Silver Spot Price

perhaps that the actual market value of tangible silver is higher than spot.

I think most of us that has seen the metal; markets activity through out the years said it usually falls at the beginning of a new year and that is exactly what happened. it was steady from the end of December just floating around the same number and then fell back a little after that. If you think it will rise again then now is a good time to buy

With the volatility of metals, here is what happens to dealer's who are trying to be fair. When spot is $30.00, the dealer may be selling for $33.00, and buying for $28.00(keeping the spread somewhat fair, as to not rip off customers selling). This five dollar spread allows them to make a profit. Every business needs to make a profit right?

Now, lets say spot price drops down to $25.00 per ounce. They may be sitting on a load of silver they paid $28.00 for. They have 2 choices, raise the premium over spot to make a profit, or not sell it at all. This may make it seem as though they are overcharging, when in fact, they are not. If the price rises, most dealers will lower the premium a bit over spot, or they gain a larger profit margin on their investment.

Here's a great example: Today, you can find silver online anywhere from $1.19 to $4.00 over spot, depending on what you're buying. Back when silver was $9.00/oz spot, American eagles cost around $17.00 each, almost double spot price.

True rodime!
If you want to take the time to buy off the internet & sell on the internet, you can get good deals and sell over spot all day long.
If you want the ease and convenience of a local store, don't expect the same deals. If the dealer is slimy and cheats folks, he will probably get what is coming to him down the road anyway, just don't go back.
Me? I buy and sell online exclusively...but I also buy and sell my cars with craigslist/autotrader & stay away from the car dealers too!

I have to say this has been an interesting read. Just started my foray into silver, whether or not I'm buying at the peak doesn't matter too much to me as its mostly for a keepsake for the lil bugger when he grows up.

Still doing a lot of reading, but hard to separate the truth, from the fear mongering rift raft at times :P

Anyways, I'll probably keep on stacking! Don't know what else to spend my money on!

My dealers that I visit @ coin shows are cool. Those are the ones who ask for $36 per oz, no tax etc. - I usually give them $38 bucks (on a few oz's -- not a lot). They really appreciate things like that and some are just flat out surprised I'm giving them more than they asked. I understand they have a business to run and I tell them that. The next time I visit them at the next local coin show, they remember and give ME discounts etc. In the grand scheme of my 1000 oz goal, I don't mind giving a few bucks here and there as a tip. Give a little, take a little & build a good business relationship. That philosophy has worked out well for me so far.

BiggFredd - interesting, thanks for the note. Question - I go to a local brick and mortar shop who are great folks. However, they tell me if the transaction purchase is greater than $1,000 - then there is no tax at all. (Texas) - thoughts?

A couple weeks ago I was at a coin show and one of the guys there was selling a 100 oz bar for 4800, silver was at 35.50 an ounce, I asked him why it was so expensive, he told me he bought it for 4500, and was going to sit on it.

Its a very dynamic business, but if the market goes up, or down there is room for growth, if it ever stays the same price it would be hard to make a profit