Gold and silver prices are down

To our valued customers,
APMEX Statement On Current Market Conditions:

In the last week, we have seen a dramatic shift in Silver demand from our customers. For example, the ratio of ounces sold per day was running about two times earlier in the week and closer to four times the average demand by the end of the week. Once markets closed on Friday, we saw demand hit as much as six times a typical business day and more than 12 times a normal weekend day. Combined with the extremely high demand levels, we are also seeing a surge in new customers. On Saturday alone, we added as many new customers as we usually add in a week.

Any Precious Metal dealer will take a long position in the futures market to protect against spot price exposure when the markets open. We do this because it is our goal not to take a speculative position on metal. The weekends are unique as we are not able to real-time hedge our position. We took an aggressive position this weekend, but clearly could not have predicted the volumes that were seen. We have partnerships around to world that allowed us to cover these long positions, but only to a point. Once we exceeded our comfort levels, we had little choice but to stop the sale of Silver on our website. This was a difficult decision to make and unprecedented in our history.

As we evaluate the markets, it is difficult to know where Silver's price and demand will go in the coming day and weeks. APMEX is highly capitalized and has more than $150 million in inventory to support demand. We have made strategic decisions to procure additional metal, locking up any metal we can find in the market place. We suspect premiums will rise and rise quickly, as we are seeing significant increases in our costs, when we can even locate the metal. It is also highly likely that we will need an additional day or two to fill orders based on current order counts. The one guarantee we can make to our customers is that you will only be sold metal that is on-site, or we have procured the metal with a firm commitment date from our partners. In markets like this, we feel this is the best approach a retailer can take, as no one can predict product availability.

We want to thank our customers for their patience and understanding during these turbulent times. APMEX prides itself on best in class service and delivering on promises to our customers.
Sincerely,
Ken Lewis
CEO, APMEX
 
new guy said:
Cant blame them.
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Yeah, not at all. Just goes to show how ridiculous the futures market is - this insane level of demand in a normal free market would cause prices to skyrocket, but thanks to the Comex, prices don't have to rise, they just print endless paper contracts.

Let's hope all this unfulfilled demand pours into SLV tomorrow at 4 am. [cheers]
 
bluebeltdog said:
Can someone explain to me in lamens terms why there is such a sudden demand for silver and what the sudden increase in price?
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A combination of silver having been in a downward slide for 5-6 months after peaking in August, and due for a rally, combined with WSB stories of a manufactured run on silver being all over the internet.

Keep in mind the retail silver market is on fire, but the futures price is still just below it's August high. So there's huge selling pressure at $29 silver.
 
I was able to snag 6.5 ounces at ~$34 shipped/taxed. Bullionexchance.com , not sure if it’ll come or not. Hoping to clean out a local dealer tomorrow If they have any in stock
 
Booked 20 MS70 first strike 2021 SE's (first phase) yesterday. 1200$ and a guarantee for 2021 MS70 first strike (Second phase) at the same price.

bluebeltdog said:
Can someone explain to me in lamens terms why there is such a sudden demand for silver and what the sudden increase in price?
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This is a minor panic about reddit running up silver the way they did to GameStoppers. It remains to be seen how far this goes, but silver in hand is getting real slim on the market. If the big guys are all short, as many think they are, the end point is unguessable if they have to cover their shorts by buying silver. The CME has been real funky when the big guys place large orders. CME says yea, ok, but they don't have the silver either.

This whole silver thing is a hot air balloon with lots of fuel to burn and big guys taking pot shots at the balloon. Getting delivery is the issue.
 
Almost all miners are selling off already after major profit taking showing this was pretty much a fake out for now. The increase in silver definitely is in the banks’ favor. Still not out of the woods yet but hold on tight!
 
Checked my local shop. Had to sweet talk for an hour. He deals out of his own inventory exclusively. Said he’s hesitant to sell anything because all of his supply channels are offering him a wait list, at best, where he used to have a replacement order filled in a minute or two. Even places that owe HIM money are saying they have nothing for him in silver right now.

Was able to close a deal after awhile for less than 100oz, $35/ out the door. Maybe I’m buying the top, but I’d rather have the silver than what used to be mattress cash.
 
Atlantis said:
Checked my local shop. Had to sweet talk for an hour. He deals out of his own inventory exclusively. Said he’s hesitant to sell anything because all of his supply channels are offering him a wait list, at best, where he used to have a replacement order filled in a minute or two. Even places that owe HIM money are saying they have nothing for him in silver right now.

Was able to close a deal after awhile for less than 100oz, $35/ out the door. Maybe I’m buying the top, but I’d rather have the silver than what used to be mattress cash.
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Just called my guy and he's buying at $1 under spot. I'll be selling a bunch I bought for $15 an ounce to almost double my investment.

Imo it is sell time not buy time. If it hits $50 I won't feel bad about letting the other guy take some profit. I doubled mine.
 
whacko said:
Just called my guy and he's buying at $1 under spot. I'll be selling a bunch I bought for $15 an ounce to almost double my investment.

Imo it is sell time not buy time. If it hits $50 I won't feel bad about letting the other guy take some profit. I doubled mine.
Click to expand...

What kind of silver is it though? 90%? ASEs? Forks and spoons?
 
Just wondering if a buck under was a good price given the spread/premium on something like an ASE. Bars are probably about right at spot +/- $1.
 
Well, I knew the weakness of the redditors would be on full display this morning. Silver down, GME really down, and all other zombie trades as well. Oil and gas are up!
 

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