Silver - Law of supply and demand not holding!!

kmiklas

kmiklas

[@Mod: plz move to Economics sub-forum thx, Keith :)]

So silver tanked today--went from 17 down to 12.

I called my favorite silver dealer, and he's totally sold out of silver and gold eagles; he won't have any for a month and a half.

What gives?? Based on the laws of supply and demand, if there's massive demand for metals, the price should go up, right?

I think that Adam Smith just rolled over in his grave.
 
zdreg said:
You are talking retail coins vs. industrial usage for silver. Business is collapsing which results in less demand for silver.
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Ooh ok... prices between investment-grade silver (coins, bars, etc.) is diverging from the London spot price.
 
kmiklas said:
[@Mod: plz move to Economics sub-forum thx, Keith :)]

So silver tanked today--went from 17 down to 12.

I called my favorite silver dealer, and he's totally sold out of silver and gold eagles; he won't have any for a month and a half.

What gives?? Based on the laws of supply and demand, if there's massive demand for metals, the price should go up, right?

I think that Adam Smith just rolled over in his grave.
More...
%%
Ive been selling some silver coins , past 52 months.
Silver coins are fun, especially dated 1929-33,1934,2009-1999...…...I sold most of mine mainly 'cause I may make more with ETFs.
One dealer bought some metal knives from me+ told me some time ago- '' cant give you much, price dropped 2or 3%.'' I told him thanks anyway; its still in a long term uptrend =so no sale on that silver.
Still have a few with face value cost; liberty dime for example says ''one dime [10 cents]''LOL/true
Unless you have colorful paper charts on stocks/ETFs;
silver coins are fun + more real. And it was real fun to tell that dealer , polite ,no thanks on your too low silver price=its still in a long term uptrend .
 
zdreg said:
You are talking retail coins vs. industrial usage for silver. Business is collapsing which results in less demand for silver.
More...
%%
Silver dealers prices vary much more- than a bid /ask price of SDOW/TZA or QQQ/UPRO .
I've seen the silver/gold dealers do ads, paying more than any spot silver price than I ever saw...………………………………………………………………………………………………………….[NOT saying where that is]
One pays a premium for quarters;
another silver dealer pays less for sliver quarters. I bought some silver coins once + paid the dealer in uncirculated bank dollar coins- I could tell he enjoyed that!!!!!!
I also paid up X5,LOL for some 1900+ US nickels-may never sell them-still enjoying them-not silver@all
 
Here is the problem with doing Silver Eagles.

When the spot price was $14.69 I called Silver Eagle Pawn near me for a quote on an ordinary Silver Eagle. They wanted $3 over spot. Perhaps I could have bargained but ...

I am not sure what the price would have been had I bought and then tried to sell back but suspect it would be less than spot.

Spread is way too wide.

I know everyone has to eat but I don't feed pigs.
 
...also, the metal dealers are finicky about buying and selling. There's no NBBO for coin shops; they don't HAVE to buy or sell.

Example: I checked with several coin dealers re: silver eagles, and the message is the same: sold out, nothing for a month and half.

They might have stacks of them in the safe, but they don't want to take a big loss on the price swing, so they'll just hold and wait it out. -_-
 
At the heart of the problem is the US Mint. They have all this exotic stuff - proof and uncirculated and ... I could not find a price for a plain Silver Dollar.

It is hard to give a price when the price of spot is constantly changing but hire someone with a college degree and come up with a better way to price an ordinary US Silver Dollar where an ordinary citizen does not get screwed.

The US Mint should not be a for profit institution.
 
Looks like silver eagles are selling on ebay for $22-$26 per oz.
https://www.ebay.com/sch/Bullion/39...0&_fosrp=1&_nkw=1+oz+silver+eagle+coin&_sop=1

Massive spread between London silver spot and street metal prices.

Ayn Rand said:
At the heart of the problem is the US Mint. They have all this exotic stuff - proof and uncirculated and ... I could not find a price for a plain Silver Dollar.
More...
To my point, this creates a supply-side limitation. Even with demand unchanged, prices _should_ go up; with the demand increase from CV, they should spike up... NOT DOWN!
 
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kmiklas said:
...also, the metal dealers are finicky about buying and selling. There's no NBBO for coin shops; they don't HAVE to buy or sell.

Example: I checked with several coin dealers re: silver eagles, and the message is the same: sold out, nothing for a month and half.

They might have stacks of them in the safe, but they don't want to take a big loss on the price swing, so they'll just hold and wait it out. -_-
More...
%%
I still have my silver charts. Some old trend silver quarters sell for $500,000; GA gold private issue $5.00about the same/gainsville GA. That's the fun with that market; Chicago doesnt control that much. Its not in my budget now ,but just to show what supply + demand can do...………………………………………………………………………….
 
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