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…

 

A lot of folks don't seem to remember 1980 and the Hunt Brothers. How many dealers scooped up silver and held for one day to long and lost their shirts and their shops. I know of 3 in my area alone. Volatility and lack of refiners ability to keep up. Be patient, this will also cease or let up.

 

I think that the issue, just to much coming in so they can afford to give less, the margins are already wafer thin so they chip away at was LCS are giving i checked my other guy and he,s only giving 90% but will take the extra 4% everytime

 

Thats highway robbery 1! they should be thrown in jail for that offer, and why should a tarnished roung be pennalized, take some silver polish to it and then return see if you get the same B.S.

 

Just as long as the price doesnt drop

 

I don't think it's robbery, that's what a lot of shops have to do to stay in business.

 

A shop that I use to deal with right down the street was really friendly when I came in all the time but basically after a while I realized this place wasent the best, nice lounge free drinks in the fridge and snacks but the buy back premiums were ridiculous after another failed attempt have finally found a place that isn't greedy
makes you feel comfortable and offers you a fair price

 

While I largely agree with you, it seems most people are priced out of gold. Silver, on the other hand, is still accessible to just about everyone. So if gold is to be more recognized as money around the world, it follows logically that so will silver. That silver is increasingly being recognized as a strategic metal just adds to its value. I think silver will always be second to gold, and it gets dismissed because our brains are wired to think in either/or - yes or no.

 

Chances are really good that the shop who offered the $78.75 likely has to bulk the silver out under spot, and when it pulls back like that, I can totally see why they did it. One of the coin shops in my area bulks it out under spot.

It looks like they're trying to swindle a quick $11.25 out of the seller, but in reality they're not. It's honestly questionable as to whether silver is truly worth spot, or if it's a few dollars under.

 

Yeah, it can take weeks before the coin shops even get paid by the refiners as they are so backed up, solution hire more help !it obvious the current system is not working, if more help isnt the answer new machines might be the answer, i can only see this problem getting worse not better

 

Hiring more help won't change the laws of physics. Furnaces have capacity limits, and building new furnaces is hugely expensive - and then, when demand returns to normal, they'll sit idle.

Any business making huge capital investments on the basis of this spike is... well, I won't second-guess their decision if they're doing that, because I don't know their business. But the assumption that traffic will continue at the levels we saw earlier this year seems really, really iffy.

 

That is absolutely correct. The wholesalers are way backed up, and it's naturally causing dealers to react. ASEs are even being bought back for under spot. My local LCS is $2.50 under spot buying back Silver Eagles. Before late 2025, Eagles bought back for under spot was unheard of where I'm from.
This article pretty much summed it up perfectly:
7 Coin Dealers Reveal Why Junk Silver and Other Coins Are Harder to Sell Right Now

 

I think you DO want to use volatility to buy. At least you are buying LOWER than previous peaks.

It's true, if the volatility to the downside continues, then you might be under water.

What you need to ask are (1) where do I think the PM or stock or whatever will be in a few months or years and (2) do I have more $$$ to buy lower ?

If you are positive on (1)...then (2) is a question of setting your scales. I'm advising a few accounts flush with cash and they are deploying cash into stocks and bonds at about a a 2-5% committment each week or every few weeks. I'll get rid of maybe 25-50% of the cash in a few months. Then I can re-evaluate.

I can't sit 100% in cash yielding 3.5% and heading lower (if the Fed cuts). Esp. if the markets rally from this. Right now, I AM using the volatility to accumulate at decent prices. If I knew where the bottom was to deploy every last dollar, I wouldn't be posting here.

Same thing with gold or silver, except they are not interest or dividend-paying assets. Set your scales (wide)....you'll get rid of SOME if not ALL of your $$$. That's better than not getting rid of any of your $$$. Wide scales make sure you don't exhause your cash/buying power if the markets go (much) lower.

It's smart portfolio management. Unless, of course, you can identify the exact date of the bottom.

In which case....call me first.

 

Most everybody on here that would sell now. would make a profit. I did try to purchase at or below spot, but when it kept dropping my buys at spot went to the wayside and I purchased above spot here lately. I DISAGREE with some of you I think it will recover also, later in the year.

 

Everybody's needs are different. You make some good points.

When gold was about $1,500 or so, I said that I didn't know where the next $500 move was -- up or down -- but that I was sure the next $1,000 was UP.

Well, at $5,000 I'm not sure where the next $1,000 move is....but I'm pretty sure the next $2,500 will be UP.

$7,500 is my Base Camp for an assault on Mt. Everest's Peak....$10,000 an ounce gold.