Hi All, I have been looking into precious metals investment for the last couple of weeks and during my searches stumbled upon the Silver Stackers community. So far it looks like a fantastic way to keep up on news and trends as well as networking for doing local trade (very exciting for me ). I'm hoping to invest in metals as an insurance policy against a potential currency collapse however I'm not sure exactly how to go about buying and eventually selling (if need be), which I hope to learn through experience here. The main question that sticks in my mind is "how much 'over spot' should I pay?". eg. The spot price of silver right now is $22-23/oz AUD but 1 oz bullion bars and coins will go for around $27-32/ea. I understand that the seller/business has got to make a margin for it to be worth their while but I just want to understand the logic so I don't overpay by any ridiculous amount. Anywhoooo. Thank you for reading, happy to be here.
Welcome! The premium will vary from dealer to dealer and day to day but it's usually not enough to be too concerned about for the average stacker. You'll find that if you compare 3-4 big dealers there's an average premium so simple enough to use that as a guide. I only buy from 3 dealers here and the premium difference is usually insignificant, even on a couple of KG. Don't forget to factor in postage, shipping etc as the lower premium dealer might actually end up costing more with shipping. If you want to avoid overpaying on premiums, buy "cheaper" brands like NTR instead of PAMP. Ps, check out the FAQ's in my signature. Might point you in the right direction on a few more aspects of PM buying
Welcome and good question, I myself had the same questions, and my choice was dictated by how do I get out of pm. So I ended a buying mixture of large silver and gold bars from well known dealers who guarantee buy back. for example if you had xxxxx one ounce coins with $5 to $10 premium each and needed emergency cash, how do you recoupe that, you would basically have to dump it to a dealer, who would offer spot. Sure you could be lucky and you picked the right collectables but starting an investment 25% in the red wasn't my cup of tea. Don't get me wrong, you can still get into coins as an addition to your PM strategy, or you can become a small dealer.
Anything that close to spot are the Larger Bars. 100oz bars or 1000 oz bars are relatively closer to spot. But after you get them you might consider getting the gold instead.
