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<p>[QUOTE="E Pluribus Unum, post: 2831668, member: 74265"]I did some calculations comparing the premium over <span style="color: #ff0000"><b>spot</b></span> <b>versus</b> the premium over <span style="color: #0000ff"><b>the buy back price</b></span> and found some interesting results. The fact that the bullion that you buy is only worth what someone would pay for it served as the impetus for my calculations.</p><p><br /></p><p>For my analysis, I have reviewed advertised prices from an undisclosed online bullion retailer, and I chose 5 bullion products from the Canadian Royal Mint: 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz gold Maple Leaf coins and 1 oz silver silver Maple Leaf. Refer to the table below:</p><p><br /></p><p>[ATTACH=full]667510[/ATTACH] </p><p><br /></p><p>Hopefully, I did the math correctly. Here is the summary that is easier to view:</p><p><br /></p><p>[ATTACH=full]667511[/ATTACH] </p><p><br /></p><p>BTW, DELTA represents the difference between the purchase price and the buy back price.</p><p><br /></p><p>I have noticed that many bullion buyers based their decision on premiums above spot. However, when cashing in your bullion, shouldn't you focus on the buy back price versus the spot price?</p><p><br /></p><p>The values in the red column represent the <span style="color: #ff0000"><b>premiums above spot</b></span>. In this case, a 1 oz gold Maple Leaf has he lowest premium, and the premiums increase as the gold content per Maple Leaf decreases. The silver Maple Leaf, as expected, has the highest premium.</p><p><br /></p><p>The values in the blue column represent the <span style="color: #0000ff"><b>premiums above the buy back price</b></span>. The gold coins still follow the same trends, that is, the premiums increase as the gold content per Maple Leaf decreases. However, the premium for the silver Maple Leaf is significantly lower in this case. In fact, of all of the five coins, the 1 oz silver Maple Leaf ranks in 2nd place with the 1 oz gold Maple Leaf in 1st place.</p><p><br /></p><p>If considering purchasing bullion based on the <span style="color: #0000ff"><b>premiums above the buy back price</b></span>, doesn't silver out perform all of the fractional gold Maple Leaf coins?[/QUOTE]</p><p><br /></p>
[QUOTE="E Pluribus Unum, post: 2831668, member: 74265"]I did some calculations comparing the premium over [COLOR=#ff0000][B]spot[/B][/COLOR] [B]versus[/B] the premium over [COLOR=#0000ff][B]the buy back price[/B][/COLOR] and found some interesting results. The fact that the bullion that you buy is only worth what someone would pay for it served as the impetus for my calculations. For my analysis, I have reviewed advertised prices from an undisclosed online bullion retailer, and I chose 5 bullion products from the Canadian Royal Mint: 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz gold Maple Leaf coins and 1 oz silver silver Maple Leaf. Refer to the table below: [ATTACH=full]667510[/ATTACH] Hopefully, I did the math correctly. Here is the summary that is easier to view: [ATTACH=full]667511[/ATTACH] BTW, DELTA represents the difference between the purchase price and the buy back price. I have noticed that many bullion buyers based their decision on premiums above spot. However, when cashing in your bullion, shouldn't you focus on the buy back price versus the spot price? The values in the red column represent the [COLOR=#ff0000][B]premiums above spot[/B][/COLOR]. In this case, a 1 oz gold Maple Leaf has he lowest premium, and the premiums increase as the gold content per Maple Leaf decreases. The silver Maple Leaf, as expected, has the highest premium. The values in the blue column represent the [COLOR=#0000ff][B]premiums above the buy back price[/B][/COLOR]. The gold coins still follow the same trends, that is, the premiums increase as the gold content per Maple Leaf decreases. However, the premium for the silver Maple Leaf is significantly lower in this case. In fact, of all of the five coins, the 1 oz silver Maple Leaf ranks in 2nd place with the 1 oz gold Maple Leaf in 1st place. If considering purchasing bullion based on the [COLOR=#0000ff][B]premiums above the buy back price[/B][/COLOR], doesn't silver out perform all of the fractional gold Maple Leaf coins?[/QUOTE]
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My (revised) argument for the best way to invest in bullion
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