<< <i>I don't find most of the physical silver offers especially tempting at $2.50 to $3.00 per ounce over spot. The lower the silver price goes, the higher the premium rises (as a percentage of the purchase price). At today's depressed prices, I prefer some of the smaller gold and silver exchange traded funds and their lower buy/sell spreads. >>
The big dealers are paying a $2 premium on silver eagles right out of the US Mint. >>
Okay, this is an oversimplification but gets the point across.
Silver is at $17 spot. Dealers are paying $19 for silver eagles and selling them at $19.50. You buy 100 silver eagles for $1,950. Silver advances five dollars to $22 spot. Dealers are paying $24 for silver eagles and selling them at $24.50. You sell your 100 silver eagles for $2,400. Your profit is $450 (not counting shipping charges).
-or-
Silver is at $17 spot. You buy 100 shares of a silver ETF for $1,710 (the extra $10 covers the commission and the buy/sell spread). Silver advances five dollars to $22 spot. You sell your 100 shares for $2190 (as before, the $10 difference covers the commission and the buy/sell spread). Your profit is $480.
Net difference - The ETF gives you a $30 higher return, with 12% less capital required and no storage or shipping hassles.
Doesn't seem so long ago I started a thread where I gave away an ounce of silver to the person who could guess when silver would hit $15. Believe it or not, it was November of 2007. When I purchased a coin shop in 2009, silver was about $10. How time flies. Perspective is a funny measurement.
Comments
I knew it would happen.
<< <i>
<< <i>I don't find most of the physical silver offers especially tempting at $2.50 to $3.00 per ounce over spot. The lower the silver price goes, the higher the premium rises (as a percentage of the purchase price). At today's depressed prices, I prefer some of the smaller gold and silver exchange traded funds and their lower buy/sell spreads. >>
The big dealers are paying a $2 premium on silver eagles right out of the US Mint. >>
Okay, this is an oversimplification but gets the point across.
Silver is at $17 spot. Dealers are paying $19 for silver eagles and selling them at $19.50.
You buy 100 silver eagles for $1,950.
Silver advances five dollars to $22 spot. Dealers are paying $24 for silver eagles and selling them at $24.50.
You sell your 100 silver eagles for $2,400. Your profit is $450 (not counting shipping charges).
-or-
Silver is at $17 spot.
You buy 100 shares of a silver ETF for $1,710 (the extra $10 covers the commission and the buy/sell spread).
Silver advances five dollars to $22 spot.
You sell your 100 shares for $2190 (as before, the $10 difference covers the commission and the buy/sell spread).
Your profit is $480.
Net difference - The ETF gives you a $30 higher return, with 12% less capital required and no storage or shipping hassles.
My Adolph A. Weinman signature
<< <i>Gold headed for $1150 then $875............................. >>
Some say $700 or even $600 is this possible? What factors would make these prices come to fruition?
Coinfame,Kaelasdad,Type2,UNLVino,MICHAELDIXON
Justacommeman,tydye,78saen,123cents,blue62vette,Segoja,Nibanny
When I purchased a coin shop in 2009, silver was about $10. How time flies. Perspective is a funny measurement.
Liberty: Parent of Science & Industry
<< <i>Time to start a new thread about $1100 and $15 >>
agree...why don't you do us the honors?
Gold just broke $1,200 ...
I knew it would happen.
<< <i>Time to start a new thread about $1100 and $15 >>
Funny how you guys post this on PM forums every day. We know you have the answers but you still need to prove it to yourself every 12 hours?