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Albert Sung is the author of the Katchum Macro-Economic Blog, monitoring breaking economic news from a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at... More
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  • Disconnect Between Selling Price Of Physical Silver And Paper Silver 4 comments
    May 20, 2013 10:32 AM | about stocks: SLV

    As the paper silver (NYSEARCA:SLV) keeps falling (blue chart), some miners aren't willing to reduce their selling price (red chart) on their silver bullion.

    This lead to a huge disconnect between paper and physical silver of $5.5/ounce, or a 25% premium!

    (click to enlarge)

    Chart 1: Disconnect between Physical Silver and Paper Silver at First Majestic Silver Corp

    Disclosure: I am long AGQ.

    Stocks: SLV
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Comments (4)
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  • GOOBIE
    , contributor
    Comments (301) | Send Message
     
    Not quite sure how you came to this conclusion care to elaborate a little ??
    20 May 2013, 08:23 PM Reply Like
  • SMaturin
    , contributor
    Comments (2268) | Send Message
     
    First Majestic (AG) will ship you as much silver bullion as you want, but their price has held steady at $27 for some time now.

     

    http://bit.ly/WqyyrZ

     

    Other online dealers have 6-8 week wait times or insist on 100+ oz lots to get a better price.

     

    Silver is readily available at a premium to "spot" and record sales have been occurring in recent months.

     

    AG is doing well:

     

    http://seekingalpha.co...
    20 May 2013, 08:51 PM Reply Like
  • GOOBIE
    , contributor
    Comments (301) | Send Message
     
    First Magestic doesn't sell all their production on the spot market . You would have to know what their forward contracts are to know if $27 is a good deal for them . There are other options to buy physical without the wait (APMEX) .
    20 May 2013, 09:18 PM Reply Like
  • Katchum
    , contributor
    Comments (605) | Send Message
     
    Author’s reply » How much production does First Majestic sell at spot price? In percentage compared to the $27/ounce they are selling online?
    21 May 2013, 12:08 PM Reply Like
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