Message:

<p>[QUOTE=&quot;medoraman, post: 1325492, member: 26302&quot;]You do if you are in a market where PM has been going down steadily, most of your customers had lost a lot of money on PM and were no longer buying, and your expectations are for further declines. In any such market, I don&#039;t care if its PM or not, how strong would the buy prices be? Turn it around and go back to when silver dropped below $10 a couple of years ago. Did ANYONE manage to physically buy at that price? I went to a large show then and the sell prices were all still predicated on $12-14 silver. The dealers expected the paper market to rebound, (correctly), and had strong sales of bullion at higher prices, so they did not need to lower their physical prices to the paper market. Look at when silver spiked to $49. I called Kitco and other national dealers and asked them their buy price, it was 29x. I was looking to sell a few thousand ounces at the price of the paper market, but all of the dealers were trailing it. Why? Because they expected, (again correctly) for it to correct. Let&#039;s say we have a meltdown in Europe and on US debt, and everyone starts running to the local coin store to buy bullion. Do you really think, if people are beating down his door to buy, and no one is selling, that the dealer would not charge well above the paper market? These are the recent situations that prove to a smaller degree what I said about what happened in the early 80&#039;s, that the physical market does not always track the paper market. It can be higher or lower, depending on a lot of things like dealer sentiment, physical supply, dealer sales volume, etc etc. If a person is unlucky in his timing when he needs to get out, (or conversely he could be lucky and sell into a great market), its possible he may not get what the paper market is saying minus normal discounts. That&#039;s all.</p><p><br /></p><p>What twinturbo says makes sense, and would work maybe 95%, 98%, or 99% of the time, IDK, but my only point is its not a perfect relationship between the two. Anyone who has been around the physical market for a long time knows this.</p><p><br /></p><p>That&#039;s all.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in