Precious Metals Pricing - Do not be fooled selling low

[coincollectingenterprises]

Hello,

Wanted to make sure everyone was thoroughly aware about precious metals in the market these days. Particularly 90% silver coins. The premiums over spot price are crazy huge. We're talking junk silver, not numismatic. Ignore the paper price.

As in, do not be fooled if you plan to sell silver coins. If someone offers you less than spot price, they're low balling you by a lot. Right now, premiums are easily over 50% as a retail seller. Of course, one has to buy lower than that, but it's still above spot price.

if it's inappropriate to say the following out of the trade section, my apologies, and let me know so I will delete the sentence:

Our company is buying and I'll directly buy your silver coins for above the going rate as the premiums are so huge, I can profit, and you can get a good deal. As in not just say above the going rate, but actually show real links to major company buy prices. You guys have helped me out a lot in the past, so if I can give back a bit in areas I'm more focused on, then sounds good to me.

If you want to sell on the general market, go for it! But please don't let someone convince you the premiums aren't there. Companies are literally selling out of inventory and can't keep up with demand. The paper price is not at all realistic to compare to physical.

Also note that the 90% sells at a greater premium than the pure .999. Though, interestingly enough, the pure is starting to creep up in premium for the first time in ages. It's fascinating to watch.

Hope someone benefits from this quick share, and hope you're all doing well.

Dan

coincollectingenterprises.com

PS: I'm sure many of you know all this stuff already. But hey, if just one person reads this and saves a bunch of money, then that's success right there!

[Maineman750]

Thanks for some good info Dan....I had no idea

[Chugly]

Thanks Dan! I completely agree with your observations!! I have not seen demand for physical silver this high in quite a while. Most dealers I have talked to just laugh when I ask about 90%. I'm sure many are just holding theirs in the safe. ASE's are at least spot +$3 when you can find them. I'm in buying mode for now, but if I ever decide to sell, I will look you up first!

[GrumpyEd]

The stock market and PMs are wild lately.
I think the recent drop in stocks lured money out of the paper market for PMs and drove it lower but the market for physical real PMs is out of touch with the paper market.

The markets are wild now but my gut feeling is that PMs are low.
LOL, I'll probably wrong and they'll drop but my gut feeling is that stocks are still high and PMs are low.
I've snagged up some 90% but nothing big

I agree with your post that now is not the time to sell off PMs at at a discount to spot.

[coincollectingenterprises]

Thank you for your thoughts and glad to hear them! it certainly has been a wild ride in the stock markets! There's been a lot of non-main stream media that China is dumping US Treasuries (remember the statistics on China being one of the largest holders of the US debt?) by the literally 100 billion dollars worth. I think they dumped $200 billion in the past couple weeks.

What's interesting about this is that precious metals are generally pegged to the value of the dollar. If the metals hold still in value, and the dollar goes up in value, precious metals go down in value (the dollar is stronger so has more buying power).

I believe a lot of people speculate quantitative easing is around the corner again. That should, in theory, make the dollar weaker. A weaker dollar, with less buying power, should raise the value of precious metals in relation to the dollar.

Either way, 90% silver coins, especially Roosevelt dimes, are in serious demand. Makes me wonder about how premiums work. Usually, the smaller the item (dime versus dollar, or 1/10 ounce gold versus 1 ounce gold), the greater the premium price over spot price will be. But if precious metals sky rocket in price, making the larger coins less affordable to the general public, will the premium (percentage over spot price) increase further as demand for smaller unit pieces goes up? Ah, so much to speculate. The demand is so great that some of the big bullion trading (buy/sell) companies have actually been caught committing fraud because they couldn't deliver on their sells. I think they were selling metals they didn't have expecting to be able to buy in time (and avoid having to hedge/risk metal price movements). Impressive to see a growing belief in the value of metals over fiat currency. It's a looooooong time coming.

Should be interesting to see what happens. Glad some people found the post useful!