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Are people crazy so high premium on ASE's?
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<p>[QUOTE="Rono, post: 4498756, member: 6492"]Howdy folks,</p><p><br /></p><p>There is a divergence between the official POG and POS - we can call the paper price - and the 'street' prices which refers to physical bullion. This divergence is reflected in the higher premiums. Classic economic example of what happens with artificial price controls. Happened in the 70's with price controls on gasoline. All of a sudden everyone was out of gas. Happening right now with money. Interest rates are around zero but try to find a 30 year fixed around zero. Sorry, no money. Now if you're willing to pay 3-4%? Well, maybe I can find some money. </p><p><br /></p><p>This is what is happening in the bullion market. The paper bullion market is sketchy on a good day. I'm not a conspiracy type, but when you see short volume exceeding known quantities of metals you have to wonder is the price is artificially low. Whether it is or not, doesn't really matter, it's what holders of precious metals think. If they feel their bullion is worth more than listed official price and unless the buyer is willing to pay. Sorry, no bullion today. </p><p><br /></p><p>Looking around at the macro economy, I'm leading towards the official price is too low. </p><p><br /></p><p>and so it goes,</p><p><br /></p><p>peace,</p><p><br /></p><p>rono[/QUOTE]</p><p><br /></p>
[QUOTE="Rono, post: 4498756, member: 6492"]Howdy folks, There is a divergence between the official POG and POS - we can call the paper price - and the 'street' prices which refers to physical bullion. This divergence is reflected in the higher premiums. Classic economic example of what happens with artificial price controls. Happened in the 70's with price controls on gasoline. All of a sudden everyone was out of gas. Happening right now with money. Interest rates are around zero but try to find a 30 year fixed around zero. Sorry, no money. Now if you're willing to pay 3-4%? Well, maybe I can find some money. This is what is happening in the bullion market. The paper bullion market is sketchy on a good day. I'm not a conspiracy type, but when you see short volume exceeding known quantities of metals you have to wonder is the price is artificially low. Whether it is or not, doesn't really matter, it's what holders of precious metals think. If they feel their bullion is worth more than listed official price and unless the buyer is willing to pay. Sorry, no bullion today. Looking around at the macro economy, I'm leading towards the official price is too low. and so it goes, peace, rono[/QUOTE]
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