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<p>[QUOTE="sakata, post: 2807548, member: 23778"]One thing about lower premiums is that you don't gain as much when the price goes up. </p><p><br /></p><p>For example, if silver has a 10% premium and gold only has 5% then what happens if you buy $100 of each and the price increases by 20%. For the silver you paid $110 and so the new price will be $132, or $22 higher. For gold you paid $105, and the new price is $126, or $21 higher. So you gained more with the silver. </p><p><br /></p><p>In other words, silver may cost more to buy after the premium, but you gain more when it goes up. As no one is planning it going down when they buy it makes little sense to say that the lower premium is preferable. The only possible scenario would be one where you expect everything to sell for spot. If that happens then something major has occurred and small differences in premium will not make much difference in the end.[/QUOTE]</p><p><br /></p>
[QUOTE="sakata, post: 2807548, member: 23778"]One thing about lower premiums is that you don't gain as much when the price goes up. For example, if silver has a 10% premium and gold only has 5% then what happens if you buy $100 of each and the price increases by 20%. For the silver you paid $110 and so the new price will be $132, or $22 higher. For gold you paid $105, and the new price is $126, or $21 higher. So you gained more with the silver. In other words, silver may cost more to buy after the premium, but you gain more when it goes up. As no one is planning it going down when they buy it makes little sense to say that the lower premium is preferable. The only possible scenario would be one where you expect everything to sell for spot. If that happens then something major has occurred and small differences in premium will not make much difference in the end.[/QUOTE]
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The case to be made for gold vs silver
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