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Thread: Silver Round VS. Canadian Maple Leaf

  1. #1

    Default Silver Round VS. Canadian Maple Leaf

    Hi guys,

    I see that rounds are cheaper than the coins and I'm not sure which to purchase. Can anybody advise?

    Thanks in advance.

  2. #2

    Default

    I think it's a matter of preference, and I've bought both at different times.

    When I first saw PM's as a good place to be putting some wealth, I focused on getting as much as I could afford for the cheapest possible price. I bought big ugly industrial bars, small bars, rounds and even some "art" bars I found at a decent price.

    After I'd amassed enough to feel I had a decent "core" exposure to PM's I started buying more coins. Now I buy almost exclusively coins.

    Coins are most likely to be widely recognized, accepted and easiest to sell when the time comes. You pay for that in the form of higher premiums.

    Rounds allow you to buy more silver for the same dollar investment.

    Pick yer take
    A mountain tree if it would see
    The far horizons and the stars,
    May never know a sheltered place
    Nor grow symmetrical in grace.
    Such trees must battle doggedly
    the blasts, and bear the scars.
    ‑Loyal Marion Thompson

  3. #3

    Default

    Are you going to hold them forever, or sell them sometime?

    If you're going to sell them, are you happy with the range of options you've got for selling generic rounds?

    There's no "right" answer to those questions, but they are the questions you need to ask yourself.

  4. #4

    Default

    Quote Originally Posted by Stormdancer View Post
    I think it's a matter of preference, and I've bought both at different times.

    When I first saw PM's as a good place to be putting some wealth, I focused on getting as much as I could afford for the cheapest possible price. I bought big ugly industrial bars, small bars, rounds and even some "art" bars I found at a decent price.

    After I'd amassed enough to feel I had a decent "core" exposure to PM's I started buying more coins. Now I buy almost exclusively coins.

    Coins are most likely to be widely recognized, accepted and easiest to sell when the time comes. You pay for that in the form of higher premiums.

    Rounds allow you to buy more silver for the same dollar investment.

    Pick yer take
    Thanks Stormdance, that's a good advice, I'm just so confused! I don't see why the rounds and the coins should differ in their value, it contains same amount of silver, right? I guess it's the mintage that differentiates. I am leaning toward the coins myself. Thanks again!

  5. #5

    Default

    Quote Originally Posted by The Quiet Type View Post
    Are you going to hold them forever, or sell them sometime?

    If you're going to sell them, are you happy with the range of options you've got for selling generic rounds?

    There's no "right" answer to those questions, but they are the questions you need to ask yourself.
    Hi Quiet Type, I am considering to hold for the worst time. Just in case the dollar actually does lose all of its value like the pessimistic economists are saying. What would you recommend in that case?

  6. #6
    Join Date
    Feb 2010
    Posts
    2,484

    Default

    Quote Originally Posted by gsseeker View Post
    I don't see why the rounds and the coins should differ in their value, it contains same amount of silver, right? I guess it's the mintage that differentiates. I am leaning toward the coins myself. Thanks again!
    There are a few reasons. First, the coins are backed by the government -- if they aren't .999 fine, or if they are underweight, the government will (presumably) fix the problem. Second, they have a face value that they are guaranteed to be worth (e.g. 1-ounce silver Maples will be worth at least CDN$5, even if silver went to $1/ounce). Third, they are more recognizable than generic rounds. Fourth, generic rounds would be more likely to have a need to be tested than the government coins (e.g. if fakes became rampant).

    Although they cost more, you also get a higher premium on them when selling (at one dealer, there's a $.60-$.70 spread for coins, and $.95 for rounds). Dealers almost always pay below spot for generic rounds, and above spot for coins.

  7. #7

    Default

    Hello Gsseeker, and welcome to the forum,

    Silver comes in many forms, there are lots of different coins and rounds/bars.

    My experience is much the same as Stormdancer's.

    At first you have that "OMG, I have no PMs!" panic and want to start bulking up, generic rounds and bars are a good way to do this, my first purchase was a stack of 20 buffalo rounds. Next 20 walker rounds, 999 generic bullion. With generic, for the most part "silver is silver". Some bars fetch a premium, but most bullion is chained to spot. If spot tumbles to $5, that's what you're stuck with, a coin will have a premium to pad it's descent.

    Now "coins" are a different animal, they are issued by a govt., they also have a face value (except the Libertad, it has no face value.) They are an ounce of fine, but were not meant for circulation, they are for collectors.

    Coins come at a premium for good reason, take delivery of a couple Maples and you will see a dramatic difference in the quality as opposed to generic rounds. They are not "just silver".

    The mintage, the popularity, the aestetics, (what someone is willing to pay) these factor into the price along with spot, A Maple might go for $2.50 over spot, a Brittania might go for $35 on up.

    A Maple is one of the three lower tier bullion-coins, The Maple, the Philharmonic and the Silver American Eagle. The premiums are pretty close, usually $2-$3.

    From there you might look at Kooks, Koalas, Lunars, Libertads, and on up to Pandas and Britts. (beware of Pandas, there is mass counterfieting going on for all coins, but especially Pandas)

    There are lots of coins out there, you will have fun building your stack and figuring out what your favorites are.

    So, my advice would be to start with some generic and by all means gravitate towards coins.

    My own purchasing strategy is to buy generic only at dips in spot, no way would I buy @$18 unless I was pretty sure that was the trough.

    When spot is higher than I'd like to pay for bullion, what is left. Higher premium items, nice coins.

    Also, don't forget Morgans and Peace dollars, they are pretty stable and it is hard to go wrong with common date Morgans, this is what I buy at times of indecision, the old reliable standard.

    Good luck and get started as soon as you can, I would stick with large online dealers at least for awhile.

    Thx
    Last edited by Thx1138; 03-05-2010 at 07:04 AM.
    http://i573.photobucket.com/albums/ss171/KitcoKontests/Trophies/Single%20Trophies/SilverTrophy1.jpg

  8. #8

    Default

    Quote Originally Posted by gsseeker View Post
    Thanks Stormdance, that's a good advice, I'm just so confused! I don't see why the rounds and the coins should differ in their value, it contains same amount of silver, right? I guess it's the mintage that differentiates. I am leaning toward the coins myself. Thanks again!
    The answer to your question is very simple - faith has a premium. The government issued bullion is more liquid and more costly (slightly) because people recognize the coin, its mintage, features, known weight, size, etc. which collectively are used as an indicator of authenticity. It is relatively easy to spot a fake coin that copies one issued from a known mint because the variables noted above can be measured (i.e. density, volume, etc. are constant) because every coin is nearly identical. This cannot be easily done for PM's that were molded by unknown manufacturers.

    In today's fraudulent world, it pays to know that the PM you're acquiring is genuine. The best way to be sure is to stick with bullion coins minted by recognizable issuers. People generally know this, and there is a faith-based premium, albeit a rather small one.

  9. #9

    Default

    You guys are so awesome! Thanks alot.

    Thx1138, you are reading my mind, yes, I am in that panic mode and feeling very stupid that I was so blind to the commodity market. I have no PM and limited cash. I want to stack up as soon as possible but the price seems so high! I'm just waiting for the right time *like what happened early Feb to unload little cash that has been sitting around earning below 1% in my savings account. If I were smart enough to buy silver or gold earlier.... O, let me not dwell in the past! I guess coins are the best way to go about.

    Thanks bunch again!

  10. #10
    Join Date
    Feb 2010
    Posts
    27

    Default coin v round v bar

    Here in the UK silver is taxed at 17.5%. I have been gently stacking 1oz rounds from Guernsey, and have found a round that is .999 and 31.78gram. This works out at 2p a gram LESS than silver grain bought by the Kilo in the UK. Still 2.50 over spot, but the cheapest way to get physical. I've also bought a couple of Maples, Buffs, APMEX, and NWT Stagecoach bars. I use 'em for poker chips at the minute, but with the POS on the up, that may have to stop.

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