lets say you buy a coin with a premium. everyones paying it......then you wanna sell your coin, but people offer you spot plus lets say 1.50. why buy the over spot coin? then if you buy a diff coin at spot, will people offer you under spot prices? maybe its a supply demand. if somene wants it bad enough thell pay larger premuims?
It's called a "spread" and it's how precious metal buying works. Let's say I buy and sell gold. I could not offer 80% of melt for the seller, that would not be fair, so I offer 90%. Then when I sell it, I add 10% to the melt price. That way the "spread" is even across buying and selling. The seller gets paid more.
If you can buy a coin at spot that satisfy you, then when you sell it, you can try to ask spot plus $3 or whatever. But it is hard to find PM at spot when the trend is up and it is hard to find someone to pay premium or even buy at spot when the trend is down. That is why most people who buys bullion without understanding the driection and reasons that prices are what they are. Why the trend is strong upward, the board is loaded with newbies wanting to buy, and they will have to pay large premiums, but then if the prices turn down, they post something like " I hope it keeps going down so I can back up the truck", but usually they don't so they are always chasing. A person should buy when prices are going down and then start to sell if the pass your average cost ont he way up, and repeat over and over. Hard to do. It is easy to not buy as prices are down , and to justify buying when gold or silver is going up 10% or more in a month. IMO. Jim
what if you wanna buy now and for the next 5-10-20 years, then 5-10-20 years from now sell? whats the best form of silver to invest in?
Sincerely , if anyone trys to answer that, I would be very hard put to take it seriously. There are just too many factors in the future as far as economies and precious metals. If I had none and wanted to establish a proportion of my investments in PM ( 10% would be a high amount) until you know what you are doing, I would put 20% in physical coins and bars, 20% in PM mines in US or Canada ( and not penny stock type), and 60% in leveraged paper situations such as SLV, GLD, etc. Stock and options to trade ( buy/sell), maybe weekly, maybe daily. However this type of investment can not just be allowed to go without frequent observations and perhaps redistributions over the next 20 years. IMO. Jim
