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To: Beelzebubba

My apologies for your confusion.

Hope this helps. A lot of people are misguided if they think they will be able to realize the spot or futures price in a real spike - coin dealers get backed up with product (as in 1980) because refineries are similarly deluged, and so will offer only a fraction of the “paper price”. Profit margins for bullion are low, and dealers make their money on the spread by simultaneously making an offsetting purchase or sale depending. In the same way that dealers may not purchase product, if the spot price declines enough there may not be any physical available at that price.


73 posted on 04/25/2011 4:55:49 PM PDT by Freedom4US
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To: Freedom4US

That’s propably true for some little local dealers.

I don’t know how many are buying with the intention to try to time their sales at a peak. I certainly wouldn’t advise that, since it’s darn hard to know when you hit the peak.


74 posted on 04/25/2011 6:10:00 PM PDT by Atlas Sneezed (...a.k.a. "Norm L. C. Bias")
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