Thoughts about Premiums of Physical PM <And also the physical price has barely changed in the last 2 weeks. The premiuns are HUGE.>
I posted this on another board, but it may apply here too.
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<Premiums on slabbed Double Eagles at APMEX are now $270. Never seen it that high>
Premiums can be very misleading. In down-markets, premiums tend to increase because dealer want to soften their losses since they bought a few days earlier at a higher price. Some dealers may even quit selling, but that cuts down on the number of clients. <g> If the price of gold were to stabilize at the lower price, those premiums would drop significantly.
Conversely, in a rapidly rising market, premiums can go to zero since the dealer would be making a profit just on the price increase after the buy. Just something to keep in mind. TriN.