I got started getting my feet wet back in Nov 2010. I am up to 85oz now which contain Bars, ASE, Maples, Philharmonics, Generic rounds and Lunars. I was thinking the ASE may be the way to go but now I am unsure. My plan is to buy and hold for at least 10 years. So my question is what is the better buy for a person like me? thanking you in advance.
Depends on how much time you're willing to take when it comes to resale... ASE's have way more liquidity than anything else. If you don't mind taking a bit more time selling, you should be fine getting whatever you can get for close to spot, as long as it's easily recognizable as bullion.
Welcome to CoinTalk. ASEs cost more but are easier to resell at spot+ prices. Coins produced by national mints will probably always command some premium to generic silver. More importantly, you should not set a holding period for yourself such as 10 years. You are already very late to the party which will most likely end long before that.
Sound like your off to a good start.but one thing Generic silver rounds,I would not buy anymore of them.stick with official minted silver items:thumb: *generic silver rounds maybe just plated in silver .
There is no telling where the price of silver will be in 10 years. For all we know, it could drop back to $15 an ounce. The real question should be, "How much of your investment is disposable income that you can afford to lose?" Chris
Sounds like you are off to a good start with some really nice silver. My dealer does not care if the stuff he buys is generic or from a government mint. Although generally recoverable there are those who think the premium you pay for ASE's for example may evaporate if the price were to move significantly higher. Having said that, ASE's and the others you mentioned are super nice and widley recognized pieces have an obvious advantage. I would agree that you not hold for time but for an event (i.e. when I make a 25% gain, when the price reaches $35 etc.). Good luck!
You do realize self-promotion is against the rules of CT, right? And that is, more or less, self-promotion.
Around me ASEs alway sell for spot or better, and have been as high as spot +$2. Generic silver always sells for some percentage discount. Someday the US Mint will discontinue the ASE series, and every existing ASE will immediately accrue at least some numismatic premium because the supply will be fixed but demand will continue to rise. The earlier years should be especially in demand.
In my opinion (and as I have said before and will continue to ) if you are going to buy silver for investment, stick with Johnson Matthey and Englehard bars. I will never for the life of me understand why an investor would pay the minting premium attatched to an ASE when J.M. and Englehard bars are equally acceptable to the market as ASE's. If you like the artistry and you are collecting for the "pretty" factor, then buy ASE's, Phils, Pandas, Maples, etc. It seems to me that the point of investment is to maximize profit. Why then give away a portion of your profit to simply have a gov't issued piece when the commercial pieces are practically equal in the market. BTW, I agree on the generics, stick to the name brands. Hope this helps in some way. :thumb:
Yes this has been my experience as well. Although lacking in clarity, my comment about my dealer being indifferent to generic vs. govt issue was speaking to marketability not price.
Originally Posted by vnickels Yes, self promotion is prohibited, and if the group Newbie Institute was not in Coin Talk's Groups ( found under "Community" on the header bar) , he would be self promoting, and we would take action as we have for those recruiting for their own web site forums. Vnickels, you should have said "Welcome to CT! You should join our Coin Talk Group: Newbie Institute." I would prefer "might wish to " rather than "should" for newcomers. Doesn't seem as pushy Jim
What you are missing is the potential numismatic value of some bullion coins. ASEs frequently sell for premiums to spot. Also, I don't know if you are talking about new or old Johnson Matthey and Englehard bars. Back around 1980 I recall there were a lot of counterfeit bars around. I don't know if they still circulate.
Sounds like you are off to a good start. 85 ounces, cool. Buy what floats your boat. I like the many suggestions that have flowed forth so far.
As mentioned before, I would consider adding "junk silver" to your portfolio. Quarters, Half dollars, and dimes minted on or prior to 1964 contain 90% silver. There are several advantages to buying bags or rolls of junk silver. Generally, junk silver sells a few dollars below spot price. It has a built in "face value". It is obviously very recognizable since it is US coinage. It is extremely liquid, and being in denominations of half dollars, quarters, and dimes, makes it ideal for bartering situations (in such an event should arise) or just plain selling. Most importantly, junk silver carries a smaller premium than most other types of silver. Many dealers will even let you buy in as small of quantities as a single dime! (about $2.00 worth of silver) An important point to note is that junk silver is almost always measured by its face value, and NOT by its weight. (Though its better to buy coins in good condition, and not ones that are very worn, but that's a whole other topic.) To give you an idea of the value of junk silver, the coins are currently worth ABOUT 20 times their face value. (Therefore, a half dollar has about $10 of silver in it, a quarter is worth $5, and a dime is worth $2.00) Its pretty simple actually... there are aprox 715 ounces of silver in a $1000 FACE VALUE bag of these coins (combination of halfs, quarters, and dimes... no matter how much of each coin, as long as the total face value adds up to $1000). So to calculate the value of a handful of junk silver coins, you take the face value of the coins and multiply it by .715. This gives you the amount of ounces of silver you have... then multiply by the current price per ounce of silver and you have your melt value. I store my junk silver in rolls (instead of in a bag or bags). A roll of half dollars holds 20 coins or $10 face value (worth aprox $200 in silver currently). A roll of quarters holds 40 coins and also has $10 face value (therefore worth $200), and a roll of dimes has $5 face value (worth $100) Hope this has been helpful.. you really cannot go wrong with 90% silver. I would definitely consider adding some to your current holdings.
I'd diversify and do some junk silver (like bags of merc's) and some ASE's. A mix would do you well but it's all a guess. Good luck
