10oz - Bars or Coins?

Y

Yendor

Member
So I was just looking at some 10oz bars, and the cheapest I could see was the "2014 NTR Lunar Horse" for $238.11 (or PM 10oz for $237 direct).
Then I had a quick look at 10oz coinds (which I've never really looked at before). Cheapest there was "2014 Perth Mint Kookaburra/Lunar Horse/Koala", for $250.18 - $12 more expensive.

Now I figure the coin would have a higher (equal, at worst) resale in the future, but it would take >1 year at least (as they're still minting them). But the coin is probably less liquid when I want to sell. But the bar (especially the PM 10oz) is a little cheaper, easier to sell, and their value isn't tied to their condition - while the coin will lose value if it or the capsule are scratched.

What do you reckon?
 
A legal tender coin will not be any harder to sell than a generic bar. Coins will almost always command a premium over a generic bar. If the coin has a limited mintage, then the chances for price appreciation are far greater than that of a generic bar. 10 oz coins generally come in a capsule, so scratches shouldn't be a concern on the coin itself. Look at the prices of previous year 10 oz. coins. Chances are they are selling for far more than generic bars.
 
For $12 I would buy the coin and take a gamble on it being collectable in the future.

Past coins have kept their value even though the spot price has fallen, bars have not.
 
For an extra $12 I'd definitely go for a limited mintage, pretty pictured, legal tenderized PM coin.

Capsules are easily replaceable and cost pittance. Why would the coin be less liquid? Anything priced at a good $ figure is liquid (ie, sell it for the same price as the NTR bar. You lose $12 in the worst case scenario there, oh noes!)
 
buy that 10 oz bar next year and it will look the same as last year, nothing changes so for a few measly bucks, you got something with a coin.

same can be said about any equivalent size, a 1kg coin is not much more than a 1 kg bar, a 1 oz coin is not much more than a 1 oz bar.

another thing to keep in mind is mintages, at least there is a limit, a 10oz pm bar has been made in the millions and still going, huge difference.
$12 omg, what more does anyone need to say?

except, just hold one in each hand, buy both, do that and come back and tell us what you think.
I bet you'll be flipping the bar for another coin :)
 
Buy the 10oz coin they are nice lump to handle(in capsule only of course) and they are collectable with relatively low mintages. They will almost always command a premium over a 10oz bar,and as has been said don't fuss over $12 it will hardly buy a burger and chips. :P

Mind I am slightly biased 10 ozers are my favourite coin size followed by 2 ozers, :)
 
I say go for the coin. There's simply more upside:

- very hard to counterfeit compared with generic bars (more trust when selling)
- can gain more premium over time
- gorgeous to look at and valued as a collector piece
- can be a treasured gift or heirloom to pass on (I gave my best mate a 1kg horse for his wedding gift. His eyes nearly popped out of his head.)
 
One thing to consider is storing round things is not space efficient. I struggle just with different shaped bars of same weight.

One only has to look at the mintages before and after GFC to realise that the post 2006 coins will not hold the same value as the pre 2006 ones. I see an additional 5-6% over spot as a lot. Consider you were buying 1000 oz of these coins. Would $1200 more premium seem excessive? That would be another 50oz of silver you would be missing out on. I would rather the 5% in more silver then in semi-numi premium which has no guarantee in holding higher then spot.

A lot of people buying these bullion coins are banking on the premium to rise in proportion to spot, and this is just is not the case.
 
BiGs said:
One thing to consider is storing round things is not space efficient. I struggle just with different shaped bars of same weight.

One only has to look at the mintages before and after GFC to realise that the post 2006 coins will not hold the same value as the pre 2006 ones. I see an additional 5-6% over spot as a lot. Consider you were buying 1000 oz of these coins. Would $1200 more premium seem excessive? That would be another 50oz of silver you would be missing out on. I would rather the 5% in more silver then in semi-numi premium which has no guarantee in holding higher then spot.

A lot of people buying these bullion coins are banking on the premium to rise in proportion to spot, and this is just is not the case.
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Agreed but if the premium were to stay the same and spot price increase. Then you'd get back exactly the same margin as buying none premium. That extra 50oz is simply a preference from one to the other... pure bullion or premium bullion (pretty things)? It's up to the person investing.
 
ScottyRS said:
BiGs said:
One thing to consider is storing round things is not space efficient. I struggle just with different shaped bars of same weight.

One only has to look at the mintages before and after GFC to realise that the post 2006 coins will not hold the same value as the pre 2006 ones. I see an additional 5-6% over spot as a lot. Consider you were buying 1000 oz of these coins. Would $1200 more premium seem excessive? That would be another 50oz of silver you would be missing out on. I would rather the 5% in more silver then in semi-numi premium which has no guarantee in holding higher then spot.

A lot of people buying these bullion coins are banking on the premium to rise in proportion to spot, and this is just is not the case.
Click to expand...

Agreed but if the premium were to stay the same and spot price increase. Then you'd get back exactly the same margin as buying none premium. That extra 50oz is simply a preference from one to the other... pure bullion or premium bullion (pretty things)? It's up to the person investing.
Click to expand...

Yes but the premium may disappear and revert to spot in bad economic times. Wouldn't you've a better result if that premium had gone up with spot instead? Something is only worth as much as someone else is willing and able to pay for it. The market for premium coins is much, much smaller then raw Ag at close to spot. A big consideration for any investment is the ability to liquidate.

Sure buy some pretty kilo/10oz coins to dazzle yourself and others every now and then, but if you are buying any sizable quantity, low premium bars is the way to go. So if you have to ask the OP question, then I'd say both. Diversify.
 
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