bullion almost unavailable

This Trend Worries Me

Ive bought all my bullion silver at about 15-20 $ a oz lets say next week or in the future silve is at $32 an oz will dealers want to buy from me? and what would they give me?

It seems to me that dealers sell with high premiums but buy for under the silver spot. Is this fair?

Is there a way to get around this? How does this work out for the investor. Iam thinking 3-5 years depending how high silver goes ofcourse.

 

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Yeah, me too. I've been buying them since they were around $4 an ounce and can remember paying some $90 including shipping.

Oh well,

rono

 

Very well said. Fear driven it is.

 

Ok. Now I understand the difference between your statements. Thanks.

 

Not really...

...over here in Europe (and in Australia as well, as I am told by my sister), bullion is very hard to find these days, and delivery times of up until Q1 2009 are what is offered by dealers (biggest german dealer, www.proaurum.de)

Current premiums can always be checked on Ebay, just go to www.Ebay.de and type in "Unze" (as in ounce), and you will find what's for sale there.

My observation on that website is that

1. quantity on sale is 5-10% of what used to be offered only 6 months ago
2. premiums are a minimum of 15% for AU and 90% for AG

while even this spring it used to be possible to get it there for less then the dealers price.

(Smart) people everywhere are preparing for a recession, if not a depression, possible a hyperinflationary one, with the purchasing power of the "funny paper" going down the drain, that's why...

 

yes there is use the ebay discount coupon both silver and gold can be bought for below spot but you have to know where to look and to think outside the box. the market is not perfect never has been never will be

 

Questions: When PM prices are high does premium increase, decrease, or remain the same, in general? What about when PM prices are low?

What about PM availibility? I can understand if PM was scarce premiums would increase but what about an abundant supply of PM?

How would a sell-off affect premiums if any?

You can see I don't know much but want to learn. THANKS, zeke

 

Dealers will always sell at a price higher than they offer to buy. If they didn't, there would be no dealers. However, the spot price is derived from the futures market and may not always be the price around which the spread is calculated. The way to get around this is to keep an eye out for silver and gold coins selling below spot. Right now this might be difficult to find, but if you search, you will find an occasional bargain. On the sell side, you may also find a few dealers who will pay more than spot price as long as the demand and margins are strong enough to permit them to make a profit.

Happy hunting!

 

If you have something to sell, you are the dealer on ebay. People will gladly pay.

 

Stupid Fereingee