Curious observation

By pinecarr on Fri, Aug 30, 2013 - 10:57am

Hi folks.  I'm new to this group, so I am not sure what conversations I'm already jumping into the middle of.  I hope you don't mind me just jumping right in with what might be a disjoint topic.  Anyhow...

Ok, so I like to check Bullion DIrect's site frequently, to see what's going on with the price of gold and silver.  They have both a catalog that you can order from, and a "Nucleo Exchange" where account holders can buy and sell gold and silver (etc.).  Here's the link to the Nucleo Exchange for gold:

For a while, I'd noticed something that seemed odd to me; that frequently the 1 oz gold coins in the Nucleo Exchange would show "100" coins for sale (or sometimes 99 or 98).  It seemed too regular for too many of the different types of gold coins.  But I'm no expert; maybe its not unusual for someone to sell 100 coins at a time when they are trying to cash in their gold coins.

This morning, I was surprised to watch the "asking price" of 1 oz  gold coins in the Nucleo Exchange go from the low 1400s to over 1,600, for all (or just about all) the common 1 oz gold coins (American Eagles, Canadian Maple Leafs, South African Kruggerands, etc.).  I thought "wow!  maybe this is the jump everyone's been expecting!".  But what I found even more interesting was that not long after that, when I came back to check the Nucleo Exchange, all those same coins were again back down in the low to mid $1,400s.  And they each had 100 for sale at that point.

Ok, so maybe I'm naive and there's a simple explanation for that. But it really strikes me as odd that not one, not 2, but 3 or 4 or 5 different types of gold coins all of a sudden went down that drastically in price, each with 100 coins for sale.  It "seems" like someone pushing the price back down, but maybe I am reading too much into it.  For all I know, that may be a normal pattern for people liquidating their PMs.

I know many/most of you folks are much more knowledgeable about the PM markets than I am.  Do you have any insights into this, and why that may be happening?  

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