letsGetRdy
New Member
Do you buy the cheapest generic silver bars and rounds or do you buy premium silver such as ase and maples? And why?
when silver gets low like this.....
- Thread starter letsGetRdy
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mmissinglink
Active Member
I buy what is a good deal. If I can find blobs (non-denom bullion bars or rounds) as under $1 above spot and get free shipping, I consider that a good deal when silver drops below $19. I have taken advantage of such a purchase this year. At the same time, I have found some bargains in semi-numis or moderate premium bullion coins like Lunar series, Pandas, and some high premium semi-numis with very low mintages.
So, for me, as someone is is relatively new to stacking, it's been a little buying of each. I'm long term bullish on pm's and I see opportunities like this as a good time to invest in pm coins and blobs.
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So, for me, as someone is is relatively new to stacking, it's been a little buying of each. I'm long term bullish on pm's and I see opportunities like this as a good time to invest in pm coins and blobs.
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letsGetRdy said:
If you live in the States, buy only ASEs and perhaps Buffalos. Keep away from Maples. Bear in mind that ASEs are not premium but a bullion coin whereas Buffalos are rounds. If I were to start stacking today I'd buy only ASEs if living in the States.
G
Guest
Guest
Any and all siler as close to spot as possible. IMO the kind of silver doesn't matter, the amount of ounces you own does.
salty lemon said:
Subject to identification, assaying and providence. ASEs fill that bill.
pinkmanwhite
Member
letsGetRdy said:
Quite an interesting question you pose there. In our trading we have found that the majority of stackers will go for the low premium stock in the low-spot environment such as bars in larger sizes (10oz to 100oz) over the high premium stock like 1oz coins. But then you get the trader who only will buy the high premium 1oz coin variety as it is recognizable, and can be resold easily because it is in the smaller quantity.
From the comments on this feed, people will recognize a good deal and pounce on it regardless of what the item is. So diversifying the stack is the best way to investment, regardless of the behavior of the spot price.
From a business investment stand point, it doesn't matter if the product is a bar, coin, or round, so long as the purchase price is competitive then the stock can be moved quickly. And when you move to the wholesale range of 500oz+ purchases, it really doesn't matter what you buy as you will get a dam fine price buying larger quantities.
The only trouble is outlaying the capital for a large purchase can be quite prohibitive for some, and there are difficulties in moving that much stock in a short time.
G
Guest
Guest
sammysilver said:
Bars are heaps cheaper than ASEs. If you buy from a reputable dealer, bars are fine.
I do see merit in owning some ASEs if one is American, I hear a few states over there have legalised them for buying goods in stores.
S
Silver bullitt
Guest
That's pretty much what I have been doing during the low price period.
I was previously buying low premium rounds and bars in larger amounts whereas now I am predominantly buying higher premium in smaller quantities.
A couple of reasons for this.
I am diversifying my stack by adding more numismatic items and also buying cautiously because of the instability and uncertainty in price.
Seems every time I buy at the bottom the bottom falls out even more
If the spot price drops after a purchase I would rather be caught out with a 20 to 40 ounce buy than with several kilograms.
Also the higher premium items seem much less vulnerable to wild price fluctuations and seem to hold or increase value regardless of the spot price.
Seems like a good idea, time will tell I guess.
As for ASE's and Maples, I actually don't have any of these. I'm not keen on them at all. Pretty over rated and over priced for what they are IMO.
I was previously buying low premium rounds and bars in larger amounts whereas now I am predominantly buying higher premium in smaller quantities.
A couple of reasons for this.
I am diversifying my stack by adding more numismatic items and also buying cautiously because of the instability and uncertainty in price.
Seems every time I buy at the bottom the bottom falls out even more
If the spot price drops after a purchase I would rather be caught out with a 20 to 40 ounce buy than with several kilograms.
Also the higher premium items seem much less vulnerable to wild price fluctuations and seem to hold or increase value regardless of the spot price.
Seems like a good idea, time will tell I guess.
As for ASE's and Maples, I actually don't have any of these. I'm not keen on them at all. Pretty over rated and over priced for what they are IMO.
.999 Silver is .999 Silver.....Its ALL Silver....Eventaully one day it will go to 'the moon' so who cares what you got? I love the Scottsdale 10oz stackable bars.....they fit nicely in a safe and you can carry them around when going to and from your pm dealer quite easily!
Pirocco
Well-Known Member
it's a question that has as much answers as different situations people are in. local markets interest. tax different rates based on legal tender face value. what to buy later. amounts to spend. price fluctuation based profit hunting. sell to dealers or not. In my region generics are near to unknown and also not sold by dealers. For a number of the listed reasons. Own interests. I'm willing to pay a premium for a design I and maybe others consider better.
Here junk sells way easier than bullion to nondealers. Put a set 90% junk coins for sale and some hours later you see 4-6 bids. Put a bullion tube for sale and no bids. Unless you put some 'believable' but too low start bid. Then some give it a try and the interest may draw some others. Drawback then is, you can't find such junk here in quantities on any moment (and thus price), that's only for bullion at dealers. So if you think lets swap some substantial fiat to junk the silver price is low, it needs luck. Last year it worked reasonable. This year, especially since the mid april price drop, the junk dried up, for the obvious reason. Forces you to bullion at dealers if you wanna benefit from the lower price, and in turn forces you to dealers when you wanna sell some.
There just isnt a universal answer.
Here junk sells way easier than bullion to nondealers. Put a set 90% junk coins for sale and some hours later you see 4-6 bids. Put a bullion tube for sale and no bids. Unless you put some 'believable' but too low start bid. Then some give it a try and the interest may draw some others. Drawback then is, you can't find such junk here in quantities on any moment (and thus price), that's only for bullion at dealers. So if you think lets swap some substantial fiat to junk the silver price is low, it needs luck. Last year it worked reasonable. This year, especially since the mid april price drop, the junk dried up, for the obvious reason. Forces you to bullion at dealers if you wanna benefit from the lower price, and in turn forces you to dealers when you wanna sell some.
There just isnt a universal answer.
Fat Freddy
New Member
1---Welcome to SS.
2---About the "what to buy when" thing...
If you're into stacking on a long-term basis, I think the most important bottom line is building a diversified, balanced stack -- part low-premium, govt-issued bullion coins; part
low-premium, private mint-issued bars/rounds; and part "semi-numis" higher-premium stuff. I'm usually working on building whichever portion of my stack is presently low,
but I'm always scanning the market and on the lookout for any good buys. When spot is down, all it really means to me is that I get more Ag for a given amount of money.
You referred to ASEs and Maples as "premium silver." They're not that--they're the core of the low-premium govt-issued coin part of my stack. They're the two most commonly
stacked coins among US bullion stackers. The Maples have far more milk spots and more mint/transit damage, but at their premium level that's not a big issue.
You're in the US, so state/local sales tax is an important issue. Bullion purchases of >$1K aren't subject to sales tax in the state where I live, so keeping my buys >$1K saves
me from having another 8% tacked onto my total. Online PM vendors may or may not charge sales tax, depending on where they are and where you live. That 8% difference
counts more to me than the "what to buy when" consideration.
2---About the "what to buy when" thing...
If you're into stacking on a long-term basis, I think the most important bottom line is building a diversified, balanced stack -- part low-premium, govt-issued bullion coins; part
low-premium, private mint-issued bars/rounds; and part "semi-numis" higher-premium stuff. I'm usually working on building whichever portion of my stack is presently low,
but I'm always scanning the market and on the lookout for any good buys. When spot is down, all it really means to me is that I get more Ag for a given amount of money.
You referred to ASEs and Maples as "premium silver." They're not that--they're the core of the low-premium govt-issued coin part of my stack. They're the two most commonly
stacked coins among US bullion stackers. The Maples have far more milk spots and more mint/transit damage, but at their premium level that's not a big issue.
You're in the US, so state/local sales tax is an important issue. Bullion purchases of >$1K aren't subject to sales tax in the state where I live, so keeping my buys >$1K saves
me from having another 8% tacked onto my total. Online PM vendors may or may not charge sales tax, depending on where they are and where you live. That 8% difference
counts more to me than the "what to buy when" consideration.
mmissinglink
Active Member
The problem with bullion Eagles and Maples is that because they are minted in the tens of millions quantity, when you want to resell, if you plan to sell to collectors or stackers, you will be competing against many people who are selling the same thing so everyone drops their price and whatever premium you paid will be lost. If you sell to a dealer, you will get paid less than spot with no premium. That's what I believe based on what I have been seeing and reading. Sure, these coins are widely recognized but you will have to wait till silver spot skyrockets in order to get more than what you ended up paying in most cases. Personally I think, if you want a common bullion, you might as well save some money and buy blobs at the lowest premium rather than Eagles and Maples which can cost 3 times or more the premium.
That said, I own some Eagles but I won't be buying any more. Not worth it in my view. Better to diversify.
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That said, I own some Eagles but I won't be buying any more. Not worth it in my view. Better to diversify.
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Sargeant Argent
New Member
If your a collector get coins if youre a stacker 10 oz bars and junk silver.
mmissinglink
Active Member
Sargeant Argent said:
I believe most people are both stacker and collector...not all people, most.
For those who are both, diversification is the best bet as others have also suggested. It is only the pure stacker that asserts that it doesn't matter what price to buy at, just so long as you buy regularly (I've heard that argument from several stackers). For those who actually care about pms as a form of investment, it's important to buy as low as possible and hold till you can make money on that investment....or hold so that your children will make money on that investment.
That's why folks like me LOVE it when silver and gold spot crumbles because it represents opportunity to invest. That said, in the very unlikely event that there should be a US dollar collapse, holding physical silver and gold may prove to be a better investment than the next physical asset...whatever that may be. I give it a 5-10% chance that in my lifetime there will be a US dollar crash.
I am not knowledgeable enough to know that if there is a US dollar collapse that necessarily gold and silver will skyrocket and I don't think it's even likely that a dollar collapse would result in a new gold / silver backed currency, but I suppose there's some chance of that occurring.
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Fat Freddy
New Member
My LCS buys ASEs for $1 over spot and I know a number of others who also do. They also buy private mint generic bars and rounds for $1
under spot. To be sure of what your local dealers &/or show vendors will pay for bullion, you need to find out directly from each of them.
under spot. To be sure of what your local dealers &/or show vendors will pay for bullion, you need to find out directly from each of them.