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<p>[QUOTE=&quot;Rono, post: 1689736, member: 6492&quot;]Hi folks,</p><p><br /></p><p>There will be some natural premium appreciation in any down market like the one we&#039;re in now.&nbsp; However, what we&#039;re looking for is an abnormal divergence between the paper price and the physical price.&nbsp; Econ 101 supply/demand curves good people.&nbsp; When you have price controls or artificial pricing, supply will disappear OR you&#039;ll get price adjustments in the form of premium, markup, vigorish, blackmarket, etc. that make up the difference in the eyes of the seller.&nbsp; </p><p><br /></p><p>This is what happend with Nixon&#039;s gasoline price controls - every service station just ran out.&nbsp; feh, it&#039;s the same today with credit.&nbsp; The price of money, or interest rate, is being kept artificially low by the Federal Reserve.&nbsp; It&#039;s lower than bankers think it should be and therefore they don&#039;t have any money to lend.&nbsp; You want a 30 year fixed at 3.5%.&nbsp; Sorry, I&#039;m out of money.&nbsp; You want to pay 5-6% and maybe I can scrape some together.&nbsp; Er, this is called a Liquidity Trap and is partially to blame for the lack of inflation as it means to that the velocity of money is around . . . ah, zero.&nbsp; if it doesn&#039;t move around, inflation can&#039;t get passed on.&nbsp; </p><p><br /></p><p>Anywho, with regard to bullion, we&#039;ll have to watch premiums to see if they grown to much AND we&#039;ll have to watch availability and vendors posting the Out of Stock sign.&nbsp; </p><p><br /></p><p>and I was buying a wee bit of silver today from apmex.</p><p><br /></p><p>peace,</p><p><br /></p><p>rono[/QUOTE]</p><p><br /></p>

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