I'm sure I am beating a dead horse but no search results came up. I have been collecting silver for a couple years now, however not much. Its now time for me to get serious about preparing for my future. I have included in my business plan to buy at least 100oz per month. With that being said, what do you believe would be the best one to buy, rounds/bars or Government silver? Both have their plus sides, but the downside to ASE's from what I heard is that you cannot melt them. What are your imputs? Thanks.
Honestly, I would say that you would get more ounces per dollar with generic rounds vs. Government rounds. Some people say that everyone who collects silver for bullion aspects should have a mix of generic and govt silver. For myself, I have a mix of 20% ASE'S and the rest just bullion rounds. If you plan on getting 100 oz's a month just for long term, I would get a couple 100 oz bars and some 10 oz bars followed by 1 Oz generic and govt rounds. For the extreme long term play, gold would be the way to go! I would say allocate 10% to your OVERALL holdings gold wise that is
ASE can be melted. Only pennies and nickels are banned from melting for the underlying metals based upon the cost of production far exceeds the metal value.
Oh they can? I figured since it was a government issued coin, with a dollar face value making it currency it would be illegal.
You see a ban on melting ASE's as a downside in a choice whether or not buying them? You really consider melting ASE's? For what reason? If you want to melt your silver just buy cheap industrial bars instead of fabricated products like coins?
Oh they can? I figured since it was a government issued coin, with a dollar face value making it currency it would be illegal.
Posted twice for some reason, I dont want to and im not going to, but if the predictions are true, that the price will rise like crazy because of demand.. The demand will be to use silver in all the electronics and solar panels, people who have government minted coins will be SOL because they wont be able to sell. On the other hand the price might rise because the markets will try to correct them selves and balance out due to all the currency that we have created, in which case it would be okay to have ASE's
There are a couple of issues to consider. Counterfeiting: There are stiffer penalties for counterfeiting Government legal tender than there are for copying a generic round. The hope is that by buying a Government coin, you have a greater degree of protection. I think the FBI gets involved if anyone tries to fake an ASE, they don't bother for a generic round. Cost: Government bullion coins can be more expensive than generic bullion rounds in most cases. You are paying extra for the brand, they are probably more recognisable, so easier to sell and you should probably be able to get the premium back when you sell, if you sell to a fellow collector/stacker. If you sell back to a dealer they may give you extra for a Government issued coin, but they might just buy bullion back for spot. It is worth asking your local coin shop/bullion dealer. Generic rounds are most likely to sell for less unless someone wants to add them to their collection. Legal Tender Status: I actually consider this to be a drawback, a $1 face value on $20 worth of silver that costs you $25. What is the point? You are never going to spend it for $1, even if the SHTF. The only benefit I can see is with the government who might claim that, as it is legal tender, it belongs to them. But they will gladly deposit $1 into a bank account to compensate for the $1 coin they have taken away from you. I know there are concerns in America about precious metals confiscation. I can't see it happenning but really, what is the point? Storage: Poured bars are cheaper than minted bars, rounds and coins. They fit into a safe easier, they don't need to be kept in capsules or tubes, you can get finger prints on them or you can get them scratched without affecting the value of them. But if the spot price drops so does the value of your bar. The only way the value will go up is if spot goes up, and this should raise the value of most bullion products by the same amount. There is unlikley to be much of an increase in their premium unless they happen to be a well known brand, limited edition or collectable in some way, it still surprises me the amount of money people will pay for a bar. Coins need to be stored with a bit of care to make sure that you keep the premiums up, capsules, tubes etc. Milk spots, scratches, ugly patina, signs of cleaning etc. will all reduce the value. So in summary, the choice isn't just in Rounds vs Coins You have Government issued proof coins Government issued bullion coins Generic proof rounds Generic bullion rounds Collectable minted bars Collectable poured bars Premium minted bars Premium poured bars Generic minted bars generic poured bars Local junk silver World junk silver Scrap silver But not neccessarily in that order for everyone. I think I have a bit of most of those things. You could buy one of those Kennedy Half Dollars, they seem to be a bit of a bargain!
Yes I know all of that, not what im concerned about. My concern is what is going to be the better investment for my exit strategy.
You can melt any government issued coin, as long as you don't do it in the country that it is minted. Or so I am lead to believe generic silver, straight bullion is best for exit strategy All numismatic coins etc, should have been liquidated long before. The time it takes to research and sell is the driving factor straight bullion is easiest to liquidate
Search for coins, not gov silver and you will do better. The subject is brought up every month or two, so the information is there. ASEs cannot be melted inside the US, but I doubt that a foreigner outside the US would have any worries. If things are so bad that the government desperately needs the silver in ASEs. they will either take your silver or allow the ASEs to be melted down. Don't see massive buying of silver as preparing for the future. Food, energy, water, a generator, gold, etc., would be more valuable than silver. Can't eat silver, you won't need a lot in SHTF scenarios and it is too heavy to bug out with. And if you remember 2008, silver crashed over 60%. If you have been paying attention to Mike Maloney or one of the other silver shills, do yourself a favor and stop.
If i had about $2300 to spend each month on PM, i would buy 1 oz of gold eagle, a tube of ASE and a two 10 oz generic bars.
Sorry, you didn't mention what your exit strategy was so it is hard to give you any advice on that. A couple of exit strategies that spring to mind are; Dumping it all in one go to move into another asset or for a major purchase, such as property or a car. In which case you want something that is easily recognised and has a large market, So for you maybe ASEs or poured bars, you are looking for a quick return without taking them around to lots of coin shops or through hundreds of private sales. Hand it down to your family. If you have any inheritance tax payable in your country you should make sure that you tell your relatives about this otherwise you could hand over thousands of dollars worth of gold or silver and they might not realise that they have to give the government some. For this ASEs would be good as your relatives will not need any knowledge in order to sell them, less likelihood of being ripped off over the price. Drip feed it onto the market to pay for your day to day retirement expenses. Buy some proofs, some numismatic items, some collectables. If you chose well they will go up in value higher than the spot value and should be able to keep you going. Generic rounds will probably just go up with spot, some will say that is a hedge against inflation but basically you won't have increased your buying power. You might as well put the money in the bank and earn a small amount of interest. Zombie apocolypse Junk silver for day to day bartering
This is stockpiling demand which means that if price at a time rise like crazy that price at another time will drop like crazy. Next question then is which part of the story resembles today? 2003 $5 2014 $20 +300% Main reason: stockpiling. Where did you read those predictions?
