Provident 29 cents and 39 cents over spot on bars and rounds - Friday sale

[gunDriller]

http://www.providentmetals.com/featured/black-friday-sale.html


But please don't buy all of them. Leave a few for the rest of us :)


10 ounce bars for 29 over spot,

1 ounce rounds for 39 over spot.


Provident spot is 6 to 15 cents over spot-spot.

[Neuro]

http://www.providentmetals.com/featured/black-friday-sale.html


But please don't buy all of them. Leave a few for the rest of us :)


10 ounce bars for 29 over spot,

1 ounce rounds for 39 over spot.


Provident spot is 6 to 15 cents over spot-spot.
They are sold out now!

[monty]

They are sold out now!


They have Prospector rounds for $14.99 in stock.
https://smhttp-ssl-12068.nexcesscdn.net/media/catalog/product/cache/1/thumbnail/9df78eab33525d08d6e5fb8d27136e95/p/r/provident_prospector_1_oz_silver_round.jpg

[gunDriller]

They say they'll have another sale Monday.

That was the longest I've seen one of their low-premium sales last.

They had a sale where they sold the Prospector Premium for 43 cents over spot ... because their NASCAR team driver came in 43rd.

If he had come in 1st - it would have been 1 cent over spot.

Maybe they let the air out of his tires to make sure that didn't happen ?

They were sold out within an hour.


Other times when spot prices have fallen a lot, their website would keep their normal premiums for about 45 minutes - then WHAM ! back up to $1.50 or more.

Long story short, every time they were selling silver in the low 16's & high 15's ... it would only last for a short while. It seemed like a threshold, didn't matter what spot was doing - the physical silver industry just did not want to deliver 1 ounce silver for much below $16.40.


But with the price action the last few weeks, that has changed. Got 60 oz. yesterday at about $14.50 delivered, the lowest since about 2006 for me (I couldn't get silver during 2008 / 2009, best I got was $15 when silver was $12.50)

http://www.silverdoctors.com/wp-content/uploads/2014/09/silver-rocket-down.jpg

[Jewboo]

Other times when spot prices have fallen a lot, their website would keep their normal premiums for about 45 minutes - then WHAM...



http://d1w116sruyx1mf.cloudfront.net/ee-assets/gsd/yesterday/140617_5-year_silver.gif

We have witnessed since the GIM1 days many dealers suddenly go out of business leaving customer's credit cards charged while they wait for the UPS driver who never delivers.

Locked into a fixed "Spot" price which steadily keeps going down for years, they eventually must stiff their naive customers and blame their fraudulent supplier.

The supplier is basically just a common short seller. Hoping to eventually physically deliver cheaper silver at a later date by stalling the dealer and customer. The float.

http://vignette3.wikia.nocookie.net/villains/images/4/45/Wimpy.png/revision/latest?cb=20100811163729

[gunDriller]

The supplier is basically just a common short seller. Hoping to eventually physically deliver cheaper silver at a later date by stalling the dealer and customer. The float.

http://vignette3.wikia.nocookie.net/villains/images/4/45/Wimpy.png/revision/latest?cb=20100811163729
[/SIZE]

In the case of dealers like Provident, many (maybe most ?) of their volume comes from re-selling products from specific miners & specific re-cyclers.

for Provident, that would be Perth Mint and Ohio Precious Metals.

I'm pretty sure OPM makes Prov's 10 ounce bars and their Prospector.

Prov. could cover (the risk in) all their positions with options (credit derivatives) OR -
they could have an agreement with key suppliers to pass-through the cost, and to just be paid the premium.

If it was me, I would approach a sale like their Black Friday sale by having agreements with OPM & Perth.

I don't think Prov agreed to sell me silver for $14.50 an ounce unless they knew OPM would source it for $14.20-ish.


Same for gold. How can Prov sell Perth mint 10 gram bars for $20 over spot, with prices falling ?


Sort of like they're selling on consignment.

But more complicated.

Then when Prov. realizes their safety net does not cover the "price action du jour" (Or of the hour or minute), they
raise the premiums until their suppliers give them the 'all-clear.'

[Jewboo]

A few years back at GIM there was this guy calling himself Silversomething who had a very popular "Freedom" website selling silver coins. Eventually a bunch of GIMers got ripped off and Silversomething said his coin foundry stole everybody's money.

Seems kinda risky to be giving anybody your credit card number waiting for physical delivery of silver.

[Silver Rocket Bitches!]

I've been buying from provident for a long time and have nothing but good experiences. I used JPM for a while but once provident moved to the free shipping model it was a no brainer with their premiums. I have a ton of those provident prospectors lol. Cant' beat .79 over spot. Didn't jump on any black friday deals, we'll see what cyber monday holds.