Silver Coins-- Selling Prices?

Which begs the question, what does you boss do with the silver?

Ruben

 

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why would you do that if you can just buy it AT SPOT on the exchange?


Essentially your saying people can't get product on the exchange so they do an end run around the exchange to push prices higher at the tables?

Does this make any sense to you?

Ruben

 

my bad yes 14x face

 

I just unloaded over $600.00 in 90%ers for another purchase and the dealer was drooling at 10x face he paid me for it. I probably could of pushed it higher but I do a lot of dealing through this guy and I know he could use the product.

Funny part is nobody wants 40% Kennedy's.

 

Cheap junkUSsilvercoins (see URL)

How is it these guys are selling right now at 8.3 or 8.4 times face?

http://www.amergold.com/vault/junkUSsilvercoins.php

--Dan

 

Darn. Assuming those rates also can be applied to gold you had me thinking for a minute there my Krugerrands were...

 

If you read a bit deeper in other posts you'd see he buys it to sell it. People want it and not on paper. They want the real thing.
As sellers of physical silver we have to have it in order to sell it.

 

Why do you think the "spot price" is the "current price" or even the correct price? The spot price commonly quoted here is from the Comex futures market. Why isn't the LME price the "current price?" Why isn't it the Asian price? Why not the street price? They are all different. It is a mistake to think that there is something that is THE correct price, and many blunders are made buying and selling on that basis. Also, you can't dump 100 kilos of silver on the spot market, or make a futures contract for it because it isn't Comex-eligible. The real world situation is that physical silver is generally selling for a premium to the paper spot price, and coin silver is selling for a premium to large bars. That is the real world.

 

The mechacntial sells silver, in addition to futures. That silver IS delivered on request. Your saying the quoted spot is actually futures prices? Do you have a link and source for that?

Ruben

 

http://www.goldprice.org/buy-silver/2006/02/spot-silver.html

Spot Silver
What is spot silver?

Firstly, Spot is the price for cash (immediate) settlement. Spot Silver then is the price for cash on the day. Another way of looking at it then is, The present delivery price of a given commodity being traded on the spot market, also called cash price.

One can get the price for silver, or the value for silver anytime by going to Spot Silver. the value of silver can be seen here as it raises and falls on a daily basis. Generally the value does not change.

The bullion market operates on a two-day settlement (the value date is on the 2nd business day following the trade date).

Apart from a peak in 1980, silver has been a relatively stable precious metal for many years . Since 2001 the value has started to steadily rise and possibly in part due to the fact that silver is industrially in short supply looks set to continue that rise for some time.

This makes spot silver an excellent buy.

One can purchase silver in the form of stocks in silver on the stock exchange, silver jewelry or silver bullion.

The value of stocks can depend not only upon the spot price of silver but the management habits of the company in whom one has shares. Along with the tax implications of owning shares, this introduces variables that can interfere with the value of your holdings. Jewelry commands a high mark up and poor resale value so, as beautiful as it may be, is not a good option for the investor. Silver bullion however, in the form of silver coins and bars, can provide a satisfactory investment in the long term.

The mark up is small, especially when purchasing larger bars such as one kilo, for example, and silver coins often improve their value due to other factors such as rarity and quality of the coin. The storage and transport of silver bullion is manageable by most people also.

In terms of spot silver then, bullion is probably the best way to accumulate and store your silver investment.

There is nothing quite like having the real thing when it comes to spot silver!

 

http://www.metalprices.com/FreeSite/metals/ag/ag.asp

Sometimes referred to as the New York spot price, but NYMEX/COMEX is where it comes from. It isn't the futures price, which would be the nearest contract price, but comes from the same exhange and converges on settlement dates. Sorry if I explained it wrong or in a confusing manner.

 

There is someone who REALLY knows what's going on.

 

NYMEX/COMEX "spot" prices, I would argue, are really a futures price. As I understand them it tracks contracts on future delivery, and it most certainly bears little resemblance to the on-the-street value of these commodities recently.

The divergence between "spot" and "street" prices must be caused by something -- and I think it is a combination of the (negative) value of futures paper and the fact that physical demand is far in excess of physical inventories at these prices and at this time.

Respectfully...Mike

 

Except for when a large number of silver contracts come due on the same day, they have no real impact on the spot price. It does affect the futures price. If the futures contact is for $30 for an ounce of silver and the spot is $10 for an ounce of silver, I stand to make $20 because I will give the contractee one ounce of silver which cost me $10 and I get $30 in return on the contract date, if the price remains the same.

If I sell it I want sell my half of the contract I can sell it. I'd ask $20.00 for it and if you purchase it for $20 but your liable for the ounce of silver (an additional $10). If you think the price is going further down, you would buy my contract. If you think it is going to go up, you want to buy the OTHER side of the contract, where you receive the silver for $30 cash. The person owning that half of the contract is losing money recieving $10 in silver and I paid $30. I'm a loss of $20. Who would buy this? Someone who believes the spot is going to rise over $30 before the contract date. If you think the price of silver will go up to $50, you'd be willing to purchase the contract for up to $20.

In any event, these contract are NOT on the market, per se. The silver transaction is not recorded as a sale for $30 on the day the contract is due. HOWEVER, if you have 10 metric tons of silver in that contract, when it is due, the day it is due, someone has to go to the spot market and purchase 10 metric tons of silver, and THAT feeds demand. If might also feed supply as well increasing supply if the price is higher than the contract, because someone will likely cash out his silver to take a profit.

And that is how futures options indirectly affect the spot price.

Ruben

 

In no way is this true I guess. Unless you're on the front lines. I've been saying this for a few weeks. Some get it and some don't.

Today I actually locked the doors at the shop so my boss could sell a nice amount of gold - at $100 over spot. About 30 ounces or so.

Maybe I'm crazy but when the U.S. mint starts halting production because they can't get the materials for planchets and they can't provide the official "suppliers" with the physical product there may actually be a physical shortage?

Naw, couldn't be, not like the government would have any sources to get stuff like silver and gold.

 

Hey Clembo~
What did your boss sell at $100 over spot ? Gold coins with numistatic value or gold bullion?

thanks in advance

 

It's kind of a matter of semantics. The spot price comes from the same market. I agree with your analysis of the situation.

 

Bullion coins.