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<p>[QUOTE=&quot;Juan Blanco, post: 1561333, member: 41665&quot;]<span style="color: #3e3e3e"><font face="Tahoma">Are premiums (a percentage) “high”?&nbsp;&nbsp; What&#039;s the baseline for that thinking : +20% higher than ‘average annual premiums’ on a given Silver product/coin?&nbsp; Or purely subjective opinion (druthers)? </font></span></p><p><span style="color: #3e3e3e"><font face="Tahoma"><br /></font></span></p><p><span style="color: #3e3e3e"><font face="Tahoma">Assuming the Spot Price was USD$ 32.33 when your friend paid $34, his premium was 5.17%.&nbsp; </font></span></p><p><span style="color: #3e3e3e"><font face="Tahoma">Now look at the WSJ &#039;Cash Prices - Silver Coins Wholesale $1k Face&#039;&nbsp; <a href="http://online.wsj.com/mdc/public/page/2_3023-cashprices.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://online.wsj.com/mdc/public/page/2_3023-cashprices.html" rel="nofollow">http://online.wsj.com/mdc/public/page/2_3023-cashprices.html</a></font></span></p><p><span style="color: #3e3e3e"><font face="Tahoma">Where POS was $31.95 (10/24/2012) and the $1k FB is presumed 690 Troy Oz Pure Ag, that scrap rate was $33.79 : that&#039;s a 5.74% <i>wholesale </i>premium. </font></span></p><p><span style="color: #3e3e3e"><font face="Tahoma"><br /></font></span></p><p><span style="color: #3e3e3e"><font face="Tahoma">Coin premiums at retail should be higher.&nbsp; All things considered, your friend&#039;s 5% premium sounds LOW to me. He got a good deal.</font></span></p><p><span style="color: #3e3e3e"><font face="Tahoma">But I&#039;d have to see a chart of retail premiums going back ~5 years to have any sense what &#039;high&#039; or &#039;low premium&#039; really means, at market: those are relative terms after all.&nbsp; </font></span></p><p><span style="color: #3e3e3e"><font face="Tahoma">(Bottom-feeder bids, liquidation moments, deep discounts, hot merch, sweetheart deals and blue-light specials aren&#039;t &#039;normal&#039; prices/premiums to base anything on, either.)</font></span></p><p><span style="color: #3e3e3e"><font face="Tahoma"><br /></font></span></p><p><span style="color: #3e3e3e"><font face="Tahoma">I think premiums will RISE with volatility, so the complaint rings hollow now. But that&#039;s just my two cents. </font></span>[/QUOTE]</p><p><br /></p>

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