Fair price to pay for silver???
Submitted by PzldPtrt on Fri, 10/24/2008 - 08:29
So, I see silver is down to ~$9 per ounce right now and it seems like a good time to buy some more. I've only made 1 purchase so far and paid $5 above spot value from a local dealer and wasn't very happy considering it's usually sold $3 above spot online. I also bought some junk coins @ 10x face value. This was when spot value was ~$13/ounce.
I spoke with the same dealer yesterday who said he'd sell me silver eagles for $16 and junk for 10x face value still.
1.) $7 above face value for American Eagles is completely absurd, right?
2.) Is 10x face value for junk silver still a fair price or is that also absurd at this point?
Please respond ASAP as I may be buying within a few hours. Thanks!
»
I paid 8x face value of junk silver
I paid 8x face value of junk silver about two weeks ago just before it went from 11.50 an ounce to 9.50 an oz, (about an hour after I bought it). At first I was mad, but now I realize that I got a good deal, even though it went down.
How long is a piece of string
It is a fair value if you like the deal. Supply and demand baby. Demand high, supply low. For some insane reason spot price is low too. But I think that is artificial somehow.
Think of it this way: silver is about 6 dollars under what it should be at this moment so you are really paying what should be spot.
Either way, junk silver is usually the better value if you are buying for survival purposes. It is small, easy to use in tiny quantities, and cheaper than coins. Unless you want the coin collecting value - but that may disappear if we all go into a great depression.
But what do I know, my gold stock is now a penny stock and my silver stock dropped 66% in the last two weeks. Me smrt!
Anyone else get silver for
Anyone else get silver for less than $3 over spot?
“Liberty means responsibility. That is why most men dread it.” -George Bernard Shaw
I have never paid more than
I have never paid more than $2.50 over spot price.
I have never seen silver
I have never seen silver anywhere for less than $3 above spot price. Care to share your secret rather than just rubbing it in that you apparently get great deals that no one else is able to?
“Liberty means responsibility. That is why most men dread it.” -George Bernard Shaw
Thanks, it looks like I'll
Thanks, it looks like I'll go for the junk silver at 10x face value over the 1 ounce coins, unless he's willing to come down to $5 over spot.
“Liberty means responsibility. That is why most men dread it.” -George Bernard Shaw
Fair/Street value
Rather than go into the how's and why's and warning that "value" is about who is willing to pay how much for what, etc, I'll just say that:
a) a $7 premium for Eagles is rather high; *if* you can find them for sale, they have been going for about $5-6 over spot
b) 90% "junk" at 10x face value isn't a bad price these days; you're basically paying a $3 premium per ounce for on-the-spot delivery.
Silver can be purchased at a lower premium, but that silver is almost universally delayed for shipping.
The only place anyone will find silver at spot is on the COMEX, and you need to be able to buy, at minimum, 1,000 ounces, and that'll be in the form of a futures contract - not bullion.
Now, if you wanted to pick up a mini-contract on the COMEX, take delivery when it expires and then turn around and sell that bar on the open market.. there's some money to be made there.
beware the COMEX
there's a rumor floating around that there might a delivery default crisis on the december contract.
not to say there will be, but tread very carefully.
i should say the COMEX gold market
obviously silver is seperate.
still, do some due diligence.
the risk/reward ratio might be too steep.
What to pay?
I don't pretend to know where Silver will go from here. I know that I don't trust the criminals in Washington or on Wall street anymore. I bought silver eagles from Blanchard a few weeks ago. At that time silver was about 11-12 per ounce. They charged me $15.32 per ounce including shipping via USPS. It did take quite a time to get them. They said they were having trouble getting them. Maybe the situation is better now. I liked dealing with them they are professional and answer their phone when I called to check what was going on with the delay.
www.blanchardonline.com
Roger Hermann
Chicago, IL
Roger Hermann
Chicago, IL
Here you go
http://bullion.nwtmint.com/silver_nwtmintbullion.php
Spot Prices per Ounce
Silver Bid $9.03
Silver Ask $9.08
Our Sell Price* Per Ounce
50 to 99 $10.48
100 to 499 $10.23
500 to 999 $10.13
1000 to 4999 $10.03
5000 or more $9.98
*Price at which we sell to you. The minimum order is 50 ounces.
Our Sell Price Per 5 Oz Bar
10 to 19 $52.40
20 to 99 $51.15
100 to 199 $50.65
200 to 999 $50.15
1000 or more $49.90
Our Sell Price Per 10 Oz Bar
5 to 9 $104.80
10 to 49 $102.30
50 to 99 $101.30
100 to 499 $100.30
500 or more $99.80
Yes - $7 over spot for
Yes - $7 over spot for Eagles is absurd
Yes - 10x face on junk is pretty good. I'd pay that. I was paying 12 & 14x face back before everything started going downhill.
Question. Why do you only care about Eagles? In the event of a crash (which I think we all expect) silver will only be worth the cost of silver. Coins from America, Canada, Mexico or just 'mom and pop's silver minting shop' will all be worth the same thing.
My opinion is to not waste the extra money on premium coins. Just purchase whatever silver they have laying around if it's a good cost.
In this market, $3 - $5 over spot could be expected. I've been looking on ebay and silver rounds seem to be going for around $15
us mint
"Question. Why do you only care about Eagles? "
Answer. They are from the US Mint so counterfeiting will be investigated and prosecuted by the federal gov't. Therefore, people trust the silver content.
http://FlipFlopRomney.blogspot.com
Silver is difficult to find . . .
A dealer I stopped at last week had only one $100 bag of junk US silver and said it took him a long time to get that together. Cost? $846 US. Bargain! Other shops had zero, nada, not one ounce of silver in any form.
1976 Montreal Olympics 1.44 oz $10 coins $15.75 US--also a bargain. This shop had a handful of old Morgans, a handful of old Canadian silver coins and a pittance of semi-numismatic silver coins, all for what many people would consider high prices. Oh, and a few silver Eagles for $14 US.
If you are just beginning to purchase silver, I sure don't expect you will be able to purchase for anywhere near what we were paying 8 years ago. My opinion is buy it while you can and be thankful. I don't think anyone can really answer your question precisely. The point is each person has to decide how badly they want that Eagle--you can take the risk that the "premium" will be even higher in the future and wait. Maybe the price will come down. Maybe people who have silver will finally see a price that prompts them to sell. (I'm not betting on that.) If you decide to buy now, just be sure you aren't going to spend energy beating yourself up if in a week the price of what you bought is lower--it isn't worth it. Buying that bag of junk mentioned above, a day later it may have cost a bit less . . . if it was in the shop. But it would not have been . . . buyers are coming in a steady stream and purchasing what the owner has as quickly as he can get it.
Hard To Say
Yes, I think that markup is high, but if it's what people are paying, it's hard to say that it isn't "market price." Until recently I was still willing to pay 10X value for junk silver, but I won't do it now. I think metals will be low for a little while. We're getting to the point where the price of obtainable silver is almost twice spot (not quite, but it's getting there). I think there has to be an adjustment. My .02 (literally).
_______________________________________________
"Make the lie big, make it simple, keep saying it, and eventually they will believe it." -- Joseph Goebbels
_____________________________
"Make the lie big, make it simple, keep saying it, and eventually they will believe it." -- Joseph Goebbels
Can you guys please answer
Can you guys please answer my questions? I was pretty specific in what I asked, and I kind of need to know in the next hour.
“Liberty means responsibility. That is why most men dread it.” -George Bernard Shaw
*crickets* *crickets*
*crickets* *crickets*
“Liberty means responsibility. That is why most men dread it.” -George Bernard Shaw
Our silver experts
must still be asleep. Will assist and wait for an answer.
Lisa C is usually on top of this, as well as others.
Yes,
our silver 'experts' have been right all along.
what is it you don't get???
what is it you don't get??? paper silver or the spot price is NOT accurate... the physical price is the true price.. I cannot beleive that some of you still go to the spot price.. the metal is in shortage.. it is hard to find.. there is manipulation on the futures side of the the metals in both gold and silver.. at some point that manipulation will end and then we will will see what happens.. and whiners like vlbc will be whining even more because the price is way to high for him to buy!
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
Sierra will you stop please
Sierra you have been saying the same thing since silver was at $21, "Buy now at any price"! Don't you realize you are just promoting dealer price gouging? Yesterday you were suggesting that a lease rate increase meant silver was in very short supply. I guess we should forget that credit is in short supply and bank are not lending.
You have been wrong about oil, wrong about gold, wrong about silver, wrong about the Euro, wrong about the dollar, wrong about inflation, and your only claim to fame is that you called a fed rate cut. Wow, we are all impressed. Now do us all a favor and try giving us the silent treatment.
http://bullion.nwtmint.com/silver_nwtmintbullion.php
Spot Prices per Ounce
Silver Bid $9.03
Silver Ask $9.08
Our Sell Price* Per Ounce
50 to 99 $10.48
100 to 499 $10.23
500 to 999 $10.13
1000 to 4999 $10.03
5000 or more $9.98
*Price at which we sell to you. The minimum order is 50 ounces.
Our Sell Price Per 5 Oz Bar
10 to 19 $52.40
20 to 99 $51.15
100 to 199 $50.65
200 to 999 $50.15
1000 or more $49.90
Our Sell Price Per 10 Oz Bar
5 to 9 $104.80
10 to 49 $102.30
50 to 99 $101.30
100 to 499 $100.30
500 or more $99.80
http://bullion.nwtmint.com/silver_nwtmintbullion.php
There are in fact two prices of silver, they are called wholesale and retail.It does cost money to fabricate a coin or bar, transport it, and yes the dealer deserves a fair profit for storage and handling. But none of that changes the spot price which is the wholesale price. You can not buy corn flakes for $4.00 a bushel. You have to pay the paper price the supermarket charges you. Furthermore, implying there is a shortage in any product because there is a larger gap between wholesale and
retail price of the underlying product is against all free market principles. In fact, its down right ignorant.
sierra,
what the hell is your problem ?
You seem to have a compulsion to rant and rave every time I make a post !
Do your thing ... and good luck to you !
I have all the silver I need, and I sure as hell didn't buy it for $22 when spot was $10 or $11 !
And what is it that leads you to believe I am a "him" ?
Even Robert Kiyasaki
said to buy silver as it is more affordable because you can purchase it in lesser denominations and can utilize junk (pre 1964 coins) silver too.