Dr Kevin Bethel
by Dr. Kevin Bethel
One of the ways I look at EBay is the "Commodity Exchange Market for the Average Man."
If you look at the cost of any 1 oz silver round on EBay right now, it is well above the spot price listed on KitCo or COMEX. Not so long ago it was possible to find a few ounces of silver on EBay for spot value or just below spot value, but, with the recent drops in spot value this past few months, the asking price on EBay starts higher and the offer prices go way above spot price.
I don't follow the price of other commodities on EBay but I would imagine similar situations were premiums the average man is willing to pay for those commodities is much higher than the central exchange set value.
One day, EBay may prove to be a better indicator of the value of various commodities than the traditional centralized exchange commissions. If EBay does one day prove to be a better indicator and thus a challenging competitor, then the central commodity commissions like COMEX will do everything they can to regulate EBay out of the market. If the public 'price trust' is transferred to EBay from COMEX, most people will still not trust centrally planned commodity prices so quickly again.