First silver purchase: a few questions

I'm interested in obtaining pure (.999+) silver coins for my childrens' birth years (2000, 2001, 2003) to give to them when they each turn 21. I thought it would be a nice gift for their 21st birthday....

My biggest question is: where do I purchase such a thing? Should I order online and probably pay S&H? Order directly from the mint? Or go to my new coin store and see what they have or if they can order it?

Another big question is: I'm not even sure what is out there. Do I buy an American Silver Eagle bullion coin? Is that the only .999+ silver US coin out there? (I know many of the commemorative coins are only .900 silver). Or should I get a non-US coin from somewhere? Should it even be a coin, or a bullion bar with the year on it?

What should I expect to pay? I'm sure there's a premium on a coin like this, more than the going rate for the silver, regardless of where I get it.

Sorry for so many questions. I'm not rich, so I want to do this right the first time.

Any suggestions? Opinions on what would be a good gift? Other options out there I haven't thought of?

 

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This is just me but I would suggest 1 of each ASE proof, Unc. with "W" mint mark and a bullion. I would get these all in the same TPG slabs and maybe get one of those 3 coin presentation boxes.
These are easy to find.
One last thing go for PR69 and MS69 coins, the 70's are just way over priced
and it's really hard to tell the difference.

 

The Mint didn't start putting the West Point mintmark (W) on the proof SAE until 2001. The uncirculated SAE didn't have a mintmark on it for any of his kids' birth years (2000, 2001, 2003). In any case, I think the Proof SAE would be the best choice for the birth years because all the years of production (1986-to date) are readily available if your kids should decide to take up the hobby when they get older. (Note: The US Mint does not routinely have backorders for previous years.)
Personally, I would not spend the extra money for certified (slabbed) SAE's. Generic plastic cases for birth year coins are inexpensive and available online.

Chris

 

You know another suggestion, and just a suggestion, you could take it or leave it but you could also get silver proof sets in those years. They are pretty common and easy to acquire in those years. They are only 90% silver but still it is going to be every single coin produced by the US mint in those years. Just a high grade 90% silver version.

Silver Eagles are 99.9% and an excellent choice as well. However there are other options.

 

Couldn't agree more with both answers...an MS69 for each child's birth year with a silver proof set. The ASE's are 1 oz of fine silver and should be easy dates to find as @JeffsRealm mentioned. In case you don't already know, DON"T purchase any coins from the TV hucksters. I bought 3 x 1986 first year ASE's at Baltimore for 85.00

 

I'd get proof ASE's in PF69 grade. Then I would add one bullion ASE, ungraded. That way they can "feel" the coin in bullion form without messing up the beauty of the proof version. That's just me.

Oh, and places to buy:

JM Bullion
APMEX
Modern Coin Mart
CRC-1 : seller name on eBay
Pinehurst Coins

They all sell on eBay. I've bought from all of them. Just to name a few.

 

Or because you mention $$ is kinda tight, you could purchase directly from the mint (Our US Mint) a Silver Proof Set (not Clad) for their Graduation from High School.

Or even the appropriate (year of graduation) Commorative Silver Dollar coin or because times are bound to get better (how's that for boundless optimism) you might go Gold...think positive Daddy...whatever you do your children will cherish your selection.

In the meantime, give the mint your email address and they'll keep you in the loop every year with each new launch...which may spark something completely different...in any event, I hope you can "just say no to coins " while you're at that process, it's hard to turn a blind eye to these mini pieces of art...but again the children will value whichever keepsake you select for whichever significant date you select.

 

Thank you everyone who gave their input. I greatly appreciate it!

I'll certainly consider all possibilities mentioned. I'm not running out and buying anything tomorrow. Want to put some thought into it first.

One general question: What's the "markup" on .999+ silver coins, on top of the current price today? I'm guessing that everyone sells their silver with a little premium built-in? So, say, silver at the time is $18/oz. Should I expect to pay $25 for an ASE? $30? Or isn't markup that bad?

Thanks again.

 

WoW! we could discuss this for hours...and let's be fair, dealers can and should make a reasonable profit. If you think you can get ASE's at melt, you are wrong. I'll repeat what I mentioned earlier, I bought 3 x 1986 (first year for silver eagles)
BU ASE's at Baltimore for 85.00 (28.33 each). Best of luck.

 

If you are just buying run of the mill Silver Eagles, expect to pay a couple dollars over spot - and there are a few "rare dates" that are harder to find - such as the 1996 regular/business strike.

If you are buying coins that are proofs, graded / slabbed or other special editions, you will pay a premium.

If you have a chance, attend a local coin show, learn a bit about them and what kind of gift you want to give. Just ask the dealers what they have, what the prices are and what the difference is. Most will enjoy spending time sharing their knowledge.

If you really just want to give some nice looking silver coins, you should be able to find them for not much over the price of silver.

If you want a proof coin or a graded one - expect to pay a hefty premium. At this point you are no longer buying bullion - but buying collectible items. And it's important to know the difference.

Cheers!

 

@dave_in_delaware, the sellers I listed above offer very competitive prices. In general, ASE bullion coins carry a little more seller premium than other silver bullion pieces. Part of it is demand and IMO, the ease in selling.

Go to the sites I listed in my earlier post and start gathering pricing information. That will be your best way to get market pricing.

 

Oh, and another thought, again could save you some money. You can buy regular unslabbed silver eagles as other have said. These would just be a couple dollars over spot. You can get very good ones. Then you can make your own slab with your own comments. Just buy like and Everslab as seen here. One for the size of ASE's and you can create your own card to put inside. http://www.wizardcoinsupply.com/ind...rch&search_in=all&x=0&y=0&search_str=everslab

Or you can get coin capsules, as another alternative you can also get a nice display case pretty cheap too. Here is one to coin capsules but from the menu on the site you can also get one for slabs if you go with the slab route.
http://www.wizardcoinsupply.com/coin-display-boxes/

 

The premium on proof SAE is the most, depending on the year expect to pay $65-80 each for the proof version. The bullion or BU SAE will typically be a few dollars over spot. To me the proof versions are the more attractive of the two. Good luck!

 

I'd give my right arm for that Peace dollar Set on your site Brett...boy to have a loose $25k floating around...soooome set Sir yum.

 

I'd add Provident Metals to your list media@providentmetals.com

 

Good call. I agree they are another trusted source.

 

Thank you, but that's $25k "on paper" and actual realization may differ greatly - and probably will. And no body parts in trade, although the arm is worth considering after my bowling scores last night!

But we don't discuss sales in forum so...

 

LOL...love it!!!

 

Thanks all for the replies. I do appreciate all the info. I'm trying to absorb all the knowledge I can, and with the combined knowledge of this forum I just have to ask questions!

I know that coin dealers have to make some money (or else why bother?), so there will be a markup. I just had no idea how much markup to expect.

After doing some price research online last night, am I safe to say that the prices for .999 pure silver in its various "forms," from lowest to highest, would be:

bullion bars < rounds < ASE's

So I could save some money if I wanted to obtain pure silver by buying bars or rounds vs. actual collectible currency like ASE's?

Also, I've seen some "damaged" items listed on some of the sites. Abrasions or spots don't affect the value (weight) of silver do they? Obviously if there's a piece missing from a 1 oz coin or bar that would affect the total weight. What about "imperfections" on an ASE?

Sorry for so many questions. Trying to learn all I can.

 

Well, in case anyone is still following my thread, I did some research online last night before paying my new "coin store" a visit today....

I looked at the APMEX, JM Bullion, and MCM websites to check pricing in order to get an idea of pricing of ASE's, rounds, and bullion. Looked like an ASE was going for $50.64 (1986), $30.85 (2000), $29.81 (2001), $26.68 (2000), and $21.30 (2016).

So, I decided to hold off on buying ASE's for my kids' birth years and go a different route: non-silver proof sets for their birth years. That way, if they're not really "into" coin collecting like their Dad has become recently, then no big deal.

That said, I paid my coin store a visit today. I got a list of prices for ASE's to compare to the online prices I got last night.The local coin store ASE pricing is $35 (1986), $24 (2000, 2001, 2003), and $22 (2016).

I couldn't resist not having an ASE in my hand today, so I bit the bullet and grabbed a 2016 one. It's so pretty.

Next weekend I'll probably be going back to grab a 1986 for $35.