Retail precious metals dealers have been shouting "inventory running out" every day recently, as if gold and silver will disappear tomorrow. Retail traders are getting panicked by this trend and rushing in to buy the dip. But there's a lot hidden beneath the surface.
**There's only one key issue: the bid-ask spread.**
When merchants are hyping up the shortage, they turn around and raise selling prices (premiums). It looks like inventory is scarce, but they're actually fleecing retail traders. If you look closely at their buyback prices, they're shockingly low. If there really was a shortage, merchants should desperately offer high buyback prices to replenish inventory, right? What's the reality? Buyback prices are dismally low, sometimes even cheaper than spot prices. This exposes the truth—the so-called shortage isn't a liquidity crisis at all, it's just a harvest targeting newcomers.
**The data speaks for itself:** Silver spreads are ridiculously wide. The silver price you buy needs to rise 9 to 14 dollars just to break even. Gold eagles are even more extreme, with bid-ask spreads as high as 500 dollars per ounce. In some places, the recycling price for silver is even 9 dollars lower than the spot price.
**The real cost isn't just storage fees.** These massive spreads are the black hole where your assets are actually shrinking. Before participating in physical precious metals investment, you need to do the math carefully.
$BTC-related markets continue to evolve, invest cautiously.
⚠️ Watch Out for Precious Metals Investment Scams
Retail precious metals dealers have been shouting "inventory running out" every day recently, as if gold and silver will disappear tomorrow. Retail traders are getting panicked by this trend and rushing in to buy the dip. But there's a lot hidden beneath the surface.
**There's only one key issue: the bid-ask spread.**
When merchants are hyping up the shortage, they turn around and raise selling prices (premiums). It looks like inventory is scarce, but they're actually fleecing retail traders. If you look closely at their buyback prices, they're shockingly low. If there really was a shortage, merchants should desperately offer high buyback prices to replenish inventory, right? What's the reality? Buyback prices are dismally low, sometimes even cheaper than spot prices. This exposes the truth—the so-called shortage isn't a liquidity crisis at all, it's just a harvest targeting newcomers.
**The data speaks for itself:**
Silver spreads are ridiculously wide. The silver price you buy needs to rise 9 to 14 dollars just to break even. Gold eagles are even more extreme, with bid-ask spreads as high as 500 dollars per ounce. In some places, the recycling price for silver is even 9 dollars lower than the spot price.
**The real cost isn't just storage fees.** These massive spreads are the black hole where your assets are actually shrinking. Before participating in physical precious metals investment, you need to do the math carefully.
$BTC-related markets continue to evolve, invest cautiously.