Proof that not all silver is the same. How much you stack is very important, but you must also think about what you stack. Bar and generics will go up with increases in spot. They will also go down when spot is down. The right coins will go up with increases in spot, but will also go up even when spot is down. Take for example any series 1 lunar, should the spot ever go down to 20, they will still sell for a decent price, but a generic bar from the same year will not sell for a good price. That what I call the added protection of coins.
Fair point. However, if you're buying say 100 coins but decide to buy 100 generic rounds instead you will able to add 5 or so more rounds with the price difference. Where silver is likely heading that extra 5 ounces will be worth far more than the premium you will get on the 'right coins'.
The 5 extra ounces will most likely outweigh the premium for better coins, but the assumption is that silver is going up. There is no protection if it goes down. While I believe that silver will go up, you never know what could happen. If silver goes up, that fantastic, if silver goes down, it's still ok because of numismatic value, and if silver gets smashed and the market says the coins are not collectable, at least there is still face value.
Silverbaron, I pondered the coins vs. bars/rounds question before making my largest purchase last September. My conclusion was that the premium increase on the coins would more than offset starting with less ounces. AEL Steve researched the question and stated that gold coins were sold at a fixed % premium, but that silver coins were sold at a fixed amount premium. Even so, my theory seems to be correct. For example, last summer, ASE had a seller's premium of about $1.80. Now the dealers will pay me at $1.80 premium. ASE are about 40% of my silver, but I will slowly be swapping them for Lunars. I had already decided to do this, but the recent drop in silver magnified the difference in the types of coins. ASE dropped about almost as silver dropped, but the Lunars retained most of their prices. I was going to swap 2 monster boxes of ASE for 2012 dragons and pay the difference, but the dragons may be sold out at date of issuance and the US dealers will likely put a large premium on the coins. So my swapping ASEs may start with the 2013 lunar. Since I already own the silver, the timing of the swaps is not as important.
as far as the coins, bars, rounds issue goesm i'm partial to just diversifying my stack into many different formats. ase's maples, generic rounds, little poured bars, engelhard 1 oz + 10 oz bars. sovereign silver from these United States and my neighbor, Canada, and a little bit of Swiss sov. Au and Ag. not sure why i have the swiss, i just like it i guess. ... that a way, i have some cheaply obtained generic stuff plus some stuff that will always have face value, etc
Just because something doesnt sell within 24/48 hours doesnt mean its not a bluddy good investment. it can however mean that everybody is out of fiat at the 'mo tho...
REALLY? Not sure who your source is but I find it hard to believe. and if they are right... thats actually a very scary thing to consider and isnt bullish AT ALL. don't believe it tho - who's the source?
Maybe hes just talking about public buyers/sellers like 10 oz bars 1 kg bars etc. But it doesnt sound right even then
