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<p>[QUOTE="medoraman, post: 21626261, member: 26302"]Problem with buying slabbed PM and thinking its ok because I "will get the premium back". Let's assume that. Let's say you buy 10 ASE MS70's versus bulk coins. I will make these assumptions but the same logic applies:</p><p><br /></p><p>Silver value today: $20</p><p>ASE Premium: $5</p><p>MS70 ASE Premium: $30</p><p><br /></p><p>So you buy a regular ASE for $25, and a MS70 for $50. The argument is if silver doubles and you get the premiums back no harm no foul, i.e. silver goes to $40 and you sell regular ASEs for $45 and MS70s for $70, either way there is a $25 delta. </p><p><br /></p><p>Problem with that is that you COULD have bought twice as many regular ASEs as MS70s. The only way as a PERCENTAGE GAIN you "break even" is if the premium for MS70s go up as much in percentage terms as PM. If you believe that will happen ok, but if it doesn't you do not "break even" if you get your money back.[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 21626261, member: 26302"]Problem with buying slabbed PM and thinking its ok because I "will get the premium back". Let's assume that. Let's say you buy 10 ASE MS70's versus bulk coins. I will make these assumptions but the same logic applies: Silver value today: $20 ASE Premium: $5 MS70 ASE Premium: $30 So you buy a regular ASE for $25, and a MS70 for $50. The argument is if silver doubles and you get the premiums back no harm no foul, i.e. silver goes to $40 and you sell regular ASEs for $45 and MS70s for $70, either way there is a $25 delta. Problem with that is that you COULD have bought twice as many regular ASEs as MS70s. The only way as a PERCENTAGE GAIN you "break even" is if the premium for MS70s go up as much in percentage terms as PM. If you believe that will happen ok, but if it doesn't you do not "break even" if you get your money back.[/QUOTE]
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