Malachii you hit the nail on the head!!! ...
...I hope folks read and re-read your comment!! Especially Slyguy!!
He is a dealer, man. They can attest better than anyone the safety and high liquidity of basic bullion. He can tell you they will buy ASE all day every day at spot (and then sell it for spot +10% or more) yet they will wiggle and squirm if someone wanted much more than spot price on a few dozen kooks they bring into the shop.
He plainly said he makes the best profits off older and higher premium and "collector" coins and the lowest spread on the cheap new stuff (although that is usually their big volume). I'm sure he wishes Perth high end stuff and Queen Beasts and other inflated premium coins were the only type of silver ever made. If they were surely going to be so valuable, they wouldn't sell them, they'd keep most. Instead, they are happy to sell them all... then buy them back around spot later on, when people move on to the next hot thing.
The real questions of the day are this: who has ever found kooks or pandas or etc to be sold out? Who sold back a bunch of kooks to a dealer for significant profit? Perth mint buys the kooks at spot (just like they will buy kangaroos or any of their stuff... at spot). Apmex buys them at spot. Most coin shops will buy govt silver at spot (privy or year or art or etc does not matter). It is the same with coin shows.
Where are all the buyers, I wonder? I'm sure there are the rare people who sold a small set of kooks or lunar or whatever to another individual on ebay or somewhere for a good profit, but those are the exception... not the rule. All I ever see the kooks sell for is a bit over spot on ebay... or probably spot price at most professional buyers (Perth, shows, shops, apmex, etc).
...The advantage you have with buying limited edition bullion coins at slightly above normal premiums is that they move from being in the bullion category into the numismatic category...
Wrong. They *
have potential to* move from being in the bullion category into the numismatic category. Some will, most won't (and will be selling for around spot).
Buyers of those coins are paying the premium price for a "maybe." Some buyers like that, all seller bullions/mints/shops of the higher premium coins like that, and that if fine by me. I generally am quite happy to sidestep the primo stuff unless I see something I really like... or get them much later if their premium and/or the spot price goes down.
It is like buying baseball cards or stamps or anything in hopes that they may one day become collectible models. Some do, most don't. You never know. As I said above, if what you said was true (that inflated premium bullion will all become numi and valuable), then you would never want to sell any of yours. You would just get them from the mint and put them away for awhile. However, you are happy to sell them all since such a low percent will hold or grow in premium value in the longer term. Likewise, you don't see baseball card shops refusing to sell packs since they will be so valuable in a decade or two... they are happy to sell as many packs and single cards as people will buy!
I am a dealer so take what I say with a grain of salt. I have built in biases obviously - I make money out of this industry....
Yep. Everyone has their bias... mints, dealers, numi sellers, numi buyers, miners, stackers, paper metal traders, etc etc etc. That is natural. Your bias is obviously to promote and increase popularity and sales on what gives you the higher premiums. Getting 15% of a $25 or $30 anniversary stamp kook or panda or "collector set" piece is better than 15% on a basic $15 maple or philharmonic. Therefore, selling the dream that the higher priced coins have more potential to shoot the moon in long term value makes perfect sense. I have shops tell me all the time that I should look into premium coins when I show up to buy some basic used bullion. I get it. No worries and thanks for the perspective.
I believe it to be obvious, but my bias is to have people think things through and get the most silver ounces and best liquidity for their money. That is generally how to capitalize on silver demand or spot price going up AND be able to sell efficiently and basically anywhere. I find that to generally be accomplished with mostly basic govt bullion. As you've said, volume stacking is mainly after spot price... but plenty of basic bullion can randomly develop a bit of a premium over time (certain years, anniv ones, lower mintage years, etc). When that happens with basic bullion, it is a free bonus and a nice surprise. When it does not, it is no big deal since you did not expect or pay for that (like a premium bullion buyer did). That's why there is something for everyone in metals...
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