Strange Selling Experience- dealer paying ABOVE spot!?

[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.

[aloneibreak]

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

[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.

[beauanderos]

I remember when silver dropped down to $9 APMEX was emailing me offering to buy at $2.50 above face.

[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