Acceptable Premium on precious metals?

[Russell]

I just had a 1KG siver cast bar from Baird delivered total cost £496 I am waiting for 10 1oz siiver Peregrines cost me £196

[l1am44]

Are we expecting the premium on silver in the UK to decrease once the economy resumes? And suppliers have much more availabilty?

[Melon]

5 hours ago, Russell said:

I just had a 1KG siver cast bar from Baird delivered total cost £496 

How did you pull that one off? Haven't seen prices that low recently.  

[Melon]

22 hours ago, Peacemaker said:

what?

He's saying that free delivery is a myth. A company needs to earn a profit margin, else they go out of business. If they're giving you free shipping, that just means they've factored the cost of shipping into the price of the product. So you're still paying for it, just indirectly. Nothing wrong with that, just compare across the board considering the total cost of the metal delivered and you're OK. 

[Arganto]

1 hour ago, Melon said:

How did you pull that one off? Haven't seen prices that low recently.  

With VAT and delivery factored in it's coming out at £526.54 so £16.37p/oz. 

Pretty good in the current climate but a bit shy of £496. 

@l1am44getting a good bead on a deal there!

 

[Melon]

8 minutes ago, Liam84 said:

With VAT and delivery factored in it's coming out at £526.54 so £16.37p/oz. 

Pretty good in the current climate but a bit shy of £496. 

@l1am44getting a good bead on a deal there!

 

Yea that's what I was getting, was wondering how he was getting sub £500. Trying to keep to c.£15 p/oz, avoid buying too much 😆

[Peacemaker]

2 hours ago, Melon said:

He's saying that free delivery is a myth. A company needs to earn a profit margin, else they go out of business. If they're giving you free shipping, that just means they've factored the cost of shipping into the price of the product. So you're still paying for it, just indirectly. Nothing wrong with that, just compare across the board considering the total cost of the metal delivered and you're OK. 

I know what hes saying I am just confused why, I understand how "free shipping" works so I don't need it explained to me like I am a 5 year old, I assumed the price I was looking at included delivery and then pointed out the websites I use as a reference to why I thought that

[Melon]

2 minutes ago, Peacemaker said:

I know what hes saying I am just confused why, I understand how "free shipping" works so I don't need it explained to me like I am a 5 year old, I assumed the price I was looking at included delivery and then pointed out the websites I use as a reference to why I thought that

Cool. Makes sense. Although the comment you wrote was a single word ("What?"), so I'm sure you'll forgive me for taking the question at face value!  

[Russell]

I just tried out ordering the same bar and it now comes out at £530.36 so in the past 3 weeks it has gone up over £30.  Makes sense as the silver spot price is up 12% so I managed to order my bar right at the bottom of the market.  Thank you Mike Maloney I took his advice 🙂

[Russell]

16 hours ago, l1am44 said:

Are we expecting the premium on silver in the UK to decrease once the economy resumes? And suppliers have much more availabilty?

I am only a newcomer so I might be on the wrong track but my thoughts are this.  I am watching Gold and the gold Silver ratio which is really high and tells me silver is so cheap.  So I am only buying silver,  I follow Mike Maloney for expertise but make my own mind up.  I am xpecting Silver to rocket even when the mines and mints come back online.  Why?  because the stock and bond markets are trashed and we are facing a depression that will last at least 10 years.  The baby boomers especially in the states are cashing in their 401k pensions it is only just starting.  They are putting that money into gold!  Unemployment is through the roof and things are going really bad.  The dollar is growing stronger but I think this is very temporary as the debt outside the USA in dollars is even bigger than the dollar debt in the USA.  The Fed will carry on printing and tax receipts are going through the floor.  In times like this precious metals is the safe haven and soon the rich will be flocking to protect their wealth by investing in Precious metals Gold especially.  The Gold Silve ratio tells me that their will be a much bigger return for me in silver.  That is my reasoning.  I know nothing so do not act on what I think, I am usually wrong LOL

[Melon]

7 minutes ago, Russell said:

I am only a newcomer so I might be on the wrong track but my thoughts are this.  I am watching Gold and the gold Silver ratio which is really high and tells me silver is so cheap.  So I am only buying silver,  I follow Mike Maloney for expertise but make my own mind up.  I am xpecting Silver to rocket even when the mines and mints come back online.  Why?  because the stock and bond markets are trashed and we are facing a depression that will last at least 10 years.  The baby boomers especially in the states are cashing in their 401k pensions it is only just starting.  They are putting that money into gold!  Unemployment is through the roof and things are going really bad.  The dollar is growing stronger but I think this is very temporary as the debt outside the USA in dollars is even bigger than the dollar debt in the USA.  The Fed will carry on printing and tax receipts are going through the floor.  In times like this precious metals is the safe haven and soon the rich will be flocking to protect their wealth by investing in Precious metals Gold especially.  The Gold Silve ratio tells me that their will be a much bigger return for me in silver.  That is my reasoning.  I know nothing so do not act on what I think, I am usually wrong LOL

Careful putting too many eggs in one basket so-to-speak. Seek varied and conflicting opinions. Not saying you’re wrong or right (who am I to say!), but media/YT etc can be a bit of a trap these days as the algorithms figures out what you look at and just keep showing you more of the same. Always a risk of missing other perspectives. 

[Russell]

1 hour ago, Melon said:

Careful putting too many eggs in one basket so-to-speak. Seek varied and conflicting opinions. Not saying you’re wrong or right (who am I to say!), but media/YT etc can be a bit of a trap these days as the algorithms figures out what you look at and just keep showing you more of the same. Always a risk of missing other perspectives. 

Concur with that, I own my house outright and have zero debt.  My silver purchases will be no more than 10% of my wealth and the rest is cash.  I may purchase gold if an opportunity arises.  I stopped watching main media years ago and when I watch youtube people like Peter schiff and Mike Malony I automatically look at the contrarian view from their opposites so I get a balanced argument.  Weighing it all up I just cannot see the debt bubble going away and I cannot see how QE to infinity works?  If the FED can buy everything from Junk Bonds to corporate stocks and effectively owning it all then that is no longer capitalism it means we are living in a plutocracy which will lead to a collapse in civilisation.  That won't happen and I am now convinced there will be a monetary reset and possibly a return to a gold standard.  I think it is likely a Fed crypto coin emerges but to give confidence it will have to be underpinned by gold and a standard of at least 50%.  The comex and such fraudalent rackets will collapse but hey what do I know?

[l1am44]

7 hours ago, Russell said:

I am only a newcomer so I might be on the wrong track but my thoughts are this.  I am watching Gold and the gold Silver ratio which is really high and tells me silver is so cheap.  So I am only buying silver,  I follow Mike Maloney for expertise but make my own mind up.  I am xpecting Silver to rocket even when the mines and mints come back online.  Why?  because the stock and bond markets are trashed and we are facing a depression that will last at least 10 years.  The baby boomers especially in the states are cashing in their 401k pensions it is only just starting.  They are putting that money into gold!  Unemployment is through the roof and things are going really bad.  The dollar is growing stronger but I think this is very temporary as the debt outside the USA in dollars is even bigger than the dollar debt in the USA.  The Fed will carry on printing and tax receipts are going through the floor.  In times like this precious metals is the safe haven and soon the rich will be flocking to protect their wealth by investing in Precious metals Gold especially.  The Gold Silve ratio tells me that their will be a much bigger return for me in silver.  That is my reasoning.  I know nothing so do not act on what I think, I am usually wrong LOL

I am already quite up to date with the economic events that are unfolding, and I do see a potential bull run for gold and silver over the next 12-24months. I also agree that the gold to silver ratio is high. In the short term I do not believe there is any evidence to suggest silver or gold will go up or down. We can see that silver recouped some of its losses after being oversold, and gold has recouped all of them + a bit extra. 

I would be keen to wait for premiums to reduce should they happen in the short term as I believe the silver & gold market potentially could move sideways for the next1-2months. nothings guaranteed, I just believe buying with such a high premium right now incurs a far greater risk if spot price falls dramatically, as the losses will be even more significant should I need to sell in the event of unforeseen circumstances.  

[l1am44]

@Liam84 Rather than buying a silver bar im looking to buy 1oz coins as I understand they are easier to sell when the time comes?

[Melon]

5 minutes ago, l1am44 said:

@Liam84 Rather than buying a silver bar im looking to buy 1oz coins as I understand they are easier to sell when the time comes?

1oz coins are probably the most liquid silver option yes (physical silver anyway). Bars can be quite liquid too, but the bigger they get the harder it is to find a buyer. 

[Russell]

2 hours ago, l1am44 said:

@Liam84 Rather than buying a silver bar im looking to buy 1oz coins as I understand they are easier to sell when the time comes?

I have bars, coins and junk and love them all.  I like having a diverse range but to be honest about liquidity I have had fierce competition on Ebay in the UK bidding for pre 1947 (0,500 % silver).  Soon as a new listing comes on they are in like a shoal of piranhas!

[Arganto]

4 hours ago, l1am44 said:

@Liam84 Rather than buying a silver bar im looking to buy 1oz coins as I understand they are easier to sell when the time comes?

Weird, I thought I replied to this...must be losing it (or I'm on here too often!). What Melon said, coins are generally easier to sell. They also have more chance of carrying any associated premium that they had when bought to when you sell but that's not a given. Bars seem to be doing a roaring trade on the forum at the moment but that could be to do with the general scarcity (from dealers) driving people to the most cost efficient option. It also comes down to your position; if you want to fill a large safe quickly with big playa cash bars may be the better bet, but if you're adding to a more modest stack incrementally then coins may be more suitable. Don't make massive punts in your first few trades unless the deal is a rare one and you shouldn't lose out too much even if you 'stumble'.

I'm quite new to this myself from a purchasing point of view and I've gone at it pretty hard, but I did a lot of reading/watching/listening in the months leading up to my first trade. However, my knowledge and confidence have grown exponentially since joining this forum some weeks ago. Pretty rad.