Big changes coming for SILVER stackers, and its not all good :(

Even though prices have risen allot and thats a good thing right ? yes and no, in talking
with my LCS they are no longer taking anything less then .999 fine, and no junk silver !
so that means only branded bars or of course ASE,S but why, the price is high $116.35
as of this posting, but that the problems coin shops operate with positive cash flow but the refiners are not only not buying but there taking up to 21 days to pay the coin shops
and the price is posted on the 21st day so what ever the spot on that day is thats what they get paid, the huge spreads mean the coin shops could be out hundreds if not thousands of dollars on each transaction so my advice to other stackers is only buy branded bars or ASE,S, no junk silver or even Buffalo rounds getting sticky on those as well.

This will only get worse as SILVER sky rockets in value.

 

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Same with my LCS, I found out Monday, no junk silver! They don't want it and they can't sell it, they will only buy ASE's!

 

So there not buying Morgans or half dollars, quarters, ect... 21 days don't seem long to get paid thousands of dollars for your silver. Try waiting on the U.S. mail.

 

21 days is not what we are seeing.

At the shop I'm at, its 4-6 MONTHS.

 

So all those rolls of average Morgan and Peace dollars I been hoarding are now paperweights?

 

I guess you'll have to keep all those coins instead of selling them. How will you cope?

 

Exactly, the wait is sometimes a lot longer than 21 days, that's why they can't afford to lose the income! Rent payment and keeping the lights on is imperative to stay in business!

 

Personally, I am not really concerned about 90% Silver not being traded. When Silver demand truly rises due to industrial demand, and supply crunch, folks will start squawking for silver. Solar, electronics, AI chips, etc. production and demand have not hit full speed yet. And miners still have several years when they catch up.

If you are holding for long term, I feel the “discounted” prices today (or over the last few years), will work to your benefit. I think the refiners rejecting any silver today will be short-term.

My thoughts…

 

I think APMEX is still buying, just need a lot of it. No problem! Not sure how smoothly their process works.

 

Also, sellers are getting spot on 90% US silver last time I checked today. The problem is the Flea's 13 percent vig, daily fluctuations, going to need to do daily buy it nows (which is a lot of admin work) plus I don't really know eFlea's restrictions on how often you can relist stuff that doesn't sell regarding the above. Auctions are iffy with these prices bouncing around every day.

 

I have captured a lot of 90% on eBay for under spot (using Coinflation for price reference, and I believe they bench to Kitco or Apmex). Some of my purchases were WAY under spot! Too many folks talking about refiners rejecting causing several eBay sellers to drop their drawers on 90%.
That’s ok by me.
Long term: Silver is still Silver!

 

I'm assuming there are several reasons for people to sell well under spot:

1. Some people have no idea what silver's currently worth.
2. Some people have gotten super-lowball offers from local dealers or pawn shops, and figure they can do better on the Bay.
3. Some people just want the stuff to sell fast, and that's more important to them than maximizing their price.

Whatever the reasons, there is a steady stream of below-spot silver popping up in BIN listings. They go fast; I'm not the only one who knows how to check the latest BIN listings.

It is rare to see stuff on eBay selling low enough that you could buy it, then flip it on eBay for a profit (after fees/shipping/etc). I've done it in the past, but those chances are few and far between, certainly not frequent enough to make a living.

 

That is why private sale or big online dealers are a better deal.

 

Well no kidding regarding private buyers. The problem is finding them and them finding you. That's where things get complicated. Safety, security, both sides a little spooked and afraid of being robbed blind.

 

Finding a buyer is simple: Facebook Marketplace. Security? Meet in a public place and pay a cop for detail work. I’ve done this as a buyer and seller.

 

This. I'm at a stage of life where I'll pay a little extra to reduce personal risk. And conversely, while I'm not saying that anyone who does a direct person-to-person sale might be desperate and ready to act outside the law, I do think people who are desperate and ready to act outside the law tend to seek direct person-to-person sales. (Or perhaps I should say "sales".)

I bought some coins (and some other things) on Craigslist many years ago. I'm not especially tempted to try it now, and even less tempted to try selling there.

 

And realistically, most of the time, that would work out just fine. Most people are honest, and very few would, say, follow you home to "repossess" their goods or money.

 

It's not just coins that are a problem with sites like Craigslist. There are seriously some dishonest buyers and sellers on both sides of those transactions. Anything from used appliances to vehicles. I'm never comfortable with either unless it's an item worth 200 bucks or less.

 

USA Coinbook ‘Recently sold items” shows me that people are buying small denomination 90% at a good clip. And most sales are lower than melt.

 

I have researched 3 other local dealers and the result was the same though lead times were a bit longer, still a pain in the butt for us stackers and the coin shops we
buy and sell to.