Hi All, I have a question about the spread rates and how it effects silver as an investment taking the perth mint rates as at tonight as an example Perth Mint buys 100oz AUD 4,044.00 Perth Mint sells 100oz AUD 3,620.45 difference = AUD 423.55 which is 10.47% of my purchase cost (not including storage fees) I understand the reasons why silver is a great investment but with the above spread it would need to increase by almost 11% just to break even. Am I missing something here because to me that is a bad investment I know everyone will come back saying the US economy is doomed as are FIAT currencies etc etc....but taken at face value having to make 11% to break even doesn't sound good to me I have 95% made up my mind to invest a large sum ($40k) in silver but this is the one issue sticking in my throat. I wouldn't accept it on any other investment. Would really appreciate everyone's thoughts on this - I'm hoping I have interpreted the figures incorrectly and you will set me straight Thanks, N.
im new to this too, but from what I gather you are generally able to sell to other buyers at or above spot. Either on ebay + other trading sites or forums like this one. Or even to local dealers who would buy closer to spot. Hope im on the right track, slap me if im wrong
Who told you have to sell back to the PM? PM buys their silver for sport so they obviously try to make extra profit on these low buy back offers. This forum world buy your 40K investment within a minute for that price in one lot.
and there's the rub. that's why you have to work out what you're wanting to achieve by buying PMs, how long you'll wait for it to happen and how you'll get out of the game when the time comes - if you're investing. I've tried investing but it's not for me so work out your sleep at night factor and invest as you will. Saving is an easier question. Will the dollars I bought this gold with be worth x percent less in a year..... or insert time frame. If you don't like the answer then store your money in gold - it's generally a low risk (and low return) place to put cash. Perhaps the investors have a different view, but I'm at the stage where I'm just happy to know that the govt and banksters can't steal my savings.
yep sorry - my mistake, swap buy for sell with a mistake like that maybe I should stay clear of investing LOL !!!
Thanks for the replies - good to know that I can take possession of my silver and sell it for at least spot. However, why would someone buy it on here for a higher price when they can buy from a dealer for cheaper eg http://forums.silverstackers.com/topic-7997-syd-2-pamp-kg-bars-for-sale.html 1 kg bars for sale today at $1320 each, but at ABCBullion I can buy them for $1284 each - what is the advantage here in buying privately?
PAMP bars are different from ABCBuillion. I think PAMP are Swiss and ABC are local (correct me if I'm wrong!). Therefore they have different premiums and I believe PAMP bars also have a COA. Other reasons include, f2f avoids postage fees, private may ship cheaper, you can negotiate with private sales, you can avoid CGT etc
ABC were selling PAMP bars for that price so still not clear on why someone would pay more ($36/kg)to buy privately when you could buy cheaper from a dealer ??? other than CGT reasons of course
Also because there is a 6 week wait for PAMP from ABC Sydney. Some people prefer to pay the premium to get the bar in their hot little hands NOW
