Survivalism & Self Sufficiency Topics > COVID-19 Coronavirus Pandemic

PRICE GOUGING BEGINS AT WALMART

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IKN:

--- Quote from: iam4liberty on March 21, 2020, 09:31:52 PM ---Price = Spot + Premium.  Currently for silver that is about $13 + $10 = $23.  Before this started it was about $18+$1 =$19.  That is about a 20% rise. So it isnt a matter of silver dropping overall, but a matter of who is getting what portion of the pie. Could it go higher, sure.  But right now everyone is trying to build up cash because of fear of a multi-month lockdown.

--- End quote ---

If your scenario is true and everyone is selling their silver & gold to liquidate for cash, there should be a glut of physical gold & silver available to buy at cheap prices.
Maybe I'm looking in the wrong place, please add links to where they are available to buy and deliver.

Truth is that the only gold & silver being sold is the fake paper ETC's, not the physical metals.
Tens of thousands of people are wanting to buy the physical metals, but none are available to purchase.

Big demand, little to no supply, and price is in the toilet.
Doesn't seem to fit the marble equation.

LvsChant:

--- Quote from: Morning Sunshine on March 21, 2020, 08:55:14 AM ---also - it might not be WAL-MART who raised the price.  It might be their SUPPLIER who is raising the prices, or the SHIPPING companies.  There is a shortage, and that means that the price increases through the line...

--- End quote ---

Thank you, MS, Chem et al. Letting the free market set prices and not keeping them artificially low in times of increased demand and reduced supply ensures that people only buy what they really need and keeps supply available!!!

I totally do not agree that price controls are a good thing (or shaming businesses who pass along increased costs when setting prices).

@Adam: You did what every rational buyer would do... bypass the higher priced item, tried to see if you could find them for less elsewhere... found it at a lesser price elsewhere. This is the market working.

Once the stock at HD is gone, they may also be forced to raise their prices when they restock if shortages and increased shipping costs exist... eventually the prices will normalize and real demand will be met, assuming supplied don't completely dry up through normal channels. When that happens, entrepreneurs who have bought more than they need will sell their excess supply at a premium...

Chemsoldier:

--- Quote from: IKN on March 22, 2020, 09:10:36 AM ---If your scenario is true and everyone is selling their silver & gold to liquidate for cash, there should be a glut of physical gold & silver available to buy at cheap prices.
Maybe I'm looking in the wrong place, please add links to where they are available to buy and deliver.

Truth is that the only gold & silver being sold is the fake paper ETC's, not the physical metals.
Tens of thousands of people are wanting to buy the physical metals, but none are available to purchase.

Big demand, little to no supply, and price is in the toilet.
Doesn't seem to fit the marble equation.

--- End quote ---

I would assume the supply dries up because people are buying it up...however, with a general large market decline...confidence is not shot on the normal things (just stocks that are seen as risky)...confidence is shot on things that don't keep you alive and safe right now.  We are used to gold and silver being a hedge in a bear market.  But this is not a normal bear market, this is a bear market where even big wigs are fearing for their physical safety and security (maslow definition).  Prepper/doomer/rich types who are set enough to be thinking ahead are probably more than sufficient to buy all the physical metal up.  Despite the supply drying up, ya can't eat it...the price continues to decline. Which means it will be snapped up by silver and gold focused people even faster. *shrug*  Seems a likely enough scenario I don't feel like obsessing about it.  I also dont think mining the stuff is going to scale very well.  So I doubt we will see the supply increase significantly anytime soon till the price rebounds enough for people to start selling what they have.

 Much (not all) of my precious metals were purchased at higher prices than this, and those that keep physical metals rarely have no other form of liquid savings...so why should they be selling physical metal yet?  They will hold onto it till it does what they bought it for...become more valuable in the circumstances.

iam4liberty:

--- Quote from: IKN on March 22, 2020, 09:10:36 AM ---If your scenario is true and everyone is selling their silver & gold to liquidate for cash, there should be a glut of physical gold & silver available to buy at cheap prices.
Maybe I'm looking in the wrong place, please add links to where they are available to buy and deliver.

Truth is that the only gold & silver being sold is the fake paper ETC's, not the physical metals.
Tens of thousands of people are wanting to buy the physical metals, but none are available to purchase.

Big demand, little to no supply, and price is in the toilet.
Doesn't seem to fit the marble equation.

--- End quote ---

The paper silver and gold is oversold because of margin calls.  They dont want to liquidate these assets but they are being forced to do so.  That is the danger of buying on margin. 

Again, the price of delivered precious metals is up substantially.  You can not buy silver or gold at spot price.  It is like saying you can buy a loaf of bread at the price of grain from the farmer.  Grain is not bread. The delivered, manufactured precious metal price is always higher than spot.  Demand is driving it through the roof.  That is what the premium is reflecting.  And yes, you can buy the large (1000 ounce for silver) bars held in the market exchange warehouses and take delivery of them (spot price + delivery cost) but it will be months before you will get it and you will halve to then mint it into smaller quantities.  Then when you try to sell you will need to spend a lot on marketing to convince prospective buyers that your bars/rounds are legit.

Apmex and other large distributors have been doing that and selling preorders for as low as $19 an ounce.  But even those are now being sold out because the mints dont have capacity to process them in time for later delivery.  Meanwhile, the price to mine precious metals is dropping because of the drop in fuel price.

Again these are different markets.  The retail price (to get it in your hands today) have much higher premiums on many products than wholesale, distrbutor, manufacturer, and ingredient prices.  If you want it today, you will have to pay the higher price premium the short term demand spike has created.  If you dont care about delivery, you can bargain hunt the depressed prices of the earlier stages taking on the additional risks.

Stwood:
I've never seen gouging at Walmart. Hope that is not a coming thing.
I've seen some high prices on their website, but it's the third party sellers doing that, like Amazon's third party sellers.
I always ck the Walmart seller box when on the website, that way I don't have to filter through the higher prices.

I've been reporting some of the third party sellers on Amazon when I see something out of line, such as $14.00 for a can of spam......

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