Question about Gold/Silver dealers

[CaptUSA]

So, I'm a complete novice in trading gold/silver coins and bullion, but I want to get started. I don't want to lose too much off the top, though.

I've talked to a couple of local dealers and the best I've found is one the buys at 95% of spot and sells at 105%. This seems high to me. I lose 10% right off the bat? I don't really want to use the internet to buy and sell - I don't want anyone knowing how much I have. Can anyone provide some insight from their experience?

Thanks,

 

[Seraphim]

Are you trading or investing?

Personally, I am in this for the long haul. Buying physical metals for short time frames is counter productive.

In the end, I think this bull market has roughly a decade left in it.

 

[CaptUSA]

No, I'm investing. But I want to make sure I'm not getting burned. Losing 10% on the front end seems a bit much...

I want to invest it, but I want to be able to access it if I need to without losing too much value.

 

[Seraphim]

2-6% on the spread is more appropriate. The spread on silver is higher than gold. 6-10% on silver is normal.

If spot is 34$ an ounce, expect to pay 37$ an ounce, plus or minus a bit depending on the product.

Many places/people, especially as mania ramps up - will pay you whatever you want for the silver. The premium you pay now wont be relevant.

No, I'm investing. But I want to make sure I'm not getting burned. Losing 10% on the front end seems a bit much...

I want to invest it, but I want to be able to access it if I need to without losing too much value.

 

[Seraphim]

I posted this in another thread. To be honest, I think it's one of the best I've written. I hope it helps:

Gold will be a tier one banking asset very soon. (Years not decades) It will force demand on par with US Treasuries and then surpass it.

The gold/silver bull market is that of long wave secular. This thing is not even close to over.

The same way that the 20th century (truly kicking in, in 1971) was a long wave secular expansion of credit, the reversion to hard capital money is and will continue to be long wave secular in nature.

I think this bull market will take us into the mid 2020's.

This also includes major currency collapse. The revaluation of PM's will NOT end simply because a major currency or two collapse.

As gold (and maybe even silver) become tier one banking assets, it means that leverage, credit and DRUMROLL.... INTEREST RATES...are pegged, in some capacity, to the asset. The functional appreciation of the asset will continue until REAL HARD SAVINGS are accumulated in satisfactory amounts (whatever amount that may be).

People will be garnering YIELD by depositing gold into accounts. This will mark the SECOND HALF of this secular bull.

The first half is and will continue to be marked by appreciation relative to currencies and leveraged assets.

The second half will be marked by capital flight into the asset to CHASE YIELD.

This bull has barely begun to buck.

 

[oyarde]

So, I'm a complete novice in trading gold/silver coins and bullion, but I want to get started. I don't want to lose too much off the top, though.

I've talked to a couple of local dealers and the best I've found is one the buys at 95% of spot and sells at 105%. This seems high to me. I lose 10% right off the bat? I don't really want to use the internet to buy and sell - I don't want anyone knowing how much I have. Can anyone provide some insight from their experience?
My guy sells at spot , I honestly would not worry about the extra 5 percent on gold coins , bars that are less than an ounce.....

 

[jclay2]

So, I'm a complete novice in trading gold/silver coins and bullion, but I want to get started. I don't want to lose too much off the top, though.

I've talked to a couple of local dealers and the best I've found is one the buys at 95% of spot and sells at 105%. This seems high to me. I lose 10% right off the bat? I don't really want to use the internet to buy and sell - I don't want anyone knowing how much I have. Can anyone provide some insight from their experience?
My guy sells at spot , I honestly would not worry about the extra 5 percent on gold coins , bars that are less than an ounce.....

I would expand your area of search. My local shop offers gold eagles/maples/krugerands for 60/50/40 over spot. Given that most of these coins can be sold back to dealers for over spot, the spread should never really be more than 3-4 percent max