Spot price is paper price

[ximmy]

TPTB are trying to convince us that spot price is the fair market value for metals. Perhaps at one time it was, but not today. Spot price has become Paper price. Don't let your metal go for the price of paper. Let the disconnect happen.


Spot Price is Paper price

From sparky's post

Current pricing at APMEX for bags of 90% coins:

Current spot silver price: $23.33
APMEX Sell Price: $29.42 (16% premium over spot)
APMEX Buy Price: $26.33 (Current sell/buy spread: 12%)

Current sell price, 1964 Kennedy halves/1 roll, per ounce: $32.19 (38% premium over spot)

[Spectrism]

I suppose the deal is that if you want to buy 5000 ounces for delivery in May, you can place that order now at the spot price.

[mamboni]

I suppose the deal is that if you want to buy 5000 ounces for delivery in May, you can place that order now at the spot price.

Yes, I hope you get delivery in May of physical. You might as well buy a paper future contract instead.

[Sparky]

If I owned any physical silver, I would consider selling some of it today for as low as $75/ounce.

[osoab]

If I owned any physical silver, I would consider selling some of it today for as low as $75/ounce.

That low? I was thinking I would sell Ag for 1/10 the price of Au.

[Spectrism]

That does bring up an interesting question. At what price would you sell your silver? Hmmmm... another thread and poll.

[Sparky]

That low? I was thinking I would sell Ag for 1/10 the price of Au.
Keep in mind, I said some of it.

[osoab]

Keep in mind, I said some of it.

But you don't own any. :D

[mamboni]

Haven't you guys and gals heard? Silver is a sucker play, sold to dupes and knaves, according to some here.

[Horn]

But you don't own any. :D

He had an ounce back in 07, but got hit by the wave.

Ever since then its been an uphill battle to get back.


http://www.youtube.com/watch?v=hsjI7ekciZs

[StreetsOfGold]

But you don't own any. :D

SAME boating accident many of us had

[Horn]

Haven't you guys and gals heard? Silver is a sucker play, sold to dupes and knaves, according to some here.

F.U. Vinny!

4792

My little sister's got more silver on her pinky, den U.

[Sparky]

Haven't you guys and gals heard? Silver is a sucker play, sold to dupes and knaves, according to some here.

Yep, I would feel like such a fool for owning it that I might be willing to let some of it go for $75.

[Horn]

Yep, I would feel like such a fool for owning it that I might be willing to let some of it go for $75.

You can kiss my invisible left nipple.

[ximmy]

Who would have thought... oO***

Gold and Silver shortages are increasing. However the current spot for paper silver is around $23USD.
However, PREMIUMS are at $10 or higher per coin.
Read more at http://investmentwatchblog.com/physical-gold-silver-shortages-are-accelerating-premiums-exploding/#7GlEu58aF9BUlLZ4.99



The Paper Precious Metals Market Precariously Close to Diverging From the Physical Market (http://www.activistpost.com/2013/04/the-paper-precious-metals-market.html)
http://www.activistpost.com/2013/04/the-paper-precious-metals-market.html

[Shami-Amourae]

PREMIUMS are at $10 or higher per coin.


http://www.youtube.com/watch?v=BU5urhqusCU

[Jewboo]

http://www.toledoblade.com/image/2005/05/23/800x_b1_cCM_z/Noe-s-absence-spawns-speculation-gossip-among-coin-dealers-at-show-2.jpg
"WE CHARGE A $10 PREMIUM WHEN WE SELL BUT ONLY GIVE YOU KITCO WHEN WE BUY"

:) The game is still rigged kids...

[Horn]

:) The game is still rigged kids...

Still Silver is the only market that their rigging appears very worn & torn, 1 knot slips & the sail flies away.

Its the market they've had the longest riggs on, oil too, but that'll never be open.

[mamboni]

FWIW the mint is selling 2013 Gold eagles for $1810. Discounting a small coat of fabrication, apparently that is the dollar price of an ounce of gold according to the US Mint. Capeche?


4795

[gunDriller]

http://i.space.com/images/i/000/009/495/i02/rocket-launch-atlas-5-launch-sbirs-walters.jpg?1304810550

[mamboni]

Premiums on junk silver and SAEs continue to rise:


http://www.youtube.com/watch?v=FA51PmoYXP0&feature=player_embedded

[Libertarian_Guard]

Gundriller

I thanked your rocket as a matter of irony. The choir understands what is taking place, the other 95% haven't a clue and will be led to slaughter. But sadly, as the vast majority they will take us down along with them.

[mamboni]

BULLS HIT ... by Grant Williams ... THINGS THAT MAKE YOU GO Hmmm...


To put what happened into perspective, somebody (or bodies) sold pieces of paper with a notional value of $28,000,000,000 into the gold futures market (that's roughly 25% of the market cap of Bank of America).

Not gold. Paper.

It was 'the gold price' that collapsed, not 'the price of gold' — an incredibly important distinction to make and one that we will be coming to shortly, but for now let's get back to last week and see how the Paper Smash proceeded.

Those concerted sell orders tripped a group of stop-loss and technical sell orders that were clustered around that level, but what happened next was so bizarre that even the most dyed-in-the-wool conspiracy debunkers would have a hard time coming up with a 'that's just coincidence, happens all the time' defence.

Bill Downey takes up the story (in capital letters in places, so you KNOW he's angry):

(Gold Trends): Now comes the part that is pure genius or a total coincidental thing that just so happens to be a gift to those who are short the market and those who would be responsible to deliver gold should the inventory deplete.

ALL OF A SUDDEN THE LONDON PHYSICAL PLATFORM THAT BUYS AND SELLS PHYSICAL GOLD GETS LOCKED UP. THE SYSTEM FREEZES.
The screens all freeze.
What does that mean?

No one can get to the physical market to buy at these low prices, but at the same time they can’t sell or protect their positions either. The system is frozen. Yes, just like at Bit-coin.

The system locks up. And of course the results are going to be the same, just on a lower percentage level.

What can the physical holders do?

Meanwhile the futures market continues to drop.

So what happens? The physical market holders begin to panic. How can they protect themselves, as they can’t sell either?

What would you do if you were in that situation?

There is only one solution, especially during a panic. Short and ask questions later.


FULL ARTICLE .....
https://d21uq3hx4esec9.cloudfront.net/images/uploads/ttmygh/6455/22_Apr_... (https://d21uq3hx4esec9.cloudfront.net/images/uploads/ttmygh/6455/22_Apr_2013_TTMYGH.pdf)

[Spectrism]

Sorry Mambo- but that article is bunk.....

No one can get to the physical market to buy at these low prices, but at the same time they can’t sell or protect their positions either. The system is frozen. Yes, just like at Bit-coin.

The system locks up. And of course the results are going to be the same, just on a lower percentage level.

What can the physical holders do?

Meanwhile the futures market continues to drop.

So what happens? The physical market holders begin to panic. How can they protect themselves, as they can’t sell either?

What would you do if you were in that situation?

There is only one solution, especially during a panic. Short and ask questions later.



That is pure BS. Anyone who wants to sell their physical at $35/oz (silver) right now would have no trouble.

[ximmy]

At this point, if prices stay in the current trading ranges (under $24.70 for silver and under $1500 for gold) there is a very good chance that price will no longer be the main concern for physical metals buyers. Availability is the real concern. Supply shortages are already turning these markets upside down. Major dealers like us are being forced to stop selling some of the most popular physical metals products available simply because we cannot get them at any price. If this suppression of electronic prices continues, the supply picture for physical metals will become increasingly bleak: A trend that is tough on dealers but very positive for those investors who already own the products.
All the old stand-by marketing slogans are coming out of the woodwork: “Get them while you can” and “Supplies are running out”. This time however, they may very well turn out to be true.
~Mike Getlin

http://www.meritgold.com/market-updates-detail/viewpoint-supply-constraints-show-reality-in-metals-market

[Jewboo]

That is pure BS. Anyone who wants to sell their physical at $35/oz (silver) right now would have no trouble.



Dealers only pay Kitco prices when buying. Having to sell privately on eBay is a hassle.

:(??

[Spectrism]

Dealers only pay Kitco prices when buying. Having to sell privately on eBay is a hassle.

:(??

I wouldn't sell to a dealer yet. The unavailability of physical silver (or gold) will soon drive the prices up. Actually... I am really beginning to think that 2013 could be the year they eliminate the dollars totally for a new currency. It is hard to guess how long they can stretch this transition out.

[mamboni]

Following last week’s panic sell-off in gold (and resultant explosion in physical buying worldwide), one of the world’s top gold traders and recent interview guest (http://bullmarketthinking.com/gold-trader-once-this-bottom-is-formed-we-may-never-see-gold-at-these-levels-ever-again/), Gary Savage, shared some powerful commentary on the psychology of these buyers.


Gary said, ”The buying frenzy we’re seeing in the gold market isn’t dumb money buying at a top. This isn’t the same thing as we saw in the real estate market in 2006 and tech in 2000. That was every Tom, Dick, Harry and Jane chasing a parabolic move expecting to get rich quick with no effort. That was people looking for a free lunch.

We don’t have those kind of conditions in the metals market at this time. On the contrary gold is making new lows, not new highs. There is no parabolic move, and there never was. In a true bubble, a market will increase 200-500% in a year and a half. Oil doubled in a year and a half. The Nasdaq tripled. Gold was barely able to pull off a 170% increase over a three year period. That isn’t even vaguely parabolic.

No sir, the buying we are seeing now is a result of prices being artificially suppressed below the natural market value. I used the analogy in the weekend report of Walmart putting 60 inch TV’s on sale for $100. Of course that is going to cause a supply problem, [because]$100 is too cheap. Those TV’s are going to evaporate off the shelves in minutes. If nothing else people will buy them for $100 and then sell them on Ebay for $200 or $300 once the sale ends.

Well gold is no different…If [the] price is depressed below that natural market value then buyers will line up to buy it. I’ll say it again, this is not dumb money buying gold. This is smart money recognizing that gold is too cheap.

…If you asked ten people on the street today nine of them couldn’t tell you the price of gold within $500. That isn’t a bubble. Even during the peak in 2011 precious metals barely [represented] 2 or 3% of the average money manager’s portfolio. During the bubble it [may reach] 15-20% or more.

People are [just] trying to find some fundamental reason for golds drop. I’ll say it again, there was no fundamental reason…It was just a stop run by some big money players to juice their short positions. It has no bearing on the status of the secular bull market, [which] can’t end until the money printing ends. And [money printing] hasn’t ended—it’s intensified.”
——
Special thanks to Gary Savage for his comments here. To learn more about Gary’s daily gold commentary visit: .