15 May 2011

Rational Discussion

Is this too much to ask for in the internet precious metal world?

15 comments:

intuitivereason said...

On that note - where did all the links go? You provided a wonderful jumping off point for a bunch of good sites.. all gone now :(

Bron said...

I'm watching all my blogs in RSS reader now and it doesn't link in to this blog, so that list was out of date.

I didn't think the list was providing anything different as many other blogs have lists of the same sites. As I'm only getting 250 pageviews a day, this is not a starting point for many so I assume those that come here have already built up a list of site.

I'll have a think about how to maintain an uptodate list.

intuitivereason said...

Call it laziness if you will, but I found it a useful jump point as you could tell if something had been recently updated, which you can't on many other lists.

Maybe I need to get around to sorting RSS out for myself.

Adrian said...

It was a good link list for me as well, but as they were removed it got me off my butt to organise my own.

star-gazer said...

Tough rules, Bron. A rational discussion (of anything) on the internet. What a novel idea! Dream on. (Do I have to provide evidence for that statement or is it self-evident to anyone who is even a little bit familiar with blogs?)

Bron said...

I've found a way to add in stuff from my RSS feed. I "share" specific items and they appear at left, but only the 5 most recent. There is a link to the full list.

Note I get about 200-300 feeds a day but will only share those I think are worth reading. Doesn't mean I agree with them, just stuff worth keeping in touch with.

Bron said...

I've found a way to add in stuff from my RSS feed. I "share" specific items and they appear at left, but only the 5 most recent. There is a link to the full list.

Note I get about 200-300 feeds a day but will only share those I think are worth reading. Doesn't mean I agree with them, just stuff worth keeping in touch with.

Alan von Altendorf said...

Mighty glad to see you posting here again, Bron.

Gordon said...

Bron,

A couple of general questions.

In a previous response you told me that the reason for the high fabrication and buy/sell ratio charged by the PM for silver products was because of the intrinsic value of the metals (versus gold) related to the costs of re-melting etc. That seemed fair enough at the time, but why did the ratio never change as the price of silver escalated. Pure profit seeking?

And - as a collector of ancient coins - how is it that with all of the modern advances, the PM still cannot approach the beauty and high profiles of coins made over 2000 years ago ?

Sean said...

Hi Bron,

I read in your "About this blog" page that you do not mind your articles being republished as long as they are properly credited, but I wanted to double check with you before doing so.

I'm the Finance editor at Before It's News. Our site is a People Powered news platform with over 2,500,000 visits a month and growing fast.

We would be honored if we could republish the Gold Chat blog rss feed in our Precious Metals category. Our readers need to read what experts like you have to say.

Syndicating to Before It's News is a terrific way to spread the word and grow your audience. If you are interested in syndicating with us and permit us to do so, please contact me at

sean [at] beforeitsnews [dot] com.

Thank you for your time.

Gordon said...

Bron,

My comment above appears much harsher than I had intended. Of course the PM produces some beautiful coins in both silver and gold. But - and this may provide a marketing idea - they are all so ex-British and so 2-dimensional. What about a series that reproduces some of the very high profile Greek Staters and Mnaieions, or cannot the mint execute high relief coins? Most of these Greeks sell from about $2000 to $6000 for a gold weight of around 8 grams; so just on the gold weight a reproduction series could provide a tidy profit and a unique educational market that is almost unlimited.

Bron said...

"why did the ratio never change as the price of silver escalated"

The buy/sell ratio reflects the premium/discount. The costs of manufacture (which drives our premium, ie selling price) has some impacts from silver prices but many costs are not related to silver price movements (eg wages don't double because silver price doubled).

Hence premiums in dollar terms do not go up in line with silver price movements and thus the buy/sell ratio stays much the same.

Re the high profiles idea, suggest you ask that question on our corporate blog. High profile coins can be done, maybe there is no demand for them, its not an area I have much knowledge of.

SG said...

Hey look who it is:

Bron Suchecki, The Perth Mint's Manager, Analysis and Strategy, presents a beginner's guide to buying gold and silver bullion in this three-part series recorded at the 2010 ANDA Coin Show in Sydney.


http://buy-silver-gold.blogspot.com/2011/05/how-to-buy-silver-bullion.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FStaqo+%28BUY+SILVER%29

Anonymous said...

Another clue to whether something is a rational discussion is whether the participants are asking questions. Rational people like to get information and clarify unclear points.

One question I've asked of the people whose creed is that there's a shortage of physical metal is, where do industrial users buy their raw material? You may be able to answer that. If somebody too small to make deals with miners, which I assume is what the Perth Mint does, wants some wholesale amount of gold or silver, do they get their metal through the London OTC market, by standing for delivery on COMEX, or something else?

What news sources would I follow to get reliable word on whether commercial users were unable to find supplies?

What, roughly, is the relative size of the London OTC market versus the futures exchanges? Is it about the same size, larger, or much larger?

Bron said...

"If somebody too small to make deals with miners, which I assume is what the Perth Mint does, wants some wholesale amount of gold or silver, do they get their metal through the London OTC market, by standing for delivery on COMEX, or something else?"

The job of a refinery is to act as an intermediary between miners and those who want refined metal. All the methods you mention are used. Industrial users would generally deal with a refinery as they can specify exactly what form they want the metal in. Investors would either deal directly with us or a bullion bank if they are really big.

"What news sources would I follow to get reliable word on whether commercial users were unable to find supplies?"

I don't think such news sources exist, by the time it gets to a real problem that mainstream media picks it up, it is too late. Your best source is the Perth Mint - the day we start to have problems sourcing 1000oz silver bars we will have to stop selling pool allocated.

"What, roughly, is the relative size of the London OTC market versus the futures exchanges? Is it about the same size, larger, or much larger?"

Much larger, but it is hard to quantify that because it is a OTC market and trading is not public.