If you pay attention at all to the silver price then today is going to stick out in your memory. Physical silver cannot be obtained for under $40 while the spot price is somewhere below $30. The spot price of silver is determined by paper ETF futures markets that are traded at much, much higher volumes than the physical markets. When these markets don’t line up or when there is a short squeeze then disconnects like the one seen today can appear. Some people are speculating that this ‘disconnect’ between the spot and physical price could grow by quite a bit.
This type of market conditions really highlight how important having your metals through the United Precious Metal Association’s offering really is because you can redeem your silver at a 0% buy/sell spread* that no one else is offering. Generally during market volatility you will see a dramatic increase in spreads as dealers will try and protect themselves while profiting off of a wave of interest. Alpine Gold guarantees the 0% buy/sell spread* for UPMA members so that if someone were to want to cash out during a time of a disconnect like this one that there would not be any loss. This means that if physical silver coins were selling for $100 and spot were $40 then members would able able to cash out at $100 assuming that they were purchased through us initially.
At Alpine Gold we have continued to see a growing demand and urgency behind the buying of precious metals since our last update. We expect to be able to continue to meet the growing demands of our users.
* The 0% buy/sell spread applies to any amount up to $10k, liquidated in any given 30-day period. Anything above $10k during the 30-day period is subject to a lesser conversion rate.