Opinion: Silver Bullion Investing - what are acceptable premium cost ranges?

[nunoelias]

Hello guys!

I wanted to start a discussion about what are the "acceptable" premium costs over spot price when buying silver bullion.
I understand that premiums can change a lot depending on the brand/mint/manufacturer, and also on a possible "collectible" factor associated to the item.

For the sake of this discussion, l would like to give two examples of my latest purchases:
- Bought a 1 kilo silver bar on the second-hand market. The cost above spot was 23%
- Bought a 100g silver bar, also on second-hand market.  This time the cost above spot price was 39%.

Both silver bars are from the same brand and refinery, and both were bought in the same second-hand marketplace. 

Since I'm fairly new to this type of investments, I would greatly appreciate your thoughts.  Do you have a practical "rule of thumb" to avoid paying too much on premiums?


Thank you! Appreciate your attention and share of ideas.

Kind regards,
Nuno

[James32]

Do you pay 20% vat in Portugal if buying new?? Otherwise this question is best suited to our European friends.

What I can say is both your purchase prices are acceptable for current UK 2nd hand market/forum price's. 

[nunoelias]

1 hour ago, James32 said:

Do you pay 20% vat in Portugal if buying new?? Otherwise this question is best suited to our European friends.

What I can say is both your purchase prices are acceptable for current UK 2nd hand market/forum price's. 

Hey James! Greatly appreciated your input!

In Portugal you would pay 23% VAT if bought from a vendor/dealer.  But as far as I know, we don't have that many bullion dealers in our country, which is why I look to buy on second hand market mostly.

Although I did find some interesting dealers in Spain, and sometimes I look up their prices for comparison.  


Cheers and happy Sunday!

[James32]

2 minutes ago, nunoelias said:

Hey James! Greatly appreciated your input!

In Portugal you would pay 23% VAT if bought from a vendor/dealer.  But as far as I know, we don't have that many bullion dealers in our country, which is why I look to buy on second hand market mostly.

Although I did find some interesting dealers in Spain, and sometimes I look up their prices for comparison.  


Cheers and happy Sunday!

In that case you have done very well.

 

[LawrenceChard]

3 hours ago, nunoelias said:

Hello guys!

I wanted to start a discussion about what are the "acceptable" premium costs over spot price when buying silver bullion.
I understand that premiums can change a lot depending on the brand/mint/manufacturer, and also on a possible "collectible" factor associated to the item.

For the sake of this discussion, l would like to give two examples of my latest purchases:
- Bought a 1 kilo silver bar on the second-hand market. The cost above spot was 23%
- Bought a 100g silver bar, also on second-hand market.  This time the cost above spot price was 39%.

Both silver bars are from the same brand and refinery, and both were bought in the same second-hand marketplace. 

Since I'm fairly new to this type of investments, I would greatly appreciate your thoughts.  Do you have a practical "rule of thumb" to avoid paying too much on premiums?


Thank you! Appreciate your attention and share of ideas.

Kind regards,
Nuno

If you care about premiums, it is better to invest in gold:

https://www.chards.co.uk/blog/advice-guide-for-uk-bullion-investors/1041

Premiums are about 2 to 5+%, instead of 20% to 50+% for silver.

😎

[jultorsk]

 1 hour ago, LawrenceChard said:

If you care about premiums, it is better to invest in gold:

https://www.chards.co.uk/blog/advice-guide-for-uk-bullion-investors/1041

Premiums are about 2 to 5+%, instead of 20% to 50+% for silver.

😎

 

 

Edited October 23, 2022 by jultorsk

[nunoelias]

1 hour ago, LawrenceChard said:

If you care about premiums, it is better to invest in gold:

https://www.chards.co.uk/blog/advice-guide-for-uk-bullion-investors/1041

Premiums are about 2 to 5+%, instead of 20% to 50+% for silver.

😎

Hello Lawrence! Hope you had a blast in Lisbon!   I know the weather wasn't too welcoming but hopefully you got the chance to see the city?

Thanks for this very useful website! Saved in my favorites.  

Cheers!

[LawrenceChard]

1 hour ago, nunoelias said:

Hello Lawrence! Hope you had a blast in Lisbon!   I know the weather wasn't too welcoming but hopefully you got the chance to see the city?

Thanks for this very useful website! Saved in my favorites.  

Cheers!

Lisboa was good, but Faro was more relaxing, we walked Praia de Faro today, from one end of the "island" almost to the other end.

Flying home in the morning.

😎

[Norskgeld]

13 hours ago, LawrenceChard said:

If you care about premiums, it is better to invest in gold:

https://www.chards.co.uk/blog/advice-guide-for-uk-bullion-investors/1041

Premiums are about 2 to 5+%, instead of 20% to 50+% for silver.

😎

God has spoken.