On Oct 8, spot price for silver was about 11.60-11.70ish per ounce. Look at this auction on ebay http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=250302961895 1 oz of silver sold for 20.37 PLUS another $3.49 for shipping which brings the grand total for that silver bar to 23.86 per ounce. This is when silver spot is 11.60ish. I also went into a store the other day that sold silver coins. They absolute cheapest silver bars they had, were 9 dollars OVER spot price. Go anywhere on the internet and its next to impossible to find silver for less than 3 dollars over spot price (and again, they charge you about 4 bucks for shipping so a bar would cost you 7 over spot. About a year or so ago I remember thinking about buying some silver and the guys wanted 1 dollar over spot with the best deals as low as 80 cents over spot. So why is silver prices dropping when the demand is obviously so high? I mean, near 100% mark ups on ebay? I've actually contemplated buying a futures contract for delivery of silver (to get the spot price) and then selling on ebay. I mean think about that. Buying for what....11 buck an ouce, 5000 oz's and after ebay fees you are talking about netting at least 7 bucks an oz times 5000 oz and you got a cool 35k. Gold is almost the same. Selling for about 1200 per oz on ebay or 39 dollars per gram actually. (the 1oz bars are selling for about 1100-1150 so i guess you get a "discount" when you buy a full oz.)http://cgi.ebay.com/1-G-Gr-9999-24K...39:1|66:2|65:12|240:1318&_trksid=p3286.c0.m14 So if the average joe is willing to pay so much of a premium for gold/silver on ebay, dont you think the price of gold & silver is going to jump soon?
It is called markup for profit. If I have a store and buy spot silver at $12 and sell it at spot price of $12, my store wouldn't last too long. Spot prices are for people that can buy in large quantities. Buy a comex contract and go to delivery, you will own 5,000 oz. Most of the public trying to buy precious metals for investment are clueless and will pay a big markup. If spot silver was $2, it would sell for $8 maybe. I wouldn't etimate demand from these knucklheads.
http://goldmoney.com/en/rates.php?mc=1000&cc=840 NOt sure whwre you are getting your $20 oz for silver "Ebay" , the above link sells it almost identical as the market
Well...no...because like i said. About a year ago, I remember a store that was selling it for 80 cents over spot. (they also bought it for a little below spot from customers looking to sell). But today, the mark-up is too great and ebay they dont mark up the price. They put the gold/silver up for sale at 99 cents and whatever demand is...it gets so when silver sells for 20 bucks, its because the demand is there, not because of markup. I also looked into it 18 months ago and silver was selling for about 2 dollars above spot on ebay, not the 9 dollars above spot it sells for now.
Your link is for 2nd rate 'SLV' type paper, not actual physical delivery. The whole point of this thread was to point out the historic price divergence between the two. However, you can still find physical silver at just 79 over spot... if you're willing to go with 1000 oz bars. http://www.tulving.com/goldbull.html#silver
Yeah but thats all electronic. You never get physical gold or silver they "supposedly" hold it for you. Its basically the same as if i told you "hey...I will sell you silver at spot price, but instead of giving you the actual silver, I will give you a piece of paper saying you own the silver and if you ever want to sell it, you have to sell it back to me, you cant sell it to anyone else. For this...i will give you near spot rate" So its not really the same thing. Also if i wanted to buy silver/gold from that company so i could make jewelry, they aint gonna give me the gold/silver are they?
That depends which merchant you deal with. The friendly neighborhood assholes at www.ajpm.com are notorious for selling bullion they don't have, delaying your order for months. However, the merchant mentioned in my previous post (www.Tulving.com) always gets it to your door in under a week.
Its because gold bugs are morons? If you pay 40% over spot on ebay for an industrial metal in times like these then you get what you deserve.
This thread is typical of how some retail traders think. The MARKET DOES NOT CARE WHAT YOU THINK ABOUT IT !!! If people could only go beyond forcing their quasi academic hypothesis on exchange traded products, then most would become very good traders/investors overnight. Its either you are in this game for MONEY or EGO. Sheesh Anyway reminds me of a response couple years ago... http://www.cftc.gov/files/opa/press04/opasilverletter.pdf