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The Distinct Differences of Silver Prices

There are two kinds of silver prices, i.e. the spot price and the selling price. In the past, if the spot price was $10, the selling price would be $11 because there was a small premium required to cover for the cost of minting. Starting from 2008, however, the difference between these two prices has gone very wide. Today, if the spot price is $10, the selling price will be around $15 – $25. This is a significant increase, in which the markup is calculated to be around 50% – 150%. It means that when you decide to sell your silver, you can expect to earn up to 150% profit – a lucrative amount indeed.

The reason behind the drastic increase in silver prices is primarily due to the rapid growth of paper silver market. Silver is now available in various forms such as e-silver, silver futures, silver stocks and silver options. The growth of paper silver market has been so robust, but the mining activities to obtain new silver have been declining. There have been speculations that the paper markets have been experiencing a short selling of silver. This means that many selling translations have been done but in reality there hasn’t been any silver available to backup the purchases.

Currently it is obvious that the spot and selling prices of silver have been very distinct. Many people have been buying silver for various reasons, but most of them do not take the precious metal with them. Instead, they leave it with the sellers to keep in vaults that are expected to be safe and secure. However, this activity seems to raise a question whether the actual silver really exist. Since silver is bought on paper, can one really prove of its existence?

If you are buying silver to earn a profit, it is advisable that you take delivery of it. After all, silver prices have been very distinct, so it’s better that you have it with you in its original form.

Click on the image below to see the silver price chart.

Regal Assets Silver Chart

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