If you didn’t know, silver is sold and traded based on a spot price. The current spot price has been hovering around $25 a oz.
You used to be able to go online to websites like Kitco or Amax and buy silver 2 to 4 dollars above the spot price, and shipping was only three dollars. You could also go to local coin shops like Small Town Coin in Davison and buy silver at three dollars above spot practically anytime you wanted.
But about a month ago that all changed. There was a little run where silver went up to the $30 range per ounce, and ever since that happened, the Wall Street spot price has decreased, while the price to actually buy it has not.
In today’s environment, you will pay spot price plus 7-10 oz if you actually want to hold it in your possession.
There is probably more to this than many of us could understand, but some say it’s because a year out from today, the price is going to be $40+ dollars per ounce.
There also is a shortage of silver right now. Many suppliers have 1 oz rounds but the 100oz bars are very hard to come buy.
Many financial advisers or consultants recommend 5-7% of retirement in precious metals. Some financial advisors won’t recommend precious metals at all because there’s no way they can make a fee or a commission on it.
Bottom line is, precious metals have increased in value since the beginning of time. Some look at them as a hedge against inflation or economic uncertainty. Hopefully the silver supply and market will stabilize so you can actually purchase the metal closer to the value Wall Street puts on it.
And if the future price is $40 an ounce, but you can buy it today for $32 an ounce, is it a bargain?