I don't understand what Jim Willie is saying here. I don't understand how anyone buying huge volume was paying significantly higher premiums than retail available to Joe Blow at tulving, apmex, etc.... I remember when gold went below $1800 and plumbed the depths of $1700, I sent a message to one of best sources of gold information who’s a trader in a foreign country- he’s not an American citizen. And I said, if you don’t mind, what are you seeing for the prevailing physical gold price as we’re at $1720 or $1730 right now one the supposed price discovery out of COMEX. And he said, well, you have to pay very little attention to COMEX, it might show $1730, but I could show you lots and lots of sales in the multiple millions of gold in the $1950 range. So there was a $230 premium for physical. ...
What I don't understand about any of this, assuming it is true (they pay more, have to wait longer, can be turned down, etc.,), is why Sprott et al aren't exercising "normal" channels as well (apmex et al), placing constant orders at "near spot" in a way that continuously swamps all of their available supplies.2) It "kind of" seems wrong that BIG buyers have to pay more per oz. Although FOFOA agrees with that. And Sprott was turned down in his efforts to buy 100 tons.
ROTFL! Good one Bearing! Love the HT accent too.I can see it S.D...
Sprott: Yo, Hannes. How much gold and silver do you have in stock?
HT: PMBug says I have 300,000 oz of silver and 4000 oz of gold.
Sprott: OK, I'll take it. How much? Wire transfer in an hour.
HT: Ahh... Ahh... You just made my day, sir!
For one thing, Sprott has certain specifications for the metal he buys - bars of a certain size with serial numbers IIRC. There is only a small percentage of a retail dealer's inventory which would meet his criteria I think. He's not buying monster boxes of coins, small bars/rounds or large bars without serial numbers.What I don't understand about any of this, assuming it is true (they pay more, have to wait longer, can be turned down, etc.,), is why Sprott et al aren't exercising "normal" channels as well (apmex et al), placing constant orders at "near spot" in a way that continuously swamps all of their available supplies.
Actually, you did need to point that out, as it wasn't obvious to me. And thanks for pointing it out! :cheers:Well not that I need to point out the obvious then, but perhaps all those other really rich buyers are using the same standards as Sprott, wisely, and therefore such purchases are in fact commanding the premiums that they are reporting. Crazy eh?