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<p>[QUOTE="Jason.A, post: 2836374, member: 87620"]I think you've REALLY overthought this.</p><p><br /></p><p>The very straight forward reason why premiums on silver is higher is because the value of the coin is lower. It's that simple. Every coin has an inherent cost to mint.</p><p><br /></p><p>The higher value a bullion coin has, the lower the premium on it will be. Thus, a one ounce gold coin has a lower premium than a 1/2 ounce gold coin, which has a lower premium than a 1/4 ounce gold coin, which has a lower premium than a 1/10 oz gold coin, which in turn has a lower premium than 1 oz silver coin, which has a lower premium than a 1/2 oz silver coin, which has a lower premium than a 1/10 oz silver coin.</p><p><br /></p><p>Every coin has a basic cost of minting that must be factored in. The more the coin can be sold for its intrinsic metal value, the lower that premium needs to be to recoup all of those costs of minting, shipping, etc.</p><p><br /></p><p>Does that make sense?[/QUOTE]</p><p><br /></p>
[QUOTE="Jason.A, post: 2836374, member: 87620"]I think you've REALLY overthought this. The very straight forward reason why premiums on silver is higher is because the value of the coin is lower. It's that simple. Every coin has an inherent cost to mint. The higher value a bullion coin has, the lower the premium on it will be. Thus, a one ounce gold coin has a lower premium than a 1/2 ounce gold coin, which has a lower premium than a 1/4 ounce gold coin, which has a lower premium than a 1/10 oz gold coin, which in turn has a lower premium than 1 oz silver coin, which has a lower premium than a 1/2 oz silver coin, which has a lower premium than a 1/10 oz silver coin. Every coin has a basic cost of minting that must be factored in. The more the coin can be sold for its intrinsic metal value, the lower that premium needs to be to recoup all of those costs of minting, shipping, etc. Does that make sense?[/QUOTE]
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My (revised) argument for the best way to invest in bullion
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