Just want to learn more,,I decided to take advantage of the dip but it was not as good as i wanted,,,with the % above spot i got a tube of 20 Libertads for $580,,,How can there be $100 premium above spot on Libertads
There are several threads current that discuss most of these areas. However there are several groups with different beliefs and different levels of actual knowledge, and one must decide on their own from research, as to which mechanism is better for their situation. ETFs and futures can be used mainly in trading ( most call it paper ) and profits/losses will be exacted in cash money from an account with a broker. ETF shares do not expire, but are close to the price of the PM at the time. You do not have to store it, pay security on it, or ship it. Arguments are that it will be 'stolen' by the MAN, but you can liquidate or buy in instant if needed. Futures can be bought on a delivery basis where the full price is paid and the silver will be delivered, but it is a very large amount, with additional fees. If you couldn't buy Maserati out of your checking account, you ,like me, wouldn't play in this world. Futures can also be speculative, along with call and put options, but they are leveraged, and can produce larger gains and losses payable in cash and expire at certain dates and may change by the minute as the market and date changes ( highly speculative , but lucrative if you hit it) As to your Libertads margin, You are at the whim of a dealer that is a middleman between the Major marketmakers/COMEX dealers and you the retail buyer. They will get what the traffic will support. Some won't sell until the price seems more supported and at the same time buy at lower prices. They don't have to sell and you don't have to buy. The higher the PM volatility, the higher will be the premium spread. With the ETF, you need to download and read the prospectus carefully. With ETFs, futures, puts,call, spreads, etc. you will need a broker such as TDAmeritrade or other. Jim
Because they can charge what they want. And somebody like yourself is willing to pay for it so why not charge it?
Shortages on most govt minted coins right now, premiums on everything is up a bit. Provident has 1 oz generic rounds for 1.89 over on 20+, 1.69 over on 100+, 1.49 over on 500+. Decent deal http://www.providentmetals.com/bull-and-bear-1-oz-999-fine-silver-bullion-round.html 100 oz bars are only things trading at normal premiums, .59 over spot http://www.providentmetals.com/100-oz-999-fine-silver-bar-mixed-type-secondary-market.html I wouldn't buy these but they've got the australian koalas for $3.79 over spot in any quantity, that is pretty good compared to the other govt bullion.
Everyone is buying right now. Thus the elevated premiums. When things settle down they might return to more normal levels.
The price is whatever people are willing to pay. If you don't want to pay the premiums somebody else will, or else the business will lose money and have to lower them. The market takes care of itself. You're not going to see prices any cheaper unless inventories get replenished, and even then that's only if they don't get drained again, and only if dealers can't still make the sale at higher premiums. As it is most dealers are having trouble sourcing inventory which is weeks out. I bought at $25 and ever since then premiums have risen to negate any spot price declines. Premiums will continue to rise if spot drops. So you can either wait and hope that spot stays low long enough for inventories to refill and all the other buyers to get their fill, or you can buy now and be thankful it's still the cheapest it has been in 3 years. If spot stays low long enough then new inventory will flow through the supply chain and eventually premiums will come down, but only if the buyers dissipate.
