 100% premium! Just went to a coin show and they were asking 28-32 times face. Morgans were $40-50 for culls, Peace culls were $34. Guys were selling 1/10oz gold eagles for 230-240 and 1/10oz libertads for $450! No clue what is going on with the crazy premiums. This is the first time I went to a show to sell, brought a tub of 40% halves. A dealer offered $2 and when I said I would just keep them a guy behind me offered $5 each and took all I had. I remember selling 40% JFKs for less than melt in the past, I will gladly sell them at a 60% premium.

  5. #5

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    "junk in my area has a 100% premium! Just went to a coin show and they were asking 28-32 times face. Morgans were $40-50 for culls, Peace culls were $34. Guys were selling 1/10oz gold eagles for 230-240 and 1/10oz libertads for $450! No clue what is going on with the crazy premiums. This is the first time I went to a show to sell, brought a tub of 40% halves. A dealer offered $2 and when I said I would just keep them a guy behind me offered $5 each and took all I had. I remember selling 40% JFKs for less than melt in the past, I will gladly sell them at a 60% premium."

    Demand should be going down. It isn't. They wouldnt be charging if people weren't buying at these prices. They clearly are. I am going with numismatic, platinum or just holding cash and waiting to see what happens. Premium prices are in a bubble.

  6. #6

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    funny thing about that, every single dealer was packing up midway through day 2 because they said it was dead, maybe 20% packed up and left after day 1. I dont think people in the hobby are going to tolerate the premiums and the regular joe is going to buy online. It is funny seeing AU flying eagle cents there for $900-1200 and the same cents on ebay for 250-350. This wont last long. Many guys there were complaining they didnt make enough to pay for their tables.

  7. #7

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    In my store I'm selling 90% for 18 times face, 10 oz. and kilo silver bars for spot +$2. Platinum 1 oz. bars for spot plus $100. All of these, subject to what I have in stock, or what I buy(for 10% less than sell prices). Morgan dollars most for $28-32. Silver eagles are problematic. These I sell for spot for $10. Fractional gold for spot +2-5%. I refuse to pass on premiums that are temporarily too high to my customers. Many times customers walk in and I don't have one of the above items in stock. I take their name and tell them I'll call when back in stock. Interestingly, fwiw, when I call a few days later and let them know they're in stock, available....90% of them commit to buying and coming in tomorrow, but they don't show up, whether silver/gold are up or down overnite.

  8. #8

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    inside-"In my store I'm selling 90% for 18 times face, 10 oz. and kilo silver bars for spot +$2. Platinum 1 oz. bars for spot plus $100. All of these, subject to what I have in stock, or what I buy(for 10% less than sell prices). Morgan dollars most for $28-32. Silver eagles are problematic. These I sell for spot for $10. Fractional gold for spot +2-5%. I refuse to pass on premiums that are temporarily too high to my customers. Many times customers walk in and I don't have one of the above items in stock. I take their name and tell them I'll call when back in stock. Interestingly, fwiw, when I call a few days later and let them know they're in stock, available....90% of them commit to buying and coming in tomorrow, but they don't show up, whether silver/gold are up or down overnite."

    Glad to hear there are still honest folks in the business. I haven't called the local coin shop. They were always high on premiums in general so I am not so sure that they will be much different than online.

  9. #9
    Join Date
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    People keep calling it premiums, I thought physical was the real price of silver and spot was the not so real paper price.

  10. #10

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    Quote Originally Posted by insidedealer View Post
    In my store I'm selling 90% for 18 times face, 10 oz. and kilo silver bars for spot +$2. Platinum 1 oz. bars for spot plus $100. All of these, subject to what I have in stock, or what I buy(for 10% less than sell prices). Morgan dollars most for $28-32. Silver eagles are problematic. These I sell for spot for $10. Fractional gold for spot +2-5%. I refuse to pass on premiums that are temporarily too high to my customers. Many times customers walk in and I don't have one of the above items in stock. I take their name and tell them I'll call when back in stock. Interestingly, fwiw, when I call a few days later and let them know they're in stock, available....90% of them commit to buying and coming in tomorrow, but they don't show up, whether silver/gold are up or down overnite.
    If my math is still good, 18x face comes up to about $25.2/oz. Spot today is about $21.5.
    If I were in your store, & saw fractional gold for 2-5% above spot, chances are that I would be doing some buying.
    “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.

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