Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Don't buy at these premiums, are you nuts?!
>
Reply to Thread
Message:
<p>[QUOTE="myownprivy, post: 4269765, member: 84588"]Look, I see this is still not making sense to some people. </p><p><br /></p><p>Suppose on this day in history silver is $13 per ounce. Suppose your dealer charges you a $4 premium. $17. Suppose tomorrow you have to sell your silver. Dealers will buy at spot. That means you lose $4.</p><p><br /></p><p>Suppose on March 1 silver is $16 per ounce and your dealer charges you a $1 premium. $17 silver.</p><p>Suppose the next day you have an emergency and sell your silver. Dealers will buy at spot. That means you lose $1. </p><p><br /></p><p>This is why the premium you pay matters. This same example remains true if you sell your silver 1 month later, 1 year later, or 10 years later. Premiums matter less the more time passes, of course, but premiums matter because the lower premium you pay the less time is typically required for you to reach a break even point or a profitability point when reselling.</p><p><br /></p><p>Any questions?[/QUOTE]</p><p><br /></p>
[QUOTE="myownprivy, post: 4269765, member: 84588"]Look, I see this is still not making sense to some people. Suppose on this day in history silver is $13 per ounce. Suppose your dealer charges you a $4 premium. $17. Suppose tomorrow you have to sell your silver. Dealers will buy at spot. That means you lose $4. Suppose on March 1 silver is $16 per ounce and your dealer charges you a $1 premium. $17 silver. Suppose the next day you have an emergency and sell your silver. Dealers will buy at spot. That means you lose $1. This is why the premium you pay matters. This same example remains true if you sell your silver 1 month later, 1 year later, or 10 years later. Premiums matter less the more time passes, of course, but premiums matter because the lower premium you pay the less time is typically required for you to reach a break even point or a profitability point when reselling. Any questions?[/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Don't buy at these premiums, are you nuts?!
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...