How many times does it have to be explained that the market prices of gold and silver are not set by the pikers buying 10 or 20 ounces. The market prices of gold and silver are set by industrial users and large investors/traders who deal in large quanties. If morons want to pay large premiums over the spot price for a few ounces it just proves that they are morons. You can buy all the 1000 oz bars of silver and 100 oz bars of gold that you can pay for. There is no shortage of either one.
"Its either you are in this game for MONEY or EGO." How about <b>both</b>? LoZZZer once made a very interesting observation (and when I say once, I really do mean <b>just once</b>, out of over 30,000 total posts) that nearly all Libertarians are narcissists. This is certainly true, and you all know that a very high percentage of successful traders are also Libertarians. <b>Ego AND money.</b> Everything you're saying is correct, but I still wouldn't dismiss the current historic price divergence between spot & physical bullion as <i>completely</i> meaningless. Maybe, just maybe the American public is finally beginning to recognize the fact that bullion is a legitimate and investment-worthy asset class?
Many things on ebay are selling for prices well above historical norms. If you look at gift card auctions, you will find people selling gift cards at buy-it-now prices ABOVE the value on the card (example: http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=230300293992) If you don't understand why this is, then you probably have never heard of http://search.live.com/cashback. In a nutshell, Microsoft will rebate you a certain percentage of your ebay purchase price if you first search for the item at Microsoft's site before buying it on ebay (there are other terms and conditions). Although they keep changing it, last I checked the rebate percentage was 30% which makes buying things that are cash-like (such as precious metals and gift cards) very attractive. This Microsoft promotion has been going on since August (highest percentage so far was 35%) so it goes without saying that many ebay sellers are hip to it and have adjusted their prices accordingly.
what's happening in the silver market is not just an ordinary markup to small buyers. there is basically no physical metal available for the first time since the 70s perhaps. even the us mint has apparently stopped making bullion coins. IMO this could be the first signal of a groundswell away from paper currency. it will be very interesting to see what happens with an enourmous number of people planning to take delivery of the November contract for the first time....
why doesn't someone take delivery on the comex and start minting and retailing smaller denominations? anything illegal about that? start a brand and do it. immediate trustworthy service and complete standardization, honest grade and weight. spread tighter than everyone else to compensate for the lack of established credibility. try to make up for it in volume. between the mint's premium to dealers, the generally exorbitant retail spreads, and public appetite to pay them, maybe this is possible. are there high costs associated with delivery? can anyone specify the production equipment/costs required to enter at the smallest feasible level? the contracts are a very accessible size. i imagine the greatest hurdle to overcome would be brand equity... getting people to overcome the perceived or real lack of fungibility and standardization that eagles, kruggerands, philharmonics, etc have.