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Posted 08/20/2011 04:34 am
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If I am buying a coin or a round off ebay I will work out what the silver price is and then subtract the shipping value. Some of the shipping prices are really high. This is just me and I know some people do it differently.
Although, yet again you have explained it, I find this sort of thing complicated to understand? sorryIf I am buying a coin or a round off ebay I will work out what the silver price is and then subtract the shipping value. Some of the shipping prices are really high. This is just me and I know some people do it differently.
All we're saying is be sure you include the total amount you pay, including shipping. It's no bargain to save a few cents under spot if you need to pay $9.95 shipping for an ounce or two of silver.
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You have given me an extremely valuable lesson is purchasing silver, you have answered swiftly and in language easily understandable,{ for the most part) you have explained the terminology that is used.
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Cost Averaging
Again, unfortunately I cannot comprehend all of this enough to understand properly, but I do get the "jist" of what you are explaining mate!
Cost Averaging
Again, unfortunately I cannot comprehend all of this enough to understand properly, but I do get the "jist" of what you are explaining mate!
You have given me an extremely valuable lesson is purchasing silver, you have answered swiftly and in language easily understandable,{ for the most part) you have explained the terminology that is used.
Take the total amount you have paid for all silver and all shipping. Divide that by the number of ounces of silver you got for an average cost per ounce.
If you continue to buy when the price falls, your average cost per ounce drops, too.
If you buy the same dollar amount, instead of the same number of ounces, you balance your average in favor of lower prices. For example:
20 ounces at 40 = 800 average cost per ounce 40
Buying same number of ounces:
20 ounces at 40 = 800
20 ounces at 10 = 200
40 ounces total = 1000
average cost per ounce = 25
Buying same dollar amount:
20 ounces at 40 = 800
80 ounces at 10 = 800
100 ounces total = 1600
average cost per ounce = 16
Obviously, if your average cost is 16 instead of 25, you make 9 more when you sell. Also note you make that higher profit on 100 ounces instead of 40.
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