My 200 Engelhard 100 oz. bar auctions end Wednesday, October 22nd, 3PM Eastern time, or Noon Pacific. It's a series of 30 auctions that close a minute after each other, over 30 minutes. The last auction is for 50 bars.
Here's a major twist on the 90% auction:
Hannes Tulving of emailed me to say he would bid $4/oz over spot for all of my 24 bags in my auction! I asked him if he wanted to lock in the price based on the spot price of $9.35 for the weekend close, and he said yes. He also said I could publish his bids! Normally, a person would not advertise their "reserve" bid, which is hidden by the software, so others don't know how high they are willing to bid. But Tulving's bid is $9.35 + $4 = $13.35 per oz. x 715 per bag = $9545.25 per bag.
That would be a $229,086 trade, if Tulving buys all bags at that price, but that won't happen. He will either pay less, or be outbid. I think he will be outbid, but he may get some bags, it's hard to say.
This is extraordinary. Unprecedented. Tulving is announcing the price of his top bid, and wants me to do so!
What does Tulving get out of it, by announcing his bid price? He wants me to advertise his "buy" price, so that others will sell to him. He'll buy anyone's 90% silver at that price, in full bags!
So, this market between us, is fully open. Anyone else can now enter this "deal flow", between Tulving and me, and get silver at "wholesale" by bidding a small $1 over Tulving's reserve price of $9545.25 per bag, and get in between Tulving and me, and squeeze Tulving out of the deal!
Or, the market might not bid up to Tulving's price, and he could get the bags for less, because of the way the auction software works. See, the final price is not $9545.25, but less, as can be seen right now. The final price is a result of at least two bids, because of the way the system places automatic proxy bids at increases of $1.01 over the second highest bid.
One person was upset and depressed, looking at the bid history, thinking Tulving was somehow determined to bid up to $20,000 per bag or whatever it took to win, because Tulving's proxy bids came in so quickly. But the proxy bids are automatic, and placed by the software immediately.
This is the ultimate free market. The bidding is open to anyone.
Admittedly, it is not open to all sellers. But most sellers, as we know, have already sold out! And many other sellers refuse to trust any free market based auction format.
Right now, seekbullion.com is just starting out. They have no staff, and little income. They intend to charge a 1-2% fee on all trades. Until they get enough income and can hire people, their auctions are only open to major dealers and wholesalers, who actually have major physical product in stock available for immediate delivery (and not "on the way"). They cannot list everyone's products, and have no intention of competing with ebay, with smaller listings. If you are not a dealer, I suggest you use ebay.com. My own family is using ebay!
I will again plug my mom's ebay store, where she is selling 1 oz. generic rounds, and 10 oz. bars, in small lots.
If she can sell on ebay, then you can, too.
I don't want to leave you with the wrong idea. I'm a silver buyer more than a seller. I'm a very eager buyer, and only a very reluctant seller. This is why I'm rationing off my silver, through auctions. The auctions help me to ration my product, in small lots, over time, to the highest bidder. If I was an eager seller, I'd merely rent an 18 wheeler, drive it all to LA, and dump it to Tulving or Amark, and you would never hear about it, nor get a chance to buy it. The fact that I'm advertising my sales and selling what are small lots for me, proves I'm a buyer! I was thinking of posting my purchase orders, to prove it to people who are skeptical that I'm a buyer, but why bother? Such people who need such convincing have no brains, would remain unconvinced, or accuse me of making it up, and don't read my emails anyway. If they did have brains and read my emails, they would know I'm a major silver buyer, and why. By the time I've auctioned off over 200,000 ounces of silver, that will be further proof that I have not sold out, but I'm buying more.