Silver is in Backwardation spot price is higher than futures price.
(www.jmbullion.com)
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Spot is the current market price for a commodity in bulk. For silver, its the cost of a single 1,000 ounce bar. You'll almost never pay spot for silver because of the sellers premium; you'll always pay more to buy and get less when you sell.
Thank you for explaining. So the $48.60 doesn't include whatever commission the buyer pays when buying? OR what the buyer (precious metal trader?) CHARGES when buying back? Is that right? So, if you were to sell 5 of your bars / coins today, would you have to pay something from that $48.60 as the metal traders fee / commission? Or would that be added on top and they give you, say, $50.00 per coin or bar and you'd actually only get the $48.60? Sorry for sounding so dense. Thanks.
Naw its good. If you've never dealt with this it can be weird. So, as an example, spot is $48.43 at this moment. If I go to the online retailers I see a single Silver Eagle (1 ounce) for $54.13. (Prices will vary depending on Check/Wire/Credit Card and individual retailers.) If you buy in quantities, you can get price breaks, typically at 20, and 100 ounces. If you want to sell back, you would need to make sure you get $54.13 per ounce to at least break even. I do see Silver Eagles at Spot + $1.00 right now. So, you'd get $49.43 right now for the coin you paid $54.13 for while spot was at $48.43. Again, you have to check with various coin shops and retailers to determine where you can get the best deal; as with the purchase of any asset, shop around.
Excellent. Thanks for taking the time to educate me, fren.