Question from the SilverSeek forums
Matthew Shelley
I'm from Ontario, Canada, and I was wondering where online is the
cheapest place to buy 1-10 oz silver coins. Best shipping/coin/bar
deals. Thanks"
It depends on what kind of delivery you want, and how much at one
shot. If you have a clearer idea of what you want and how much,
perhaps someone on the forums can give you some referrals. If you wish
to research it yourself, be sure to check the difference between the
buy price and the sell price and also the premium they are charging
over spot. Both of these factors are something I consider very telling
in evaluating metals dealers.
Calculate the premium over spot as how much the metal has to go up
before you make the first nickel, and the difference between the bid
and offer as the equivalent of a commission that you would pay on any
type of financial transaction if you plan to keep doing business with
that particular company. And remember that they can change either
these two numbers at will without prior notice.
If you can get yourself up to the 5000 oz. delivery level, generally
the cheapest to deliver would be a single futures contract from the
CME/Comex. It would be in standardized bars from an exchange approved
refiner. You can either take the physical delivery yourself, or
arrange for shipping and insurance at a reasonable cost. There is also
certificate delivery, which I consider to be cheapest of all as you
don't have to pay for shipping and the potential re-assaying cost when
you wish to sell, but there would be storage costs, and I know some on
these boards say that the are not confident in the surety of
certificate delivery (I'm not one of them).
Matthew Shelley
TrendPhonic Futures
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