Silver shorts play a dangerous game

[moparal7]

http://www.marketwatch.com/story/silver ... 2013-06-03

[AlleyAlchemy]

Provident continues to slowly reduce premiums on 90% -- now 'down' to 4.79 for halves for any quantity. Was 5.25 for larger quantities.

Contrary indicator or not?

[Engineer]

Provident continues to slowly reduce premiums on 90% -- now 'down' to 4.79 for halves for any quantity. Was 5.25 for larger quantities.

Contrary indicator or not?

I watch buy prices rather than sell prices, but the premium on 90% is continuing to drop. APMEX was paying +3 for a while, then +2, and now they've dropped to +1.75

[InfleXion]

http://www.marketwatch.com/story/silver-shorts-play-a-dangerous-game-2013-06-03

If you live by the leverage, you die by the leverage.

[AlleyAlchemy]

I watch buy prices rather than sell prices, but the premium on 90% is continuing to drop. APMEX was paying +3 for a while, then +2, and now they've dropped to +1.75

That's an interesting metric that I'm trying to understand a little more. For ex., Provident is selling Canadian silver dollars (.6 oz) for 15.24 but buying for 11.65. Does that spread make them less desirable or valuable than say 90% halves which are 19.68 sell/17.68 buy? Seems like the answer is an obvious 'yes.'

[scyther]

I watch buy prices rather than sell prices, but the premium on 90% is continuing to drop. APMEX was paying +3 for a while, then +2, and now they've dropped to +1.75

That's an interesting metric that I'm trying to understand a little more. For ex., Provident is selling Canadian silver dollars (.6 oz) for 15.24 but buying for 11.65. Does that spread make them less desirable or valuable than say 90% halves which are 19.68 sell/17.68 buy? Seems like the answer is an obvious 'yes.'

Yeah, they're terrible for war nickels too. I can only assume this is because they can't sell it as quickly.

[Engineer]

I watch buy prices rather than sell prices, but the premium on 90% is continuing to drop. APMEX was paying +3 for a while, then +2, and now they've dropped to +1.75

That's an interesting metric that I'm trying to understand a little more. For ex., Provident is selling Canadian silver dollars (.6 oz) for 15.24 but buying for 11.65. Does that spread make them less desirable or valuable than say 90% halves which are 19.68 sell/17.68 buy? Seems like the answer is an obvious 'yes.'

Their buy price is pretty bad on the 80%, but that doesn't mean Canadian silver doesn't have a place in your stack. They're a good way to get more ounces of silver for the rides up, so long as you understand you'll need to sell them about 10% cheaper than 90% and buy accordingly.

[Jonflyfish]

It looks more like the longs were playing a dangerous game during the price drop.

Cheers!