Why you should stick with generic rounds.

I've been told by several people to buy American Silver Eagles or Canadian Maple Leafs because they "move better".

Both items have a higher premium.

Yet at auctions, Generic rounds seem to bring as much as silver eagles, I'm not sure if that is the norm, but that's how it goes around here.

Silver Eagles can be faked just as easily. Never seen a fake, but I'm sure they are out there.

So do you "Stack" eagles/maple leafs, or generic rounds?

I buy OPM rounds. They are not "generic" and they are well known amongst bullion dealers.

 

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lol

 

I only buy the generic rounds, don't really like the looks of ase's. I'll take a buffalo over one any day.. but if I buy local off CL or something and they are selling ASE's at spot then I will buy them

 

True, if you can get ASE for the same as generic, buy it. Most of the time there is a premium.

 

1st You say that they are faked just as easily but never have seen one.
Well if that was true wouldn't you have seen some lol That's because it is not true. ASE's are harder to fake and the Secret Service would chase those much more as they are US coins.

2nd Now you tell us that most of the time there is a premium for ASE's but in the first post you stated "Generic rounds seem to bring as much as silver eagles" Again you contradict yourself in your own 2 posts.

IMO, Eagles cost more when you buy them and when you sell them. I prefer ASE but that's up to each of us.

 

China is and has been faking the ASE. Search Alibaba Express for "American Silver Eagle"



They also fake the AGE as pictured above.

They also fake Silver Dollars, Halves, Quarters, Dimes, Half Dimes, cents, you name it. They even fake the 1972 DDO cent.
ASE's have a premium through dealers. Auctions, they tend to not have one.

 

Generic is all good until you go to sell. I have a few that I own only because they have a cool factor, but I generally stick to tried and true - Morgans and Peace for me, from back when silver was under $7 an ounce you could buy them at $8 eaches. I'll post one of the interesting generics when I get it imaged, it is sitting on my desk.

 

I have had to sell silver in the past and the only options I have is to sell to Scotiabank or people on kajiji. What I have found is here in Ottawa Canada the easiest way to sell silver to the bank or other people is in silver maple leaf form you can easily get $3 premium selling to random people you find on kajiji or usedottawa. The bank will give you lower premium or no premium and good luck selling anything other then silver maple leafs or ASE (these get a lower premium).

 

There doesn't seem to be much difference to me between a generic bullion Silver Eagle and a generic round or other coins.

 

Just buy what you like and can afford. TC

 

Good advice if you care nothing about the price of silver as an investment. If you're concerned with growing the value of your investment, the $1-$2 differences in the margins over the spot price of silver really add up over time as your PM holdings grow. One has to concern themselves with the margins over spot in the same way that a mutual fund investor has to concern themselves with annual fees. Otherwise, you risk diminished gains in the future.

 

The problem with silver rounds are:

1. Silver is very easily and cheaply fakeable. Pot metal of the same sg is cheap.
2. There is no standardized dimensions to check, so only sg can be used. Se #1 above.
3. There is easy way to spot a fake round by design like those fake ASEs you posted.

As a result, any buyer of silver will pay a premium for ASEs since they can be more confident they are not fakes.

Regarding what happens in local auctions, we have discussed that before. There is a whole other layer of stupidity that has ALWAYS occurred in such sales I simply cannot explain. Its not new though, same stuff was going on in the 70's.

 

Detecto, stop being so paranoid about fakes. They are nothing new. Our currency has been getting faked ever since the country started making money. By China and our own citizens. Know what to look for, by from reputable dealers and you'll be fine.

 

Even Ben Franklin and his contemporaries had to deal with forgeries:

 

I get it, but this debate between ASEs and generic rounds really comes down to a matter of taste. If you pay $2 more for an ASE (than a generic round) but later sell that same ASE for $2 more (than the generic round), it all comes down to preference and what you can afford. The OP is saying that ASEs have lost some of their gusto due to counterfeiting and uses his local auction as proof. I am not convinced. Go to any bullion site and you will see that the buy/sell prices of ASEs and generic rounds do not support his claim. I do have some generic rounds but mostly ASEs as I like the design. I also sold a bulk of my holdings last year to buy real estate. I can tell you that ASEs are very easy to sell. Also, back in 2008 when PM prices fluctuated dramatically, some online bullion dealers were not even paying spot silver for generic rounds but ASEs always had their premium. Nobody knows if the ASEs will always command a premium, but if they ever stop producing them or change the design, watch the numismatic value increase.

 

This I agree with. I have no problem buying ASEs for exactly these reasons, and others stated in this thread. I was only referring to the notion of "buying what you like and can afford." Not all silver rounds and bars are equal, and some are better choices (ASEs) than others (generics) if you're concerned about maximizing your investment value.

 

I agree that not all silver rounds are equal. A few years ago I went to my local bullion dealer, and he pulled out a box of silver jewelry, belt buckles, widgets, etc. and said this was my best "bang for the buck." I said no thanks and ended up buying some silver prospector rounds instead...my personal favorite. :smile

 

As a jerk I would ask, "weren't there a lot of fake prospectors on the market lately?". Sure, if you are knowledgable and can tell the difference you are fine, but I hear they were pretty good. Another reason why knowledge is your best friend in this hobby, and if you do not have that, you are much safer buying government issued bullion.

Just my opinion though.

 

If it isn't something I am collecting I currently stick with ASEs only. I have never even been temped to pick up a generic round, looked at stacker bars at one time but no rounds for me.

 

They were real, and I sold them for spot + $2. I bought them from someone I know and trust.