I went shopping for some silver bars this morning. Most of the ten ounce silver bars that one would consider the budget stuff are on delayed shipping at provident and SD bullion. Even platinum is a little tricky right now. Seems you can always get it at Apmex if you'll pay a little more. Provident can't keep platinum bars in stock.
I just cannot wrap my head around why there is such a bloody high premium for APEs. How much does the mint charge to strike these coins? What is a "normal" premium that these run? APMEX wants $250 over melt for a bullion product.
Provident is no better on the APE's. I guess people are holding onto them in hopes of a rebound. The mint has not made any eagles this year, so you're relying on people cashing them in, and it appears they aren't. The premiums are up there right now on silver. In the 15.80 range I paid $165 for 5 10oz bars from Provident. Now those same bars are more money at the same quantity and on delay. They were more when silver was in the high 14's. I'm sure the producers are working on catching up, once they do the premiums will or should normalize. I've seen this many times and it's pretty normal. Right now it's a waiting game for me. I'm not going to pay more when for something when spot is less. I just can't justify it.
Even this stuff, which is as generic as it gets is $16.70 in 20 oz lots. It's just too much premium in my world. The only good thing is it doesn't say it's delayed.... http://www.silvertowne.com/c-498-silvertowne-silver-bars.aspx
Only one time was I able to snatch a deal when silver plummeted. When it pulled off it's last $14 handle about 6-12 months ago, I was able to snag two ten oz bars in the middle of the night. It seems every other time this happens, when you get a quick blow down, there isn't a level opportunity to pick up because the margins quickly change. God only knows why, but I guess the dealers gotta make money too. I haven't seen 10 oz's go for less than $158 ever, no matter how low into the $14's spot goes. Those 65 cent markups disappear quickly on those days.
It has always been so. Like others have said, short term downstrokes always have led to higher premiums short term. Long term they will be forced out with volume. I was just wondering if anyone knew what a "normal" premium for a APE is in "normal" markets.
I do know that Platinum as a metal is much harder to work with. It has a much higher melting temp (3215f) and is much less malleable. I'd imagine the strike pressure must be significantly higher, and of course the melting and pouring are much more intensive processes. Beyond that, maybe it's supply and demand?
