Educate me!

[Kman]

I don’t buy precious metals, bars, coins etc. I’ve thought about it, but either the ODT is full of retards selling it, or I’m the retard. So if silver has a spot price of $25 per ounce, why would I pay $30 per ounce? In my mind it would be the same as me offering to give you $1300 and you give me $1000 back. Why would anyone pay $1300 for $1000 worth of anything. I’m not referencing future value, just what you can get for it today. So am I missing something other than speculation?

 

[StuP]

Buying and selling prices in the commercial market are either side of spot. The spread is how dealers make money.

 

[Kman]

Buying and selling prices in the commercial market are either side of spot. The spread is how dealers make money.

So typically it doesn’t sell at spot? What percentage is typical above spot?

 

[StuP]

So typically it doesn’t sell at spot? What percentage is typical above spot?

Depends on demand, as mentioned above, some attract a premium for various reasons. Margins vary by volume as well.

Browse popular sites like provident metal, jmbullion, apmex, to get a feel.

 

[Kman]

Ounce vs ounce, all silver coins are not the same, some are more desirable, so to some are “worth more”

Pre 1965 silver and mint silver (maple leaf’s, double eagles) are easily recognized and low enough denominations for trading like cash, so. these are currently fetching premiums over silver-content spot prices.

Jim’s home made bars, larger bars and other Santa clause coins are lesser known so confidence isn’t as high, these migh fetch spot, maybe even less.

I think I’m not wading into this pool. Made it this far on my own ha ha!

 

[Cat Herder]

Add in the "I have these fur sail here and now and the bullion dealers are OOS" premium too....

Like buying ammo now...thems that's gotta have it, pay the price....you don't appear to be desperate...

 

[Kman]

Add in the "I have these fur sail here and now and the bullion dealers are OOS" premium too....

Like buying ammo now...thems that's gotta have it, pay the price....you don't appear to be desperate...

Well, it was just a casual thought. I guess some get more excited about “stuff” and have to have it. I was just curious, now I see the different aspects that drive the value. It’s interesting, but just not for me.

 

[Jeddak]

How would sellers stay in business if they sold silver for spot price? You want to work for free?
There is a silver thread in the Hobby section. Read it, tons of knowledge there.

 

[Kman]

How would sellers stay in business if they sold silver for spot price? You want to work for free?
There is a silver thread in the Hobby section. Read it, tons of knowledge there.

Your comment makes no sense. I understand it was cheaper 10 years ago versus what it is today, so how would selling it at a higher spot price be working for free, unless you bought and sold it today? I understand it goes up or down in value. My question was why does it sell above or below current spot price. I now have had that explained to me. It’s definitely not for me.

 

[Freebird]

Interesting, thanks for good reading, educational for those of us not dealing in gold and silver.