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@cohodk said:

@dcarr said:

@cohodk said:

@jmski52 said:
It's been true for a very long time that premiums (for non-rarities) shrink when the price of silver or gold spikes. Nothing new here.

So don't buy the shrink. Many ways to participate without the premium (er, dealer mark up).

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But note that when "spot" price drops significantly, premiums often go up.
So this has the effect of insuring or cushioning against any potential loss.

In other words, physical metal prices are less volatile than "paper" derivatives.

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Volatility means nothing over the long term. And, I believe, long term is what the PMers preach. No?

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If you go into precious metals for the long term, you want to avoid paper instruments such as SLV (which has a negative premium to physical silver and goes 1/2% farther negative every year)

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