Quote:
Originally Posted by bnorth
What are the transaction fees involved in this?
Original purchase fee
trading fee
selling fee
other fees/taxes?
Have you figured the % increase you need to break even after ALL fees? Sounds like it could be a great thing once all the fees are understood.
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There are no transaction fees, but you would need to find a dealer that's willing to trade with you on an (fairly) even level. And you would need to already own some metals or purchase them. If someone wanted to do this and didn't own any metals right now, I would suggest buying (and holding) gold given the current GSR ratio...and just wait for the ratio to widen and trade that gold for silver.
If one does buy gold, I recommend buying in fractional amounts. Let's say you wanted to purchase 1 ounce of gold. Rather than buying a 1 ounce gold coin, maybe buy (2) 1/4 ounce coins and (5) 1/10 ounce coins. You'll spend a little more money buying like that, but it gives you more trading or selling options. For example, if you decided you want to sell or trade some of your gold and you only have a 1 ounce gold coin, you have to give up all your gold (it's in the form of only 1 coin). But if your gold is in fractional amounts and you just wanted to sell maybe a half ounce of gold, well then you have a couple different options.
I can't speak for other states, but Texas has no sales tax on bullion purchases (that even includes junk silver). I think some states offer no sales tax, but at a certain dollar amount.