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<p>[QUOTE=&quot;medoraman, post: 1607666, member: 26302&quot;]I don&#039;t remember it specifically, but Cloud&#039;s point is a VERY important one I am hoping people pick up on. In a declining PM market, at least in my experience, you cannot even sell at spot. Too many people think physical markets behave rationally all of the time, meaning if an ASE sells to a dealer today for $1 over spot, it will ALWAYS be this way. They figure worst case if silver goes to $20 they can sell it for $21. </p><p><br /></p><p>However, if a market starts a steady decline, this &quot;premium&quot; over spot becomes a &quot;deduction&quot; from spot. I was paying more than any dealer around buying 90% at 3 times face. Spot at this time valued 90% around 3 times face, but silver had gone down so long that dealers were paying well below spot for 90%. I would go to major coin shows and offers for 90% were anywhere from 2.8 down to 2.2 time face. </p><p><br /></p><p>Point is, physical is DIFFERENT than paper. Premiums can and WILL change based upon market directions and peoples expectations, so you are NOT assured of any certain value versus the market if it goes down.</p><p><br /></p><p>Sure, this works both ways, and there are times where premiums can go up as well. I am not writing this to dissuade anyone from holding physical, as I own a lot of physical PM, just explaining it to those new to the game. You CAN lose a lot more money than even market price changes holding physical PM.[/QUOTE]</p><p><br /></p>

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