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

  1. #11

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    Quote Originally Posted by jiggysmb View Post
    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.
    There is a time to buy & a time to sell. Recognizing which is which, is a valuable skill. Usually the crowd is wrong.

    In the past, I used to shoot a lot. As a result, I built up a pretty good stock of ammo. Then Obama got into office & prices went to the moon. I got a table at a gun show & sold all I had, except for 1 box per gun that I owned. Much of what I sold brought in 3-4 times what I had paid for it. A hobby turned out to have been a good investment. At that time, many people thought that I was crazy to sell because they thought that it would only go up from there. They were right, for a while. Then, like magic, prices came down again. If I still shot, I would be buying up ammo now, as prices are no longer sky high. But these days, I'd rather buy & sell gold & silver, even if I don't expect a 4-bagger return on it.

    Is now a buy time or a sell time? That is the real question at hand. If someone offered me $34 for a peace cull, it would become theirs. If someone offered me 30x face for junk silver, I would sell all that I had & ask for their contact info in case I found more later.

    There was a time when spot price held real meaning. Today, it only seems to matter if you are trading paper. The paper markets & the physical markets have become two different animals. Premiums may as well be a myth, now that spot price seems to resemble a myth.
    Last edited by SilverPalm; 11-26-2022 at 08:32 PM.
    “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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    Quote Originally Posted by jiggysmb View Post
    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.
    Ahhh, glorious market dynamics at work.
    “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.

  3. #13

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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.
    hey insidedealer, i had developed a great relationship with a lcs for many years that sold to me as you do your clients. no longer. he transfered to his son who hired his son for all dealings and the prices went up to beyond what i will pay now. i still visit occasionally just to ask about 90% and bullion prices on ag and au coins, bars but usually cannot score anymore. i did just bid on an online auction from a local realestate auction guy that happened to have some au and ag in an estate sale. i won 9 of the items - all 90% halfs, quarters and dimes. averaged out to 21 x face after adding the 15% buyer fees. that was the best i have seen in my location in a couple years now.

  4. #14

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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.
    It's been a long day for me and seem to have a bit of brain fog (well that's my excuse anyway) so I'm just shooting from the hip. Your spreads seem very fair. Back when premiums were more normal (kind of like yours are now) some people would complain about them. I never understood that as I was struck by the thin margin retailers were operating on. Almost all other products have much much higher margins.

    Anyway glad to see you're still with it... and remaining fair.

  5. #15

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    I have some extra cash and projecting to have some more next year but I was put off by them premiums. If they improve I may, if not there is never a shortage of things to put money in.

    Heck about a month ago I scored around 1,650 pounds of lead at .60c a pound. Up to to that point the year had been horrible for restocking my lead supplies (I cast my own bullets and sell heavy fishing weights). All of a sudden a 450 pound lot became available followed by a 1,200 pound lot.

  6. #16

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    The complaints here about premiums make it painfully obvious that bullion price suppression theories were just that. The market has conspiratorially elevated bullion prices beyond what buyers will pay according to some accounts.

  7. #17

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    Quote Originally Posted by and4rik View Post
    The complaints here about premiums make it painfully obvious that bullion price suppression theories were just that. The market has conspiratorially elevated bullion prices beyond what buyers will pay according to some accounts.
    That's the usual hogwash we get fed every time it happens. I mean for that to be true everybody in the industry would need to forego their own best interest and go lock-step with a pricing scheme across the entire range of products, from private mints to government issue. Imagine the sheer number of people that would need to be involved and the odds that they all would keep their mouths shut about it.

  8. #18

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    Quote Originally Posted by Silver Bob View Post
    People keep calling it premiums, I thought physical was the real price of silver and spot was the not so real paper price.
    They keep calling it "the inflation reduction act". Believe your own eyes and realize they can call it whatever best serves their aims.
    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!

  9. #19

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    Silverbob-"People keep calling it premiums, I thought physical was the real price of silver and spot was the not so real paper price."

    There is certainly truth in this statement. Ultimately, physical is worth what folks are willing to pay. If Eagles are flying off of the shelves at $16-$18 over spot, then that's what they are worth.
    If you can sell them at that price then you are doing well. I sold mine at $1 over to a local coin shop because I didn't want the Ebay hassle. At the time, the premiums were up there, but not quite what they are now. I'm hoping that these new hefty premiums will level off somewhat. If there is so much demand that they can afford to charge these premiums, you would think that the spot price would reflect this.

    I am holding off on silver with all the uncertainty in regards to a recession and how bad it may be. The only crystal ball that anyone really has is "buy low sell high". Still a lot of irrational behavior getting purged from the markets. I was checking into the sports card market. Cards that were going for $500 are now $50. That's assuming anyone has the money to pay that. Savings are being depleted and Americans are tapping into credit. Target announced a 50 percent loss. Seems we have a ways too fall. I'm expecting Silver to go down but I am not confident in that.

    Probably going to look a bit more into Platinum. Compared to gold it is seriously under valued. I expect that during a recession it to will go down. I'll buy in the way down.

    For our Bitcoin brothers...Good luck! Not looking that great.

    For those of us who have been buying for many years these premiums are a tough pill to swallow.
    Last edited by jjmcwill; 11-27-2022 at 02:29 PM.

  10. #20

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    Quote Originally Posted by t00nces2 View Post
    They keep calling it "the inflation reduction act". Believe your own eyes and realize they can call it whatever best serves their aims.
    Hear! Hear! 😉

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