Discussion of premiums

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ekmchan

Member
I would like to ask people on the opinion of whether to buy 1 0z Perth mint 2015 kookaburras or generic OPM rounds in >100 coin quantities. From what I could gather the cheapest place to buy Perth mint rounds is Perth bullion which sells them at around 23+ AUD for more than 100 coins quantities, where as a seller here is selling at 19.60 oz per OPM round. I guess the question is a $3.29 premium for the kook worth it over the opm rounds i.e. will the $3.29 produce a better return on investment regardless of the intrinsic metal price?

Thanks,

ekm
 
In theory, it should equate to approximately the same thing when it comes time to sell, ie, you will make your premium back (or lose about the same premium).

Kooks have the chance to appreciate more in terms of their premium, but on the flip side, if you need to convert your stack into fiat urgently, you may have to take a bigger hit on them if there happens to be no buyers of the higher premium stuff at that time.
 
as mentioned you should get your premium back but from what I can gather the premium won't double if the spot doubles so if your banking on straight silver price rises then you will likely do better spending the extra few hundred dollars on another tube of opm rounds.

if your planning on stacking for a long time the kooks might make the investment back for you.

for my money though, when it comes to rounds/coins your better off either going for low premium rounds like opm/buffs or paying a little more than the kooks for the lunars. lunars are much more likely to increase in value than the kooks.

A nice middle ground is the maple leaves. In the quantities your talking about you'd get them for less than $21aud and they have the advantage of being real currency which matters to some people and have an attractive and changing obverse.

long story short: pay as little as possible and get the lowest premium rounds you can or pay a little more than kooks to get me collectable coins like lunars.

I've bought from both Bigs (I assume that's the forum member your talking about) and perth bullion and been very happy with both so not much to split between them there. Never hurts to support SS forum members though.
 
Thanks for your replies guys. I like your views on the getting the cheapest (but still liquid) rounds possible if I purely want it for the silver price increase. By the looks of things i'm either going to get the OPM or Lunas. The potential problem that another forum member posted is that they keep producing lunas in 12 year cycles - so say 10 years after the end of the cycle will the Lunas likely to continue appreciating or drop back to spot because everyone would have completed their collections already?
 
You should do some research on older kooks and you can draw a bigger picture whether to buy kook or opm rounds.
 
actually from what I hear,every time a new popular animal comes out it sets sales off for all of them as new people are drawn into collecting them or it gets people wanting to complete a set. certainly some are better bets than others at the moment if you can get horses still i think you will do well (the horse kilo coins at less than $40 over the cost of a perth mint 1kg bar seems like a no brainer to me). Having said that I don't think anyone would have predicted the price for a roll of 1ox.oxen so maybe the goats are a good bet.
 
Lunardragon said:
You should do some research on older kooks and you can draw a bigger picture whether to buy kook or opm rounds.
Click to expand...

+1

The 2015 kook is also an anniversary coin ... so it wouldn't surprise me to see this coin carrying a $20+ premium in the not so distant future.
Similar to the 2009 kook
This is only my opinion.

back to the opening post......buy both 50 of each

Its normally easier to quickly off load low premium rounds , should any un-expected bills pop up
plus you will find that you will have less emotional connection with a low premium product.
 
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