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Gold may be going down on paper, but the physical market is still in high demand. Just ask Rick...

Gold may be going down on paper, but the physical market is still in high demand. Just ask Rick Harrison, co-owner of the Gold & Silver Pawn Shop and a co-star of the reality series "Pawn Stars." "I'm having a real difficult time right now getting physical metal," Harrison says. "It's the crazy world of gold and silver: Sometimes the paper market is going down but you can't find actual physical items."
Comments (13)
  • TruffelPig
    , contributor
    Comments (4091) | Send Message
     
    Maybe Detroit center ran out of Bling.....what that has to do with real markets I have no clue.
    28 Jun 2013, 07:31 PM Reply Like
  • Noreika
    , contributor
    Comments (460) | Send Message
     
    Haha TP! No, that's Hardcore Pawn in Detroit. Pawn Stars is in Vegas. The 'old man' is the father on the show, and always buys physical silver at spot from people.

     

    I watch too much crap TV...
    28 Jun 2013, 08:43 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1067) | Send Message
     
    The reason is that you cannot just take the stuff from the vaults and sell it to individuals. The gold in vaults is usually in bars, and it is hard to sell $40 000 kilogram bars to consumers. So the gold that is being sold in retail has to be made into coins.

     

    So the problem is that the mints are just not fast enough converting the bars from the ETFs into coins for consumers. Nobody anticipated this ETF outflow so the mint capacity to handle it just isn't there.

     

    People think this shortage of physical gold is indication of some huge ignored demand that will sweep gold prices up, or an indication that the ETF gold does not exist. But there is no evidence of either of these extraordinary claims. It is just a matter of mint capacity, which means the street prices will fall in with the financial prices as soon as the mints catch up.
    28 Jun 2013, 07:51 PM Reply Like
  • bd4uandu
    , contributor
    Comments (1871) | Send Message
     
    But .... http://bit.ly/15OZeWq
    28 Jun 2013, 08:21 PM Reply Like
  • 123123
    , contributor
    Comments (47) | Send Message
     
    that guy who bought that silver must be hurting right now....
    28 Jun 2013, 10:30 PM Reply Like
  • bd4uandu
    , contributor
    Comments (1871) | Send Message
     
    I was a the dealer the other week right before it went under $20 and he was telling me about a guy who drove for a couple hours to buy a S***load of 90% half dollars for $12.
    Melt value was about $8 at the time
    http://bit.ly/113QfEB
    That's a big premium.
    28 Jun 2013, 10:38 PM Reply Like
  • naples
    , contributor
    Comments (307) | Send Message
     
    honestly, wall street is not the only place that rips simpletons.
    29 Jun 2013, 02:22 PM Reply Like
  • DavyJ
    , contributor
    Comments (417) | Send Message
     
    I recall reading that the U.S. mint only uses gold and silver that is certified of U.S. origin.

     

    I'm not a gold bug but if I were, I would certainly want to know as that would undoubtedly affect the value of U.S. coins in the future.

     

    How's the price of foreign coins?
    28 Jun 2013, 09:02 PM Reply Like
  • Interesting Times
    , contributor
    Comments (11546) | Send Message
     
    This isn't news to physical collectors. You think the average joe walks around with 40k bars? Really.

     

    Go to a coin show and see what is being bought, what vendors run out of. These buyers aren't stupid people. It is those who just don't get the paper shorts, the CB'S knocking down the price.

     

    Today was the end of the quarter. Silver was up 7% and gold 3%. One might ask why? One might ask why Germany wanted their gold back from THE USA and being told it will take 7 years, not 7 months. We discuss this at length in my blog. Check it out as a few posters here do.

     

    http://seekingalpha.co...

     

    Were a top 3 blog and already up to Chapter 20 !!
    28 Jun 2013, 09:45 PM Reply Like
  • RS055
    , contributor
    Comments (2857) | Send Message
     
    This is how things are playing out- the gold sellers seem to sell large chunks of futures at the most illiquid times in the market, the buyers ( like the Indians) are being exhorted by their govt to cease and desist, taxes are being imposed . We may well end up in a situation where gold prices are very low , but no one can buy any actual gold!
    There will be no inflation in the future either. But you may find sudden shortages of various items. Each incident will be explained away as a special case. Inflation at 1% , but shortages of fuel, meat , etc - would sound familiar to former residents of the USSR.
    When markets are so thoroughly corrupted and manipulated, we need to think differently. Standard Econ 101 does not apply any more.
    29 Jun 2013, 12:45 AM Reply Like
  • Swass
    , contributor
    Comments (419) | Send Message
     
    No. Supply for things in the Ussr was limited because of price fixing and the communism model.

     

    I've been through several coin shops as of late and they have inventory, but I was told by them that because of the falling prices, they are trying to keep inventory down. Not all shops sell futures to hedge their inventory.

     

    Why does everyone think prices are being manipulated? They didn't complain when prices were rising insanely fast under a low inflation environment creating a bubble. But the same market forces at work, maybe even insane if you prefer, are now driving the price down as liquidation takes place.
    29 Jun 2013, 10:06 AM Reply Like
  • naples
    , contributor
    Comments (307) | Send Message
     
    you are right. it really depends on your location. if you live in a wealthy neighborhood, your store is probably having a hard time getting gold or silver. you only need a club of "financial collapse" fans to create a shortage. if you live in a poor neighborhood, you are fading the bid because you don't have many buyers. people don't understand the dealer mkt and try to extrapolate more than they should from anecdotal events.

     

    in south texas, I know of a lady trying to sell gold and got a $1000 per ounce quote. poor area.
    29 Jun 2013, 02:36 PM Reply Like
  • eagle1003
    , contributor
    Comments (1571) | Send Message
     
    Your comment has been published:
    We keep reading from various commentators and authors about how physical demand is skyrocketing in Asia with lineups of anxious buyers waiting their turn to buy what little gold there is for sale. Many have made the claim that they have been "there" and witnessed the buying frenzy. Only a desperate goldbug would buy into that load of crap.

     

    Meanwhile, here in reality, gold prices on the Comex continue their steep waterfall collapse. I wonder how many gold hoarders will jump on a plane, with their gold stash, and fly to Singapore or Vietnam in order to take advantage of all those frenzied buyers who are willing to paying a 30 or 40 dollar premium over spot?
    29 Jun 2013, 05:55 PM Reply Like
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