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<p>[QUOTE=&quot;medoraman, post: 1172506, member: 26302&quot;]^This. I would not read too much into the fact that dealers bought at X and want to sell for X+y. The early 80&#039;s were full of overpriced silver from dealers wishing to sell what they paid for it. I have said all along, before the current runup, that we will have to wait quite a while after any silver dip to actually be able to purchase based on spot again. Physical PM&#039;s are an inefficient market, with high acquisition costs and high deacquisition costs. Therefor the best strategy in such a market is long term buy and hold to minimize transaction costs. These serious market deficiencies are one of the reasons the paper market was created in the first place, to discover a price free of all of this inefficiency.</p><p><br /></p><p>A way to think of PM dealers is like a gas station. If the market goes up today they want todays price on their silver. If the market goes down they want what they purchased it for. Either theory is correct, but they want both halves of both theories when it benefits them.</p><p><br /></p><p>Short answer, since I am long winded, physical price will always diverge from market price in fast changing markets because human psychology and dealer profit margins are involved. I would be very leery of reading anything further into it.[/QUOTE]</p><p><br /></p>

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