spot, premium, ... a little help with this would be nice
 

Hi,

I started buying Gold a couple of weeks ago and Silver since today ... I try to follow other threads about buying coins but the terminology is completely new to me and to be honest ... I can't really follow.

I've bought these coins in the presumption that they wil be worth several times their current value so I'm not looking at their price too much but it would be nice to get some pro explanation on spot, premium, and other related terminology.

Thanks in advance.

Re: spot, premium, ... a little help with this would be nice
 

Read young Skywalker.. read.
(and use the search feature)

Re: spot, premium, ... a little help with this would be nice
 

spot= price at top right side of the screen premium is what you pay over spot

Re: spot, premium, ... a little help with this would be nice
 

Spot = price set by Comex and other exchanges
Premium = additional fee tacked on by dealers
Market = Spot plus premium, or what we call the real price to us investors

Re: spot, premium, ... a little help with this would be nice
 

Some physical info,

Spot is usually what refiners will pay dealers, so if you sell the dealer likes to take a cut, so you get spot less something for your minerals.

The high premium hurts because dealers don't pay anything like spot plus premium when buying. For example, if I pay $15 for a generic round, current buy back would be 11.60 (spot) - 1 (dealer fee). That means you have to be pretty sure of a 50% increase to break even.

What you will pay all depends on why you buy and what you think the market will do.

Re: spot, premium, ... a little help with this would be nice
 

If you're buying collectable coins as an investment for future gains, you better know exactly what you are doing or you can bet you'll get hurt.