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<p>[QUOTE="InfleXion, post: 1645727, member: 29012"]This is where hedging becomes a major factor. As long as the major dealers are hedged they can sell their silver for any amount of loss because their profits are on the spread, not the price which is cancelled out by the hedge. Conversely they can increase their buy price with spot for that same reason, although you will not get fair value. Realistically the price will not go to $50+ unless people are willing to pay that, so there shouldn't be an issue selling in that case.</p><p><br /></p><p>As long as the dealers who hedge have available supply then the price can go lower indefinitely (APMEX, Provident, Gainesville, etc). If they run out then it will be the people who paid higher prices who will determine what the real price should be, such as your LCS who may or may not have inventory, but will certainly not be selling for a loss.[/QUOTE]</p><p><br /></p>
[QUOTE="InfleXion, post: 1645727, member: 29012"]This is where hedging becomes a major factor. As long as the major dealers are hedged they can sell their silver for any amount of loss because their profits are on the spread, not the price which is cancelled out by the hedge. Conversely they can increase their buy price with spot for that same reason, although you will not get fair value. Realistically the price will not go to $50+ unless people are willing to pay that, so there shouldn't be an issue selling in that case. As long as the dealers who hedge have available supply then the price can go lower indefinitely (APMEX, Provident, Gainesville, etc). If they run out then it will be the people who paid higher prices who will determine what the real price should be, such as your LCS who may or may not have inventory, but will certainly not be selling for a loss.[/QUOTE]
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