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Don't buy at these premiums, are you nuts?!
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<p>[QUOTE="CaptHenway, post: 4275333, member: 13813"]I was going to write a long dissertation on "The Law Of Supply And Demand" here, but I decided it was not worth the trouble.</p><p>Classics Illustrated version, for a market such as Precious Metals where previously sold goods are welcome so long as not damaged:</p><p><br /></p><p>Within an equilibrium range market, the amount of product being offered by producers (mines) plus the amount of product being sold back into the market by previous buyers (private citizens) is approximately equal to the amount of product being purchased by industrial users (jewelers, catalytic converter makers, Kodak back when cameras created images on silver-backed film) plus the amount of product being purchased by private citizens. Result: reasonable premiums taken or charged by middlemen.</p><p><br /></p><p>Within a bull market (prices up substantially) some to many to all buyers stop buying, but sellers try to dump on middlemen. Result: super low to negative premiums. </p><p><br /></p><p>Within a bear market (prices down substantially) some to many to all sellers stop selling, but buyers try to take advantage of low prices to buy. Result: middlemen cannot get product unless they pay reluctant sellers huge premiums to sell their product. These huge premiums must then be passed on to anxious buyers.</p><p><br /></p><p>Saw all three markets while working in Chicago coin shops. You cannot pretend the current market is not the current market.[/QUOTE]</p><p><br /></p>
[QUOTE="CaptHenway, post: 4275333, member: 13813"]I was going to write a long dissertation on "The Law Of Supply And Demand" here, but I decided it was not worth the trouble. Classics Illustrated version, for a market such as Precious Metals where previously sold goods are welcome so long as not damaged: Within an equilibrium range market, the amount of product being offered by producers (mines) plus the amount of product being sold back into the market by previous buyers (private citizens) is approximately equal to the amount of product being purchased by industrial users (jewelers, catalytic converter makers, Kodak back when cameras created images on silver-backed film) plus the amount of product being purchased by private citizens. Result: reasonable premiums taken or charged by middlemen. Within a bull market (prices up substantially) some to many to all buyers stop buying, but sellers try to dump on middlemen. Result: super low to negative premiums. Within a bear market (prices down substantially) some to many to all sellers stop selling, but buyers try to take advantage of low prices to buy. Result: middlemen cannot get product unless they pay reluctant sellers huge premiums to sell their product. These huge premiums must then be passed on to anxious buyers. Saw all three markets while working in Chicago coin shops. You cannot pretend the current market is not the current market.[/QUOTE]
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Don't buy at these premiums, are you nuts?!
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