Greater then 10% spread silver coins vs spot price

How is this possible???


[TABLE="class: prices"]

[TD="class: chart"][/TD]
Silver Bullion
[TD="class: numeric"]22.02[/TD]
[TD="class: numeric"]22.40[/TD]
[TD="class: numeric"] 0.43[/TD]
[TD="class: chart"][/TD]
[TD="class: numeric"]22.60[/TD]
[TD="class: numeric"]22.81[/TD]
[TD="class: numeric"]22.32[/TD]

[TD="class: chart"][/TD]
Silver American Eagle
[TD="class: numeric"]25.72[/TD]
[TD="class: numeric"]26.18[/TD]
[TD="class: numeric"] 0.43[/TD]
[TD="class: chart"][/TD]
[TD="class: numeric"]26.38[/TD]
[TD="class: numeric"]26.59[/TD]
[TD="class: numeric"]26.10[/TD]

[TD="class: chart"][/TD]
Silver Maple Leaf
[TD="class: numeric"]24.79[/TD]
[TD="class: numeric"]25.23[/TD]
[/TABLE]



How can a spread like this, greater then 10% persist? This is very interesting to me as an investor


Too bad when you buy silver futures contracts they dont deliver eagles or bars, furthermore, too bad we dont have our own mints to receive silver and sell coins, maybe the govt should start opening more mints?

 

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p.s. those are quotes from monex

http://www.monex.com/liveprices

22.70 by 27 here
http://bullion.nwtmint.com/silver_mapleleaf.php

 

http://goldsilver.com/buy-online/canadian-maple-leaf-silver/


26.30 down to 25.80 in crazy bulk


still all huge spreads vs spot price

 

You can get generics at Provident Metals for 1.49 over spot in any quantity, they buy them back at .10 over spot:

http://www.providentmetals.com/ohio...z-999-fine-silver-bullion-round-iso-9001.html

Spread is $1.39, or about 6.3%

 

Just curious what percentage do you think the spreads were when spot was at $30? I know I have been told by several people the higher the spot price the lower the premium, I assume that is because dealers would have bought at a lower cost and as the spot price rises they want to sell to cash in not only on the premium but the difference in what they paid and spot. Seems natural the reverse may be true when prices drop especially if the drop is sudden and deep. Just a thought.

 

Spread is even smaller on their .999 kilo bars (32.15 oz)

Selling at 1.19 over in any quantity, buying back at .10 over,
http://www.providentmetals.com/1-kilo-opm-999-fine-silver-bar.html

Spread is $1.09 or about 5%

 

At some point I would hope it wound dawn on people, or hit them in the forehead like a sledgehammer, that Wall St is selling you an illusion of the commodity and not the commodity itself.

 

They do deliver physical bars, only you have to shell out the price based on 5,000 oz. of silver. So at $22/oz spot, your cost for a delivery contract is $22 X 5,000 = $110,000 now plus brokerage fees and delivery storage to a NYC area vault for you to pick up. That is why most people purchase such on margin which is a fraction of this. If you want to cancel out, you offset the purchase cost with a sell of the same type/size within the expiration date. Of course this is called "paper PM" by some. If silver drops to $20 an ounce, you have to come up with more cash margin or lose. A crash generally frees up a lot of physical silver due to margin calls or people selling their paper. Of course then the stories of people "backing up the truck" translates to buying 5 more ounces or so~ biggie for some. If someone has the 100,000 cash ,then they can buy the delivery of physical.

Don't let anyone tell you physical is scarce. It may be in the middle markets, but for the real commodity dealers, the only question is when to jump in and buy the contract for future delivery. They will wait until they see good evidence that the price is going up and staying for a while. One of us where $5000 worth of silver at a time is a big deal, moves the market like hitting a hippo with a plastic swimming noodle. IMO.

 

desert, i thought thats the way it was. thank you, i knew there was a shot caller out there on these forums