I was looking at silver bars online and noticed the price of a bar is usually around 20% higher than the spot price? But if you wanted to sell that bar they would buy it around spot price.

My question being how could anybody justify buying this if you take a -20% hit as soon as you buy it? Maybe im not understanding this correctly if somebody wants to fill me in.

Capitalism.

PM Jediknoght-He can help answer your questions about Silver

You have to anticipate the rise. everyone has to try and make a profit.

If I was you I would buy Silver Eagles that are made by the mint. I don't know how big of a bar you are looking at but if they are quite large people will be weary of them. They could be plated with silver and not silver throughout. Just my 2 cents worth.

I think you'd be better off buying silver paint. At least you might have a use for that

was looking at silver today. many places are sold out/back ordered for a month.

Despite the current “spot price” you have investors willing to pay a larger premium for what appears to be an undervalued asset. The gap between the spot and actual price is “decoupling from the dollar”. We can see a drop in the market (yet to be produced or paid for) yet a rise in the finished product. This has happened on a few occasions. There are many who believe we’re gonna see another big rise in silver, some see it in other metals. Why the big rise, in what areas will it rise, and when? those are the things that motivate buyers.

I think it’ll cost you a little more to find and invest in Eagles at this point. In large quantity anyways. Smaller bars are getting a little harder to find, along with all old or new coins. This is happening pretty much world-wide. Lots of money being withdrawn from banks and converted to bullion by smaller investors, not just big ones.

IMHO Eagles are always overvalued. Ten ounce bars can generally be had for 6to10 percent but not today.

Demand spiked and shorted supply in 2 weeks when supply catches back up premiums will lower

More money in moving silver than trading it. I would stay away from it personally. LLL

collect copper. useful metal, easy to sell or trade

there are about 145 pennies to a pound. (pre 1982 are 95% copper) price of copper is down but its still over 2 bucks. old wire old radiators etc. all worth keeping.

Bingo, we have a winner. Money is made selling not buying. If silver was good to buy why would they be selling it. As others have noted the buyers buy below spot and sell at a markup. Except for the past week or so, I could get all I want below spot. My wife, as I have noted before, likes to play with silver and just today she came home with another load. She sells every week and make 10-20 percent with every sale.

I own silver as in a coin collection but if you are looking to invest you are at this time looking at one of the best times to invest in the market. In my opinion. Silver as in bullion is very risky .

Im not planning on putting large sums (if any) money into silver. The majority if not all of my investments will stay in the market. I was just perplexed to see that a person would take a 20% hit on there money as soon as they purchased a oz of silver.

retail vs. wholesale. Just like buying a new car

No different than the guys that gambled on coyotes and cats and coon that thought it would get better!!

My advice buy low then sell high!

If you can find it now, and you can afford to put your money in it without needing it back, now is a great time to buy. You then just wait til it hits a price you wanna sell. Lots of room to go up at the current spot price.

There is really nothing similar between gold and silver when considering the "investment" potential of either.
Silver is merely an industrial metal like copper, platinum, lead, zinc, etc.. If you think the industrial demand looks good for any of them then buy them.
If you are looking for a investment/hedge metal then look to gold. Silver is and has been a terrible investment for many years. Don't fall for the hawkers who try to get you to think it is similar to gold.