Newbie question on buying vs selling prices

[Narayan]

Hello all,
I've been reading, watching videos and listening to interviews regarding buying precious metals to get informed but aparently I am missing the point - so here I am asking dumb questions.

I am thinking of buying some silver 2020 1oz Maple leafs
I am checking prices on www.bullionbypost and the buying price is 33.24 euro / coin

My question is:
How in the world am I expected to get my money back or even have a profit when they are buying them back at 16 euros / coin ? What am I missing ?
My whole goal is to transform my money in a form that does not diminish or suffer from inflation. But if I am at such a huge loss, how is that lucrative ?

Again sorry for asking something that should be obvious. Hope someone bears with me and spares their time to answer.

Cheers to ya'll

[STONE]

The short answer is time. The long answer is you cannot buy then turn around and sell the same day and make a profit. In all reality, most things you buy in life are the same way: Take a new vehicle for instance, as soon as you drive it off the lot it loses 20% of its value. There are very few things in life you can buy one day and sell the next for a profit or break even on. PM's are no different, you will have to wait for the spot price to rise above what you paid with the premium attached and the fact that dealers will want to buy from you at a little under spot. The good news is silver is seriously undervalued right now. Dealers are worried about catching a falling knife so to speak because if they buy from you at spot and silver drops the next day they will lose alot of money. I encourage you to wait on your purchase until you understand precious metals a little better. There are no dumb questions for the new stacker. Ask away in this thread, there are alot of expeienced stackers here... You should go back into your profile and post up what country you live in so we can help you better. Stacking is different from country to country because of taxes and such. To answer your last question, stacking is a long term play if you look at the values based in euros or dollars you are missing the whole point of wealth preservation. The only way it wont diminish in value is to keep your money in a silver or gold form and not trade back and forth. The day may come when you want to liquidate some of your holdings for cash but that is not an end play... You need a plan and goals before you dive in and need to understand and research a little more. Read through this for starters: https://www.jmbullion.com/investing-guide/

 

Those massive price differences on your links are because you are looking at the the price difference for ONE coin. The deals are alot better when you buy and sell in bulk. "Multiples of 25 will be sealed in their original Canadian Mint Silver Maple tubes"  If your buying silver coins always buy at least a tube at a time. Individual coins are a waste of time and money unless you can get a good deal from here on the forum or someone local to you. When I buy its rarely less than a few hundred ounces at a time or more to get to a lower attached premium and free shipping. Dealers have operating costs like any buisness and for them to prep and ship out your order for one coin is a loss for them.Think about it... Go back and look at the price difference between buying 1 and 25 coins, its substantial.

[Ceaiu]

First of all that price is too high for a generic bullion coin.

With the latest price drop, it's currently €17.82 on EuropeanMint.

You're not paying VAT when buying from them (or other few places), but still the premium on silver is higher compared with gold.

[Money2Metal]

IMHO silver is more of a gamble for the long term. People have been saying prices are going to rise for years but in reality it's just staying moderately flat. The cheapest I can get silver for atm is around £17+ at a coin fair. Silver will need to go up 30% just to break even. That's why I'm leaning more towards gold now and I'm going to offload most of my silver once spot rises. Even if i break even on it at this point I'll be happy.

[greektony]

goldsilver.be and europeanmint.com are where you want to look for silver in the UK. DO NOT buy from UK based bullion sites as they include VAT

And as stated by @Stone, do not buy in 1oz increments. Go for a full tube at a time (or a tube +1 for fondling 😃). You can also pay and store your orders to minimise postage costs as well. I am doing this at the moment with goldsilver.be

[Narayan]

Good stuff friends,

Thank you for the quality info. Especially @STONE
Really appreciate the time you all took to clarify things in a simple, easy to digest way.

@Ceaiu , if buying from EuropeanMint, should I use capital logistics like it is mentioned in their website? Is it a tried and safe method of delivery?

[Platinum]

Capital Logistics works just fine.

However you should considering joining BackyardBullion’s (BYB for short) group orders from the Europeanmint.

You can find all the information you need about it here: https://thesilverforum.com/topic/28551-european-mint-group-orders-are-back-for-2020/

Edit: It might save you a lot on shipping costs.

If you got any questions then feel free to ask.

[Narayan]

I was checking https://goldsilver.be/ as @greektony suggested above. The prices also appear VAT free, althought it is based in Belgium. Is this correct ?
P.S. I am based in Bulgaria (EU)

[Ceaiu]

48 minutes ago, Narayan said:

@Ceaiu , if buying from EuropeanMint, should I use capital logistics like it is mentioned in their website? Is it a tried and safe method of delivery?

Yes, I was very happy with them. You only place the order on EM, and you'll receive two separate invoices... but other than that it feels very smooth.

Don't forget to use the discount code from BYB, which gives you 50% off shipping cost. 

I think it's "BYB50%OFF" and you'll need to add this after you select the shipping option, not before.

[Downs523]

I have used both goldsilver.be and europeanmint.com and prefer goldsilver.be. almost always cheaper for large orders 100oz+ even with the group order. 

[FunkyChicken]

On 02/03/2020 at 10:50, Ceaiu said:

Yes, I was very happy with them. You only place the order on EM, and you'll receive two separate invoices... but other than that it feels very smooth.

Don't forget to use the discount code from BYB, which gives you 50% off shipping cost. 

I think it's "BYB50%OFF" and you'll need to add this after you select the shipping option, not before.

Now I haven't ordered from the European Mint in a while yet after a couple of dissatisfying orders due to quality issues (which has led me to GS.be, of which I have nothing but positive experiences), but I thought that BYB discount code was only valid on the website of the European Mint until the end of last January? 

 

[Ceaiu]

5 minutes ago, FunkyChicken said:

Now I haven't ordered from the European Mint in a while yet after a couple of dissatisfying orders due to quality issues (which has led me to GS.be, of which I have nothing but positive experiences), but I thought that BYB discount code was only valid on the website of the European Mint until the end of last January? 

 

Apparently I've missed the memo.

Indeed, looks like it's not valid anymore.

[Narayan]

So I've been monitoring the recent developments and a question has come up.
As we noticed, after the huge drop in silver price, some of the bullion sellers decided to up the premium, while others stopped selling completely. Apparently not to lose a ton of money. 

So what is to stop them from doing the same if the silver price rockets up and again they decide not to buy our silver back ?
If they don't sell when it is too cheap, they won't buy when it's too expensive.

[FunkyChicken]

1 hour ago, Narayan said:

So I've been monitoring the recent developments and a question has come up.
As we noticed, after the huge drop in silver price, some of the bullion sellers decided to up the premium, while others stopped selling completely. Apparently not to lose a ton of money. 

So what is to stop them from doing the same if the silver price rockets up and again they decide not to buy our silver back ?
If they don't sell when it is too cheap, they won't buy when it's too expensive.

If the silver price rockets up, you'll probably have other things to worry about rather than the possibility to sell your precious metals...