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Thread: How do you justify purchasing 1 oz Silver Bullion coins?... seeking advice

  1. #1

    Default How do you justify purchasing 1 oz Silver Bullion coins?... seeking advice

    Hi everyone, I have already recently given a brief history of myself and why we got back into stacking on the "Picture of your entire stack thread" (page 158... post #1575). As of the first of the year we have gotten back into stacking with a vengeance and have already acquired more than our original position in 2009. After many years of soul searching since selling off most of our original position in 2009... I had a pretty good idea of what I wanted us to purchase and focus on this time around.

    Our primary focus has been 1 oz gold eagles (can get for spot... have connection), 90% U.S. silver coinage, generic 10 oz silver bars (non collector names/types... low premium stuff only) and 100 oz silver bars (Johnson Matthey large format 100 oz bars... getting them for usually .69 to .79 per oz over spot). I have already been told several times that I should back off picking up so many 100 oz bars and that advice did not fall on deaf ears. I dramatically changed our long term silver acquisition goals to include no more 100 oz bars than we had already purchased with the long term goal of it making up no more than 10% of our silver position. From now on we will concentrate on 10 oz bars for bulk silver bullion.

    The one area that has haunted me and I have found no peace with is 1 oz silver coins... like US silver eagles, Libertads, etc. Last time around I had almost a monster box of SAEs and I remember when we sold them we took the hardest hit/loss premium wise on those. I already have multiple empty monster boxes with tubes just begging to be filled up but I am struggling to justify it this time around. I love silver eagles... Libertads and several other premium 1 oz silver coins but I have however been unable to convince myself to start bulk buying them again.

    I also have to admit that I have a soft spot for vintage silver bullion. I could not help myself from picking up at least a few items to help dress up my PM stash/display to help it look and feel more enticing to me. I unfortunately have an OCD type of collector mentality and I have had to tread through these shark infested waters oh so carefully. I am trying to limit that part of my PM portfolio to no more than 20% of its overall market value. In my mind I am starting to think that the high premium silver bullion coins like SAEs and Libertads also fall into this category and that I should not plan on purchasing so many like before.

    My problem with this way of thinking is that I like vintage silver bullion so much better than SAEs, Libertads, etc... so if I can only have up to 20% of "high premium collectible" silver in my PM portfolio... I would rather spend it on other vintage bullion silver bar items. This will leave me with almost no money for SAEs, Libertads, etc due to my 20% high premium collectibles rule (to try and protect me from myself).

    I would really like to know what kind of soul searching journey did you guys go through in prioritizing your silver purchases? Tell me your story. I am sincerely asking for advice concerning this dilemma. Please explain to me how you guys do or don't justify purchasing "new high premium bullion" in large quantities in your PM portfolio. Your input will be very much appreciated.

  2. #2
    Join Date
    Oct 2011
    Posts
    25,750

    Default

    with the many marketers now... i am on actually outside of forum...

    buying a single ASE or MB, at times the cost per coin is comparable.... at a times..

  3. #3
    Join Date
    Mar 2011
    Posts
    3,191

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    I like 'em, that's how I justify it. Additionally, have no plans to sell.

  4. #4

    Default

    My personal preference for one ounce silver bullion is either rounds or government minted coins. I'm not a fan of one ounce silver bars.
    Comments in my posts are my personal opinions and should not be considered investment advice. As always do your own due diligence (DYODD).

  5. #5

    Default

    Justify it by...not spending the fiat on drugs, booze, women, gambling and smokes/dip.
    Small business is the incubator of employment. As it declines, so too do opportunities for first jobs, second chances and economic independence.

  6. #6

    Default

    I hate coins mostly due to the premium and space they take up........I use to have a lot more coins but anytime we have a ASE shortage panic I take advantage of it and sell them locally so I can buy more kilo or 10 ounce bars. As a result my coin stack is currently down to 660 ounces with plans to get it down to around 300-350.

    For me the sweet spot is 5oz, 10oz, and kilo size bars. I was big into 100 ounce bars myself but the resale value took a huge hit this past 2 years so I backed off those unless I can get them for $1-2 under spot. I pretty much stick to 10 oz and kilo bars because the premiums are the lowest and they stack so nicely in my SDB's.

  7. #7

    Default

    Quote Originally Posted by JM_Silver_Addict View Post
    I hate coins mostly due to the premium and space they take up........I use to have a lot more coins but anytime we have a ASE shortage panic I take advantage of it and sell them locally so I can buy more kilo or 10 ounce bars. As a result my coin stack is currently down to 660 ounces with plans to get it down to around 300-350.

    For me the sweet spot is 5oz, 10oz, and kilo size bars. I was big into 100 ounce bars myself but the resale value took a huge hit this past 2 years so I backed off those unless I can get them for $1-2 under spot. I pretty much stick to 10 oz and kilo bars because the premiums are the lowest and they stack so nicely in my SDB's.
    JM, what difference do you see in reselling the Kilo bars vs. 100 oz vs 10 oz? I was thinking of starting to pick some kilo bars up but had yet to do any resale research.

  8. #8

    Default

    reverse for me. I can't eat the 15-20% premium on SML and ASE. Also 1 oz round and coins in tubes take up space.
    100 oz beginning to look more reasonable to stack. Mike Maloney talks about number of MB of silver that could buy a house or land in the future.
    Why stack 1 oz round/coin to buy real estate? At gold/silver ratio ~70, 1 oz gold = 70 oz Ag which is ~ 100 oz Ag bar.
    Stacking 1 oz Ag is like stacking 0.5g gold.

  9. #9

    Default

    Quote Originally Posted by dirtyharriet View Post
    JM, what difference do you see in reselling the Kilo bars vs. 100 oz vs 10 oz? I was thinking of starting to pick some kilo bars up but had yet to do any resale research.
    Generic kilos will always bring spot when selling and rare kilos like Johnson Matthey, credit Suisse, Engelhard etc.....Will bring $5-10+ over spot. 10 ounce bars will also bring spot unless again its some rare bar which will bring well above spot. 100 ounce bars are the worst right now everyone around me pays $1-4 under spot so I stay away.

  10. #10

    Default

    Quote Originally Posted by dirtyharriet View Post
    Hi everyone, I have already recently given a brief history of myself and why we got back into stacking on the "Picture of your entire stack thread" (page 158... post #1575). As of the first of the year we have gotten back into stacking with a vengeance and have already acquired more than our original position in 2009. After many years of soul searching since selling off most of our original position in 2009... I had a pretty good idea of what I wanted us to purchase and focus on this time around.

    Our primary focus has been 1 oz gold eagles (can get for spot... have connection), 90% U.S. silver coinage, generic 10 oz silver bars (non collector names/types... low premium stuff only) and 100 oz silver bars (Johnson Matthey large format 100 oz bars... getting them for usually .69 to .79 per oz over spot). I have already been told several times that I should back off picking up so many 100 oz bars and that advice did not fall on deaf ears. I dramatically changed our long term silver acquisition goals to include no more 100 oz bars than we had already purchased with the long term goal of it making up no more than 10% of our silver position. From now on we will concentrate on 10 oz bars for bulk silver bullion.

    The one area that has haunted me and I have found no peace with is 1 oz silver coins... like US silver eagles, Libertads, etc. Last time around I had almost a monster box of SAEs and I remember when we sold them we took the hardest hit/loss premium wise on those. I already have multiple empty monster boxes with tubes just begging to be filled up but I am struggling to justify it this time around. I love silver eagles... Libertads and several other premium 1 oz silver coins but I have however been unable to convince myself to start bulk buying them again.

    I also have to admit that I have a soft spot for vintage silver bullion. I could not help myself from picking up at least a few items to help dress up my PM stash/display to help it look and feel more enticing to me. I unfortunately have an OCD type of collector mentality and I have had to tread through these shark infested waters oh so carefully. I am trying to limit that part of my PM portfolio to no more than 20% of its overall market value. In my mind I am starting to think that the high premium silver bullion coins like SAEs and Libertads also fall into this category and that I should not plan on purchasing so many like before.

    My problem with this way of thinking is that I like vintage silver bullion so much better than SAEs, Libertads, etc... so if I can only have up to 20% of "high premium collectible" silver in my PM portfolio... I would rather spend it on other vintage bullion silver bar items. This will leave me with almost no money for SAEs, Libertads, etc due to my 20% high premium collectibles rule (to try and protect me from myself).

    I would really like to know what kind of soul searching journey did you guys go through in prioritizing your silver purchases? Tell me your story. I am sincerely asking for advice concerning this dilemma. Please explain to me how you guys do or don't justify purchasing "new high premium bullion" in large quantities in your PM portfolio. Your input will be very much appreciated.
    You seem pretty cool, and I could tell that you have the "collector mentality" before you even said you did. We collectors are often highly detailed in our thinking and preferences regarding what and why we collect what we do and we are also often OCD about it. I've been this way since my teen years collecting comic books and now at 53 I am here again with silver coins, having somewhat changed my focus to this from comics a few years ago. With that said, we all have our reasons for why we prefer what we do, and as much as silver eagles are not for you, others have valid reasons why they prefer them. You are right that the premiums are higher on these, but at least in these parts (Pacific Northwest) they sell back to the shops at $1.00 over whereas 10oz and 100oz sell back for 75 cents under. So speaking premiums only it is a wash. But look at it this way, even if you are better off over the long haul as much as $1.50 per oz. buying generics, as long as we gain nice appreciation, is that 1.00/1.50 going to really make a big deal if you are selling down the road at $40/50/60? Also considering all that time you will have been holding silver items that you gain more personal pleasure from owning. Consider the extra premium, if any when considering buy/sell spread, as "entertainment costs". Generics are boring, but a few tubes of silver eagles, Libertads, kookaburras and pandas are kinda fun. Then, like me, you also enjoy the numi/vintage silver (I'm in the same boat here with my Morgans). Geez, spending $30 on a nice AU or UNC Morgan gives me much more pleasure than spending $20 on an eagle. So there is this hierarchy between preference vs. cost, and for me the passion often, if not most of the time beats "the better deal per oz.". So my suggestion is the same I give to myself, indulge in your passion and collecting idiosyncrasies while still seeking out the deals and weighing the love vs. cost equation with each purchase.

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