over spot?

As i bought my latest roll of ASE i aksed some ?? and found according to my dealer as spot prices go down the "spread" does not follow but as it goes up (depending how high) it narrows? Is this B.S? or the truth? I understand dealers need to make $ and i am planning on holding on and adding to what i have inless prices go sky high (dont see that comming now) for along time but i have done alot of hageling (which i enjoy) and have found that when silver was $21 i was paying $23 now its $16.50 and i am paying $20. Is it because they bought high and need to recoup $$ or is this the norm? Again i will be holding on to this for some thime and in the course of 20yrs plus will make my $ back just want some input on what the EXPERTS here are paying??

 

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It all depends... If the dealer bought high he is more likely to hold out to at least recoup his money. Also early in the release like this the premiums are still going to be a little elevated because people are scrambling to get them.

 

I'm not a dealer, but I expect that as silver prices rise, the spread will increase in dollars but decrease in percentage of melt value. But I think you are correct that the spread is a bit high right now because silver prices fell so fast. This will correct itself over time with either higher silver prices or lower markups.

 

How much they will rise is anybody,s guess, But with silver its not to
Much one way or another!

 

Good for you for haggling. Whether we are holding for two years or 20 is no reason not to take this seriously as a financial transaction. This is business not some kind of wacko cult. I would shop around, go on the Internet and compare prices (don't forget to factor in shipping) and see if the dealer can match your price. If not, I would take my business elsewhere.

Silver and Gold go up, and they go down. Always have and always will. A dealer who can't make a profit in the market should find another business. I'm really tired of hearing this kind of nonsense. Either they try to widen spreads whenever the price drops, or, my favorite, they start talking about "shortages" and refusing to sell to anybody. In my opinion, they are liars. I've been reading about silver shortages for decades, yet there always seems to be plenty around when the price is going up. Funny how that works isn't it.

Best of luck!

 

Shhhh, quite you! You're hurting some dealers feelings.

 

ooops!

 

Zuhara, i will admit the haggling is the almost the best part. My dealer wanted to sell me some ASE @ $30 or $600 a roll yes i bought them but when i walked out of the store i paid $22 thats when silver was $18.50. All i did is tell them that i was going to buy on line for that price and they folded. As in poker ALWAYS keep an ace up your sleve,and a gun on your hip!

 

Congratulations! It is definitely fun. Being able to go online and comparison shop gives buyers an advantage.

 

My coin dealer says, "you're always wheeling and dealing." Where upon I scream, "COME ON DOWN!"

 

Well, hurt feelings or not, looks like you might be right. APMEX is no longer offering ASE.

 

Well well well, color me surprised. I could be wrong however, as they are still selling gold. Oops, Canadian Silver Maples are also developing some "shortages".

Stage II: frantic newsletter warnings in my e-mail inbox: Silver and Gold running out worldwide! Comex defaults about to occur! two Chinese billionaires will soon own the entire world's gold supply! Gold going into backwardation! (Whatever that is)

Or, the price of gold could stabilize today. In which case, forget about all that .

 

Keep in mind that if the newsletter writers knew anything, they would be making far more money trading gold and gold futures than they could ever make in the newsletter business.

 

Trying to keep track of an ever changing market is like
Trying to drive a car blind folded!! It,s hard to do!!

 

The premiums are more. There are 4 dealers that can buy directly from the mint. They were getting it a 3-4% over spot and we usually charge customers 4-6% over spot to make a profit. However, the mint has been charging a huge premium to those dealers over the last few months (10-16%) and thus we have to markup our coins to clients to make our profit. That explains why you are paying a higher premium.

 

Well, I'm only willing to pay $4 over spot at most. At present that makes ASE's $19.12. If I can't find any for that price, I'm willing to hold out until I do. I'm hoping others are willing as well.

 

I work for a PM dealer, and I can say this is pretty much the norm. Bullion dealers need to make a profit in spite of fluctuations, so selling premiums will go generally go down when prices rise and go up as prices decline. Buying discounts also rise and fall respectively with changing prices.

Dealers can't afford to take losses every time there is a largeish price fluctuation otherwise we would all go out of business when there was a major shift downwards. Its not a case of ripping people off, its a more a matter of survival. We need to make a profit on PM transactions more than you do...

 

Any investor who believes that the seller of any investment “needs to” make a profit “more than they do” deserves what they get. This is exactly the kind of attitude that got us into the trouble we are in now in the first place. We all have a choice about doing business with people who feel that our investment money is not as much a matter of "survival" to us as their business investment is to them.

 

I do agree that dealers have to make their profit to stay in business. But, if a dealer bought a ton of ASE last month, as statistics say, then that might have been a poor investment. If they had bought now, they might have gotten a better deal, and then would be able to pass that deal onto their customers. I'm sure not every dealer stocked up fully on ASEs, and there are a few that might have waited. Those dealers will be able to offer ASEs for less then the premium other dealers need in order to make their profit. Its up to the consumer to shop around and find the best deals.

 

Well you must all understand there is 4 parties involved here... The mint - the direct dealers from mint - the public dealers - the public. So you have 4 people making profits not just 1 or 2. And I can tell you straight forward the mint is charging higher premiums than ever. Lets say spot price is 15 on silver. The direct dealers of the mint are paying about 17.25 to get from them. Then for them to pay a profit they are charging 3-6% over what they got it at when the sell it to any of the public dealers which then brings our price to 18 dollars.. Then those public dealers are charging 4-6% to general public so they can make their profits as well bringing the grand total of an investor to 19-20 dollars.. When its all said and done, thats a 25% markup on spot. But when the mint lowers their premium, the final cost is reduced as well.