Regarding Silver

[Kharan]

I've been looking into acquiring some silver and have done some preliminary reading, but much of it is contrary or information providing the "best sellers". I am wary of most of this information considering the kind of operations we see with gold (gold is a bit too pricey for me..!).

What are some of your favorite methods of silver acquisition? Reliability, market rates.. ? All of my silver is in US minted coins prior to 1965, but I'd like to acquire more.

Thanks for the information in advance!

 

[_b_]

If you are looking for a relatively small amount of silver, a few ounces here or there, the best place is probably your local coin shop. Acquiring it is pretty easy, just walk in, pay cash, walk out with silver. Your pre-1965 US coinage (90% silver) is a very good start and a good thing to have; nothing wrong with getting some more of it. You can buy silver online from dealers like APMEX, Provident Metals, Midas Resources, Tulving (if you want A LOT of silver), Scottsdale Silver, Eastern Numismatics, and countless others - this list is just what popped into my head. You can also find silver on ebay, craigslist, coin collecting message boards, and coin shows, where you can often find items at or near spot price (sometime less!).

Other common forms are 1 oz coins from major government mints, like American Silver Eagles (ASE) and Canadian Silver Maples, or generic silver from well known private mints like NTR, APMEX, and the like. Coins like the ASE and Maples will carry a higher premium than the generic coins and bars, so you get more silver for your money with generics. The coins from government mints have very good reputations and are considered highly trustworthy, and therefore carry a higher premium.

Also, the larger the unit of silver your buy the lower the premium will be. So, buying one 10 oz bar would be cheaper than buying ten 1 oz coins. That being said, many sellers will give you a lower rate based on your total order, so you could buy the ten 1oz coins for the same premium as the 10oz bar if you buy them all at the same time.

I would take a look at the APMEX website since it is pretty well done and easy to navigate and see the different options: http://www.apmex.com/Category/503/Silver.aspx
Their prices, when shipping is added, aren't a steal and you can find things for less. Most of the time my local coin shop is less since there is no shipping fee. It is a good place to look at what is available.


I wasn't sure exactly what kind of information you were looking for, so hopefully this helps you our and sorry if this is a repetition of things you already know. pmbug.com has a lot of good info for getting into precious metal acquisition/investing.

 

[Seraphim]

If you're future projections have you paying for groceries and gas with silver change, then get the American pre 1965 US mint coins...AKA "junk silver". (not so junk after all).

OR

If you plan on using it to purchase something like land/a house...get bullion...bars and modern 1 oz Mint coinage.

 

[Kharan]

This is all really helpful information, thanks for both of you.

 

[Kharan]

Though for example, for all purposes I can tlel this coin is basically the same as say the maple sans design and manufacturer.

http://www.apmex.com/Product/55208/1_oz_Sunshine_Minting_Silver_Round_999_Fine_.aspx

But it is significantly cheaper. Is there something to know about this one? Or is it just within the realm of regular disparity?

Edit Sorry on the double post.

 

[RipperNT]

Though for example, for all purposes I can tlel this coin is basically the same as say the maple sans design and manufacturer.

http://www.apmex.com/Product/55208/1_oz_Sunshine_Minting_Silver_Round_999_Fine_.aspx

But it is significantly cheaper. Is there something to know about this one? Or is it just within the realm of regular disparity?

Edit Sorry on the double post.

Allot of people think that Government mint coins like the Silver Eagle, Canadian Maple Leaf etc are better values, safer and carry some numi value. Also Johnson Matheny and Englehard will carry a little more over spot value just because of the brand recognition, and some people I guess like that the bars are serial numbered. All honesty though private mints just aren't as favored as Silver Eagles, Maple Leafs etc so they command a lower spot price. Some will say Silver is Silver, others say different. I buy mostly Silver Eagles, and also buy allot of 1oz Sunshine Mints bars. Maple Leaf = Canadian Mint coin and that one is a Privately minted coin by Sunshine. Sunshine is reputable mint so they are fine and shouldn't have probs getting close to spot. but basically you pay a little more over spot for the Government mint and get a little more also if you sell it. Look at the buy prices also on APMEX and my local Coin shop pays just about on equal. Usually get a little more for my Silver eagles then my Apmex rounds.
Chinese Pandas are coins that I buy just because I collect them but if just for investment purposes I would say not to touch them as most people will of course only sell for spot and they are generally priced at least 50% over spot, and honestly allot of shops won't take them at all as they think Chinese Coins are highly counterfeited. I'm 80% Silver Bullion Stacker and 20% Numi collector though and have made descent money selling Pandas, but it's to a small fraction of collectors. Also, I just like them.

 

[RipperNT]

Though for example, for all purposes I can tlel this coin is basically the same as say the maple sans design and manufacturer.

http://www.apmex.com/Product/55208/1_oz_Sunshine_Minting_Silver_Round_999_Fine_.aspx

But it is significantly cheaper. Is there something to know about this one? Or is it just within the realm of regular disparity?

Edit Sorry on the double post.

Just one thing as I buy a good portion of my coins from APMEX is that you get it insured shipping and the cost is very high. If you buy 3 coins for a hundred bucks, and you pay 15 dollar for shipping that is a pretty big hole. I usually don't buy unless I have significant stake, but have been lucky enough to have a coin shop that I will sell for about the same price. Just have to have Cash, so I would honestly look at some local shops and most will have a display of the going rates. Silver just expect 3 dollars over spot. I don't know enough about Junk coins, which I wish I did though if anyone has any sites that will show the percentage and what coins to go after!

 

[danda]

Local shop. One ounce silver rounds .999. $2 over spot is about right. If you are paying more, might want to look elsewhere. Figure out what your weekly budget and then go to the shop each week and buy the number of rounds that fit your budget. This way, you are dollar cost-averaging. You will pay a little more when the market is up, and you will pay less when it is down. But you will be happy when it moves in either direction. Lower means you pay less and get more. Higher means that what you already bought is worth more.

I've been looking into acquiring some silver and have done some preliminary reading, but much of it is contrary or information providing the "best sellers". I am wary of most of this information considering the kind of operations we see with gold (gold is a bit too pricey for me..!).

What are some of your favorite methods of silver acquisition? Reliability, market rates.. ? All of my silver is in US minted coins prior to 1965, but I'd like to acquire more.

Thanks for the information in advance!

 

[limerickman]

Advice on 100 oz bars?

Need some advice people:

I’m living in Ireland so I can only sell my silver to 1 or 2 shops in the country. I want to get a 100 oz bar and be sure that the brand of bar is recognizable to a local coin shop. Here is a link to gainesville coins where I have purchased before, can someone make a recommendation for me?

http://www.gainesvillecoins.com/Sea...e=&cats=&country=&metal=342&weight=319&type=3

Now if I buy 1oz silver eagles there won’t ever be a problem trading in my silver but I can get more silver for my money for a 100 oz bar. What are your thoughts people?

Thanks

 

[Steven Douglas]

Now if I buy 1oz silver eagles there won’t ever be a problem trading in my silver but I can get more silver for my money for a 100 oz bar. What are your thoughts people?

For me it's not just who I can trade with, but how much I am forced to liquidate at one time. The little extra silver I might get makes it not worth it to me, since buying a hundred 1 oz. rounds at a time usually gets you the better deal anyway. It might make no difference to you, if you're buying enough silver that a single 100 oz. bar feels like change to you anyway, but for me the large ingots are a pain.

 

[Kharan]

For me it's not just who I can trade with, but how much I am forced to liquidate at one time. The little extra silver I might get makes it not worth it to me, since buying a hundred 1 oz. rounds at a time usually gets you the better deal anyway. It might make no difference to you, if you're buying enough silver that a single 100 oz. bar feels like change to you anyway, but for me the large ingots are a pain.

Would it (does it I guess) really come out less to buy 100 singles as opposed to a single bar? Hmm..

Ampex shipping doesn't seem that bad if your order is several hundred dollars, assuming you do the wire and not the card. I am really looking in the realm of 5-10 oz acquisition at a time, but I suppose I could do more if it made sense. I am open to coins, bars, junk silver, whatever. I would like more in my collection of junk silver, but these others are of interest to me. I have a couple 1OZ silver plates and coins, but that's the extent.

-
As a side note, do any of you invest in gold? If so, how do you go about that from a non wealthy perspective? Fractions of ounces? etc.

 

[unknown]

Though for example, for all purposes I can tlel this coin is basically the same as say the maple sans design and manufacturer.

http://www.apmex.com/Product/55208/1_oz_Sunshine_Minting_Silver_Round_999_Fine_.aspx

But it is significantly cheaper. Is there something to know about this one? Or is it just within the realm of regular disparity?

Edit Sorry on the double post.

Certain 1 oz coins are more recognizable so they carry a premium. Generally they are easier to sell and or trade.

I usually buy from Kitco:

https://online.kitco.com/bullion/completelist_USD.html

$33.36 for a Silver Maple...errr looks like I need to make a buy.

The same coin at Apmex is selling for $35.34.

Between shipping and insurance I can usually squeeze out an extra coin at a local store but I may not get the price I want since I have to be there in person. Silver just hit $26/ounce but bounced so quickly, I missed out.

 

[Kharan]

Here's a hypothetical. If I were to have hundreds of dollars (4-7 maybe?) sitting around in change, would it make sense to cash this in and instead have the equal amount of silver just sitting? The US currency in coins is just inflation so lowering in value.. wouldn't that make sense? I mean otherwise this money would sit and do nothing, I don't need it. Is this method of thinking flawed?

 

[Steven Douglas]

Here's a hypothetical. If I were to have hundreds of dollars (4-7 maybe?) sitting around in change, would it make sense to cash this in and instead have the equal amount of silver just sitting? The US currency in coins is just inflation so lowering in value.. wouldn't that make sense? I mean otherwise this money would sit and do nothing, I don't need it. Is this method of thinking flawed?

It's not flawed. It's perfect, so long as you're not talking short-term investment expectations. That is PRECISELY the kind of money you want stuffed into your mattress, just sitting around, because it really is a store of value. Just project yourself back in time, and ask yourself how it would have worked out for you had you done this from any one decade to the next - ignoring all the volatility, dips and peaks, along the way.


Incidentally, you only get the APMEX savings for wire transfers on purchases over $2k (try it in your cart that way, and it will tell you). That's the reason you're saving so much doing it that way. It's not the method, but the minimum requirement for that method.

 

[Kharan]

Ah, I don't really feel comfortable making piurchases over 500 or so at the moment. Or in that area, so I'll have to stick away from that for now.

And yes, that's what the new silver from the change would be - it would be in the same position, sitting. You are correct in your analogy, I love it. Thanks for the affirmation.

And actually, I have at least as much again in dollar coins jut sitting.. But all kindso f mix, the new presidentials, the old indian ones (2000) the new indian ones... There's no real value in any of these right? They'd be better off as silver than me collecting or what? Also some old Susan B's. Plenty of those. Maybe those to hold on to? Or once again no real value aside from maybe a currency collector in the future?

 

[_b_]

As a side note, do any of you invest in gold? If so, how do you go about that from a non wealthy perspective? Fractions of ounces? etc.

You can buy gold in fractions down to 1/20 ozt in some forms, Pamp Suisse and some others sell down to 1g bars. Like with silver, the smaller the denomination the higher the premium (proportionally). Some say buy gold in 1ozt or larger, but you'll have to decide what you want to hold. Sometimes you can find deals on fractionals that put the premium more in line with 1ozt items.

 

[pmbug]

Would it (does it I guess) really come out less to buy 100 singles as opposed to a single bar? Hmm..

100ozt silver bars generally carry a premium ranging from $1.29 to $1.99 depending upon brand and size of purchase. 1ozt silver ingots/rounds (ie. generic/private mint productions, not US Mint Eagles / Canadian Mint Maples) generally carry premiums in the same range, although you can occassionally find a sale where the premium drops to $0.99 over spot.

If you are buying *huge* quantities of metal, the larger bars are easier to store, but they also give you less flexibility in use / selling.

 

[Len Larson]

Here's a hypothetical. If I were to have hundreds of dollars (4-7 maybe?) sitting around in change, would it make sense to cash this in and instead have the equal amount of silver just sitting? The US currency in coins is just inflation so lowering in value.. wouldn't that make sense? I mean otherwise this money would sit and do nothing, I don't need it. Is this method of thinking flawed?

Check out this link: coinflation.com
You might want to save your nickels just to have another option and more liquidity.

 

[Kharan]

Check out this link: coinflation.com
You might want to save your nickels just to have another option and more liquidity.

Great tool, but none of my nickels are prior to 65 in that bucket, aall the coins pre 65 are screened out by me before entering the change jar. Thanks for the link!

I went to a dealer today, but they wanted 45 a piece for silver rounds and I said no thanks.....

 

[Badger for Paul]

It all depends on how much you have to invest. Some things to think about:
-If your state does not charge sales tax on bullion purchases, then for a small amount, a local shop may due. If you live in a state where sales tax is charged, it may not be worthwhile.
-Bulliondirect allows you to make small incremental purchases and have them delivered all at once.
-For most online services, the shipping and handling will not be worth it for small silver purchases.
-Although many will probably rip on me for suggesting it, buying a silver or gold/silver stock that actually holds physical metals (like PHYS, CEF,etc. . . and not GLD or SLV) may be a better option with a low-commission broker if you are just looking to get a little exposure to the metals space.

The truth is, that for small silver purchases, your emphasis should be on minimizing sales tax, shipping and handling, or commissions since those will be a significantly increased source of costs relative to your total purchase/investment compared to investing $1700 for an ounce of gold.