Spread between bid and ask spot prices

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pmbug

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Is it my imagination, or have they changed? I seem to recall the spread consistently running $0.10 for silver. The SilverSeek graph on the home page is showing a current spread of $0.055. Anyone know where one can find some historical data on the bid/ask spread?
 
Just checked netdania and it looks like the current spread (as of the moment I post this) is closer to $0.03!
 
I have also noticed the spread between buy back price and sale price for silver on apmex.com has dropped.
 
PMBug said:
Is it my imagination, or have they changed? I seem to recall the spread consistently running $0.10 for silver. The SilverSeek graph on the home page is showing a current spread of $0.055. Anyone know where one can find some historical data on the bid/ask spread?
Click to expand...

PMBug - I assume you're talking about futures. Any idea of the size on the bid and offer? It's one thing to be 5 cents wide 1 lot up and a different thing to be 5 cents wide 1000 up.
 
benjamen said:
I have also noticed the spread between buy back price and sale price for silver on apmex.com has dropped.
Click to expand...

Hmm... I haven't been tracking their buy back prices, but I know their premiums have not been dropping (actually went up a bit lately), that would mean the buy back prices have been rising?

:popcorn:
 
jd1123 said:
PMBug - I assume you're talking about futures. Any idea of the size on the bid and offer? It's one thing to be 5 cents wide 1 lot up and a different thing to be 5 cents wide 1000 up.
Click to expand...

No idea on the size. Just watching the bid and ask prices as reported by the simple tools mentioned.
 
PMBug said:
No idea on the size. Just watching the bid and ask prices as reported by the simple tools mentioned.
Click to expand...

Got ya. Interesting observation. Many possible explanations, might even just be a one-off event. I've noticed from my trading experience that when a market gets a lot of interest, bid/offers tend to tighten as interest tries to squeeze market makers, and competing market makers try to win the trade. With computers running the show in futures, who knows. Or might be a bigger structural thing going on.
 
PMBug said:
Hmm... I haven't been tracking their buy back prices, but I know their premiums have not been dropping (actually went up a bit lately), that would mean the buy back prices have been rising?

:popcorn:
Click to expand...

PMBug - what's the deal with this? Why do premiums tend to expand/contract? Can't really figure this out besides possibly a bad hedge by dealers. I mean, if it's profitable at $1 over spot, why suddenly increase it $0.50 when prices move?
 
For retailers, the buy/sell spread has more to do with the split between the physical (wholesale) price for coins/bars versus the futures/spot price. Rising premiums for physical generally reflect scarcity / tightening of supply.
 
PMBug said:
For retailers, the buy/sell spread has more to do with the split between the physical (wholesale) price for coins/bars versus the futures/spot price. Rising premiums for physical generally reflect scarcity / tightening of supply.
Click to expand...

Thanks, makes sense. Where do these guys get their inventory from? Places like NTR?
 
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