Do you prefer BU or any condition bullion?

I am curious to hear how you prefer to buy bullion. Do you lean towards BU or any condition?

I have gone back and forth on this and right now, for my bullion rounds mainly ASE's, I buy strictly BU product. Why? I want to make sure I have a great product to offer when I do need to sell, thus helping ensure I can sell for a premium. Obviously buying BU ASE's or any bullion commands a higher premium but my experience has shown a higher premium upon selling. If my logic is flawed please let me know. I'm all ears.

I often see ASE or generic rounds in average condition sell for close to spot or around $1 over spot. Will these rounds be harder to sell when the time comes? Or silver is silver and there are always people looking to buy any condition round, be it ASE or generic, purely for the silver content?

 

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BU for me. TC

 

BU only for me

 

Ever look at a circulated ASE? I love them. So I will go with XF.

 

If you plan to re sell it in secondary markets in near future your best bet is to get at BU, other wise you will have tough time re selling it.

 

BU for eagles but I like toned ones also if not dinged up. for generic bars and rounds i can say from selling several times over the years it makes no diffference. I can sell for spot (min.) or more most of the time dinged or not. been there done that. that's why my stack is mostly gereric.

 

I go through dealers foreign books and scoop up silver for 20-50% below spot. They rarely re-price an item if it's old stock. Just recently got some Bahama 1/2 dollars (.2667) and dollars(.4666) in UNC for $6 and $9.50 - spot price would be $7.45 and $13.90. Smaller coins, i.e. dime size, are usually a good bargain at $1-2 each.

 

Collection wise for me it's BU only. Investment wise bullion is bullion yes some years, mints, etc. sell for premium but most of what's out there sells at silver spot price so condition doesn't come into play. I know one dealer who was MELTING eagles when silver hit around $50 because the smelter would almost and in some cases did double his money compared to what he paid for them. Of course they were common date bullions no proofs, anniversary sets anything like that.

 

Collection wise for me it's BU only. Investment wise bullion is bullion yes some years, mints, etc. sell for premium but most of what's out there sells at silver spot price so condition doesn't come into play. I know one dealer who was MELTING eagles when silver hit around $50 because the smelter would almost and in some cases did double his money compared to what he paid for them. Of course they were common date bullions no proofs, anniversary sets anything like that.

 

Collection wise for me it's BU only. Investment wise bullion is bullion yes some years, mints, etc. sell for premium but most of what's out there sells at silver spot price so condition doesn't come into play. I know one dealer who was MELTING eagles when silver hit around $50 because the smelter would almost and in some cases did double his money compared to what he paid for them. Of course they were common date bullions no proofs, anniversary sets anything like that.

 

I prefer BU. Not into toning much. I do have a few circulated silver coins which I like for the fact I can handle them without worrying about the condition, but otherwise don't really care for them. It's just nice to feel the actual metal now and then.

 

Well, if I was building a collection of ASEs I would go for clear BUs, but for staking it doesn't matter. My local shop of preference, buys all ASEs at $0.75 back of spot, regardless of condition and sells "problem" ones for $2 over spot and BUs for $5 over spot.

If a problem and a BU sell to a dealer (at least my dealer) for the same price, why pay extra for the premium?

 

double post

 

Since they aren't made for circulation, I mainly stick to BU.

 

This is a very interesting point. One of my local shops has the same policy, BU and problem ASE's are bought for the same price. Even with this knowledge it's my preference to buy BU ASE's. For some reason I want to have the best product in my collection. I like it and I think it will help me get the best bang for my buck when I do choose to sell. A tube of BU ASE's commands a premium right now on the open market and I assume it will in the future.

 

How does an ASE ever get circulated? Do people actually use them as legal tender?

 

I have a "circulated" ASE, and it's just plain ugly. I bought it before I knew anything. I suppose it would sell at a slight premium (+$1?) So for 21st century bullion like ASEs, Maples, Libs, Brits, etc. I stick with BU. For last century, I wouldn't mind less than BU, if it's a different type/style, such as the smaller diameter Libertad, which I guess would demand a higher premium for BU.

 

But are you going to get the premium returned to you when you sell? I think that if one is simply buying for investment in silver, then that premium is a detriment that can't be recouped as easily.

 

Even in your situation, I would still prefer BU because even though there is no premium NOW on resale, this doesn't mean it will always be so -- especially since someday the US Mint will discontinue the ASE series and when they do, every ASE in existence might start to accrue at least some numismatic premium, at least in the higher grades.

 

That's a very good point, Cloud. Thanks.