Silver - Who's buying, who's selling?

Why are the silver ingots by PAMP Suisse so expensive? I see them selling on eBay for fifty percent over spot, at least.

 

Log in or Sign up to hide this ad.

I would say Ebay pricing is all. They are not that special IMO.

 

Personally, I have reached my comfort level of silver bullion accumulation. I still am optimistic on the investment potential of silver. Everything about world fiat currency policy is bullish for PMs because every industrialized country in the world is debasing its currency to juice their economy.

But I am no longer accumulating any more bullion for investment purposes. I have enough. I'm fullly setup for "the end of the world as we know it" senario. These days I just buy for fun.

 

Still buying, but focusing more on fractional 1/4 oz coins as these may be more useful for smaller bartering transactions in the future if paper currency collapses.

 

The suggested retail price is around $50 for 1 oz hence even in secondary markets they sell for those prices due to the demand.

 

WHo is telling us that silver should be $500? Oh, some guys writing some blogs? Or you spot some one appearing daily on TV?
Who is telling us that gold and silver are in a bubble mode? If want to know the answer - turn on TV ... any channel.

So, if we use the same logic: someone, who lost credibility during .com, real estate bubble - suddenly becomes credible?

But those on-tv-anti-pumpers made their dealings on me: yesterday didn't do any attempt to win 1/4 krugerrand for 5% below the spot.

So far, being new to the market (3rd year) I haven't regretted I went in bullion and other physical holdings of PMs.

 

I agree the suggested prices are that, but so are many other pieces that once they hit the secondary market go back down to melt value effectively. I have seen these PAMP Suisse at melt for decades. I have never seen an appreciable premium due to the name.

Maybe its just me.

 

I think the prices are pushed up by demand, we have seen large number of silver stackers emerge in last couple years. They seem to be going for only certain issues' , this has certainly benefited the pamps and some of perth & chinese mint issues' which have seen premiums sky rockets.

 

Silver moves due to speculation in both directions, mostly at the behest of CME margin changes and Fed policy. Since it is a highly speculative market with a fractionally based physical supply supporting its paper derivatives you can't really infer that it is undervalued or overvalued based on the speculators alone. All we can say for certain is that whatever the real price should be is misconstrued, and any additional inference is up to how you view the fundamentals. I tend to think that the lowest supply levels in 700+ years combined with mining supply being consistently unable to meet total demand without pulling from existing available scrap means it is undervalued. Supply and demand should typically not allow for a finite resource to be in historically low supply or in backwardation.

This is where 90% rosies and war nickels come in for me. Rather pay less than spot than have the added premium on fractional bullion.

 

Great point. Why pay a premium when this country has been making fractionals for 200 years?