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<p>[QUOTE=&quot;medoraman, post: 1608297, member: 26302&quot;]It took a long while. You are very correct sir that in quick dips the premiums go up, and in major run ups they decline. This is a major shortcoming to physical PM I have written about. Short term you can never match the profits you will make in paper in physical PM. The deck, (and dealers) are stacked against you.</p><p><br /></p><p>Back in the 80&#039;s it took literally years for the premiums to disappear. IN the first half of the decade the dealers didn&#039;t &quot;want to take the loss&quot; so would price their silver what they paid for it, even though the market had gone down. A lot of them expected it to take back off again any day. It took years of new material being brought to the market, and old stock not selling at their higher prices, to force the premiums down to market levels. I would say the same would be true today. If for some weird reason silver went down to $10 an ounce this year, you would not be able to buy it for a reasonable premium. It would take 2-3 years to shake out the &quot;silver is going back to the moon any day&quot; crowd and force the prices back down towards market levels. You see it here, people saying &quot;if silver hit $10 I would back a truck up&quot;. Well, ok, but what happens when silver stay static, (in which case you are really losing money every year) for a few years. How much more money will those people keep piling into the market? That is the point you have to get to for premiums to decline. The &quot;true believers&quot; had to either run out of money or a few years of bad markets change their minds, and then normal market pricing can reappear.</p><p><br /></p><p>Humans are funny animals, we dwell on numbers. If something you own used to be worth $40 an ounce, that number becomes fixated in our mind and we simply refuse to believe its now worth less.[/QUOTE]</p><p><br /></p>

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