First Time Buyer Question
- Thread starter liteofday
- Start date
Hi,
i do not find that it is significantly more. i.e. spot +1.49 for Round vs +3.39 ASE (American Silver Eagle). (If you watch for sales you can get ASE's even cheaper). Whether silver is at $22 or $36, at minimum I have always seen the same spot plus+ pricing on average for each. So relatively, you would not lose, you just having to put out more per ounce. However, the upside is the ASE could make some additional gains numismatic-ally. Personally, I like having the coin over a round, and just to have some non-coin silver I get bars just to have my non-silver be different.
Have fun stacking, Mikey
i do not find that it is significantly more. i.e. spot +1.49 for Round vs +3.39 ASE (American Silver Eagle). (If you watch for sales you can get ASE's even cheaper). Whether silver is at $22 or $36, at minimum I have always seen the same spot plus+ pricing on average for each. So relatively, you would not lose, you just having to put out more per ounce. However, the upside is the ASE could make some additional gains numismatic-ally. Personally, I like having the coin over a round, and just to have some non-coin silver I get bars just to have my non-silver be different.
Have fun stacking, Mikey
silverbulldog
New Member
well when you go to sell the .999 Silver Eagles anyone will buy them.
You should still have no problem selling generic .999 bullion but you will get less when you sell.
For example if you buy a tube of 20 Eagles at $25/each
you buy a tube of 20 generics @ $23/each
You sell 20 Eagles at $2 over spot when the time comes...on the other hand You sell 20 Generics at $Spot
Most of the time you will break even. However sometimes Eagles are a better deal and sometimes Generic is a better deal.
for Example if your dealer charges $5/spot for Eagles or more and only $1-$2/spot for Generics than the Generics win.
if you dealer charges $3.50/spot for Eagles and Generics at $2/spot than the eagles are better.
Just buy lowest premium stuff that is highly recognizable.
I buy JM Bars & Eagles at my LCS. However if I see a coin I think will go up in value down the line I might pay more like a Kookaburra or Panda.
My best suggestion is to buy what you like that way you will always be happy. If you do not care what form just get something that is low premium and very liquid.
Smaller bars and rounds are easier to shift but nothing smaller than 1oz for silver.
Good luck and welcome buddy!
You should still have no problem selling generic .999 bullion but you will get less when you sell.
For example if you buy a tube of 20 Eagles at $25/each
you buy a tube of 20 generics @ $23/each
You sell 20 Eagles at $2 over spot when the time comes...on the other hand You sell 20 Generics at $Spot
Most of the time you will break even. However sometimes Eagles are a better deal and sometimes Generic is a better deal.
for Example if your dealer charges $5/spot for Eagles or more and only $1-$2/spot for Generics than the Generics win.
if you dealer charges $3.50/spot for Eagles and Generics at $2/spot than the eagles are better.
Just buy lowest premium stuff that is highly recognizable.
I buy JM Bars & Eagles at my LCS. However if I see a coin I think will go up in value down the line I might pay more like a Kookaburra or Panda.
My best suggestion is to buy what you like that way you will always be happy. If you do not care what form just get something that is low premium and very liquid.
Smaller bars and rounds are easier to shift but nothing smaller than 1oz for silver.
Good luck and welcome buddy!
H
House
Guest
One reason US investors buy ASE's is because they are Form 1099 exempt- you dont have to fill it out a form when selling these a dealer in any quantity. You do if you're selling 1,000oz+ of generics.
ASE's are recognizable worldwide and this gives people comfort in the fact that they're familiar with it. Although some generics such as the silver buffalo are becoming ubiquitous, I think most people will be happy to pay the extra couple of dollars more for something they're more familiar with.
You're more likely to get the premium back- if you buy for 10% over spot, you should be able to sell for 10% over spot. For the generic, you might buy for 5% over spot but you'll sell for 5% over spot. Then again, some dealers see silver as silver and offer the same buyack price for both.
Also, as ASE's are legal tender the Gov comes down hard on those who try to counterfeit them. It's not really worth the risk for a few dollars gain so fake ASE's aren't too common in comparison to other rounds (so I believe).
ASE's are recognizable worldwide and this gives people comfort in the fact that they're familiar with it. Although some generics such as the silver buffalo are becoming ubiquitous, I think most people will be happy to pay the extra couple of dollars more for something they're more familiar with.
You're more likely to get the premium back- if you buy for 10% over spot, you should be able to sell for 10% over spot. For the generic, you might buy for 5% over spot but you'll sell for 5% over spot. Then again, some dealers see silver as silver and offer the same buyack price for both.
Also, as ASE's are legal tender the Gov comes down hard on those who try to counterfeit them. It's not really worth the risk for a few dollars gain so fake ASE's aren't too common in comparison to other rounds (so I believe).
Fat Freddy
New Member
I'm in NY. My LCS buys ASEs for $1 over spot, but they only pay $1 under spot for generic rounds/bars. ASEs cost more to buy, but they fetch a better sale price if/when you sell them.
The eternal govt-issued coins vs. generic rounds/bars vs. semi-numis silver debate notwithstanding, I personally prefer to keep a diversified, balanced stack. Part of what I have is govt-issued coins (ASEs, CSMs, Libertads, Philharmonics), part is private mint rounds/bars (in my case all Engelhard bars+Engelhard Prospector rounds) and part is semi-numis silver (Kooks/Koalas, Pandas, Britannias, Takus, etc). If you get into stacking and do it for a while, the govt coins vs. generic bars/rounds debate will becoming moot because you'll end up having significant amounts of each.
The eternal govt-issued coins vs. generic rounds/bars vs. semi-numis silver debate notwithstanding, I personally prefer to keep a diversified, balanced stack. Part of what I have is govt-issued coins (ASEs, CSMs, Libertads, Philharmonics), part is private mint rounds/bars (in my case all Engelhard bars+Engelhard Prospector rounds) and part is semi-numis silver (Kooks/Koalas, Pandas, Britannias, Takus, etc). If you get into stacking and do it for a while, the govt coins vs. generic bars/rounds debate will becoming moot because you'll end up having significant amounts of each.
TreasureHunter
Well-Known Member
I guess you have your responses already.
I think it's wise to go for silver content, but there are lots of private mints that cannot be trusted. A state's mint will generally produce better quality coins and their silver will generally be more pure.
A good buy for starters is the very cheap, .9999 Canadian Maple Leaf:
http://www.primevalues.org/hard-assets/canadian-silver-maple-leaf-1-oz-coin.htm
They are among the cheapest ones above spot. I generally see them at lower price than American Silver Eagles.
I think it's wise to go for silver content, but there are lots of private mints that cannot be trusted. A state's mint will generally produce better quality coins and their silver will generally be more pure.
A good buy for starters is the very cheap, .9999 Canadian Maple Leaf:
http://www.primevalues.org/hard-assets/canadian-silver-maple-leaf-1-oz-coin.htm
They are among the cheapest ones above spot. I generally see them at lower price than American Silver Eagles.