Realcent.org

68Camaro wrote:What kind of premium on your recent buy?

Rodebaugh wrote:I quickly snagged about 800toz. We are not at a bottom and I expect another nice buying opportunity.

Know Common Cents wrote:Seems like I've been doing a lot of bottom fishing in several markets. No doubt I'll be able to snag something before too long.

Markets are distressed and many may be looking for some quick cash. That's when I dust off the welcome mat and say, "All are welcome."

These are challenging times and we're all wondering what's going to happen tomorrow, next week, and in the coming months. Yup, I'm almost approaching Geezerville at my age, but I have no desire to hide in a corner at these challenging times.

Hang tough, RCers. We're in this for the long (or longer) haul and I plan to survive.

Know Common Cents

Rodebaugh wrote: I quickly snagged about 800toz. We are not at a bottom and I expect another nice buying opportunity.

pmbug wrote:I went by my LCS yesterday morning. They were almost wiped out of 1 toz gold. While I was in there, another customer came in looking for some silver. He told the salesman that silver spot hit $13 something and the salesman scoffed and said, "spot doesn't mean anything." The premiums on silver are nuts right now. He quoted him $17 something for ASEs (which the US Mint has sold out of). He (the salesman) told me that he is being quoted 3-6 week delays on getting new inventory in.

Cu Penny Hoarder wrote:...
$17-18 is actually a very good deal right now for ASEs. After hearing that he/you should've bought ALL he had. Most bullion dealers are charging $22-25 each, depending on the volume discount amounts. ...

pmbug wrote:

Cu Penny Hoarder wrote:...
$17-18 is actually a very good deal right now for ASEs. After hearing that he/you should've bought ALL he had. Most bullion dealers are charging $22-25 each, depending on the volume discount amounts. ...

Well F me. I was so focused on the gold I wanted that I hadn't checked the going rate for ASEs, but after reading your comment I looked around. I'm going to call my LCS tomorrow morning and see if he has any left in stock and what kind of deal he is offering.

Recyclersteve wrote:It is interesting how many people talk a good game and then back down in the moment of truth. I've heard people saying things (not just on the web but in coin shops, at shows, etc.) like "If the gold/silver ratio hits 100, I'm gonna back up the truck." Well it just hit 124 yesterday. I think that may be an all-time high.

If I challenged that same person now they would sheepishly say "Ah, I never owned a truck..."

It brings to mind the old saying "Talk is cheap."

NDFarmer wrote:...
But I am not going to pay $22 for $12 dollar silver.

More and more refineries, mints and fellow bullion dealers are suspending their operations indefinitely. At BullionStar, we are facing significant operational and stock inventory challenges. There’s an acute shortage for particularly Gold Coins, Silver Bars and Silver Coins. For Gold Bars, some of the private refineries are still open and take orders but have long backlogs.

What does this mean for price premiums?

Due to the paper spot and futures precious metals markets no reflecting the demand and supply for physical precious metals, premiums are high and are fluctuating a lot.
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In a scenario where the paper spot market doesn’t rally to balance physical demand and supply, physical precious metals will no longer be priced based on the spot market. Bullion dealers will stop pricing metals. Many have already done so by suspending the accepting of orders.

When preferences in the derivatives paper spot and futures markets, which are unbacked or only partially backed by precious metals, differ from supply and demand in the physical market, prices disconnect.

The window for purchasing physical precious metals with fiat currency is quickly closing. At this time, it is still possible to settle physical precious metals purchases in fiat currency with some bullion dealers. At BullionStar, we are still accepting orders for precious metals settled in fiat currencies, and priced based on spot with a premium, but that is subject to change.
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... However, if its physical silver you wish to purchase, good luck finding it anywhere near the spot price. At two renowned precious metals dealers I surveyed this morning, physical silver is selling at massive premiums to the spot price.

What is known as "junk silver", primarily 90% pure silver coins minted in the U.S. prior to 1965, with no numismatic value, can be had for about $20.62/an ounce ($1475 for a $100 face value bag of junk silver which contains 71.5 ounces of silver). That's a premium of nearly $8, or a whopping 63% above silver's current spot price. One-ounce Silver American Eagle coins have even higher spreads to the spot price, in lower quantities it can be $12/ounce, a 95% premium to spot.

Business is brisk and inventories are low or empty, as consumers clamor for physical metal they can hold in their hand. I've never seen premiums this high, which is an indicator of the fear that is so prevalent. Silver is especially popular because it can be purchased in very small increments. In the doomsday scenario, silver coins dime, quarters, half dollars, silver dollars (and even nickels minted between 1942 and 1945, which contained 35% silver) are small enough that they could be exchanged for smaller goods. That's one of the draws here, but the disconnect between the spot price and physical silver is astounding.
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