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<p>[QUOTE=&quot;WingedLiberty, post: 1172446, member: 26030&quot;]<p style="text-align: left"><span style="color: #000000"></span></p> <p style="text-align: left"><span style="color: #000000">I am not discounting the theory that the price of physical silver will start to diverge more and more from paper silver.&nbsp; I actually can see than happening with the shortage of physical silver.&nbsp; However the larger spread between spot and the selling price of ASE&#039;s has always been around.</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">What happens is the US Gov&#039;t sells their newly minted ASE&#039;s for $2 over spot to some of the major 1st tier distributors (so an ASE for $2 over spot is basically the wholesale price which the Gov&#039;t gets for a newly minted ASE, however only the big distributors get them for that price). Then those distributors sell to other distributors for a profit, and along the way a 5% to 7% premium gets tacked on (which is the profit margin of the distributors ... to pay the salaries of the employees, the rent, utilitites, insurance, shipping, etc)</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">1. So with spot right this minute&nbsp; = <b>$41.44</b> (spot price)</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">2. Gov&#039;t sells ASE&#039;s to their major 1st tier distributors for +$2 per coin = <b>$43.44 </b>(wholesale base price set by U.S Gov.t)</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">3. Then the 1st tier and 2nd tier retailers tack on another 5% (+$2.17) to 7% (+$3.06) as a profit margin = <b>$45.61 to $46.50</b> (retail price) </span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">This lines up with this major 2nd tier retailer prices below (note the prices below include a 5% cash discount). Note you have to pay cash and buy in bulk (20 coins to 500 coins) to get these lower prices at &quot; + $2 + 5% &quot; premiums.</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">[ATTACH]121965.vB[/ATTACH]</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">Also note the &quot;this item is delayed&quot; notice ... shipping in 3 weeks.&nbsp; They cannot keep ASE&#039;s in stock.&nbsp; In other words, shortages of physical silver is rearing it&#039;s head at 2nd tier distributors.</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p><p>[/QUOTE]</p><p><br /></p>

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