Have you noticed this in your area ? with seller buy backs on GOLD and SILVER ?

Looks like things there a changing, my LCS use to pay 97% of spot on both GOLD and SILVER , now he tells me its only 93% and this is because the refiners are now charging an additional 2% for processing and this is on the good stuff Buffalos, Eagles, Maples
and Krugers and another 1% on bars so is this a temporary thing or is it something we will need to live with..LOL

 

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Why the heck would he be sending those coins - popular, well-recognized, and highly liquid - to refiners?

I'm guessing nearly every LCS owner is terrified at current levels of volatility, and widening their margins for self-protection.

 

I'm afraid it can become the new norm. On monday I took some generic 1 oz rounds I believe spot was around $90, they quoted me $78.75. They said they had tarnished. Some had some minor rim tone on them. They are now back in the stack. Trying to sell 90% is an issue in my area.

 

With so much volatility you can't blame them.

You don't want to buy Silver one day at $100 and just to have it drop to $85 the next.

I don't want to buy because of the volatility, or I'm just much more cautious and weary about PM purchases now.

 

This why I focus on Gold, a currency precious metal. Silver seems more of an industrial commodity, and moving away from a currency surrogate. Shifting market demands, manipulations, and industrial competitiveness seem to make Silver more volatile.

Gold volatility is more visible in DOLLAR changes, which get a lot of attention. However, its percentage change may not be as much as Silver.

For Bullion, I am watching Central Banks’ purchasing activity. They amass gold.

my thoughts…