RE: Premiums Paid for 100 Ounce Silver BarsThanks for posting that interesting article.
Here is another one on that subject with an interesting idea from a Silver producer.
Got Gold Report – Gold, Silver Premiums Highest in Years
By Gene Arensberg
16 Nov 2008 at 12:00 AM GMT-05:00
A lack of physical bullion supply at the same time of extremely strong demand for popular small bullion items coupled with artificially low futures dominated spot prices for gold and silver resulted in extraordinarily high premiums for virtually all bullion products in October. The very high premiums continue and availability remains tight... (more)
...Some companies get it right
For example, some companies have begun bypassing the futures markets by directly producing and selling bullion items to the public. In a November 14 press release, First Majestic Silver Corp. [FR.TO] said:
“The Company is continuing to analyze various options to reduce its operating costs and to squeeze out the most optimum margins possible. One example which is proving to add substantial value is management decided to mint 99.9% pure silver into coins, ingots and bars which are actively marketed on the Company's web site. Interest levels for these products are extremely high and are beginning to represent substantial revenues for the Company. These products tend to sell at substantial premiums to COMEX spot prices. It is anticipated that these sales of refined silver products will represent approximately 10% of the Company's silver production by February 2009. The Company is also exploring other ways of selling its silver outside of the normal avenues of commercial sales.”
Bully for First Majstic. It’s about time we see a company take the bull by the horns to step outside the corrupt, and manipulated established market that has so mispriced a vital commodity. With such a huge disparity between the futures-dominated spot price and the real physical silver markets, it is no wonder that physical silver is flying out the COMEX doors and into the physical market.
That’s something we need to see more of. Companies refusing to accept overly low pricing by paper traders. We need to see more of the Big Dogs in the metals biz holding back production, buying metal off the miscreant futures markets to deliver into December commitments in large quantities and removing metal from those who don’t respect it in favor of the popular physical markets where people do respect it.
One more time, if the hedger and short seller dominated futures markets are so intent on driving prices for metals to absurdly low levels then they shouldn’t mind seeing the metal in their warehouses heading out the door to the physical markets that actually want it.
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Source:https://www.resourceinvestor.com/pebble.asp?relid=47994