bullion almost unavailable

Howdy,

Been discussed in recent weeks, but as the paper price of gold and silver has come down, the available physical supply on the street has pretty much disappeared.

Most of the major dealers have limited stock and what is available either has a huge premium or will be delivered in 6-8 weeks.

I stopped in to my local dealer yesterday. Not a wholesaler, but ~25 employees, PNG, and often quoted in the rags about bullion sales.

Most items were deliver later. No ASE in stock, AGE deliver later at 11%. 90% junk at 42% premium but available. Ouch. I paid 15% 2 weeks ago and before that it was 6%. I ended up buying Swiss Helvetia's at 20% premium.

In his monthly letter, he stated quite plainly that there was a huge difference between the paper price and the street price and that dealers were using two sets of spot prices. Said the spread between wholesalers and retailers had widened and was causing this and it was resulting in huge premiums.

Hell, the premiums on liberty and saint gold was 40-50%.

So, good luck if you want to put any bullion away.

rono
lansing, michigan

 

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I have bought a roll of silver eagles every year for the last five years. wonder if I'll be able to this year and at what price?

 

First thing Monday AM, I'm buying silver at my local coin/collectables shop. Hope he has some for sale.

 

A year to two years ago on Cointalk I was saying that the price of physical gold and silver coins would go to a premium over the paper/spot prices. I was told repeatedly that this could never happen. Well, here we are.

 

I have lots of bullion coins that I tell people that if U want silver bullion it's $17 oz. and if you want gold bullion it's $920 oz. I'll sit on it if I have to go any lower. grrrrrrr who ever heard of $9.60 silver in this world?

 

People who are buying worthless paper contracts. That must be about right for the going rate compared to the supply of the printed paper.

People are used to expecting worthless paper to have perceived value now. Until they brighten up, nothing will change.

 

I was at a show this morning. All the bullion was at double the spot price, at least.
I'm curious, what do you think these dealers would pay if it were ne selling the silver to them?

 

I'll tell you tomorrow. Going to a show tomorrow myself. I might just take some bullion with me as an experiment and see what I'm offered, possibly as a trade on something, compared to what selling prices are.

If I'm offered anywhere near spot, I'll be taking it back home with me in amusement.

 

This is insane...

http://cgi.ebay.co.uk/2009-Canadian...=39:1|66:2|65:1|240:1318&_trksid=p3286.c0.m14

The auction isn't over and it's already going for 3 times melt and the winner has to pay for shipping on top of that!

 

Just cruised a little bit on e-bay.

Things are calming down a bit. AG/G silver Washingtons can be regularly bought for less than x10 face and that includes shipping. Just do a "Completed auction" search. Still a bit high, but it's been awhile since I've seen 194x washies going for less than $2.50 on e-bay!

Of course, that's usually for lots of washies - not individual ones.

 

Thats because most dealers probably bought at prices much higher than what spot is now. Nobody likes to lose money, so they have to sell that much over current spot.
Guy~

 

Sounds good. Let me know what happens.

 

At least we're getting you to increase the premium over spot that you believe is reasonable. I consider that progress.

 

Really? I was thinking about some of your statements like this one from 2005.

"That depends on who's buying them Cloud. No dealer will ever pay spot price - best you'll get is 10% less. Same is true for .999 silver."

So spot +10% is practically a religious conversion.:whistle:

 

What about for silver?

 

I think when they said "precious metals" they were referring to silver, gold, platinum, etc.