Not too long ago, when silver spot price was $50/ounce, I remember visiting my local coin store. It was interesting that they were still buying silver at $1 over spot. I didn't have a chance to go when silver had reached $63/ounce, but I remember looking at online sales groups and seeing people were selling for $1-2 below spot. Since I had started stacking, that was very rare to see. The more I looked, I noticed everyone was doing it.
I checked in with my local coin store since then, and spot price is almost $73/ounce now. When I asked if they were still buying, they said yes. When I asked how much they were paying, they told me "$2 back from spot," or $2 below spot.
(Created with Bing)
I was slightly surprised since it was the first time they'd ever quoted me below spot. Yes, I know this is a rare case as most stores always quote below spot, but my area is a slightly different market. This sudden change was a sign to me that we've entered a very uncertain time in the market if my LCS is doing this. I certainly can't complain, since anything I were to sell now would pretty much be instant double-digit profit, but it is very telling.
There's enough uncertainty in the market that either as a business you have to institute a buying freeze when the spot market is closed or reduce your risk by paying out less. I have to give kudos to my local coin store for remaining open and continuing to buy throughout these price swings. If the price continues to rise, we'll have to see what happens with buyback prices.
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This sounds like a 'Volatility' premium, dealers are getting cautious especially on the downside.
I have yet to sell any of my PMs. But I gave away 7+ oz. this Christmas 🎄
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You're right on the money. It'd be foolish not to do it given the uncertainty.
That's very generous of you! 😁
Maybe one day my Secret Santa gift will arrive. !LOL
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I wish we had a LCS. The closest one is several miles away. The rest are just gold and silver dealers who only deal in high end gold and silver coins.
That's a bummer. Do you have any pawn shops around you that are halfway decent?
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Not really.
Sorry, that sucks. 🙁
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Thank you!
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