Comment: One thing to always consider is the spread

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One thing to always consider is the spread

This means that market value for silver for example is 30 dollar per ounce to keep it simple. If you go to your local dealer you know the gold and silver buyer in your town they will sell it to you at around 32 dollars. Right away that is a 2 dollar loss. now lets say that you wait until silver hits 34 dollars an ounce to sell to take the profit or recover the value that your Federal Reserve Notes lost that same dealer will buy at a discount and probably only pay you about 28 dollars per ounce so you netted nothing in this case even though silver went up.

The reason this happens is not because your local dealer is making a huge profit but when he needs to liquidate immediately for whatever reason he only get 81% of the value for junk coins like dimes quarters half dollars and dollars that go to get sold on the open market. so if silver is at 34 he doesn't want to loose if he needs to liquidate so he is only willing to pay what he can get at liquidation price.

With fine silver like Libertys or Maples the liquidation rate is still fairly high at around 85% of silver value. Keep that in mind when you buy silver. the price will have to climb significantly before you can sell and get back what you put in (at-least 15% but more realistically 20%). I've been in the business for a few years now and know how it works.

Gold might be better if you can get it for little premium. For instance lets say today gold is 1700 a one ounce credit suisse might go for 1750 if you were to sell you might get 1650 so the spread although it appears bigger it is actually somewhat smaller of a percentage with gold. The value might only have to move up 5 or 10 percent before you can get back at-least what you put in.

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