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Why are the premiums on silver so high?
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<p>[QUOTE="Gam3rBlake, post: 6351259, member: 115909"]Yeah because it does work with silver.</p><p><br /></p><p>If you buy the same amount of ANYTHING over a period time it will average out over that period.</p><p><br /></p><p>If you buy silver at $18/oz for 3 months</p><p>Then you buy it at $19/oz for 3 months</p><p>Then you buy it at $20/oz for 3 months</p><p>Then finally you buy it at $21/oz for 3 months.</p><p><br /></p><p>Well in the end you end up paying ~$19.50/oz that year on average.</p><p><br /></p><p>Then if you repeat that year after year it works the same.</p><p><br /></p><p>Whereas if you try to time the market and only buy silver when its low you have a risk of missing out entirely.</p><p><br /></p><p>For example the people waiting for silver to go back to $14/oz might be waiting forever. It might never even get close to that. Just like waiting for $300/oz gold would be risky because it might never go back to that.[/QUOTE]</p><p><br /></p>
[QUOTE="Gam3rBlake, post: 6351259, member: 115909"]Yeah because it does work with silver. If you buy the same amount of ANYTHING over a period time it will average out over that period. If you buy silver at $18/oz for 3 months Then you buy it at $19/oz for 3 months Then you buy it at $20/oz for 3 months Then finally you buy it at $21/oz for 3 months. Well in the end you end up paying ~$19.50/oz that year on average. Then if you repeat that year after year it works the same. Whereas if you try to time the market and only buy silver when its low you have a risk of missing out entirely. For example the people waiting for silver to go back to $14/oz might be waiting forever. It might never even get close to that. Just like waiting for $300/oz gold would be risky because it might never go back to that.[/QUOTE]
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Why are the premiums on silver so high?
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