I have absolutely no idea what I am doing and I really would appreciate some help. I have some dollars and I want to buy some silver, tomorrow, but I have never done this before and I have no idea what is the best thing to buy and what is the best price. I have done some research but I am still confused. I just want to buy to invest so it doesn't have to be pretty coins. I don't care if it's ugly, I just want the best value for money and the best quality. I am in Perth West Oz. Thanks to anyone who can give me some pointers and I apologise if I am appearing thick. x
Normally these two things don't go well together. But at least silver is a commodity.... The quality should be the same regardless from who produces it as long as the weight and purity stated is correct. My recommendation, if you have no idea about what you are doing, is not to do it. Don't rush it, delay your purchase and research more until you have at least some idea.
I'm sure someone else will have a better response, but I'll take a shot. If you look at the top of this page there are some graphs of prices for silver, and if you go to the gold page there are graphs with prices of gold. That's the spot price, about 21-22$AUD/oz for silver right now. That spot price is like a paper market price for the metal, it rises and falls, and it is the price for a troy ounce of 0.999 fine silver. The spot price is a paper price, but for physical silver you typically pay a little more, that "little more" is called a premium, it is essentially a negotiated amount above the spot price that you have to pay as a consumer to convince someone to sell you the physical metal. You could also think of if this way .. physical silver and paper silver essentially have different prices, and one way to express that difference is to talk about a premium above the spot price. So how much is that premium ? Answer, it really depends. You pay for convenience, so it is typically higher at a shop that you can just walk into, and cheaper if you order online, and cheaper still if you order from a place that has a waiting period. The price over spot also varies depending on the quantity you are buying, the same as if you were to buy 1000 rolls of toilet paper instead of just buying a 4 pack at the grocery store (what do they call toilet paper in Australia ? Loo paper ??) The premium also depends on what you're getting. Bars of silver tend to have a slightly lower premium than "rounds", and larger bars (100oz, 1000oz) have even lower premiums per ounce than smaller bars, again you get a kind of discount when buying in quantity. A "round" is essentially a coin that is not made by a government, it still has pretty pictures on it, etc, and is stamped with the weight and purity, but it isn't made by a government. The premium for government coins is higher than the premium for rounds. The premium for jewelry is the highest of all because you're paying for the metal and the workmanship, you're essentially paying more because its pretty. So, again, how much is the premium ? For large bulk purchases of silver rounds from a mint where you have a long waiting period, maybe as low as 0.75$AUD/oz over spot, so if spot was 21.60$AUD and you were ordering 1000 rounds (1000 ounces) then that would be 21600$AUD plus about a 750$AUD premium over spot. For small purchases, say a government minted coin (1) bought at a small shop in town, immediate delivery no waiting, you might pay that same 21.60$AUD for a single ounce, plus maybe 3$AUD, 4$AUD, even 6$AUD of premium depending on where you get the coin, making the price closer to 25$AUD - 30$AUD/ounce. That's about it.
10 oz silver bars are your best option and perth mint they showing as only $231 each at the moment but I am sure the price will jump to $240+ by the time they open tomorrow. Perth Bullion in Belmont have Perth mint 10 oz bars for $247.97 and Englehard 10 oz bars for $243.59 You are in perth like me so you may as well buy perth mint silver unless you like to collect or want to pay too much for silver. Bars will be cheaper than coins but coins go up in premium over time. If you are buying coins I would buy perth mint 1,2015 Kookaburras 2.2015 Koalas and 3,2015 wedge tailed eagles. http://www.perthmintbullion.com/au/View-All-Bullion.aspx http://www.perthbullion.com/shop/listings/10-oz-silver-bars/
^^^^^^ This is what I would be doing. Get a core stack first 10oz Perth Mint bars are ideal, as they are easy to flip if needed, & suits your requirements. First choice in 1oz coins would definitely be 2015 Kooks. The rest feel your way through it. Find what you enjoy stacking & treat it as a hobby.
Thank you so much for your very helpful explanantion and the time and trouble you took to help me. And we do call them toilet rolls. :lol::lol::lol:
Thank you so much .. great to know there is someone on here that knows the local stuff and I really appreciate your input and advice. I didn't realise that PM was cheaper than Perth Bullion .. I actually thought it was the other way round. So I now have 2 questions .. if I was to go online now and purchase would I get it for the price it is today or would it be adjusted up tomorrow? Also, are these any good? http://www.perthbullion.com/shop/listings/low-premium/
Ya'll are so lucky! It's like being into Ferarri sports cars and just coincidentally living in Maranello Italy where they are made! It must be great to go to Perth Mint and buy bullion whenever you want to.
Simples No! lol and Perth bullion has always been cheaper in my short experience for small buys even with coins. 1oz and 5oz Gold certicards seem to be cheaper at the mint. Pity you didnt buy Friday from the mint with that low price shown! the cheapest 10 oz perth mint bar I have bought was from House an ss member at $230. The good thing about perth bullion is if you dont want to travel their postage is cheap and they accept paypal.
Perth Mint Bullion shop is currently closed. To trade in that section you need to open up an account with them. Also once you push the buy button it is at the price advertised @ the time & day if you're buying online. Other online stores work the same with prices, & are never adjusted to next days prices if spot falls or rises.
Its good to go inside too ... But' Unfortunately can not show you because we're not allowed to take photos
