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We also reference original research from other reputable publishers where appropriate. And all the while that silver or gold keeps appreciating in value day after day, month after month, year after year. Why do you need to pay dollars over spot to acquire a silver bar, round, or coin? Buy it, store it, sell it, make your money, and move on. Of course, everyone wants a deal. Many are prospectors at heart, hunters in spirit. There may well be a correlation between this philosophy and the fact that a significant number of silver stackers also identify themselves as survivalists, prepared for whatever this ever-changing world throws their way.
Ultimately, it comes down to the cost of doing business. Coin dealers and bullion brokers are financially unable to both buy your bullion at spot price and sell it at spot price, too. That would be an unsustainable business model—businesses need to make a profit.
And what is more, they need to pay the overhead, including rent or mortgage, electric, gas, marketing, payroll, insurance, and—of course—earn some profit, too. Bottom Line: The price of a gold or silver product includes overhead costs, manufacturing costs, and labor costs—not just the melt value of the metal. Everyone wants to earn their share. Many bullion dealers offer silver starter packages that contain 10 to 20 ounces of silver at the price of spot.
Other dealers will sell a current-year American Silver Eagle at spot—or at a much lower price than fair market value anyway. You probably see it every day.
The endgame outcome is certain, the path is uncertain. Stocks and real estate looks very expensive relative to PMs. I am super leveraged on real estate where I earn a good rental yield but have also been accumulating silver and gold in lieu of keeping cash in the bank. You cannot compare investing in PMs with investing in stocks or real estate, its apples and pears.
I would rather invest in silver than keep excess money in the bank. Im happy to keep my silver with my broker for the next few years until I have a better handle on the global outlook. Long term plan is to take delivery to avoid paying longterm storage costs and have my children inherit the bulk of my PMs.
In fact, I dont have any savings accounts for them. I allocate a portion of my PMs to them each month as if I would be saving fiat ccy for them. I suspect the value of my PMs during the next economic downturn will be enough to cover most or all of my housing loans.
Then I will increase my cashflow and look forward to retirement. I stack gold and silver an insurance policy for my grandchildren. I love them!! I am certain that our monetary system will collapse when?? Oh wow, you are so far off in left field. People like me buy silver for when the dollar collapses.
We want the price to keep going down to lower the dollar cost average. A safe deposit box at the bank? Countless people have made articles on this. The answer is absolutely not with a bank! Just look at the last 10 years of the value of bars and coins and you see that if there is any rise in value it is the rise of the sellers price and not that you could sell your silver for a profit.
You must be logged in to post a comment. How to Invest in Silver. Grab Your Report! Trends, Forecasts, Expert Interviews and more! Grab Your Report. What Was the Highest Price for Silver? What was the highest silver price ever and when was it reached? Government issued bullion coins will carry the highest prices over spot generally due to the larger fees governments charge bullion dealers for their products. The public also trusts a government stamp over a private mint stamp hence the sovereign mints get away with charging a higher premium for their products.
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