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Who actually bought PM's cheaply on the recent dip?
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<p>[QUOTE="rick, post: 137183, member: 1235"]I disagree. I think they will sell at such a price. A lot of coin dealers sell on market perception, not spot. Perception moves much slower than the market itself. Most people here are plugged in - they visit kitco or similar websites, and they are fairly up-to-date on these prices.</p><p> </p><p>Coin dealers sell to the general public, and I would be willing to bet a lot of those people just know they have recently heard that silver is 'hot'. Cave Troll had it right when he said they don't want to realize the sort of loss that results from a drop in the market. On the other hand, most people that sell larger sums are doing so because they know what the silver market is bearing, so the coin dealers have to purchase at some ratio of that expectation.</p><p> </p><p>The markets for silver and gold are still pretty optimistic, so some of these coin dealers are not adjusting their prices with the idea that it will rebound to some extent - so why drop the price today, if the market goes up tomorrow? They are a retail operation not a commodities broker.</p><p> </p><p>If the current price sticks for a while, they will adjust their costs.[/QUOTE]</p><p><br /></p>
[QUOTE="rick, post: 137183, member: 1235"]I disagree. I think they will sell at such a price. A lot of coin dealers sell on market perception, not spot. Perception moves much slower than the market itself. Most people here are plugged in - they visit kitco or similar websites, and they are fairly up-to-date on these prices. Coin dealers sell to the general public, and I would be willing to bet a lot of those people just know they have recently heard that silver is 'hot'. Cave Troll had it right when he said they don't want to realize the sort of loss that results from a drop in the market. On the other hand, most people that sell larger sums are doing so because they know what the silver market is bearing, so the coin dealers have to purchase at some ratio of that expectation. The markets for silver and gold are still pretty optimistic, so some of these coin dealers are not adjusting their prices with the idea that it will rebound to some extent - so why drop the price today, if the market goes up tomorrow? They are a retail operation not a commodities broker. If the current price sticks for a while, they will adjust their costs.[/QUOTE]
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