What is the secondary silver market telling us?
The secondary silver market in my view is the silver coin market. It can also encompasses to a lesser extent the silver bullion market. As I am primarily in the silver coin market I'll focus on this.
In my view eBay is perhaps the best example of silver's secondary market. Here's how it works: you have sellers and buyers of various coins and bullion. It's easy to open a PayPal account and that usually acts as your agent in the buy/sell arena. And you wouldn't believe the prices here. Here are just 2 examples:
1) a I-oz. Royal CanadianMint pure silver 99.99 Maple with a C$5.00 face value changing hands for anywhere from C$35.00 to more than C$50.00 plus S&H from either free to C$5.00 and more.
2) or a 1/4-oz. RCM pure 99.99 silver coin with a C$20 face value trading from C$28 to more C$40 plus S&H similar to above.
Plus there are literally hundreds and hundreds of other silver coins and bullion awaiting your perusal I buy RCM silver coins as they have the highest 99.99 pure silver content of any coin in the world and they are readily sought after. Plus I believe the Canadian dollar face value will eventually trade at a huge premium to the existing U.S.$ reserve currency so you have another upside potential going forward. Check out eBay.com for yourself.
In conclusion, silver coins and bullion bought on eBay or Amazon or other secondary markets are trading much higher than you would expect if your only reference point has been the closing market prices shown on Kitco. Why is this you ask? Well, I think the secondary market is basically a true free market, one that is not manipulated. I believe people who buy silver coins on eBay are establishing the true market value. No games, no hocus-pocus, no derivatives. The secondary market is just a plain good old-fashioned trading venue. And this is what people want.