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<p>[QUOTE=&quot;mikem2000, post: 1729640, member: 30574&quot;]I disagree Chris, while I do not know how much it costs to strike an ASE, I do know the total cost of our clad quarters is a mere 10 cents each incuding the base metal. I can only extrapolate that to &quot;very cheap&quot; for an ASE. I believe the majority (not the entirety) of the premium for retail silver is the profit margin and the margins should ideally stay the same as the cost of spot decreases. At three dollars over spot that is still 15% and too rich for my blood. I would be looking for cheaper alternitives like paper silver as I suggested, or larger size bars. </p><p><br /></p><p>Now, to take it further, what actually matters is not the cost of spot, but the total difference between the buy and the sell. Of course there is no problem with $3.00 over spot if they are buying them back at $2.50, but I don&#039;t believe that is case. Looking at it in this manner would certainly remove the cost of converting factor from the equation.</p><p><br /></p><p>In summary, I think the buillion dealer will use this opportunity and try to keep the cost of spot dollar amount similar to what people &quot;are used to&quot; for as long as they can as to drive up their profit margins. Competetition will eventually win out and premium marigins will fall.</p><p><br /></p><p>I do admit though, the cost of shipping to the bullion dealer is a monkey wrench as that of course does not decrease and is baked into the price of ASE&#039;s</p><p><br /></p><p>Mike</p><p><br /></p><p>Edit:&nbsp; Oh yeah, one more thing I really doubt you paid $7.00 for your 4 buck/oz silver correct?[/QUOTE]</p><p><br /></p>

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