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<p>[QUOTE="cubenewb, post: 1076370, member: 25644"]That's not necessarily true. That $145.00 is an opportunity cost, and most often is not the same as an accounting cost. As far as I'm concerned, a single merc has the value of ten cents or the value of something like $1.70 (whatever it's melt is). If you had bought 100 mercs at face, then yes, you'd be out $10.00 face in exchange for 170-ish in metal value. The value of ten cents doesn't play a roll in most transactions though; you buy it at some price connected to its silver value, and you resell it for whatever the bullion price is when you decide to unload. In your example the $145 is an opportunity cost, but isn't really the same as "losing" 145 bucks.</p><p><br /></p><p>It's like asking me to buy orange or apples. If I buy apples, my cost technically includes the loss of oranges (since I don't get to buy any). Opportunity costs aren't particularly applicable in this case.[/QUOTE]</p><p><br /></p>
[QUOTE="cubenewb, post: 1076370, member: 25644"]That's not necessarily true. That $145.00 is an opportunity cost, and most often is not the same as an accounting cost. As far as I'm concerned, a single merc has the value of ten cents or the value of something like $1.70 (whatever it's melt is). If you had bought 100 mercs at face, then yes, you'd be out $10.00 face in exchange for 170-ish in metal value. The value of ten cents doesn't play a roll in most transactions though; you buy it at some price connected to its silver value, and you resell it for whatever the bullion price is when you decide to unload. In your example the $145 is an opportunity cost, but isn't really the same as "losing" 145 bucks. It's like asking me to buy orange or apples. If I buy apples, my cost technically includes the loss of oranges (since I don't get to buy any). Opportunity costs aren't particularly applicable in this case.[/QUOTE]
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