The True Price of Silver

[PeacePlan]

The True Price of Silver​

I would like to reassure Gold-Eagle readers that the daily price shenanigans on the Comex do not reflect the true price of silver bullion. How do I know this? I know the price of silver prevailing in the largest silver jewelry market in the world - India. And you can, too. All you have to do is visit the website of the Bombay Bullion Association at www.bombaybullion.com to confirm the silver price. Silver prices are quoted in Rs. per Kg. The closing price on Thursday, April 14, 2011 was Rs.61,585 per Kg. Since there are 32.1oz to a kilo, the price per oz comes out to Rs.1918.54 per Kg.

Next, check out the rupee-to-dollar conversion rate. At the time of writing, the rate was Rs.44.4050/US$. Using this conversion rate, we arrive at the price of silver at $43.21/oz. In fact, the price has hovered around $43/oz for several days now. Compare this to the manipulated price on the Comex, which has varied from $37 and change to almost $42 per oz.

Now, here is some up-to-date information that you will not find on any website. Refineries in India have been out of silver since April1, 2011. The only silver that has been traded since that day has been scrap. April 4 was GudiPadwa, which is the Maharashtrian New Year. It is an extremely auspicious day in the State of Maharashtra, and significant amounts of jewelry are bought around that time. Bombay, or Mumbai, with all its wealth, is in Maharashtra. Ordinarily, you’d expect demand to wear off after a big holiday like this. But it hasn’t. And, of course, there is a shortage. People who want to buy bullion are asked by the dealers to call back in 7-10 days. The refineries are idle.
So, please, don’t buy the silver bubble story. Instead, buy silver with both hands!


Tehmaas S. Gorimaar
April 14, 2011



http://www.lemetropolecafe.com/toulouse-lautrec_table.cfm?pid=9174

 

[LibertyRevolution]

I went to 4 coin shops yesterday to get a prices on selling 30 1oz .999 silver bars (Engelhard/Sunshine Mint).
Best offer was $34 each, so that was $8 under spot...
These are the same shops I bought the bullion from years ago.
Basically they told be to list them on eBay if I want anywhere near spot.

Just a friendly reminder that things are worth only what someone is willing to pay for them..

 

[Seraphim]

You got lowballed big time.

My dealer pays spot PLUS 2$ per ounce.

I went to 4 coin shops yesterday to get a prices on selling 30 1oz .999 silver bars (Engelhard/Sunshine Mint).
Best offer was $34 each, so that was $8 under spot...
These are the same shops I bought the bullion from years ago.
Basically they told be to list them on eBay if I want anywhere near spot.

Just a friendly reminder that things are worth only what someone is willing to pay for them..

 

[Cowlesy]

I went to 4 coin shops yesterday to get a prices on selling 30 1oz .999 silver bars (Engelhard/Sunshine Mint).
Best offer was $34 each, so that was $8 under spot...
These are the same shops I bought the bullion from years ago.
Basically they told be to list them on eBay if I want anywhere near spot.

Just a friendly reminder that things are worth only what someone is willing to pay for them..

APMEX buy-prices on their site are way higher than that.

 

[LibertyRevolution]

Seraphim, I agree that I was totally low-balled.
Now that years have passed, and I want to ding them for $31/oz profit, they seemed like they didn't want to buy it back and low-balled me on purpose.

Cowlesy, yeah seems ampex would like to get their hands on my engelhard and sunshine mint bars, they are sold out.
Unfortunately, I don't think I would mail off my silver and wait on a check...
And that disclaimer I don't like.. "The buy price is for transactions exceeding $10,000.00. For transaction of less than $10,000.00 the price paid will be at the discretion of APMEX"

Good thing I wasn't out to actual sell, I just did it as an experiment.
I didn't think anyone was going to offer even spot, and they didn't, so ill just keep holding.

If anything now, all I would be willing to get rid of is generics. "merry Christmas 2005", "happy christening", "Ford thunderbird", that type junk.
I'll be holding my engelhards and sunshines.

 

[Dr.3D]

Seraphim, I agree that I was totally low-balled.
Now that years have passed, and I want to ding them for $31/oz profit, they seemed like they didn't want to buy it back and low-balled me on purpose.

Cowlesy, yeah seems ampex would like to get their hands on my engelhard and sunshine mint bars, they are sold out.
Unfortunately, I don't think I would mail off my silver and wait on a check...
And that disclaimer I don't like.. "The buy price is for transactions exceeding $10,000.00. For transaction of less than $10,000.00 the price paid will be at the discretion of APMEX"

Good thing I wasn't out to actual sell, I just did it as an experiment.
I didn't think anyone was going to offer even spot, and they didn't, so ill just keep holding.

If anything now, all I would be willing to get rid of is generics. "merry Christmas 2005", "happy christening", "Ford thunderbird", that type junk.
I'll be holding my engelhards and sunshines.

Seems like you could cut out the middle man and sell your silver at spot to just about anybody who is looking to buy silver.

 

[cubical]

http://www.bulliondirect.com/nucleo...l;jsessionid=CBE4402152BA5171E3388EB48F071137

 

[japes]

http://www.bulliondirect.com/nucleo...l;jsessionid=CBE4402152BA5171E3388EB48F071137

A friend of mine recently used bullion direct and had good experience. I've never personally used them but I may do so if I keep hearing good things. I definitely like the auction format.