Sunday, November 28, 2021

Spot Silver Price: What does it Mean?

 

Investopedia has this (and much more) to say about the spot price of silver:

Silver's spot price is the amount that an investor pays to purchase a single ounce of the metal for immediate delivery. Investors are normally charged an additional premium on top of this price for any purchase they make.

The point I'd like to highlight today is the second part of that quote:

Investors are normally charged an additional premium on top of this price for any purchase they make. 

Numbers 1 and 2 in the photo above highlight that point, and also the fact that the premium paid can be quite large.  As the spot price (marked 1) is $23.27, and sale price (marked 2) is $33.26, the premium at the moment is over 42%!

To be fair to Apmex, this is similar to what many other reputable sellers are charging.  So how can a buyer get a better price?  Easy! Just buy 10-20 years ago.

For those to whom that is not an option, here are a few possbilities.

1) Just suck it up and pay full retail.  While the premium asked today is huge, it may remain or even grow larger.

2) Find another item you like.   Today Apmex is offering "war nickels" at $2.99 over spot price, 



100 oz. bars for less than $3.00 over spot, and 10 oz. bars for less than $4.00 over spot.

Needless to say, but you may shop around and find a better price elsewhere.  One place that I've done well in the past is ebay.  It's more labor intensive, as there are hundreds of listings to wade through, and you'll want to be careful, as some sellers are less clear about exactly how much actual silver is in their offering.

Still, if you have the time, you might find a good deal there!

PS  For most of us, the premium is even higher.  The highlighted price is only for those purchasing 1,500 coins or more.  My budget is much less than $50,000.  Is yours?

PPS  If you have a better idea, please share in the comments section.