Can anyone give me the ins and outs of buying silver Eagles? This will be a $100 a month budget plus any found money. This is a savings vehicle for something beyond my 6 month cash emergency fund. Waht is the difference in the Proof vs Uncirculated in terms of desirability? The Dcam proofs are strikingly beautiful and would be happy owning slabbed MS69ers? Or is their a significant cost savings sticking to Raw mint packaging vs TPG slabs that didn't make the MS70 grade? Are MS 70 TPG slabbed more collector driven and how does bullion prices effect the price? Any advice appreciated including looking at Canada and other world Silver... Thanks Rob
Silver is silver, some have better name recognition then others and for that I would suggest regular business strike American silver eagles. I would stay away from the high premium “MS and PR 70’s”. I personally believe the bottom is going to fall on these “promotions” in the future and you will lose a lot of money if you have paid for those premiums. Proof silver eagles are good for collectables but I would not recommend them for wealth preservation. The premiums on those are also somewhat inflated as they are bought up by firms to use in IRA’s. Maple leafs are not bad either, they don’t have quite the same premium as ASE but close to it.
Rob, If your intention is to use this as a savings vehicle, why pay a premium for "specialty" bullion coins like eagles, maple leafs, kooks or pandas? You'd be better off looking for deals on plain 1oz silver rounds or 5oz "ingots" where the price is governed by the rise or fall in the price of silver with no premium attached to it. Chris
I would agree to an point.. I normally would not want to pay a premium for anything I do not have too, however I do not mind that much on ASE because you also get a premium when you sell. (Depending on whom you sell too.) I find that it evens out.
Sounds like OP is tending toward investments and in a case like that I have to agree with both Chris and Jhinton. In the case of pure investment all you need is your basic bullion eagle. Nothing more. But........ If collecting is on your agenda, then it's great to assemble a set of proof, uncirc's (burnished W collector coins) and bullion issues as well. The proof and collector coins I purchase directly from the mint. The bullion coins I get at a local shop or show. I shy away from slabbed eagles as the premium on those is out of line (MHO) and most eagles tend to strike up in the ms/proof 67-69 range anyway. Why pay more for something you know is quality to begin with? Save that money to buy more eagles. Now I do understand that folks do like to collect 'em slabbed, and I respect that. If that's the case then collect 'em ms/pr 69. '70's are way overpriced (MHO again) and most times you wouldn't be able to tell the difference between the two grades anyway.
Excellent advice already posted on this board so I won't rehash what has already been said. One point I'd like to add is that you need to make certain you're purchasing the silver from a trusted source. Otherwise, you risk purchasing silver plate versus items that are 100% silver. My silver portfolio consists of a mix of items that I've been able to obtain (via trusted sources) at or below spot prices. It contains ASEs, US Silver Currency, Canadian Maple leafs and Englehard ignots. With the exception of a few Gold Pieces I own (which I purchased more for their numismatic value and are unlikely ever to be sold in my lifetime), I do not tend to purchase slabbed pieces as I don't want to pay the premium associated with them. My only other advice is that you should research this as you would any other investment and set a plan for buying and selling. Susan
Thanks for the sound advice. I have bought and sold some cull Morgans and Jeff nickels in the past (wishing I had saved them). I agree it was easier to buy and sell closer to spot. I can see where not being picky can save money. Never dabbled in the Silver Eagles, and was wondering where the collector and the bullion saver part ways.
As for me, I have no emotional attachment to my bullion, be it the ASEs or otherwise. They are purchased purely for investment purposes which is why I seek the lowest premiums. Same for my junk silver, which I've been typically able to pick up for under spot. I'm a firm believer that in my lifetime Silver will hit $100/ounce. Others may argue this point and I'm not really looking to get in to a debate on where the market is heading I'm simply mentioning this because my goal is to a minimum % of profit on my silver purchases. It's a personal goal (number) that I set for myself. Should Silver hit $70/ounce, I'll sell off 75% of my collection. The remaining 25% will be sold off if Silver does indeed hit the $100/ounce mark. Obviously, there are scenarios that may force me to sell sooner, but none that I foresee. Most of the Silver I've obtained has been picked up for < $35 ounce. The exception is a few Englehard pieces. I'll continue to accumulate Silver at that price point. IMO, where investors and collectors part ways is when there's an emotional attachment to an item. I absolutely have that attachment to my Gold pieces and it's difficult for me to visualize a time where I would choose to sell off these coins (note, they're actual coins and not gold ASEs). However, I may change my mind when Gold hits $5,000/ounce Susan
Very good advice. I would just add that even though ASEs and Maple Leafs cost a bit more than silver rounds, bars and junk silver, you will also get more for them upon resale -- and perhaps a lot more depending on market conditions. So you are making a good choice with ASEs.
This is an important one, and while it's probably not a concern with ASE's it's a good idea to pick up a digital scale for 20 bucks to make sure your silver weighs out as you would expect. It's nice to have the peace of mind that I have what I think I have.
there's a premium because there is demand...also it's recognized by ALOT of people as being silver...I like ASE's for that personally...I'd hate to buy a bar of silver with a lead core... also to the OP if your doing this as a monthly thing and will continue into the future...it might be a good idea to save up and buy some limited mintage bullion like the canadian wildlife series and pandas and even Silver Australian Year of the "?" series stuff like this gains a HUGE premium after a while...sure you buy for a premium over spot but also that will be nothing compared to the premiums this gain...not saying try to ONLY buy these but if you can find specials like now with the cougar wild life coin for justa couple bucks over spot....DIVE IN
