Silver Hit $120. Why Were Dealers Turning Sellers Away?

I mean, I love junk silver.

I absolutely love it.

I don't have any.

But if I was to buy it back in again, that's that's the sort of thing because people say, oh, it's all coming to an end.

So I bought this gold eagle.

And of course, it's got no liquidity in it.

You can't buy a chicken with a gold eagle, but you can buy it with a silver dime.

So if you were what a lot of people are preppers or very nervous about the future, you should be loading up on sacks of coins because everybody knows what they are.

Everybody knows how much silver there is in it.

And it's a small enough denom that if this apocalyptic vision ever came true, that they would work.

Whereas a nice big one ounce silver with Mickey Mouse engraved on it probably is not going to work in the Mad Max world.

But, you know, there's an example of the difference.

and one point to that which is really important a lot of people are you know concerned when the price falls they're like well you can't buy it at the spot price right and that's obviously because of the supply demand issue there um and it's in in some sense it's it's um wholesalers and dealers protecting themselves too because if they run out of product then they don't have anything to sell right um but the fun thing is is that if you pay attention to the premiums you can actually play the premiums as well because when there's a huge demand for example it's happened on silver eagles it's happened with junk silver where the premium just skyrockets and gets kind of ridiculous um we saw it was a few years back where we were buying back silver eagles at like ten dollars over spot when silver was i don't know 25 30 bucks so we were telling our clients look we'll buy this back from you because there's so much demand right now and you can swap out for more silver.

I've been urging my clients as junk silver has been being dumped on the market and alloy silver has been caught up as refineries of like, look, there's a great opportunity here to buy junk silver at a discount.

For the longest time, it was under spot.

You're not paying a premium at all.

If you buy when the demand is low, and sell when the demand is high you can kind of play the premium game as well not just uh the silver game

basically buy it when it's for sale and sell it when it's not for sale

exactly exactly anything that is yeah anything that's not pure right now is being sold at a discount still not as dramatically as it was a few months back but um and the same thing with the gold as well like the semi-numismatic gold coins that are you know bought mainly just for the gold content.

I'm not talking about like the super high premium ones because dealers, unfortunately in this industry, kind of upsell those and make a huge margin on those.

And they say, you know.

I like your word,

semi-numismatic.

Yeah.

But those you can get at like.