Hey all, Just wondering what are everyones thoughts on purchasing fractional silver? 1/10oz 1/4oz rounds etc. If silver ever really does go "TO DA MOON" it would probably be better to have it in easily divisible lots, same goes for a SHTF scenario. Thinking about buying at least 100 1/10oz rounds from bullion bourse. Maybe i'm crazy? anyway, what do you guys think? Cheers Jimmy
I think it's a strategy based on good fundamentals, you don't want to be trying to cash in a 400 oz bar at $200 an ounce. That's why I buy 1oz coins, and also because the price is always quoted per ounce, making it easy to calculate the value quickly. Remember the smaller denomination you buy, the more you pay per ounce.
I don't think it's worthwhile personally since the premiums are so high on these fractionals - 1 oz is a good size as the minimum imho. If it ever does do move "to da moon" (which I personally doubt but I believe it will increase substantially), there'll still be plenty of opportunity to offload/exchange etc.
If you can buy fractionals at a small premium then good luck as I would imagine you could also sell above the bullion price because it is a fractional. In other words just because you pay a bit more doesn 't necessarily mean it will sell for less unless you sell to a dealer of course who will just pay on weight alone, and that's the crap deal.
Premiums are ridiculous for the smaller coins. If you are that worried just get predecimal coins, zero premiums, often less than spot price. Readily available, easily recognised, very liquid (if you sell them under spot).
Why not!? As in all forms of buying and selling speculative goods, there are buyers at every level. Those who get in before the boom; - make heaps! Those who buy during the boom, - make less! and those who buy to late; - possibly lose! Whether you pay $30 an ounce or $50 an ounce will mean little when silver hits $400 an ounce! If you have an urge for some smaller fractions - go for it! There will always be a market. Study what has happened over the past year in PM's for guidance!
^^This. No.21 on Apmex top 40 bought and sold list is Gold 1kg bars at around $52,000. I guess there are a lot of people with a lot more money than me!
I've thought about this, and in both cases (To da Moon & SHTF) divisibility shouldn't be an issue. When prices go 'to the moon', that's the time you'll be wanting to get out of a majoritory of your stack. If you've read the market well, silver will be overpriced/overvalued..and thats when you want to dump your silver, not dole it out in little transactions...which brings us to SHTF; In a SHTF senario you won't have a lot of choice of who/where you could purchase 'stuff'. In these situations you'll be relying on a single merchant/supplier. Trust will be a the main currency between the two of you, silver money comes 2nd. He has to trust you won't back out on the deal after he's secured the goods, rob him or dob him into the authorities. You have to trust he will suppliy the goods as ordered and not do a runner with your silver...the transaction is secondary to trust. For instance, if he's a black market grocer/ fuel supplier you'll have to throw down a kilo bar and accept his promise to supply you with goods until the value of the bar is consumed. He agrees to keep supplying you with vegies/petrol for the next month or so to guarantee more future silver to pay HIS suppliers and keep the business going. The concept of a clean transaction, where both parties walk away 'square' is a faily new phenomena in human history. And has mostly been enabled by large currency supplies. In the past it was generally accepted that one would be over-compensated or under-compensated in a transaction with the aim of keeping the transactions/interactions ongoing. i.e. If you generously over-rewarded someone for a service (eg painting a fence) the other party was now in your debt. They thanked you for your generosity with the understanding that future favours were owed and a psudeo-friendship was born. Likewise, if you under-rewarded the fence painter, it was understood that you were in their debt, future rewards would be deserved by them and a relationship would also be born. It was a way of creating social cohesion. But if the transaction was exactly balanced, it was the equivalent of saying, "here's your money, we're completely square, we don't owe each other anything, I don't want to deal with you again!" Such a transaction was considered, rude and anti-social... and outside of our family/friend groups, that's how our society does most of it's transactions today.
Sure mate.. just do it.. plenty on here complaining about big fractional premiums are purchasing the $109 per ounce PM coloured ShITE.. so basically i would not hesitate to recommend the 1/10 and 1/4/ 1/2 rounds.. i have a healthy stack of each and they take up fark all space.. not even that bigger premium. Once you have your 100 1/10s ... then consider what else you want.. 1/2s are good.. also one ounce.. I say... get lots of different sizes and shapes until you have a clear strategy. Cheers Bro 1for1
You can't compare chalk with cheese. When comparing premiums, just compare the premiums from the same products. So compare the premiums on the smaller fractional rounds against the larger fractional rounds and you will see you get better value for money with the larger rounds, and even 2oz are not particularly large. 100 1/10 rounds will cost you about $404, or about $40 an ounce, that's over $10 an ounce more than spot 10 1oz rounds from the same place will cost you $366, or about $37 an ounce, a saving of $3 an ounce For $337 you can buy a 10oz dragon, they look nice, work out to be $34 an ounce, and are legal tender rather than a generic round. If you are looking for value for money, you have already saved $67 by buying the large coin, or you can get an extra 2oz of silver. The premiums on collectible coins have no relation to the amount of silver in them. Most people can differentiate between value in bullion investments and what they want to spend on their hobby. So while some people don't mind paying way over spot price for a collectible, limited edition, available only at one place at one time and presented in a special box to add to their collection, those same people do not see the point in paying higher premiums on a bog standard, plentiful fractional to add to an investment portfolio when they can get better value for money or more silver by buying the larger sizes and paying less premiums. If you are investing in silver you want to spend your money on silver, not premiums. If you are enjoying collecting Perth Mint Coloured shite for your your hobby then spend what you want. 1 for 1 is not wrong in advising you to diversify, but his hatred for Perth Mint Collectibles has no place in this discussion. Your concerns about shifting large sizes have been dealt with but remember that people used to make their own small coins by cutting spanish dollars into quarters, I would not let worries of shtf or to da moon scenarios cloud your judgement, you already know what is the best value deal.
We sold a number of 50oz gold bars in under a week when we had them a few months ago, $80k a pop. Makes you reconsider perceived "liquidity issues" with a 100oz silver bar.
I'd agree with the foregoing, however, make sure that the 1/10 oz are clearly marked with weight, purity of at least 999 and brand or mint. You won't want to be arguing the providence of your silver.
I think the 1966 50c is a stand out winner in this category. Can be bought very close to spot along with being very liquid. A lot of people who are not in the stacking game are aware that it contains silver. Unlike pre decimal there is only one denomination to remember which makes things far more simple, you dont have to worry about explaining the difference between pre and post war. Overall its a common but unique fractional which is incredibly liquid while being quite affordable.
Would be a bit hard to buy a tank of petrol with a 400 oz bar. I have studied PMs. I don't need guidance. Cheers.
While premiums are much higher, you don't drop tens of thousands of cash into these. They are meant to round out the stash. Provide you with various sizes for the unknown times, plus if you need to get rid of them the premiums on ebay are pretty good for certain brands. Great idea to have diversification and I'm saving up right now to add some in the next purchase.
50% pre decimal, throw it on a scale / by 2 = Silver Content very simple for everyone. 3 x Round 50c = 1oz Silver The above are my fractional in the stack and I have a few of each. Not ridiculous amounts but a Kilo of 3d is a lot of fractional
I think junk silver is just that. a 50c coin has 1/3oz silver in it? what about the other metals? it's just part silver, and only usefull if it was melted down to extract the silver. yes people know there is silver in a 50c round but to people it's still a 50c coin, go out and see if anyone on the street will give you $10 for a 50c coin. Truly a false economy they are, why not just buy pure silver? it's the same price
Money has a couple of uses, as a store of wealth and a medium of exchange. 50 cent coins fit nicely into the "medium of exchange" bracket. Certainly if you want to store wealth then pure silver is better as it takes up less space and doesn't require refining at a later date. However if you want to use it for trade then the 50 cent is ideal as it is easily recognised, has a known amount of silver in it and isn't faked. We used to accept them in our shop at silver value (when they were $5 each, not seen any for ages) It does have a premium on it though, about $1 usually. Junk silver is just as good but without the premium. However it is usually dirty and doesn't have much love on the forums. Refiners don't like it over much either. At the moment silver is not much talked about but if it ever does shoot up in price you can bet the main stream media will be telling everyone.
