Spot price silver

And i should or shouldn't buy these (silvertowne was out of the cheap ones)?
http://www.providentmetals.com/2013-1-oz-american-silver-eagle-bullion-coin.html

 

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Buying online is a great way to get them a bit over spot.

The way I do it is I visit pawn shops weekly on my days off and check to see what they have. If it sits for more than 2-3 weeks I sometimes get it for spot, because it just sits there at the price they ask. Other than that, most online stores sell it for a bit over spot, but that place that sells with free shipping is a deal. Anytime you find .999 silver under 30 per oz, (price of round or bar+shipping) I pick it up.

 

Question to OP - why are you buying? Because you want to collect, or amass a stack of bullion? The ASE is considered by some to be collectible bullion. They are among the most recognizable silver bullion product in the world. That said, they carry a significant premium over spot. There are some generic rounds and bars that are more respected than others, but generally speaking, anything with a weight and purity stamped on it is as good as the next piece of silver. If your concern is truly about spot priced silver, seek out coin silver (90%). You'll have to wait out the current feeding frenzy that the lower price created, but coin silver can often be bought right around spot under normal circumstances.

 

I know you said website but have you looked at your local B&M or pawn shop.... Most of the sell for $1 to $1.50 over spot.

 

I would visit Pawn shops but the nearest one is over an hour away from my house and is way overpriced on everything because they know they have a monopoly over the area. And the gas prices i would have to pay to get there in a Cadillac Escalade would kinda ruin the purpose of finding the silver close to spot. It would be how i would do it in a city though but not the Rochester, New York area.

 

I've never seen it anywhere near spot in the last year. I think those days are long gone, specially as the spot price goes lower.

 

well, i'm trying to get silver as an investment thinking maybe someday i'll make a profit but i am also trying to collect at the same time for the aesthetic of it. And i do want to collect a large stack (or a room full) of bullion but i dont want to go too fast and bankrupt myself either (especially since i dont have too much funds at the moment and am also trying to start a few businesses at the same time (exotic car dealership and photography business))

 

If it annoys you so much,then get a cheaper car.

 

If you buy 100oz they'll pay the shipping...you pick the design...pay up front...

http://www.goldenstatemint.com/price-list/silver-bullion-rounds.html

 

It doesn't bother me at all, i love my car. I'm just saying it's a gas hog.

 

Yeah, i definately dont think i should get into 100 ounces yet. Lol

 

Could you elaborate in that just a bit? How much higher over spot would you pay? I have 2 LCS in my area. One hasn't had ANY ASE's for weeks. He just can't find them right now. The other has a few at $8 over spot and said they wont last long because of the high demand. Is 8 over spot reasonable on a ASE?

 

No.

 

Not for me, but probably for him. It is business. These are uncommon times in that the price change was sudden and large, rather than gradual up or down. With a gradual change, most bullion businesses can do a smaller premium, because they have a even turnover of premium with little change in the cost of the ASE or Maple-Leaf, so they make a living on the difference. If they have 500 ASE they purchased at $ 32, and it drops to $23, they don't want to sell unless the premium is large enough to make up some difference.

If you can put off the temptation to buy now and wait for 3-9 months, the pricing may be more favorable. If you think it might go up by $8 in that time, the premium is of much less concern. If time is important ( maybe you are 80 and want some for the trip , is one thing. If you are 20 and plan to buy a little every week/month, then one could hold and buy on an average price situation. I have bought ASE for under $8 ( I remember $5.75) and a premium of $1 ( outrageous at the time at a show) and still have the tube of them.

I haven't bought more than 1 or 2 ASE at a time for a while. I did buy a tube of Maple-Leafs 2 weeks ago for spot +2.25 to add to the future as all seemed good. ASE and Maple-Leafs are well known, respected, and easy to sell without the hassle of the maker of rounds or bar silver. IMO of course. Mexican Libertads are common in my areas and fit into the same category.


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http://www.cointalk.com/t226435-post1696235/?highlight=#post1696235

 

Yeah, i'm pretty good at being pacient with things like this.

 

The spot price seems to be going up a little today. Maybe we'll break over $24. It seems like we are stuck in this pattern. Down to around $22 and up to $24. Is this the new normal? We'll see...

 

1. Ask the dealer who has the ASE's what he'd pay you if you were selling him ASE's. You need to consider more than just the margin he's selling over the spot price of silver. The spread between what you pay for them and what he'll buy them for is the real issue at stake. How would you feel if he told you he only pays 10% below spot prices to buy silver? That's a heck of a spread.

2. Margins will ABSOLUTELY moderate in the future. Current year ASE's tend to go for $5ish over spot, due in large part to the price premium charged directly from the mint. Random year ASE's (outside of the mid-1990's, with relatively low mintage), are bought privately since they're out of production, and since there is no mint premium, can typically be bought around $3.50 over spot.

3. In the coming months, there are two things that will most assuredly occur. Physical demand will normalize, and and price margins over spot will shrink. You can decide for yourself if you think the price of silver will shoot up $8 or more, but the real question you need to ask yourself is whether or not you're comfortable owning $8 over spot ASE's if the price of silver DOESN'T rise or even DECREASES in the coming months.

 

I know a guy, also in NY, that has been looking to sell numerous 100oz bars since the price drop. That is a bit much for me but last night I got an email from him saying he would take $2100 per bar plus shipping & insurance. Apparently that is what his LCS offered but he doesnt want to sell there seeing he paid the guy $3300 per bar a couple months back.

 

Excellent and Informative Post. Thanks to the OP for starting this post and having some of my own questions answered.

 

I don't know anything about the guy in question, but here's a mandatory read for anyone thinking of buying large silver bars:

http://www.cointalk.com/t226719/