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Do you evaluate premiums on a dollar or percent basis?

FellintoOblivionFellintoOblivion Posts: 280 ✭✭✭
in Precious Metals

I'm pretty new to coin collecting (my only real goal at the moment is to put together a set of Silver Eagles) but was wondering how you people (!) who buy precious metals in bulk quantities approach the idea of premiums.

Do you have a set dollar amount that you won't go over (won't pay $X over spot) or do you shift what you're willing to pay as a premium as a percentage of what the spot value currently is?

Comments

  • derrybderryb Posts: 36,585 ✭✭✭✭✭

    I work with a set $ amount over spot.

    "How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan

  • bronco2078bronco2078 Posts: 10,118 ✭✭✭✭✭

    I note how many percent the dollar premium represents . I noted the same 5 years ago and I like to keep in mind that premiums only help a seller in a down market. If the spot price in the market has put you underwater premium items can lessen the damage . If you are ahead because spot is up those premiums you paid don't come back to you at sale. From this I've decided premiums are for suckers . If I'm completely wrong on the direction of the market I find little solace in knowing the turds in my stack are slightly shinier than someone elses.

  • rickoricko Posts: 98,724 ✭✭✭✭✭

    I work with the dollars over spot.... and I shop around.... there are often some excellent opportunities to get PM's below the going rate. I have purchased silver at fifty cents over spot, and gold at spot. Cheers, RickO

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