At the moment ALL the dealers are trying to recoup monies spent when silver was at $18 to $20 per ounce. (their cost) Until they eliminate the silver "in stock" or "on hand" they are going to continue with their claims of silver shortages or demand is greater than supply. While I am fully aware a great number of people are buying silver, paying $4 to $10 over spot price is a little pricey. But, at the same time someone, along with the media, keeps playing up those record highs coming for silver and gold which is feeding the frenzy. My question is simple, "If the world's economy is going into the tank who is going to have money to support those kind of prices and how long will that support last?" Eventually, after moving up, or down according to how you look at it, someone is going to get stuck holding high price silver with no one left to buy? Somebody has to get stuck eventually. One can never forget ALL markets turn in a vicious circle. Getting caught on the wrong side of the circle is NOT good! As for silver prices, well I can live and buy, with what we have for a while but when the prices exceed the $20 level I will no longer be buying but will probably be considering selling. The trick is to know when!
I think we should have a better feel for silver prices after the first of the year with the release of the new Eagles. It seems dealers have gotten way to comfortable with those $4 to $5 over spot and I don't know how long the average buyer will continue to pay that amount of premium. Also I/We don't know what our individual Mints have invested in the silver they are currently striking. If it was purchased in 2008 I wouldn't look for cheap bullion for quite some time regardless of what the market quotes. The big guys AREN'T going to sell for a loss!
What kind of silver bullion or rounds are you selling Sepp?
