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<p>[QUOTE="myownprivy, post: 4277911, member: 84588"]He's right. Bullion dealers should be selling at today's price and replenishing at today's price, just like bullion dealers always do. They should be making their money on the spread, like always.</p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p>The reality of the situation is big bullion dealers cannot conduct business as usual. </p><p><br /></p><p>They say: "In regard to the current market premiums - these are purely a function of supply and demand. At the moment, it is near impossible for us to purchase live American Silver Eagles, from any wholesaler in the world, at any price. The only wholesalers selling Silver Eagles are charging ~$5/oz or more in premiums and quoting multiple weeks for delivery, which we are hesitant to accept. Private mints are now forward selling their production for the next 4-8 weeks at much higher premiums than normal."</p><p><br /></p><p>In other words, bullion dealers are not able to buy new bullion for anywhere close to the current market value of silver. My impression is that the current market value of silver is down so much for two reasons 1) people are nervous and putting everything in cash, hence the decline in the market AND precious metals and 2) decreased industrial demand for silver results in decreased spot price. The result of that is that bullionbugs want to buy as much as they can at these low prices, but now that the dealers have sold out, they can't replenish. They can't replenish with "new" stock for the reasons JMBullion mentions on reddit, and I believe that. </p><p><br /></p><p>But what I don't know an answer to is this: So why can't Jmbullion offer reasonable buyback prices on silver (meaning, about spot) so they can resell that same silver for they typical 5-10% over spot. And the only answer I can come up with is because bullionbuyers refuse to sell silver at those low spot prices to bullion dealers. Therefore, bullion dealers cannot replenish their stock without anything but new bullion, but new bullion won't be sold to them at those prices. Hence, the bullion shortage and ridiculous premiums.</p><p><br /></p><p><a href="https://www.reddit.com/r/Silverbugs/comments/fldhj4/im_the_ceo_of_jm_bullion_ama/" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.reddit.com/r/Silverbugs/comments/fldhj4/im_the_ceo_of_jm_bullion_ama/" rel="nofollow">https://www.reddit.com/r/Silverbugs/comments/fldhj4/im_the_ceo_of_jm_bullion_ama/</a>[/QUOTE]</p><p><br /></p>
[QUOTE="myownprivy, post: 4277911, member: 84588"]He's right. Bullion dealers should be selling at today's price and replenishing at today's price, just like bullion dealers always do. They should be making their money on the spread, like always. The reality of the situation is big bullion dealers cannot conduct business as usual. They say: "In regard to the current market premiums - these are purely a function of supply and demand. At the moment, it is near impossible for us to purchase live American Silver Eagles, from any wholesaler in the world, at any price. The only wholesalers selling Silver Eagles are charging ~$5/oz or more in premiums and quoting multiple weeks for delivery, which we are hesitant to accept. Private mints are now forward selling their production for the next 4-8 weeks at much higher premiums than normal." In other words, bullion dealers are not able to buy new bullion for anywhere close to the current market value of silver. My impression is that the current market value of silver is down so much for two reasons 1) people are nervous and putting everything in cash, hence the decline in the market AND precious metals and 2) decreased industrial demand for silver results in decreased spot price. The result of that is that bullionbugs want to buy as much as they can at these low prices, but now that the dealers have sold out, they can't replenish. They can't replenish with "new" stock for the reasons JMBullion mentions on reddit, and I believe that. But what I don't know an answer to is this: So why can't Jmbullion offer reasonable buyback prices on silver (meaning, about spot) so they can resell that same silver for they typical 5-10% over spot. And the only answer I can come up with is because bullionbuyers refuse to sell silver at those low spot prices to bullion dealers. Therefore, bullion dealers cannot replenish their stock without anything but new bullion, but new bullion won't be sold to them at those prices. Hence, the bullion shortage and ridiculous premiums. [URL]https://www.reddit.com/r/Silverbugs/comments/fldhj4/im_the_ceo_of_jm_bullion_ama/[/URL][/QUOTE]
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