1oz ASEs/Perth Mint Kangaroos/Britannias vs 1oz .999 rounds

Discussion in 'Silver' started by Ronnington, Aug 26, 2020.

  1. Ronnington

    Ronnington Member

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    Hi all,

    would like to get your thoughts on the buying/selling/spread experiences of 1oz American Silver Eagles/Perth Mint Kangaroos/Britannias and the like vs more generic 1oz .999-grade 'rounds' coins

    When I first started stacking at the beginning of this year I bought a few tubes of ASEs at a hefty 30% over the spot-price at the time of US$14 per oz... soon after I started loading up on NZ Mint Silver Fern .999 rounds at just 5-8% over spot price at the time and I kept buying these with a couple of bars on a regular basis until July.

    The calculations I have done for buying/future selling/spread always comes out in favour of the more generic rounds - am I missing something here?

    I will be looking at placing a decent-sized order for more coins to get my stack a 60/40 split of coins to bars, and I'm tempted to add Perth Mint Kangaroos next time, but i can't seem to ignore the fact I can get generic .999 grade rounds like the NZ Silver Fern or the NZ Mint Taku Turtle Niue for a few $ less per coin...

    Also, on the effigys on the back of coins, why do they have values showing AU$1 or NZ$2 etc when the real values of each coin are so much more than that? :)

    Thanks
     
  2. Silverman99

    Silverman99 Well-Known Member Silver Stacker

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    8B4C439A-349B-4759-BB42-739D6FE88616.jpeg 8B4C439A-349B-4759-BB42-739D6FE88616.jpeg

    Did you manage to get the older years with the Fijian effigy
     
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  3. Ronnington

    Ronnington Member

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    Nice coins!

    I haven't bought any New Zealand Mint Taku Turtle Niues yet, but I am considering a couple of tubes of them on my next order...
     
  4. Silverman99

    Silverman99 Well-Known Member Silver Stacker

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    Do you order locally or direct from NZ Mint
     
  5. Ronnington

    Ronnington Member

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    direct from New Zealand Mint :) like others, I've found their service to be the best out of a few dealers I've used so far - they have been excellent

    but physical premiums right now... Ouch! Oh Lordy
     
  6. Ronnington

    Ronnington Member

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    interesting that the physical Gold-to-Silver ratio is more like 1 : 63
     
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  7. barneyrubble

    barneyrubble Well-Known Member Silver Stacker

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  8. Ronnington

    Ronnington Member

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    Thanks :)

    the NZ Silver Ferns don't have an effigy/face value, but I bought at 5-8% over spot price so if I can sell them one day at, say, 10% under spot price at the worst, that represents a better spread compared to my American Silver Eagles when purchased at 30% over spot and selling at between spot price and 5% above spot?

    if that makes sense(?)
     
  9. alor

    alor Well-Known Member Silver Stacker

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    any picture of the bars?
     
  10. Ronnington

    Ronnington Member

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    they're just a mix of 10oz Perth Mint, 10oz NZ Pure and 1kg ABC bars
     
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  11. JoeExotic

    JoeExotic New Member

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    Buy the cheapest product with the least % premium over spot.
     
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  12. Ronnington

    Ronnington Member

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    That's my thinking too :) is it a case of .999 grade Silver is .999 Silver at the end of the day, regardless of whether it's an ASE, Britannia or a more generic round like an NZ Silver Fern?
     
  13. Shlomo Goldberg

    Shlomo Goldberg Active Member

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    G'day, I'm just a new mug punter in PMs, so take what I say with a grain of salt.
    I contacted the treasury & RAM (6 weeks ago) regarding face value gold & silver coins qualifying my questions with "I comprehend gold & silver prices fluctuate constantly, as does the AUD". So why is that there is enormous disparity between the face value & cost? Of course they would not give a straight answer replying with nonsense such as, "policy, tradition etc". It is obvious that they do not want gold & silver coins used as money. They would rather have us use polymer Tinkerbell bank notes. Bank notes are not money. The only thing that is money is "coins of gold , silver or less precious metals".

    I think you really need to establish in your own mind why you are stacking. Have somebody ask you, "why do you stack"? then answer the question. Is it a hedge, forced savings or prepping for SHTF scenario. for hedging & saving I think kilo & 10 oz bars is the best way to go. if it's SHTF, then I reckon recognisable cheap sovereign government coins are the go. My personal story is that I bought 9 x 1 kg bars at a comparatively good price. with SHTF scenario in mind I began to trade those down to cheaper coins & gold. By keeping on eye out, I was able to convert lower premium coins into ASEs. I still had to tip some fiat into that exercise for the conversion, but I consider the higher ASE returns & liquidity was worth it.
    Good luck& keep stacking.
     
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