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

  1. #11

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    Quote Originally Posted by JM_Silver_Addict View Post
    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.
    Apparently it depends on where you are. Around here all generics (including kilos and 10oz) sell for 75 cents under. So your "always" is far from the truth. And most do not seek out the "rare" kilos but rather just buy the new stuff. If you are dealing in the rare stuff that is another matter entirely, but many who stack just buy new off the shelf or at least do not deal in the rare stuff.

  2. #12

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    Quote Originally Posted by SilverStocker View Post
    Apparently it depends on where you are. Around here all generics (including kilos and 10oz) sell for 75 cents under. So your "always" is far from the truth. And most do not seek out the "rare" kilos but rather just buy the new stuff. If you are dealing in the rare stuff that is another matter entirely, but many who stack just buy new off the shelf or at least do not deal in the rare stuff.
    The coin shops around here are brutal... they don't care what it is... you get less than spot if you sell bullion. It does present some buying opportunities on rare occasions because they sell the same way... it's all about weight weight weight when it comes to bullion. They only want to pay below spot bullion prices for even collector bullion pretty much no matter what it is. I already know I will have to sell any collector bullion on ebay myself... otherwise I take guaranteed bloodbath.

  3. #13

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    Quote Originally Posted by SilverStocker View Post
    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.
    Man if I ever put a picture of my stack display on this site I will become the poster child for OCD and you guys will probably laugh me out of here. Even my carefully acquired original mint boxes are color coordinated in my display. My PM safe display is multi shelf, multi tier and multi depth using mint boxes as risers/storage. I have all of my 90% in $100 face quantities using Crown Royal Reserve bags... the rarer more expensive ones that are waaaaaay nicer than the regular CR bags but cost 8-10 times as much some times. Even in my 90% I always do $10 in silver dollars (usually half Morgans... half Peace)... $20 in halves... $30 in dimes and $40 in quarters. When I collect a brand of bars... I will want to try and do a symmetrical display of all of the weight different sizes using custom made display stands (5oz, 10oz, 25oz, 50oz and 100oz) and a variety of poured and struck if they are offered. You want to talk OCD... then I am your girl... LMAO.

    As far as selling to the LCS goes... I am trying to keep no attachment feelings for at least 80% of my PM portfolio. The first time I bought way too much PM collector stuff at higher premiums and I was attached to too much of it. I do not want to repeat that mistake. I think I will reduce my long term plan with 1oz coins to 4 monster boxes over 10 years... 1 ASE, 1 Libertads... and the rest probably mixed tubes (each tube full of one type). For me PM stacking needs to be at least somewhat fun and aesthetically pleasing so I will enjoy this journey and stick with it.. BUT.. I never want to lose sight that for me these are TOOLS that I may need to wield/use someday. I want be able to sell or trade most of my position at any time as it suits my best interests without any attachment or regrets. This is why 80% of my stack would have many of the guys on here bored to tears.

  4. #14
    Join Date
    Oct 2011
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    25,750

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    Quote Originally Posted by dirtyharriet View Post
    The coin shops around here are brutal... they don't care what it is... you get less than spot if you sell bullion. It does present some buying opportunities on rare occasions because they sell the same way... it's all about weight weight weight when it comes to bullion. They only want to pay below spot bullion prices for even collector bullion pretty much no matter what it is. I already know I will have to sell any collector bullion on ebay myself... otherwise I take guaranteed bloodbath.
    huh?...what??..<<>>no bloodbath if you buy low and sell high.. think deeper and think why some stack..some keep it as hedge....even large collections of varied bullion preferences....
    stack and enjoy...........its silver and gold, not beanie babies or avon bottles, or truckstop hats......

  5. #15

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    Quote Originally Posted by SilverStocker View Post
    Apparently it depends on where you are. Around here all generics (including kilos and 10oz) sell for 75 cents under. So your "always" is far from the truth. And most do not seek out the "rare" kilos but rather just buy the new stuff. If you are dealing in the rare stuff that is another matter entirely, but many who stack just buy new off the shelf or at least do not deal in the rare stuff.
    Lol well obviously it depends on area/region........But if you can't find someone to pay spot you aren't looking hard enough. I live in socal and we have thousands of butchers here trying to rip you off just like any other place in the country but I've been to enough places to find the high volume guys that pay spot. Any above spot deals I do are strictly private deals with people I meet at shops/bullion dealers.

    Most don't seek out rare bars well sure just like most probably don't seek out mass produced over priced trendy bullion but there is a market for rare bars and I exploit it well. Noobs don't want rare bars but ask a seasoned stacker if they want a poured 20 ounce TD Bank Johnson Matthey bar or poured kilo Engelhard bar.......

  6. #16

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    I started out buying ASE's (or is it SAE's?). Love them. At my LCS, the premium is high, but the sell-back loss is low. So, I get back more of that premium than I do on generics or other silver...then again, I pay a little more up front. So, where do you experience the most pain?...a high premium up front?...or a high sell-back loss when you sell?

    I was buying SAE's by the tube, and I'm due to pick up a tube of 2017's...but the high premium is amazing. I pay more absolute premium on a roll of SAE's than I do on a 1 oz. AGE. I like the SAE's, but I'm just not sure they make sense for me in place of gold coins that have both lower premiums and lower sell-back loss. (I don't play the GSR, only the DGR...the dollar-to-gold ratio).

    And, yet, the OCD in me really wants another tube of SAE's...my collection is incomplete without one.

  7. #17

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    I haven't seen the need to sell PM since the '80's. Stacking is for long term. ETF trading has less fees that trying to sell PM to a local dealer if trying to buy low, sell high cycles. But now that I've said that I guess I'll be accused of trying to time the market once again.

  8. #18
    Join Date
    Oct 2011
    Posts
    25,750

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    Quote Originally Posted by Dmitri View Post
    I started out buying ASE's (or is it SAE's?). Love them. At my LCS, the premium is high, but the sell-back loss is low. So, I get back more of that premium than I do on generics or other silver...then again, I pay a little more up front. So, where do you experience the most pain?...a high premium up front?...or a high sell-back loss when you sell?

    I was buying SAE's by the tube, and I'm due to pick up a tube of 2017's...but the high premium is amazing. I pay more absolute premium on a roll of SAE's than I do on a 1 oz. AGE. I like the SAE's, but I'm just not sure they make sense for me in place of gold coins that have both lower premiums and lower sell-back loss. (I don't play the GSR, only the DGR...the dollar-to-gold ratio).

    And, yet, the OCD in me really wants another tube of SAE's...my collection is incomplete without one.
    haa, nothing wrong with the "collectors mind"........still you are collecting a tangible, fungible asset/object...an asset that has upside cycles and always is a hedge..

    as far as buying and selling and holding and paper trade.. ???

    yes on the core, keep it expand and or cull or uptrade to the stack..
    yes to flipping if you are privy or work hard on a source to buy low and sell high, and put in the work needed to do so...
    yes on paper trading... i finally learned it is not rocket science the last few years..

  9. #19

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    Quote Originally Posted by dirtyharriet View Post
    The coin shops around here are brutal... they don't care what it is... you get less than spot if you sell bullion. It does present some buying opportunities on rare occasions because they sell the same way... it's all about weight weight weight when it comes to bullion. They only want to pay below spot bullion prices for even collector bullion pretty much no matter what it is. I already know I will have to sell any collector bullion on ebay myself... otherwise I take guaranteed bloodbath.
    I remember back in 2011 toting around a few 100 oz bars in a canvas grocery bag to a few local LCS, I remember taking them out at one shop and putting them on the counter the owner looked at me like I just exited a space ship. Since I started buying back in 2014 largest bar I will purchase is 10 oz.
    Comments in my posts are my personal opinions and should not be considered investment advice. As always do your own due diligence (DYODD).

  10. #20

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    Here's the point, no one can say , for you, silver coins are a better buy or not.
    For me to hold a bunch of silver eagles and maple leafs, at the right price is no big deal.
    when bars go on sale (low premium) I purchase also....
    No need to push me one way or another, just buy when deals seem worth it, be it a 10 oz bars or rolls of maples

    Kilos tend to not get more than other large bars, and upfront carry a premium, or I would buy those. 100"s are a percent under spot traded. these are fine if bought at the right $$$
    Last edited by Mytal; 02-10-2017 at 07:54 PM.
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