Well I am now more bullish on gold and silver. Just got an email from APMEX asking to buy my gold and silver American Eagles. They are paying 3.00 OVER spot on Silver and 38.00 OVER spot on gold. Given this is one of the largest dealers in the US it should tell you something. They are currently selling silver at like 5 dollars OVER spot as well.
Here is part of the email
“APMEX Wants To Buy Your U.S. Mint Products!
Due to the recent incredible demand for Gold and Silver bullion products, APMEX would like to offer you an exclusive opportunity to LOCK IN YOUR PRICES and sell us some of your U.S. Mint collection. This is a limited time offer and it is first come, first served until we have secured enough U.S. Mint bullion products to meet our current demand!
“We Want These Products:
We will pay you $38.00 over the current spot price of Gold for your Gold American Eagles. ANY year, ANY quantity!
We will pay you $3.00 over the current spot price of Silver for your Silver American Eagles. ANY year, ANY quantity!
We will pay you $1,250.00 for your 2010 America The Beautiful 5 oz. Silver coin sets. “
To me this is one of those small but significant signals that many big financial analysts miss. The key here if you have ever sold gold or silver is you usually get right about spot price. Be it eagles or generic rounds or what ever, each class has a spot price.
Generally spot is what dealers pay and some level over spot is what they sell at. Silver is currently at about 45 and some change so 3 over spot represents a 6% premium on Silver Eagles. That is not even close to out of line when you are buying from a dealer but it isn’t very common when selling to a dealer.
The conclusion is simple, APMEX one of the largest metal dealers in the U.S. believes that now is the time to buy even if you have to pay a little more.
Does this mean I am converting all my cash to silver or gold? No and I am not saying you should either, given I hold significant metal reserves already I won’t buy much if any but it does tell us something about the current outlook. I also think if you are currently buying an ounce or two a month it may make these recent highs a bit easier to handle.
FWIW – I have NO RELATIONSHIP or affiliation with APMEX. They are just one place I have purchased metal from in the past and I am on their mailing list. I have tried, UNSUCCESSFULLY to get some sort of discount or shipping deal from them from the MSB but they have never responded.