Educate me!

[41mag]

Mrs 41mag and I have just gotten into this a few years back.
We figure we may as well be prepared when the democrats and liberals crash the USD .
They damned sure are doing their best

 

[Jeddak]

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.

Because silver you are buying today was bought by dealers today. You think silver dealers are sitting on the inventories they had paid $3 a tOz 20 years ago? Nope. They are buying from the mints now and selling to you now. Who is going to pay for their work? And they are paying more than spot to mints. Mints need to get paid to convert into bullion and bars.
Spot is what miners/refiners get. Spot is set by paper ETFs, not physical metal. Miners may choose not to sell raw silver as spot drops. If that happens, spread will increase all the way thru the supply chain.
When economy crashes, less silver is mined, since there are no silver mines left. Silver is a byproduct of copper and zinc mining. But demand goes up for silver and down for copper and zinc in the crash. Spot and spread will increase.

 

[19 Kilo]

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?

You can always just stick with scrap silver and gold and melt it into bars yourself. The equipment to do so isn't that expensive.

 

[Kman]

Because silver you are buying today was bought by dealers today. You think silver dealers are sitting on the inventories they had paid $3 a tOz 20 years ago? Nope. They are buying from the mints now and selling to you now. Who is going to pay for their work? And they are paying more than spot to mints. Mints need to get paid to convert into bullion and bars.
Spot is what miners/refiners get. Spot is set by paper ETFs, not physical metal. Miners may choose not to sell raw silver as spot drops. If that happens, spread will increase all the way thru the supply chain.
When economy crashes, less silver is mined, since there are no silver mines left. Silver is a byproduct of copper and zinc mining. But demand goes up in the crash. Spot and spread will increase.

Wow! That really lays it out! I was just looking at the items listed here and wondering about it. I definitely have better insight now on values and why.

 

[Jeddak]

You can always just stick with scrap silver and gold and melt it into bars yourself. The equipment to do so isn't that expensive.

Except then liquidity goes out of the window. Nobody wants to buy un-assayed PMs, except pawnshops at deep discount.

 

[Jeddak]

Wow! That really lays it out! I was just looking at the items listed here and wondering about it. I definitely have better insight now on values and why.

People that sell silver on ODT know that it will cost them more to replace it, so it is sold at replacement cost.
Silver should be worth $500 to $5000 today, keep that in mind when buying it.
PS i am no an investment advisor. I just like to talk.

 

[Bear44]

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

The silver I bought a while back is now worth about half again as much as I paid for it, sooo.....

You aren't going to buy at spot, but you don't have to sell at spot either. Think about used cars. If you buy from a dealer you're probably going to pay a bit more than you would to a private seller and you sure as hell aren't going to get as much selling to a dealer as you would a private buyer. The difference is that precious metals don't lose value like a car does.

 

[chucklenut]

the SEC are mother****ers and refuse to reign in the manipulation that is metals ETFs

spot price is not real anymore, hope that helps

buy platinum right now

 

[19 Kilo]

Except then liquidity goes out of the window. Nobody wants to buy un-assayed PMs, except pawnshops at deep discount.

I guess that all depends on the reason to be buying silver and gold. If for speculation and resale when the price jumps then you are totally correct. I'm thinking more along the lines as 41mag

 

[Jeddak]

Kman
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