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<p>[QUOTE=&quot;medoraman, post: 1172484, member: 26302&quot;]Physical prices always diverge from market prices. This is always apparent in fast moving markets. This is driven by investor sentiment as to market direction as well as premiums that items like ASE drive. However, I will say this divergence cuts both ways, as pay price from dealers when the market is falling is dramatically different than a stable market or when the market is rising. In 1980 it was not uncommon for silver value to be worth 20x face and only be offered 14x for it. This was the exact same reason you could not buy silver a couple three years ago when it got below $10 for that price. It is the expectations of market movement that are also priced into the physical silver. </p><p><br /></p><p>Not trying to throw cold water, just pointing out that in a steadily declining silver market this price divergence works against the physical holder, making it harder for him to get out. This is what I have always said, its best to sell into strength especially in the PM market because of this peculiarity. Its not like the stock market where you can sell for the market price whenever you wish. Yes, if price expectations are high you will get higher than market for physical, but the down side can be a bear, (no pun intended).[/QUOTE]</p><p><br /></p>

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