As if you didn’t need more evidence to suggest that real, physical holders of silver could care less about the fraud-ridden, margin-crazy, Comex paper-silver market pricing, check out the latest eBay data coming out of 24hr gold. Nearly a MONTH after silver almost pushed $50/oz and tumbled almost a full $20 backward thereafter, you’d think that all those ‘suckers’ who bought on the way up would try to be unloading at any price, wouldn’t you?
The data suggests otherwise.
1oz American Eagles, which the COMEX says is worth just $36 and change today, are selling well in quantity for as low as $45.95 with free shipping. The seller has already sold over 180 eagles between $45.95 and $48.75 May 10th through today. During this period, it doesn’t appear as if the premium per coin ever dipped more than a few cents below $10. Check out the rest of the premiums right now:
[image title="24hrgold" size="medium" id="529" align="center" linkto="full" ]
Over on the retail side, Apmex is still buying back any-year Eagles above the current market price. Sure, it wasn’t an unfathomable act when silver was hitting daily highs, but nearly a month after the ‘bubble’ burst and they’re still paying a 5% incentive to sellers? How is it that one of the largest bullion dealers in the world didn’t get absolutely pounded with supply when silver plummeted – at least enough supply so they’d be able to stop coercing sales? In the stock world, when a market maker has to go dramatically above the market to get stock, it’s never for a good reason (hint: short covering).
[image title="apmexbuy1" size="full" id="530" align="center" linkto="full" ]
For long, physical holders of silver, these small examples of true market resistance to the paper pricing of silver has to be encouraging. Going physical gets you the same upside exposure without most of the risk of violent, orchestrated price drops. When the prices were at their peaks, you could easily sell into it (coin shop, eBay, wherever) if you wanted. Even after falling off a paper cliff, physical markets are in some cases still exceeding the paper highs! After all, what long in SLV is going to be able to sell his shares now at $45 bucks a clip?
Enthusiasts