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PennyPauper
Penny Collector Member
USA
395 Posts |
 Posted - 12/01/2009 : 22:38:04
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I know dealers have to make a profit,and that doesn't bother me one bit.Sometimes I wonder what their thinking is.Last time I sold 90% spot price was around 18,and he gives me 12.5x face.Today with spot over 19 he offers me only 12x.I ask why so low? He trys to explain by saying that the premiums have changed and they jump up and down,ect,ect.Sometimes it's over spot sometimes under,so I didn't sell. I don't think he's lying to me because we have dealt before,and never got a bad vibe,but I'm maybe too careful.
I figured it would be $50 more and I asked if he could give a extra $25 but no go.
Can anyone shed some light on the dealers world for me,and explain what causes these premiums to fluctuate so much,and where they get their numbers from? Thanks
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HoardCopperByTheTon
Administrator
USA
6807 Posts |
Posted - 12/01/2009 : 22:48:59
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Just tell him if the premiums are so low, you are a buyer.. how about he sells you some at 12.5x. 
Dealers don't want to get caught short in a volatile market. He doesn't want to buy it today and have it tank tomorrow, so he is hedging by building in a little cushion. It also depends on whether the dealer has a ready market for silver or if he might have to hold it for a week or two to sell it. The same thing happens when the price goes down.. if you want to buy some, the premiums are really high. It could also depend on a dealer's cash situation. If he is limited on capital.. as most are, he will want to make a bigger spread if he is going to tie his cash up.
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If your percentages are low.. just sort more. If your percentages are high.. just sort more.
Now selling Copper pennies. 1.6x plus shipping. Limited amounts available. |
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ScottyTX
Penny Hoarding Member
USA
508 Posts |
Posted - 12/02/2009 : 00:11:59
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Hummm, 13.5X seems to be the low right now so I would have definatly not have sold at that price. Heck I'll give you 12.5X face right now :)
Scotty |
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Did anyone sell 90% today,what did u get?
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