Gold and silver

[MojoMan]

So, I'm toying with putting a small amount ~10K into gold. I also looked at silver because the G:S ratio is so high now.

 

I noticed that the difference between the buy and sell price is in the range of 3% for gold but is ~11% for sliver.

 

This is not the buyers premium which is the cost of buying a coin or bar versus raw commodity (you have to pay for manufacture and assay).

 

I mean that If you bought $1000 of gold, you could walk down the street and sell the exact same American Eagle or Maple Leaf or whatever for around $970..it's the profit to the retailer. If you buy $1000 of silver, you can only sell it for around $890.

 

Does anyone know why?

[Avernus]

So, I'm toying with putting a small amount ~10K into gold. I also looked at silver because the G:S ratio is so high now.

 

I noticed that the difference between the buy and sell price is in the range of 3% for gold but is ~11% for sliver.

 

This is not the buyers premium which is the cost of buying a coin or bar versus raw commodity (you have to pay for manufacture and assay).

 

I mean that If you bought $1000 of gold, you could walk down the street and sell the exact same American Eagle or Maple Leaf or whatever for around $970..it's the profit to the retailer. If you buy $1000 of silver, you can only sell it for around $890.

 

Does anyone know why?

 

I'm guessing that is because of how much silver it takes to make up $1000 and that might make it less valuable....or less convenient than Gold...

 

also, out of curiosity...are you buying physical metals or via ETF?...

[MojoMan]

I'm just playing with the idea now.

 

Given the Obama Administration's propensity to print money, supposedly inflation is inevitable.

 

However, I have never seen gold top $1000/oz...at least not for long. There seems to be a psychological barrier. If I'm right, since it's around $950, there is little room for upside.

 

However, these are different conditions.

 

I don't think of it is that much of an investment; it's a SHTF kind of thing.

[Avernus]

I'm just playing with the idea now.

 

Given the Obama Administration's propensity to print money, supposedly inflation is inevitable.

 

However, I have never seen gold top $1000/oz...at least not for long. There seems to be a psychological barrier. If I'm right, since it's around $950, there is little room for upside.

 

However, these are different conditions.

 

I don't think of it is that much of an investment; it's a SHTF kind of thing.

 

 

I have been buying gold and silver off the internet over the past few months and it's not exactly for protection from the ...poopy ...ahaha...

 

I'm doing it more-so to save my money.....I don't feel like playing around with stocks or anything like that and just simply holding onto money just secures the fact that I'm going to lose purchasing power....

 

I'm mostly interested in securing purchasing power....while hoping there is no "SHTF" situation...