Silver bullion supplies remain tight in the physical market

SPOT prices have come down, but my local dealers are having a hard time getting ANY silver bullion coins/rounds. The COMEX may be rigged but physical silver is tight. I talked to two dealers and one is 30-days out from orders and the other one went to a coin show to buy bullion and found none.

 

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Have they tried online? I found a few with monster boxes in stock for less than $30 per ASE. Found some $1000 bags as well.

 

The amount of marketable silver and gold available hasn't changed during the last week, just the buyers and sellers' perceptions of value. The problem is that most retail trade ( our level) want it for spot plus little/none. If you offer above the spot + premium range , you will be amazed at how much you can get offered.

 

These are real dealers saying this. I think they know their supply market better than I.

 

Or they do not want to sell to you at these prices but do not wish to tick you off.

Either way, buy online ASE for about $29.50 if you want some.

 

This is more likely an issue driven by demand, rather than supply. The dealers are seeking to pay under spot, and silver hoarders are hoping to find silver at or under spot. There is adequate supply, but no one is willing to transact at/below spot.

Look at it this way: Are you willing to sell at $27/oz? That's over spot, right?

 

Let's fast forward this to May and it would be my guess folks will be lining up to sell at 27/oz. Be patient my friends....

 

Funny thing is that as silver prices go down, demand goes up, so premiums go up. I won't be able to go to the coin shop till Monday when I'll try to pick up a couple things. Have tried bidding on some ebay stuff and haven't gotten close to winning anything.

 

Some of the big boys are selling out on popular items
http://www.providentmetals.com/bullion/silver/private-slv/50-ozt-silver-bars.html

 

May is in two and a half weeks, is it not?

I can't see metals dropping another 27% (to $20/tr oz) in that time frame, and I think that would be the key investor psychology point at which the masses would line up to sell their silver at $27 per tr oz. Unless I'm misunderstanding the use of the term "folks" in this context.

Remember, the reason for silver prices languishing for a decade after the Hunt manipulation was, at least in part, due to stores stockpiling during the run-up, not during the fall.

Those who "invest" in PMs tend to possess the "never sell at a loss" mentality. Those who "trade" in PMs usually buy the paper asset, which offers more liquidity. As a part of that liquidity, you're typically not allowed to fill non-market orders at significantly above spot.

Another thing to consider, if silver drops to, say $24 / tr oz, it's entirely possible no one will sell. After all, those holding silver probably bought it for more than $27 / tr oz, and would be net buyers at $24. They would only sell at $27 with the assumption that they would acquire it back at $24. Economics generally prevents that, as the person buying at $27 will find it worthwhile to seek out prices closer to $24.

 

I don't believe this is so. The prices are going down because there is lesser demand for silver overall, otherwise the price would go up. The premiums go up, because those who have it are uncertain if this is a long term or a short term move, so they adjust their premium to protect their inventory cost. IMO.

 

Retail demand is certainly up, never seen this many online dealers with so many items sold out. These are dealers who are almost never sold out and almost certainly have shorts in the paper market to protect them from price drops in silver. 90% U.S. coinage premiums are going crazy because no one is selling to the dealers, even though they are offering the highest over spot for them that I've ever seen.

Tulving is paying $1.50 over spot for 90% U.S. coinage, and was selling it at $2.79 over spot when he last had it in stock (sold out now)

Provident is paying $2.85 over spot for 90% U.S. coinage, and selling at $4.99 over (sold out now)

Apmex has pretty similar pricing to Provident, and they actually do have some 90% in stock.

 

Why Ebay? Everything is overpriced there, unless you spend a long time searching, you can eventually found something mispriced. (usually buy-it-now)

Provident Metals, Silvertowne, Tulving, Gainseville Coins, Apmex ect will all have better prices than Ebay.....

 

For ASE, LCS charges $2.95 over spot.. minimum 20 pcs. Don't know how much he has available for sale, but, that sounds pretty fair... cheaper than Apmex now. Only drawback is you have to buy $1,500 worth of stuff to avoid 8% state sales tax.

 

my dealer still has some and people are selling every day. some one say the spot drop and decieded to buy every one from your guys

 

Howdy folks,

My local dealer http://www.libertycoinservice.com/ has their 'daily quotes' link on the right side of the page listing most things showing spot, cost and premium. It's a good reference sheet but doesn't address things like Out of Stock. Also, spot at kitco is showing 1442 and 24.75 http://www.kitco.com/ as I type on Sunday night.

Some of the headline news and articles are still dated but http://www.bloomberg.com/news/2013-...-losses-as-investors-reduce-etp-holdings.html

Geez, the fundamentals that I'm looking at - forcing Cyprus to sell and perhaps the rest of the outer countries - italy, spain,etc. to force them to sell their gold reserves - to whom, may we ask. My, my. Apparently, the ECB is sure putting a pretty price tag on lot of would be sovereign gold. Oh, and the tout telling everyone to sell their gold is GoldmanSachs.

And so it goes,

peace,

rono

 

Yup, I'm seeing that too! WooHoo! It's buying time!

 

Be patient my friends, if you liked it in April, you will love it in May:yes:

 

25.65

 

$24.xx!!!! You think it's going to keep dropping?