What good if silver goes down if dealers increase premium

[Darth Walker]

It had been said that if you buy from a dealer junk silver it the best for your buck. Yesterday I check in coin inflation the price for $1 in silver 90% halfs. The melt value was about $10.74/dollar. My coin dealer was selling the $1 in 90% silver for over $13. As you can see it is a premium very close to the silver eagles so buying junk it is not cheaper than buying pure relative.

 

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[twiasp]

They are businesses that make profit off buying/selling silver......... you expect them to do it for free or for spot price and have no way of minimizing their risks? I find junk silver at Thrift stores, garage sales, or CRH for coins at face value.

 

[Iamrussell]

Its the law of supply and demand- the demand is high right now because prices are so low and not a lot of people are selling it back to LCS so what they have in stoxk they have to sell for at least what they paid for it how ever long ago they bought it- pretty easy to understand we need silver to be steady for a while for the dealers to restock their supplies then their premiums will drop but with silver slowly sliding lower and lower the premiums on everything are gonna keep raising

 

[huntsman53]

This is also the case where the Dealers purchased Silver coins and Bullion when it was higher and unless they are in a crunch financially, they will never lower the price for Silver coins and Bullion below what they paid for it. Keep checking with them every week or so because folks bring coins to them practically everyday and once they have a fair amount of Silver coins and Bullion purchased at lower prices due to the decline of Silver prices, then hopefully they will lower the prices that they charge upon resell. If not, then find some other Coin Shops that are more reasonable.


Frank

 

[Jim in Idaho]

What everybody said, plus what you're seeing is the difference between the"paper" price of silver, and the "hold in your hand" price. Often when metals take a dive on the paper price, nobody will sell you their silver based on that price. Same with gold. Bet you can't buy it near the $1,100 price right now.
Jim

 

[Darth Walker]

Good comments. Thanks.

 

[fistfulladirt]

What everybody said, plus what you're seeing is the difference between the"paper" price of silver, and the "hold in your hand" price. Often when metals take a dive on the paper price, nobody will sell you their silver based on that price. Same with gold. Bet you can't buy it near the $1,100 price right now.
Jim

.9999 1 oz. gold buffalo $62 premium

 

[ivan salis]

if the dealer bought his silver stock when the silver price was higher and silver drops in value --he is not going to sell it at a loss anymore than you would -- he will hold his line to at least make a small profeit --that's what he is in business for after all..

 

[Jim in Idaho]

.9999 1 oz. gold buffalo $62 premium

That's a pretty decent price.
Jim