If my local coin shops offer generic 1 oz Silver Rounds for $2 over spot and sell American Silver Eagles at $4 over spot, and Maple Leafs at $3 over spot, which option would you purchase? Before you answer or give your opinions all the coin shops will buy back the generic rounds at $1 under spot, and will purchase any govt-backed bullion coin such as the ASE for 100% spot. Which option for a better profit or lower marginal cost in the long run?
I would buy online for about $2.50 over spot for ASEs, if purchasing 20 or more. Factor the shipping costs into the equation. https://comparesilverprices.com/ I'm currently thinking about picking up some 10oz bars, as I have "enough" coins at the moment (enough = for short term needs)
I've always been partial to ASE's. The premium may be more, but they are easily liquidated if need be........
If you were to buy today and sell today the ML would be your best bet...you lose $3 on the ML and the generics and $4 on the ASE.
Well if you're just going to buy or sell at that shop I guess it really doesn't matter though ASEs/Maples are always more liquid then generic rounds since you never have to doubt purity unless they are a well known generic. Really though from those prices Maples and Generic cost the same there with the ASE only a dollar more. You lose 4 on an ASE, 3 on a Maple, and 3 on generic since they buy a dollar under spot for those
Go online and buy for less. Many places offer free shipping with orders of $100 or more. Genetics can be had for $0.60-$0.80 over spot. Eagles are going for $2.50-$3.00 over and Maples can be found for less than $2.00 over. Some places even have specials where these and other bullion items can be even cheaper.
The only thing to keep in mind when buying online is your sell back option. For me, the first thing I do is figure out where I can sell the silver back for the best price. Right now I found a dealer that will sell rounds at $1.25 over spot and buy back at $0.20 under spot. He said it would get even better if I bought and sold to him. There are a few websites that buy back silver but you have to sell a lot ($1,000.00 or more) to get there attention. So establishing a relationship with a dealer is a good thing in my opinion.
I have to agree with the others above. You have to consider liquidity and in my opinion the ASE and Maples are it. But would you consider junk silver 90%, 40% and 35% coins.? I have had a better rate of return when I sold these. Especially when you find them CHRing you get them at face. Also the risk of counterfeits are almost none.
90% is great. I have a dealer that sells at 15xFace and buys back at 14xFace right now. When looking for 90% you need to cherry pick for good looking coins. If you get a bunch of worn down coins, they will buy back for less. Common sense but I bought a roll of Mercs a couple of weeks ago. I was strictly going for bullion value but thought it would be fun to have Mercs. Looking back I would have gotten all 1964 dimes instead because they were'nt as highly circulated as the Mercs.
