I generally advocate ounces over premium as a generalised strategy.
The opportunity cost on rising spot going simply for more core ounces will generally outperform collectable premium over the long term, as long as the ounces you buy are easily identifiable and certified representations of what they are.
Without naming names, let's take for example 10oz of the current flavour of the month coin vs a 10oz poured bar.
The 10oz of the collectable coin will set you back around 800-1000 in the current market.
The poured bar, 380 - 400.
For the sake of arguement though, let's pick a spot price of $35 per oz.
Now shift spot up to $300 per oz.
The 'spot' value of your 10oz is $3000.
You sell the $380 10oz bar for spot, $3000 - up 790% odd.
Your 'coins' are spot value $3000 too, but since you paid $100 per oz, your percentage gain is only around 300%.
If you want to match the basic poured bars just on spot, you're going to need to make up around $4900 extra just on that 'collectable' premium to match the poured bars on spot alone.
Think you'll do that realistically?
This is one of the main reasons why I'm an advocate against the recent mania concerning certain coin types being flogged around here of late being 'best option'.
'Best option' in terms of liquidity maybe, but as long as your bars/rounds are easily identifiable, it doesn't really matter.
That said, if you can acquire coinage for a small premium over it's bar or round equivalent, it's generally the better buy because of future proofing liquidity and verification, along with the government backed 'guarantee' on your metal.
A 'coin' by definition is legalised tender with a government guarantee which if obtained for a small premium makes for ideal investment options.
ie If you can get a Perth Mint 10oz poured bar at close to spot price, this is a terrific option.
But if you can get a Perth Mint 10oz minted COIN for only a buck or two extra per ounce, this is even better IMHO as you get a minted coin, with government certification & encapsulation for only a small fee.
I'd never pay 2x, 3x spot and more for a 'collectable' coin, but a small premium for a minted coin is definitely worth the bikkies IMHO.
Being a fundamentalist on stacking, I go out of my way to avoid the 'hype' which has gotten out of hand around here of late and making a small fortune for the opportunist.
I find it unbelievable that when people were scrambling over each other to pay 2-3x issue price for certain coins around here over the last month that the fractional silver (ie Pre-decs and 1966s) were basically being fobbed off as 'junk' and could be picked up for spot price and lower.
If you're in this for the long term people, every ounce counts.
Just make sure your metal is easily identifiable with a verified backing to maintain liquidity down the line and you'll do fine.
At the end of the day it's all silver and it's all destined for the same melting pot. It pays to remember that.
