That said, let’s look at the arguments for and against the possibility of a user group – even if it has millions of people – driving the silver price so high. It should be obvious that some people want higher prices and some people want lower prices. It may not be obvious, but freedom means you can invest, speculate, or bet – and risk – your own money. With no bailouts if you lose your money, for big or small players.
- Buyers and sellers trade contracts for the right to buy or sell 100-oz.
- The spot price is typically the base price of one troy ounce of a metal in any form.
- A divergence to either end of that range often signals that a correction back toward the mean may be ahead.
- In this facile view, the banks sell “paper” silver naked short, and if they could not do that, then the price of silver metal would be a lot higher.
- So, the silver premium is around 20% for generic silver.
To calculate the gold/silver ratio, simply divide the price of gold by the price of silver. These big banks are in business to make money, period. It is to their advantage to push prices around to ensure that they make a profit. Because of their size, and the size of their contracts, they have a huge impact on the supply/demand equation, where the buyer of 10 coins from his or her local dealer has none. Retail customers like you and I cannot buy and sell based on the fix price, only the spot price (plus a premium). Any buying and selling you want to do will be based upon the spot price at the moment of purchase or sale.
Spot usually refers to the “bid” price you see listed — which is the most recent market price at which buyers are willing to purchase. The “ask” price is the most recent market price at which sellers are willing to sell. Additionally, the silver supply is somewhat constrained. Only 25% of silver mines primarily mine for silver, while the other 75% are mines designated for other minerals, including gold, copper, lead, and zinc.
Physical gold only
What you buy is shipped directly to storage, and held in full in your account’s name and title. You may also opt for segregated storage, where your assets will be separately shelved, wrapped, and marked apart from all other assets held at the vault. If you’d like to buy coins to gift to others, head over the Coins hub and buy one of five different tiers.
What’s up with the current gold buying craze at Costco?
A silver coin could easily be traded for $50 or $100 worth of goods. If you’re interested in precious metals, not for expected returns, but for “collapse of civilization” insurance, silver makes more sense than gold. The spot price is typically the base price of one troy ounce of a metal in any form. Any transaction you make in the gold market will be based upon the spot price. There is no clear winner between the two metals because both seem set up for long-term bullish trends and each have unique risks. Right now, investors who trust in gold are buying gold, reaching new all-time highs based on emerging global trends.
Silver jewelry looks much better than gold jewelry.
With a rising market, a silver shortage, an inelastic supply, and the precedent of silver prices going over $30, the odds are good that current silver prices will continue to rise. When silver prices are high, is the optimal time to make a return on your investment. If you’re looking to buy physical metal, you’ll find that gold isn’t anywhere near as “marked up” as silver is. Because silver is not all that expensive, coin makers have to mark up its price to turn a profit on it. Often, silver coins are more expensive to buy from vendors than the silver market price would indicate.
I do not invest in either, but I’m curious about the historical price of silver and whether it makes sense to buy physical silver. My impression is that the current price of silver is kind of low, and gold is kind of neutral. Weighing against such a possibility is the liquidity and depth of the silver market compared to the GME market. The GME market cap was under $3 billion prior to its run-up. Estimates of how much silver bullion is in human hands vary widely (as with gold, there is no way to tell exactly).
It is possible for individuals to buy physical gold or silver on the Comex, but the size of the contracts puts them out of the reach of all but the most affluent buyers. In addition, taking delivery of metal from the Comex is a complicated procedure. Thus nearly all of the trading on the exchange results from major financial institutions making speculative moves or hedges, using large contracts as the vehicle. We think there are a multitude of outsized current risk factors again, and that a series of crises is headed our way — if so, gold and silver prices are likely to hit new all-time highs.
There’s a mark-up with gold too, but not nearly as much. Gold coins sell for thousands of dollars, so you don’t need to mark them up as much to earn a profit. One fact may help readers see through the myth that so-called “paper” silver somehow “diverts” demand away from silver metal. In this facile view, the banks sell “paper” silver naked short, and if they could not do that, then the price of silver metal would be a lot higher.
Silver and Gold IRAs are a great way to do just that. These special types of self-directed IRAs allow you to invest in gold, silver, and other precious metals, providing a hedge against market volatility and inflation. Also, if you want to bet on precious fxcm canada review metals in the form of stocks, gold gives you more options than silver does. Gold mining stocks are extremely well covered and well known. Remember, it’s entirely possible to have a wonderful time on Reddit without giving, buying, or receiving Gold.
Reddit Takes on Silver
Our goal is to help every Canadian achieve financial freedom and make all levels of investors smarter, happier, and richer. There are many advantages of investing in gold over silver. If you receive an award from an anonymous person, you can thank your benefactor via private message.
What is Reddit Gold?
The banks have a major advantage here, because they also generally hold the big funds’ gold accounts. So they know what their clients are doing and can place trades with or against them. This kind of trading — known as “front-running” https://broker-review.org/ — is illegal in the stock market, It is legal with precious metals. Gold and silver performance depends on more than just the stock market, though. History also shows they perform well when inflation climbs.
In addition to feeling good about your post and having a spiffy badge next to your name, Reddit awards also come with a few perks. We hope that out of this will come a fruitful discussion of the contradiction of calling for government to interfere in markets by force – in order to make them free and fair. The hot story this week is the incredible run-up in the stock price of GameStop (GME).
1,800 coins costs six dollars, allowing you to gift a post Platinum, or multiple posts Gold and Silver. From breaking news about what is happening in the stock market today, to retirement planning for tomorrow, we look forward to joining you on your journey to financial independence. TSX stocks are likely to see low volatility today with the U.S. market closed for Martin Luther King Jr.
If he or she responds to your note, you can find out the person’s username. So, if you happen to get two gold awards on the same day, then you get a premium subscription for two weeks. You might have noticed some Reddit posts and replies have small golden icons next to them. These are “gilded,” which means someone spent real money to reward the poster with Reddit Gold. The world desperately needs to rediscover the gold standard.
In the stock market, you are “long” if you own the stock. You make money when the price goes up and you lose money when the price goes down. If you are “short” a stock, you borrow someone else’s shares and sell them, as if you had owned them. You make money when the price goes down and you lose money when the price goes up. In the US, the COMEX is the primary exchange that sets the price, which fluctuates throughout the trading day. This is the price that filters down to the retail level and is quoted to you when you go to buy from a dealer, depending on what buyers and sellers are doing.
