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Spot Price


Collector4Life

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1 current spot price is an irrelevance to the true value of PM.

2 spot price affects how much metal  you can buy but not what it is actually worth, see number 1

3 many stackers will bust their arse to make a purchase as close to spot price as possible, and will then do so 6 months later when spot is +-10%20%30% etc the previous price, what's that all about?

4 buying and selling on the comex dictates  the price of both gold and silver. Practicality no ones who plays these markets are interested in taking delivery or shipping this metal and most don't have it in the first place to sell.

5 it's goes up and it goes down. When you are first buying it is hard to see the paper price  move in a volitle  manner. When you reassure yourself it is an insurance against the money printers, you begin to settle and accept these fluctuations. You know you are safe playing the long game. 

5. Holding the physical metal is nothing like seeing digits on a screen or ink on  paper. Having a stack of metal is an incentive to keep increasing your stack. People will have a viewe if it's over or under priced. Some will cost average buy, others (like me) will only buy when they feel it is under/fair priced. 

6. Gold had been around £1000 an 0z for some months now, if we see sovereigns back at sub £200 again most will see this as a bargain, is this really this case?  Also, if this happens many who are invested will see the price as dropping and will think it is only going to continue this way. 

 

 

sorry no definitive answers, only the ramblings of an ameteur stacker.

 

“Nowadays people know the price of everything and the value of nothing.” Oscillate Wildly

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Spot to me is only important when im planning an order. When its low i get more for my money and when its higher i get less. I order every 8-10 weeks so get a good avg over all. 

I have been stacking 3 years this month and have seen prices go from £13 down to £9 and back up to £15 recently. I stack semi numismatic silver i guess and although the cost of each coin goes up and down with spot, the swings are not as bad as spot. I noticed that when silver spot was close to £9, the premium percentage was higher then it is now at £13.50. Also, coins that already had a high premium like old pandas for example pretty much cost the same if spot is high are low. 

My exit plan is to resale my stack on the secondary market to max premiums and reinvest into gold when the silver to gold ratio is around 40-1. Silver spot is not really that important in the grand scale of things for my plan, that does not stop me checking it everyday. I guess if silver hit £30 an oz within the next 5 years, my plans would change and spot would become more important. 

Make new friends but keep the old.

One is silver and the other gold

* * * * K   e   e   p       o   n       s   t   a   c   k   i   n   g  ....my friends****

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I see the spot price as like the odds at a betting shop

for an event like brexit. it's just a way for some

businesses to justify certain prices and have limited

impact on the actual market price. traders only care

about margin and not price. paper ozs exchange

hands at close to spot all the time. how often is the

equivalent 999 metal bought/sold at spot? valuing

a fixed value intrinsic item using an arbitrary

medium of exchange.

 

HH

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1 hour ago, HawkHybrid said:

I see the spot price as like the odds at a betting shop

for an event like brexit. it's just a way for some

businesses to justify certain prices and have limited

impact on the actual market price. traders only care

about margin and not price. paper ozs exchange

hands at close to spot all the time. how often is the

equivalent 999 metal bought/sold at spot? valuing

a fixed value intrinsic item using an arbitrary

medium of exchange.

 

HH

Yet dealers such as HGM use the spot price to buy and sell their bullion. How the spot price or fix is is decided is irrelevant to retailers such as these.

"it's just a way for some businesses to justify certain prices"  Not sure what you mean by this. Bullion dealers don't need to justify their prices, they buy and sell a few % either side of the spot price, it's their margin. Numi dealers don't really take any notice of spot in the short term, it only affects their prices over a much longer time.

Profile picture with thanks to Carl Vernon

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