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Strange Selling Experience- dealer paying ABOVE spot!?
Posted:
Thu Feb 10, 2011 10:59 pmby Economist
My brother in Colorado Springs calls me today-- he sold a few ounces of .999 silver to a highly reputable local dealer (Hallenbeck) at, get this, spot + $.50! I'm thinking, hmm that's odd--in my experience dealers usually buy at a discount from spot.
We both concluded that this portends very strong demand on the part of hoarders/ speculators.
Re: Strange Selling Experience- dealer paying ABOVE spot!?
Posted:
Thu Feb 10, 2011 11:07 pmby aloneibreak
Economist wrote:We both concluded that this portends very strong demand on the part of hoarders/ speculators.
i agree
he needs inventory and needs it badly
i'd be curious to see his markup on selling price
Re: Strange Selling Experience- dealer paying ABOVE spot!?
Posted:
Thu Feb 10, 2011 11:29 pmby tbram88
Two weeks ago my LCS was paying spot for 90% and he never does that, he usually is 1.5 to 2x under but he was totally sold out of "junk" (man I hate that term)
Maybe your brother had some Englehard or JM that would bring a premium.
Bob.
Re: Strange Selling Experience- dealer paying ABOVE spot!?
Posted:
Thu Feb 10, 2011 11:45 pmby beauanderos
I remember when silver dropped down to $9 APMEX was emailing me offering to buy at $2.50 above face.
Re: Strange Selling Experience- dealer paying ABOVE spot!?
Posted:
Sat Feb 12, 2011 7:23 amby bman
That dealer might have had an order that he was getting a good price for that he just couldn't fill with his current inventory. He might have been selling $5000 face at spot+ and only had $4500 face on hand that he paid well below current spot price for, he would still make a good percentage even after paying over spot for that last $500