What am I missing with silver?

[zurc]

I understand people need to make a profit, but what is up with the overbidding / inflated prices of silver? I am seeing bullion go for over 1/3 of what it's worth like it's no big deal. Silver is currently worth about $21.xx, but 1 toz is selling for $25-$30+... I have been looking to invest and buy anywhere from 1toz to 100toz at a time, but I don't want to start with negative equity, especially that much negative equity with such a volatile PM. Are people making these bids/purchases based on wishful thinking that Silver is going to skyrocket, are gamblers, dreamers?

 

[SilverFace]

I think the reason its sells for such a premium over spot price is because most actual long term investors in the PM markets believe and understand that prices are unrealistically too low. The wishful thinking is that the US dollar has any real value but eventually there will be some sense of reality in the markets and PM prices will be at much higher levels as people start to realize that real money has to have intrinsic value to represent and possess any real store of value. I would only buy from an honestly reputable seller with relatively & competitively low mark up prices.

 

[zurc]

On eBay I am seeing 1toz go for as much as $50... That's just crazy!

 

[dustytrails123]

On eBay I am seeing 1toz go for as much as $50... That's just crazy!

Maybe i should have sold mine on ebay lol.....around here you can buy silver on craigslist for 1 dollar over spot....i dumped off 50 ounces to my brother at spot price just acouple weeks ago was sick of waiting for it to rebound

 

[zurc]

Maybe i should have sold mine on ebay lol.....around here you can buy silver on craigslist for 1 dollar over spot....i dumped off 50 ounces to my brother at spot price just acouple weeks ago was sick of waiting for it to rebound

Is that you brother? I need another 50. LMK!

 

[SilverFace]

Well those prices are way too high. I bought a little junk silver on ebay last year and it was selling for over spot but I tried to get the best deal I could. If u haven't already, I'd recommend checking out places like APMEX and some of the other big online sites to at least get an idea of what their current prices are. Of course it depends exactly what it is your interested in buying too. Numismatic coins are going to have much more of a mark up than just bullion. Some of the online PM sellers do have huge mark ups and are way overpriced but there are some ethical honest sellers too. Ebay tends to have some of both.

 

[dustytrails123]

Is that you brother? I need another 50. LMK!

I just checked the local craigslist theres nothing up for sale just alot of buyers....wasnt too long ago there was alot for sale at 1 buck over spot...maybe the tides are turning

 

[zurc]

I am looking for as plain of bars as possible. Found a website with bars as little at $22.50/toz ... Gonna grab some from there for now. I think considering how many people are buying / wanting to buy right now... The tides are definitely more than likely to turn... Reminding me of the recent gold rush, just not so over the top.

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[gunsil]

You gotta understand that the "spot" price on silver is for 500 troy ounce bars, or wholesale. Smaller amounts at retail are naturally higher. As a jewelry designer and maker, when silver is at $21 spot I pay around $26-28 an ounce for raw sterling sheet and wire in 20-50 ounce lots. and a little more for fine (999) silver in sheet and wire. The people who make the smaller bullion coins and bars do so to make a profit. Old silver coins aren't pure silver, they are 900 fine, so getting them for a little over spot is natural since they aren't pure silver.

 

[Coldshuz]

Still think one of the best reputable places to buy PMs from is here

Buy Silver Coins, Silver Bullion and Buy Gold | Gainesville Coins

Very reasonable prices with pretty low premiums and they always buy at spot.

Fortunately, I live about 15 miles from their store and can pay cash and save even more then using bank wire.

 

[hunts with son]

Check out provident metals. They have a 100 oz bar at $2178.95. Shipping would be around $12 for that, but if you buy something off their free shipping items, the whole order is free.

I have made small purchases from provident in the past and am happy with their products and service.

 

[jim4silver]

You gotta understand that the "spot" price on silver is for 500 troy ounce bars, or wholesale. Smaller amounts at retail are naturally higher. As a jewelry designer and maker, when silver is at $21 spot I pay around $26-28 an ounce for raw sterling sheet and wire in 20-50 ounce lots. and a little more for fine (999) silver in sheet and wire. The people who make the smaller bullion coins and bars do so to make a profit. Old silver coins aren't pure silver, they are 900 fine, so getting them for a little over spot is natural since they aren't pure silver.

Actually, the "spot" price is not tied to any particular size coin nor wholesale. In fact, the good delivery silver bars are generally 1000 troy ounce (plus or minus a few ounces- they hardly ever get the bar to weigh the exact weight). I have never heard of 500 oz bars being mass produced but I suppose that is possible. The "spot" price is tied to 1 troy ounce of silver on the paper markets/exchanges.

Any time someone buys any physical silver (wholesale and retail), there will be some "premium" attached, that is how the dealer/seller makes his profit--except when you sell to a coin dealer, who will usually pay spot for decent generic silver (around here). Generally wholesale prices are above "spot", but not nearly as much as retail prices. When one dealer sells to another they often charge wholesale prices, but that is still above "spot".

Jim

 

[billjustbill]

I agree that one has to expect some amount of a premium to added to the spot price of smaller purchases. If a person wants silver to stockpile over, and well above, what seems to be needed for the rough days ahead, they'll get it most any way they can.

If a person lives in rent house or apartment, they usually own less of other material items, so they want silver to have and use for their future basic needs. They'll need a lot of it. If a person lives in a home that is almost paid for, or completely paid for, they have to weigh paying that premium to get silver or spending the paper dollars for long term needs like food storage, ample water reserves, and items of need or high cost that might not be there to buy after the collapse dust settles.

Most people in 2014 pay a higher premium because they are either scare of the future or greedy and betting on the price doubling, tripling, or even more. Sterling silver is getting harder and harder to find at garage sales, but as of last weekend I can say it can still be found.... Three years ago I could buy a lot more and spend a lot less.... I guess I paid somewhat of a "Premium" when I ended up offering/paying $51.00 for Sterling Jewelry that weighed a total of 176 grams and a scrap worth of $110.00. But, having it in hand, and equaling 5.23 ounces of pure sliver, it's still silver, it can be sold for either jewelry or PM scrap .... and it's half the price of Spot this first week of March....

What makes me sad and feel for those selling silver at garage sales, is that even though they live in Middle Income to Higher Income homes and neighborhoods, they have little or no awareness, much less a plan, of what to do about the coming economic reset...

After starting at the 52 minute mark and listening to Lindsay Williams' most recent public information, I think you'll know if you are going to willingly pay a premium over Spot Silver....

Lindsey Williams & Dr. Rodrigo Rodriguez - K-Talk - Mills Crenshaw -February 19th 2014 - YouTube

 

[billionaire]

I think that prices are so high on ebay because the people that buy it only have a paypal account and no credit card. Its the only way for them to buy silver and people take advantage of that.

 

[fistfulladirt]

I suppose that if I could sell and make that kind of profit on ePay, I could consider silver an 'investment'.

 

[zurc]

I agree that one has to expect some amount of a premium to added to the spot price of smaller purchases. If a person wants silver to stockpile over, and well above, what seems to be needed for the rough days ahead, they'll get it most any way they can.

If a person lives in rent house or apartment, they usually own less of other material items, so they want silver to have and use for their future basic needs. They'll need a lot of it. If a person lives in a home that is almost paid for, or completely paid for, they have to weigh paying that premium to get silver or spending the paper dollars for long term needs like food storage, ample water reserves, and items of need or high cost that might not be there to buy after the collapse dust settles.

Most people in 2014 pay a higher premium because they are either scare of the future or greedy and betting on the price doubling, tripling, or even more. Sterling silver is getting harder and harder to find at garage sales, but as of last weekend I can say it can still be found.... Three years ago I could buy a lot more and spend a lot less.... I guess I paid somewhat of a "Premium" when I ended up offering/paying $51.00 for Sterling Jewelry that weighed a total of 176 grams and a scrap worth of $110.00. But, having it in hand, and equaling 5.23 ounces of pure sliver, it's still silver, it can be sold for either jewelry or PM scrap .... and it's half the price of Spot this first week of March....

What makes me sad and feel for those selling silver at garage sales, is that even though they live in Middle Income to Higher Income homes and neighborhoods, they have little or no awareness, much less a plan, of what to do about the coming economic reset...

After starting at the 52 minute mark and listening to Lindsay Williams' most recent public information, I think you'll know if you are going to willingly pay a premium over Spot Silver....

Lindsey Williams & Dr. Rodrigo Rodriguez - K-Talk - Mills Crenshaw -February 19th 2014 - YouTube

I am not really worried, at all, about an "economic reset"... Think that's just scare tactics for the 'man'.... Just like with the whole Gold thing... I am buying silver just as an investment... No other reason.

Reasoning as stated above is just to get people to pay a premium when in reality it is just unnecessary inflation.

Silver is now just over $20 (continues to go down) and it's selling for even more now on eBay. Makes no sense just like the gold craze makes no sense. The right people are making money, but I am hunting for and buying .999 bullion for even lower than spot at this point. When I make investments, I enjoy buying something with equity... Not something that starts me in the red and I think that's what everyone else should do.

Control the market, don't let it control you.

 

[xrunndonex]

I am not really worried, at all, about an "economic reset"... Think that's just scare tactics for the 'man'.... Just like with the whole Gold thing... I am buying silver just as an investment... No other reason.

Reasoning as stated above is just to get people to pay a premium when in reality it is just unnecessary inflation.

Silver is now just over $20 (continues to go down) and it's selling for even more now on eBay. Makes no sense just like the gold craze makes no sense. The right people are making money, but I am hunting for and buying .999 bullion for even lower than spot at this point. When I make investments, I enjoy buying something with equity... Not something that starts me in the red and I think that's what everyone else should do.

Control the market, don't let it control you.

Its gotta go down before it sky rockets up

 

[pronghorn]

but I am hunting for and buying .999 bullion for even lower than spot at this point.

Do share!

 

[zurc]

Find someone betting against the raise of silver and buy their bullion. Not saying its easy, Takes some hunting. But that's what we do here, lol.

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