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 Replies: 15 / Views: 1,609 |
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Pillar of the Community
United States
979 Posts |
I made a call to my local shop wich usually has really good prices, but they said they are still selling silver at 21x face. They said they BUY silver over spot and sell at an even higher price.
Is this normal? They said that the only way to pay spot is to buy... paper stocks *shudder*
A friend of mine wants to buy $1000 worth of silver, and they didn't consider that bulk either. Where should we go to buy her that much?
Thanks for any info guys!
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Valued Member
Canada
470 Posts |
Wait 2 more days and reconsider.
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Bedrock of the Community
Australia
21593 Posts |
They have stock that was accumulated at a higher spot price.
If they lower their buy / sell spread to reflect the lower spot price, they could loose money. Eventually, their buy / sell spread bracket will come down. All competitors watch each other in this process, as market forces play their part.
As a buyer or seller, ya makes your own decisions, just as the dealers have to.
The first prices to come down should be the should be paper silver, then physical bars, then silver coins.
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Bedrock of the Community
13014 Posts |
Quote:
They have stock that was accumulated at a higher spot price.
If they lower their buy / sell spread to reflect the lower spot price, they could loose money. Eventually, their buy / sell spread bracket will come down. All competitors watch each other in this process, as market forces play their part. Exactly this. The more drastic the drop the more stubborn sellers will be too. Its one thing to mark down 50 cents its another to mark down 6 or 7 bucks in 3 days. Quote:
A friend of mine wants to buy $1000 worth of silver, and they didn't consider that bulk either. Where should we go to buy her that much? All the online sellers will give you bulk prices for that much like the provident metals ect
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Pillar of the Community
United States
1200 Posts |
If you opt for buying online, it's best to talk to the vendor first and dope out what the projected wait time is between the time of payment confirmation and when the actual shipping date will be. Some are running in the 2 to 3 week range and others are running considerably longer. Buying a product that's in the vendor's possession will go more smoothly and quickly than it'll go with a product they're "anticipating receipt of in the next day or two" (HA, HA). It also wouldn't hurt to peruse as many PM online forums as you can find and check out current commentary on which vendors are presently running the longest waiting periods and aggravating their customers the worst. One dealer has already been forced into bankruptcy by market conditions and it's not impossible that other marginal players may fail as well. For safety's sake, sticking with the biggest, most solid vendors (Kitco, APMEX, Provident, SilverTowne, Scottsdale) may be a good idea. This is a time when "due diligence" is far more important than usual. The advice given above to be patient and wait is solid and dealing with more than one source might not be a bad idea, either. |
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Pillar of the Community
United States
2168 Posts |
$1,000 face or $1,000 to spend?
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Pillar of the Community
 United States
979 Posts |
Sorry, $1000 spent! And they said they still sell a lot at that price. I believe them because ebay is selling 40% kennedys 20% over spot! "The first prices to come down should be the should be paper silver, then physical bars, then silver coins." This seems like it might be the case. I'm gonna call some big places like you guys suggested and see how many ounces I can get. Basically I'll see where I can get the most ounces. Though I really trust coins more than bar, since I have watched videos from the news showing people who drilled into gold bars to find tungsten cores, even from reputable places. $50k lost to thieves... |
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Pillar of the Community
United States
2168 Posts |
I would check around locally first. My local shop had supply and a better price than the online places last Monday. The cost was tied to spot and dimes/quarters were $19.40/$1.00 face and halves $20/ $1.00 face. With 15% and 20% over spot respectively. I saw the many online places had higher costs that day. I know everyone doesn't have a local place and all are different. The online has shipping/wire fees so like to buy locally and get the PM in hand without fees/others involved etc.
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Pillar of the Community
United States
2168 Posts |
Some online places have minimum purchases for 90% junk, the reason I asked.
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Pillar of the Community
United States
979 Posts |
Ampex, roll of 20 40% halves: $76.52, melt value $67.50. Same price on ebay but obviously varies. Provident: $76.90 |
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Pillar of the Community
United States
979 Posts |
I think at that price, I'n going to sell my friend some of my silver, since I need the money. Not the full $1000, but some....
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Valued Member
United States
292 Posts |
My LCS has INCREASED their premium. Now $4.50 for generic rounds, $6.50 for ASEs. Selling 90% for 19x and buying it for 15.4x. Still lower than ebay. |
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Pillar of the Community
United States
979 Posts |
Yeah, this recent stock market drop has taught me a lot! Just because paper drops doesn't mean physical drops. But if paper raises, so will physical.
Knowing that, why would one ever buy paper stocks?
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Bedrock of the Community
13014 Posts |
The stocks are for making money. With the stock you could have sold in second when the large drop happened instead of hoping people will still pay the higher price.
This drop really isn't indicative of anything to be honest. Its an extreme drop and only applicable to extreme drops. When silver was coming down from 40 to 30 slowly the prices were following right along. Its only because it dropped several dollars in 72 hours that the sellers are trying to get their old price and not eat the losses.
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Valued Member
United States
410 Posts |
@ Broseph: If you don't think physical silver is connected to the spot market try selling your physical silver to a dealer above spot.
Stocks allow you to purchase shares in a company that you would never be able to afford to as an individual. Without stocks how would a normal person be able to invest in a company like GE?
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Pillar of the Community
1283 Posts |
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Replies: 15 / Views: 1,609 |
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Posted 04/24/2013 03:16 am
