My local dealer is out and there was a report of other large dealers being out. My local dealer said demand was high and supply was low, and she has no idea why the price is being pummeled. I've never heard of them being out of gold before. eBay gold coins are selling for $1650-1700.
I don't claim to be an expert, but I have made a lot of money buy being cautious. There is currently a higher than normal spread between psychical and spot. Two reasons that come to mind. People are buying more psychical due to the pull-back. This would result in less coins and hence, more demand. Also, dealers, bought most of their inventory as much higher levels. Most larger and more prudent dealers keep cash for pull backs such as this. So, if you were a mom and pop dealer that bought most of your inventory at much higher levels.........what the heck are you supposed to say? "We have so many coins we are trying to give them away as 20 percent less than I paid for them" Or, would you simply say there is a shortage or like some cowards.......say you're out of inventory. I know many dealers that just refuse to take any loss and thus sit on coins for years rather than move inventory. It's kind of one-sided. As investors we have to accept there is a possibility of a loss. But some dealers just don't seem to understand that the loss can go both ways. Most of these dealers are usually underfunded, keep little cash, and don't prepare.
If you buy 20 or more gold eagles paying with a check or wire transfer they will charge you $70 above spot. For single eagle coins make that $80 above spot. Paying with a credit card singles will cost you $112.50 above spot.
can't buy it here at a large gold/coin dealer in tulsa......this is a case of government intervention to drive down the price to make the dollar look better than it is or will be......anyone selling gold will be sorry
Your dealer was referring to a shortage of physical gold. While spot prices have taken a hit, bullion and pre-33 gold are selling at significant premiums. I have been buying physical gold since about 500 per OZ(I never caught the bottom.) Those eBay coins will sell. In general, most common-date(generic gold), sells for 1-200 over the spot price of gold. As far as buying gold, I"m taking starting to nibble at GLD for it's liquidity and also bought some physical today. Is gold going down more......I don't know.......If it does than I will buy more. Will gold be higher a year from know, I don't know but i'm pretty sure it will be north of 1,600 at some point in the next 12 months. Its not brain surgery. Buy dips, don't go all in, and if gold goes up take your profits, if it goes down well than be smart enough to have some cash to buy the dip.