silver markup

[moneymaker]

Why is the price above spot so high for silver, I was quoted $1.75 over spot for a 100 oz. bar from San Diego Coin and Bullion. That’s 12.77% wow!

[poorgradstudent]

Presumably manufacturing and shipping costs, along with profit taking?

[The-Shoveler]

Other than maybe a small amount I don’t know why one would want to hold on to the physical stuff but that’s just me I guess.

Unless you had some marketable use for it.

I am looking for it to get below 10 before I buy some (SLV), don’t know if it will get there.

[moneymaker]

Yeah it would probably be ’08 all over again if it gets to that level. While soaking in the sun though I got to thinking-most retailers mark their stuff up 100% so I guess 12.77% isn’t too bad, last time I bought at the same place though it was $1 over spot and I thought that was too high.

[SK in CV]

Whatever the market will bear. .25 to .75 per oz discount to sell or premium to buy is not atypical. It’s also a relationship thing. Whatever the dealer thinks he can get from you, he will. That spread could be higher if you’re buying or selling a little junk. Maybe lower if you’re buying or selling a 1000 oz bar.

[moneymaker]

I agree .25 to .75 would be normal and usually get a .25 break when buying 100 oz. or more but $1.75 on 100 oz. seems way too high to me. I can buy online for around $1 but think I’ll check out SLV etf instead.

[poorgradstudent]

I just saw that gold is flirting with $100. Although I’m not that into precious metals, I wonder at what point it becomes a screaming buy?

[The-Shoveler]

Don’t know Gold seems to me kind of a Game-Over panic play (like 2007-11).

Silver is used in PV cells and electronics etc… So I could see some demand if the economy picks up and maybe as a panic play in case that occurs.

I picked up a (very small) position in a startup Lithium miner kind of on the same PV energy storage game. I guess we will see how that plays out over the next 10 years.

[moneymaker]

So Shoveler how does SLV work do they buy actual silver?

[The-Shoveler]

Well I like to think of it that way (some big warehouse filled with silver LOL).

But they do hold at least some.

This is what I got off the web.
SLV currently holds over 325 million ounces of silver in its trust.

I think it is kind of like the qqq’s or index ETF’s. it’s not just physical silver but it tries to come close to that as possible.

[moneymaker]

Time to buy silver! SLV is around $14

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