Tulving Paying Premium $ For Silver
kodakoda
High Silver Premiums Explained
(Tulving did it again! )
Silver Stock Report
by Jason Hommel, October 20th, 2008
Tulving just bid $2/oz over spot for all 200 of my Engelhard bars in the
live auction that closes on Wednesday, at NOON Pacific. at
He's the top bidder for most of the bars, but not all of them.
Tulving also said he will bid up to $3/oz. over spot in the hour before the
auction closes, when it's more firm that he'll know what spot prices will be
at that time. Just in case spot drops between now and then.
And, he wants me to publish his top bids!
In my last auction, that is now closed, Tulving bought 16 out of the 24
bags, for $149,055.08, which was for a total of 11440 ounces (16 x 715),
which brought the "per oz." price to $13.03. In the last hour before the
auction close, the silver price hit $9.60. Therefore, Tulving got the bags
for under his bid price of "spot + $4/oz.", because he ended up paying
$13.03 - $9.60 = $3.43 over spot, which was a premium of 35.7%.
That's how it works. You pay less than you bid, most of the time, because
of the incremental proxy bid system that automatically bids the smallest
amount that you need to win. So, essentially, the winning bidder pays a
price of just over the second highest bidder.