Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Why are you buying silver for 5 bucks over spot?
>
Reply to Thread
Message:
<p>[QUOTE="bditto39, post: 4406272, member: 107194"]<p style="text-align: left"><span style="font-size: 16px"><font face="Verdana"><span style="color: rgb(20, 20, 20)"></span></font></span></p> <p style="text-align: left"><span style="font-size: 16px"><font face="Verdana"><span style="color: rgb(20, 20, 20)">As an avid gun owner who has boycotted Cheaper Than Dirt for their overall scumbaggery since the .22 shortage, I have to say this is completely different. As I said in my long rant, silver spot price is NOT tied to the subjective market value of physical silver in these situations. I won't go into all that again, but basically, the subjective value of silver bullion is much higher than the subjective value of paper silver futures and etf's right now...and for good reason! </span></font></span></p> <p style="text-align: left"><span style="font-size: 16px"><font face="Verdana"><span style="color: rgb(20, 20, 20)"><br /></span></font></span></p> <p style="text-align: left"><span style="font-size: 16px"><font face="Verdana"><span style="color: rgb(20, 20, 20)">On top of the fact that physical silver ought to be trading much higher than spot, there is another factor these companies are pricing in as well: volitility. As someone who has traded options for years, I expect premiums to rise with increased volatility because there is increased risk and price fluctuation. If one company is willing to take on more risk with a lower premium, more power to them, but it doesn't make financial sense to keep premiums the same when spot price swings are so violent and in this case <u>against the demand</u> of actual silver bullion. </span></font></span></p> <p style="text-align: left"><span style="font-size: 16px"><font face="Verdana"><span style="color: rgb(20, 20, 20)"><br /></span></font></span></p> <p style="text-align: left"><span style="font-size: 16px"><font face="Verdana"><span style="color: rgb(20, 20, 20)">That situation is in opposition to the price gouging of the "ammo crisis" where there is no "ammo spot" price that is based the obligation to purchase a .223 round in several months that the trader has no actual interest in obtaining. Ammo value went up with demand. Some companies chose to take care of customers instead of raising their ammo prices. Unfortunately crap companies like Cheaper Than Dirt capitalized on this in an unethical and greedy way that both perpetuated the problem and showed that they really only care about money. The difference is that volatility was the same. Nothing changed in the world, just the supply was trying to catch up with increased demand. </span></font></span></p> <p style="text-align: left"><span style="font-size: 16px"><font face="Verdana"><span style="color: rgb(20, 20, 20)"><br /></span></font></span></p> <p style="text-align: left"><span style="font-size: 16px"><font face="Verdana"><span style="color: rgb(20, 20, 20)">So, it's very different, and what you are calling price gouging is actually, IMO, simply trying to figure out what the market price ought to be of physical silver. Bullion has so far diverged in demand from paper silver that spot price just shouldn't be seen as a way to gauge physical silver value right now. So, in application, if you find a company's prices too high, don't buy it, and if someone else's price is attractive, buy that! </span></font></span></p><p>[/QUOTE]</p><p><br /></p>
[QUOTE="bditto39, post: 4406272, member: 107194"][LEFT][SIZE=16px][FONT=Verdana][COLOR=rgb(20, 20, 20)] As an avid gun owner who has boycotted Cheaper Than Dirt for their overall scumbaggery since the .22 shortage, I have to say this is completely different. As I said in my long rant, silver spot price is NOT tied to the subjective market value of physical silver in these situations. I won't go into all that again, but basically, the subjective value of silver bullion is much higher than the subjective value of paper silver futures and etf's right now...and for good reason! On top of the fact that physical silver ought to be trading much higher than spot, there is another factor these companies are pricing in as well: volitility. As someone who has traded options for years, I expect premiums to rise with increased volatility because there is increased risk and price fluctuation. If one company is willing to take on more risk with a lower premium, more power to them, but it doesn't make financial sense to keep premiums the same when spot price swings are so violent and in this case [U]against the demand[/U][I] [/I]of actual silver bullion. That situation is in opposition to the price gouging of the "ammo crisis" where there is no "ammo spot" price that is based the obligation to purchase a .223 round in several months that the trader has no actual interest in obtaining. Ammo value went up with demand. Some companies chose to take care of customers instead of raising their ammo prices. Unfortunately crap companies like Cheaper Than Dirt capitalized on this in an unethical and greedy way that both perpetuated the problem and showed that they really only care about money. The difference is that volatility was the same. Nothing changed in the world, just the supply was trying to catch up with increased demand. So, it's very different, and what you are calling price gouging is actually, IMO, simply trying to figure out what the market price ought to be of physical silver. Bullion has so far diverged in demand from paper silver that spot price just shouldn't be seen as a way to gauge physical silver value right now. So, in application, if you find a company's prices too high, don't buy it, and if someone else's price is attractive, buy that! [/COLOR][/FONT][/SIZE][/LEFT][/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Why are you buying silver for 5 bucks over spot?
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...