Silver's discount to gold sticks out like a sore thumb
Ned
Silver's trading at an eye-catching discount to gold these
days, and some analysts have been debating whether the
white metal is severely undervalued given its many
industrial uses and its ability to double as a precious
metal.
Those are handy characteristics to have, especially in an
economic environment where cash and investment options are
short. And at about $13 per ounce, silver is cheap --
trading more than 70 times less than gold at $900 an ounce.
Still, the reference to "cheap" silver has been made before
and investors, for the most part, have been staying away
from silver because of concern about the fall in industrial
demand and the more volatile nature of trading involved
with the metal.
Those are red flags for the near term, analysts said. For
the longer term, it could be a whole different story...
Continued: http://xrl.us/bejgic
us...@domain.invalid
Just try and buy silver at anywhere near the spot price, it's bull, even
my local Gold/Silver exchange guy whose been in the business for 30
years can't get it.
Doobie Keebler
> Just try and buy silver at anywhere near the spot price, it's bull, even
> my local Gold/Silver exchange guy whose been in the business for 30
> years can't get it.
If you like that, you'll love the +150% premium over spot for rounds
on eBay.
catalpa
<us...@domain.invalid> wrote in message news:49ba8504$1...@news.x-privat.org...
You can buy all the 1000 oz silver bars you can pay for. NYMEX silver spot
price is $13.23.
www.kitco.com has 1000 oz silver bar for 30 cents over spot ($13,530.00)
www.tulving.com has 1000 oz silver bar for 49 cents over spot ($13,720.00)
A You
But silver could hold with government infrastructure building while gold as
a currency hedge could drop...
Actually I would look at silver when it is halfway to testing the one-year
low...
...but there is an emerging theme of inflation caused by the increase in
money supply rather than inflation caused by consumer buying. But we
currently have deflation so an inflation caused by the increase in money
supply is going to be a slowly developing fundamental.
Well...look at ticker symbols SPY and QQQQ...are those they new highs of a
trading range going forward ? In other words I'm looking at everything when
it is halfway to retesting it's one year lows...
us...@domain.invalid
LOL try buying it smaller amounts average people can afford, as I said
my local dealer can't get it at anywhere near spot price , he's paying
over $16.00 oz.
Doobie Keebler
> LOL try buying it smaller amounts average people can afford, as I said
> my local dealer can't get it at anywhere near spot price , he's paying
> over $16.00 oz.
BU American Eagle silver dollars are going about $18 to $20 at retail
and on eBay.
So, the premium people are willing to pay for small denomination
highly liquid silver bullion coin from the US Mint is about 40% to 50%
over spot.
Even art bars and oz bars from mints you never heard of are fetching
around $18. Just nuts.
.
catalpa
<us...@domain.invalid> wrote in message news:49bae208$2...@news.x-privat.org...
Silver is an industrial metal and the spot price is for the industrial
market. Close to spot price only applies to large size bars (1000 oz and
more).
If you want to buy piker sizes you must pay piker prices.
us...@domain.invalid
You are not getting the point,nobody expects to pay spot price
on one oz rounds. The premium for smaller amounts is way more that it is
has been historically, even for dealers.
Doobie Keebler
> You are not getting the point,nobody expects to pay spot price
> on one oz rounds. The premium for smaller amounts is way more that it is
> has been historically, even for dealers.
zactly!
Plat is an industrial metal, too, and 1/10th oz. uncertified proof
Plat eagles ahev been selling on eBay for around $300.
That's approx. $3000 per full troy oz., a premium of nearly 300%
I think the oddity (at this moment in history) is Gold.
Compare the recent market price history of small rounds of gold vs.
silver.
The premium for 1 oz silver is 53%, for gold 14%
http://www.24hgold.com/english/buy_sell_silver_coins.aspx?co_id=0
The market is buying insurance against a collapse in the fiat
currency.
So the question is: does the 14% retail premium on small gold rounds
reflect a too-high spot?
Or, is the retail demand so low that the premium has collapsed?
.-=d00b
.
Check the dealer premiums on that, it makes the point.