Silver prices, insane mark ups on small quantities?

[Cavedweller]

So where are people like me, if I decide to sell some for the cash supposed to sell it? Who is it offering to pay me more than spot for it and how much more are they paying?

That's a good question. I guess what I am saying is now is not the time to sell, unless one absolutely needed the cash. I would wait until some rationality returns to the markets, and there is less of a premium to buy, and spot is closer to the real price of the metal. Either that or the price rises to the point that the premium one paid is insignificant. I haven't traded actively in several years, but I can remember when premiums were much lower.

Did not see any of that from the place I have been using. Maybe it's on their site and I just did not see it. Was not really looking for that. I did see them selling Morgan Dollars but did not pay attention to what they sold for. Have to guess it would depend on what value they had??

Yeah, Morgans are more of a collector's item.

 

[Alexx1401]

That's a good question. I guess what I am saying is now is not the time to sell, unless one absolutely needed the cash. I would wait until some rationality returns to the markets, and there is less of a premium to buy, and spot is closer to the real price of the metal. Either that or the price rises to the point that the premium one paid is insignificant. I haven't traded actively in several years, but I can remember when premiums were much lower.

Yeah, Morgans are more of a collector's item.

OK I get that. I am not expecting to make money off the stuff I bought, that was not why I bought it. Its just cash that otherwise would be sitting in a saving account making several points less than inflation. So the money is losing value as it sits there waiting for me to need it. Now if the price of silver ever went crazy again and suddenly was selling for say double what I paid? I would dump it. Then again I guess have to put the cash back in the bank and watch it lose value. Now people who put it in a 401K I have to guess are hoping that long term it gains value by the time they are going to retire.

 

[Cavedweller]

I hear ads on the radio a lot of people offering to put metals in your 401K. I had always assumed this must be paper? Not the actual metals?

Some funds claim to hold physical metal in a vault somewhere for investors. Definitely something to check out on a case by case basis if you are considering doing this. Some funds which claim to hold physical metal have actually attempted to increase income by "leasing" the metal to speculators who then sell it into the market, hoping to replace it later at a lower price. So all the fund actually has in the "vault" is paper. It gets fuzzy.

Now people who put it in a 401K I have to guess are hoping that long term it gains value by the time they are going to retire.

Correct. You would have to consider PMs to be a good long term investment to do this. Others only consider them a sort of financial insurance. All depends on what your objective is.

 

[Alexx1401]

Some funds claim to hold physical metal in a vault somewhere for investors. Definitely something to check out on a case by case basis if you are considering doing this. Some funds which claim to hold physical metal have actually attempted to increase income by "leasing" the metal to speculators who then sell it into the market, hoping to replace it later at a lower price. So all the fund actually has in the "vault" is paper. It gets fuzzy.

.

Now that sounds scary. Could see someone going to take out the investment and finding out there was nothing there and the people who were supposed to be holding it suddenly vanishing.

 

[Member 34319]

@Alexx1401 I buy silver for the same reasons. If I make money off it, great. Otherwise it'sa safe way for me to store extra cash or funds so I don't spend them. I've never lost money on silver over the years. I have my eyes on a nice pistol and I'm looking to liquidate some once again. I'm just trying to understand how the market changed since the last time I sold off 50-100 ounces. Usually one could get an idea of how things are going by looking at spot vs retail. However, this go around the differences are pretty high and it doesn't quite make sense to me. @Cavedweller helped me understand that the market got stupid and the real metal is worth likely what retailers are selling it for and spot is a worthless tool to use these days.

 

[Mike7b]

Years and years ago, I bought a bunch of silver, back when it was around 4 or 5 bucks an oz. The price stayed stagnant for quite a while, fluctuating up and down a few times, I held on to it, just something in the safe, never gave it much thought. Until sometime in the 2000s when it went up to $32 or $33 an oz. Liquidated it but for a couple of keepsakes. Would have done a lot better if I would have bought a good stock that paid dividends. But it's nice to have tangible objects to fondle.

 

[Cavedweller]

Would have done a lot better if I would have bought a good stock that paid dividends.

These are the things that only become apparent in hindsight. The best investment in the world might be a crystal ball. I've lost money on "good stocks." I've never lost money on PMs. As the saying goes, "You may know which way the market is going, but you never can tell where it's going from there."

Or, as an old professor of mine used to say, "You pays your money and you takes your choice."

 

[Alexx1401]

These are the things that only become apparent in hindsight. The best investment in the world might be a crystal ball. I've lost money on "good stocks." I've never lost money on PMs. As the saying goes, "You may know which way the market is going, but you never can tell where it's going from there."

Or, as an old professor of mine used to say, "You pays your money and you takes your choice."

YEP! I keep some in the market that is there for the long haul. Win or lose, its there for when I either die or quit working. A while back when I decided to try some metals it was not for this, the long haul. It was just watching inflation that they claim is close to double digits, which means it is more than they are admitting, eat at cash that is there for "just in case" and liquid. Car dies and I want another, some gun comes along I can't live without, one of the kids needs an emergency loan, ect. I figured I really had nothing to lose buying some metal. Chose silver because it was easier to sell a small amount if something comes up. Been a long time since one of the kids needed help as they are well on their own now but, if something comes up with one of them? I can hand them some silver, say take this to the place down the street and sell it instead of going to the bank to get cash for them. They can do the work for a change

 

[Mike7b]

After reading this thread last night I went and checked out a few companies selling silver. $19.78 was spot, about the best deal was any amount, $3.99 over spot, free insured delivery. Some were cheaper, had to buy a lot of oz and pay the way they wanted to get the discount. Of course, they'll buy it back, at spot. Silver would have to do some gymnastics to be able to buy now and just be able to break even. See what happens when the Fed raises the rate. If stocks take a dump, you gotta buy low so you can sell high. I have seven years before I have to start taking money out of the 401k, I'm willing to bet the market comes back. If it doesn't, oh well. Don't put all your eggs in one basket.