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 LunarEclipse
Mr. Worry Free
Registered: 10/31/04
Posts: 6,752
Loc: Sugar Town
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 Coin Spreads and (Lack of) Availability *DELETED* 
#9193816 - 11/06/08 06:32 AM (3 years, 6 months ago) |
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Post deleted by LunarEclipseReason for deletion: ta
Edited by LunarEclipse (11/06/08 06:42 AM)
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 phi1618
old hand
Registered: 02/14/04
Posts: 4,102
Last seen: 2 years, 17 days
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Re: Coin Spreads and (Lack of) Availability [Re: LunarEclipse]
#9193960 - 11/06/08 07:29 AM (3 years, 6 months ago) |
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The spot price shows real bids, asks, and trades - these numbers aren't made up, if you're a member of the market and have enough money, you can buy at the listed price.
It sounds like there's a significant premium for coins, and that a retail buyer pays a significant premium for bullion. The real test is: what can you sell it for? I doubt the same dealer that charges a $3/oz. premium for bullion will pay even a $1/oz. premium, since he can presumably access the spot market, or buy directly from another dealer who can.
The point I'm making is that somebody is selling for the spot price.
Kitco quotes better prices for silver bullion than you do - they have a bid/ask that brackets the spot bid/ask (currently 10.57/10.81 vs. 10.70/10.74) and charge a $440 "fabrication charge" on top of their slightly inflated ask price for 1000 oz., which adds up to about 11.20/oz.
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LunarEclipse
Mr. Worry Free
Registered: 10/31/04
Posts: 6,752
Loc: Sugar Town
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Re: Coin Spreads and (Lack of) Availability *DELETED* [Re: phi1618]
#9194244 - 11/06/08 08:28 AM (3 years, 6 months ago) |
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Post deleted by LunarEclipseReason for deletion: co
--------------------
Don't worry be happy.
Edited by LunarEclipse (11/06/08 08:33 AM)
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phi1618
old hand
Registered: 02/14/04
Posts: 4,102
Last seen: 2 years, 17 days
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Re: Coin Spreads and (Lack of) Availability [Re: LunarEclipse]
#9194292 - 11/06/08 08:38 AM (3 years, 6 months ago) |
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It's not as easy to take delivery on a futures contract as you might think - it's really set up for the people and companies that are involved in production and large-scale use, and not geared toward a retail investor. Just having a few 100k sitting around is not going to cut it.
Mish at http://globaleconomicanalysis.blogspot.com/ claims that deflation is bullish for gold since gold is money. I think that people tend to run to precious metals when fear is rampant; they (3rd person here, since I don't agree) believe that pms have some inherent value that's lacking in fiat currencies and financial instruments, so when the value of fiat currency and financial instruments is highly uncertain they prefer the "certainty" of physical metal.
The reason I don't agree with this is that the value of gold is as much based on faith as the value of a currency or financial instrument. IMO, the current price of gold reflects it's status as a "barbaric relic" and not it's value in jewlery or electronics. Further, it isn't even all that valuable in industry; other metals will substitute just fine.
SO, the reason it's so valuable is that people think it has value, and "they aren't making more of it, you know." Sounds familiar...
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LunarEclipse
Mr. Worry Free
Registered: 10/31/04
Posts: 6,752
Loc: Sugar Town
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Re: Coin Spreads and (Lack of) Availability *DELETED* [Re: phi1618]
#9194752 - 11/06/08 10:13 AM (3 years, 6 months ago) |
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Post deleted by LunarEclipseReason for deletion: ph
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Don't worry be happy.
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ChuangTzu
starvingphysicist
 
Registered: 09/04/02
Posts: 2,633
Last seen: 14 hours, 15 minutes
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Re: Coin Spreads and (Lack of) Availability [Re: LunarEclipse]
#9194790 - 11/06/08 10:19 AM (3 years, 6 months ago) |
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Quote:
LunarEclipse said:
Better to have food stashed (in several locations) to give the soldiers a little before they go to the next house. Or chocolate and coffee. Now those are items with REAL value...
Yup...
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Shins
Fun guy
Registered: 09/15/04
Posts: 5,772
Last seen: 11 days, 14 hours
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Re: Coin Spreads and (Lack of) Availability [Re: ChuangTzu]
#9199824 - 11/07/08 12:00 AM (3 years, 6 months ago) |
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coins and investment bars only make up a small (5 - 10%) percent of metal trades.
industrial size bars (1000 oz) can be bought at, or very close to spot.
the higher demand is for coins and investment bars mostly, this is why the premiums are high.
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Truth - Love - Courage
Edited by Shins (11/07/08 12:00 AM)
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