can someone explain to me how to invest in silver?
Someone told me if i were to buy silver bullion and wanted to sell it back i would have to mark up the price and the buyer would buy at a discount but i dont quite understand this. can someone explain it to me?
im basically trying to find out how much money i would lose if i were selling silver back
and would i also get taxed if i ever sold my silver for a profit?
It depends upon where and with who you buy and sell from. Standard precious metal dealers will typically charge a bit of a premium on their bullion (a price above market rate), plus shipping and handling fees. If there is a metals auction in your area, you can buy at auction, though sales tax could apply there. You can also buy and sell silver bullion on eBay – but you will need to watch your bids as they can easily get well above market price, and shipping charges may apply.
If you sell your silver back to a dealer, they will want to buy it back from you at a discount to the market price – they are after all in the business to make money. You can attempt to sell it directly to investors at a local auction (though commission charges will apply) or through eBay (again, commission will apply). It really depends who you sell it to. Dealers and scrappers will want a discount from the spot rate, investors will pay closer to the actual spot rate.
Profit or loss will depend upon the spot rate at the time of purchase and sell. If silver has gone up enough to more than cover the premium, initial sales tax paid, shipping costs, then you will make a profit. If the spot rate has declined or not increased enough to cover your other costs, then you will have a loss.
Just like buying and selling any other product, you will have to pay taxes on your gains. Speak to your tax professional for the correct tax treatment of your gains from silver.
Yes you would get taxed IF you bought silver and later "sold it for a profit", but it’s nothing to worry about because it isn’t going to happen, you will lose money if you buy silver; adjusted for inflation silver has been steadily losing value for over 600 years, and there is NO reason to expect that to change any time soon!
http://www.sharelynx.com/chartsfixed/600yearsilver.gif
Silver’s last "all-time high" was in the year 1477, the same year William Caxton produced "Dictes or Sayengis of the Philosophres", the first English book printed on an English printing press.
References :
I’ve been using Apmex for years, deliver silver right to your door. I bought quite a bit a couple of years ago around $9 and $10/oz, and sold most of it at $19/oz recently.
You can see the prices here and the difference.
http://www.apmex.com/Category/503/Silver.aspx
References :
It depends upon where and with who you buy and sell from. Standard precious metal dealers will typically charge a bit of a premium on their bullion (a price above market rate), plus shipping and handling fees. If there is a metals auction in your area, you can buy at auction, though sales tax could apply there. You can also buy and sell silver bullion on eBay – but you will need to watch your bids as they can easily get well above market price, and shipping charges may apply.
If you sell your silver back to a dealer, they will want to buy it back from you at a discount to the market price – they are after all in the business to make money. You can attempt to sell it directly to investors at a local auction (though commission charges will apply) or through eBay (again, commission will apply). It really depends who you sell it to. Dealers and scrappers will want a discount from the spot rate, investors will pay closer to the actual spot rate.
Profit or loss will depend upon the spot rate at the time of purchase and sell. If silver has gone up enough to more than cover the premium, initial sales tax paid, shipping costs, then you will make a profit. If the spot rate has declined or not increased enough to cover your other costs, then you will have a loss.
Just like buying and selling any other product, you will have to pay taxes on your gains. Speak to your tax professional for the correct tax treatment of your gains from silver.
References :