Monday, April 26, 2010

What is a good purchase price for silver or gold?

As always, the people at the National Inflation Association are right on the money when it comes to silver and gold prices.  If you're thinking of paying much more than they suggest below--think again.
1) How much over spot is a good price for silver and gold?

A good price for a 1 oz silver coin like an American Eagle or Canadian Maple Leaf is 12% over spot, and a good price for a 1 oz silver bar is 6% over spot.
For gold, a good price for a 1 oz gold coin like an American Eagle or Canadian Maple Leaf is 4% over spot, and a good price for a 1 oz gold bar is 2% over spot.  The larger premium for silver compared to gold indicates a shortage in the physical silver market.

It's worth noting that you can actually buy silver at spot price in the form of 40% silver Kennedy half dollars (and BELOW spot price if you buy the old 35% silver nickels).  I prefer the Kennedy halves as they are so easily recognizable, but below spot has a lot of appeal.

The rest of their opinions on this page are interesting too, but they remind me of one of my favorite quotes:

"It's hard to make predictions, especially about the future"

I'll leave it to you to determine who actually said it, but it sounds like Yogi Berra to me!



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