Discussion in 'Markets & Economies' started by TreasureHunter, Dec 8, 2019.
I bought a whole stack of silver last week...thinking I didn't buy enough...
It's interesting to contemplate the value you get from dealers when selling vs the cost of purchase.
For example, if you buy a 1 oz bar for 1,950 $ and get 1,700 $ when selling it the next hour, then you scored a -150 $ loss.
This alone is enough to cut many people's appetite.
Normally, one loses 10-20% of the price of purchase.
While we usually only watch the difference between spot price and the sales price (with premium) of the dealers, we should pay more attention to the difference between how much the dealers sell it for and for how much they buy it back.
That "spread" (between selling price vs buying price) is demoralizing: 10-20%, but closer to a 15-17%, according to my research.
Gold is not such a great safe haven for freezing your assets unless indeed there is significant inflation or tremendous climb in gold's price (like there is now vs. 2015, 2016, 2017...).
In a scenario where gold trades sideways, you've already lost 10-20% of the money you invested in it.
So, basically, gold is great if you "sit on it" for decades and especially if currency turns into toilet paper. Otherwise you get ripped of by the dealers.
It all goes down to the physical purchase vs sales price. That's where you get your savings cut.
Why such a big spread? I’m still able to get 1 oz at 4% premium and sell at 1% below spot. So 5% spread.
Sounds great. That's nice!
I do agree with you to a point. You can generally get a better deal for your PMs on this site than at a dealer. But then there are the risks involved with selling direct to the public that you don't get with selling to a dealer. Without knowledge of places like this site, PM "investing" appears to be a real rip-off.
Do you mean drilling an oil well?
Yup, no issue with gold premium, even in March. But Silver is a different matter.
Yes - what I meant is that it can be a "rip-off", if done the naive way. And even a bunch of "stackers" do it the naive way.
Taking account of the current dramatic climb, it's looking shiny.
Yeah, the best way to sell you'r PM's is to sell them to other stackers at a price slightly smaller than the dealers' prices.
A water well, not oil.
My lcs is very fair and always pays the same.
I've been into some rediculous coin shops before and not places I'd deal with.
High level "official scaremongering" in Ozzy accent:
Mental midget arsehole.
Nazi Australia here we come.
As these things are unraveling, I still can't believe we're actually in the middle of "SHTF". Caught me somewhat off-guard.
Corona, economic downturn, racial conflict, wild ideological crises in the west, YouTube censorship, economic warfare (Celente was right?), Corona wave 2.
"SHTF" is here. And it's not getting better. Gold is above 1,810 $ (US) today. With these trends, I can easily imagine gold shooting above 2,500 $ by the end of this year.
Back to the subject, where's the collapse?
QEs trillions pushed it back after March 2020
Banks Brace For A Historic Crash With Record Loss Provisions
Rabobank: "We Now Have A US Dollar Weapon Countdown Underway"
17 July 2020 is just 3 days away
2021 crash ???
It has been raining incessantly past couple of weeks, way past the norm around this time of the year. The weather is all screwed up. Better not live in low lands or near a river.
A mexican guy I work with has 5 acres in old mexico where he grows avocados and he said theyve had way too much rain and hes worried about his trees.
"A little dry more better" he says.
My stocks have been trading sideways this last week. Must be close to the end days now haha.
I'll never get my Lambo at this pace.
A pullback is long overdue.
When you're in the middle of something you usually don't see it
It's the same with the greatest opportunities in life. And since they say crises are "opportunities", we're in the middle of a big one
We're falling down the first 1-2 steps, but the spiral staircase is very tall...
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