Monthly Silver Automatic Orders... Does That Interest You?

Okay, lets say you could set a monthly order amount with a Silver Bullion dealer...

Just for an easy example... 10 Troy Oz.

They would calculate price and charge your card every month on, let's say, the 1st of the month and ship your silver out to you within 7-14 days after that.

The price would vary... it would be based on spot plus a pre-set premium (Say, $1.99 over spot.) plus minimal shipping.

This is would be automatic once you set it up, but there may be some functionality to pause the service or opt out of the month several days before the 1st of each month.

What do you think... would that interest you? Input?

Thanks,
Michael

 

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As long as I received "physical silver" and not "paper" I'd be happy. Sure would interest me.....

 

Cool... yeah, just as stated the scenario is for 1 to 2 weeks ship out date physical delivery. (So, 3 weeks max for receipt of order.)

Not sure $1.99 over spot would cover it with payment fees... you know theoretically.

Keep the thumbs up or thumbs down coming... nothing happens in a market unless there is a demand. (or, uh... un-demand LOL)

Thanks,
Michael

 

Traditional dollar cost averaging involves allocating a set number of dollars to purchase a varying amount of the asset. This is backwards, buying the same number of ounces regardless of price. The method is probably unsound, but perhaps better than not buying at all.

No thanks.

 

Cloudsweeper99 makes a good point. You could make it where you send, as example, $150.00 a month and buy X number of coins. Any remaining cash can be rolled over to the next month. You may want to set a shipping trigger based on the number of coins accumilated. It's cheaper per coin to ship 100 than 10.

 

Yeah, but for physical delivery silver... if someone does this, it is going to be hard to just set a dollar amount... say $175 and then take the silver out every month. There would have to be tracking of any remainder and roll it over or refund or whatever... equals more work and possibly being considered a depository... that opens the company up to all kinds of other rules and regulations.

Dollar cost averaging does not necessarily have to fit in the the box you put it in. Obviously, that scenario wouldn't be traditional, but still valuable to some... in fact, I come across many people who want to regularly buy the same amount of silver... regardless of cost. Also, it still results in averaging of their costs.

Actually, I had already begun thinking in these terms... instead of a set amount of silver... a set capped dollar amount. So, if someone put in a cap of $175... the system would automatically figure out the optimum amount up to the dollar amount without going over... and then charge the correct amount.

Now, normally, from what I know about recurring payment systems... they generally have a set dollar amount... which is why the first scenario was most obvious, but I am sure with the proper effort it is possible to set it up with varied amounts.

This way there would be no roll over needed and no "depository" issues.

Yeah, shipping would be a consideration that would have to be dealt with.

Thanks for the input guys.

Thanks.
Michael

 

I just purchased a 2009 ASE and a 2009 Austrian silver philharmonic for $15 each at a coin show. I could have bought all the 2009 silver eagles I wanted for $15 each, no handling/shipping charges. Not sure you can beat those prices.
Your idea would be good for folks who do not attend coin shows or have a local dealer.

 

At current prices... the price you paid is amazing for ASEs or Philharmonics... was it a regular dealer or just a coin hobbyist? If by "just purchased" you mean this past weekend... that is only about $1 over spot... pretty much unheard of for government issued bullion.

There are all kinds of reasons things go cheap at coin shows... I have sold some cheap things myself in the past for various reasons.

Anyway, good buy... you should have bought a bunch!

I wouldn't even try to to compete with those prices... too low. However, I should point out for purposes of this scenario... the silver could be a choice between generic or government issues. Actually, I was pretty much implying generic at $1.99 over spot... government issues would have to have a higher premium and therefore result in less silver.

In my experience... people prefer generic / branded unless they can get a really good deal on ASEs (or whatever) because it gets them more bang for their buck.

As far as coin shows / local dealers... that is only a small portion of the bullion market. There is a huge market segment that never attends coin shows (which *bullion* supply and pricing can be sporadic at anyway) and may not have access to a local dealer. That is why there are 15,000 Silver Bullion eBay auctions running all the time... there are buyers out there who want it shipped to their door and often pay overinflated prices to get it.

I live in a city of 120,000... we have one of the biggest ASE dealers in the USA right here, but guess what... off the street prices for 1 or even 10 ASEs are ridiculous... over $20 each. Even when I was offering to buy 500 at a time... they wanted $3.99 over spot. Also, they rarely have any other generic / branded bullion in their case... they actually melt most of the silver they buy in the back and then sell it to a refiner. Anything they put in the case is less then 100 T Oz at a time and is usually gone within 24 hours.

The other coin / bullion dealer we have in town does huge amounts of business in coins, Silver Bullion, 90% Junk Silver... most of which is dealer to dealer. He prefers an appointment before you even walk in the door, doesn't want to waste time with small purchases, requires a 100 T Oz minimum on silver... that is out of range for a lot of people.

That is it... there are no other storefronts in our city. I don't have a storefront in town yet, but I am considering it because I don't think the market is being fully served as far as Silver Bullion goes.

I know of one Monthly Silver Program that you can get set up to get an ASE every month and earn "free ASEs"... you know how much they charge? $39.95 for 1 ASE! LOL I am sure there are plenty of people out there taking them up on it. Maybe there are others out there who do it at a more reasonable and fair cost, but I haven't seen them...

Hey, sorry to ramble on... thanks for the input.

Regards,
Michael

 

$15 ase

Here is as much as I can tell you, and indeed I know it was an unusual deal.
I usually arrive late to all coin shows due to driving distance. Some dealers have packed up and some are leaving as I walk in.
This guy's table was one of the first you see entering the room.
This was May 3, 2009 and it was a younger guy with a black shirt that had a logo "Gaithersburg Coins". I asked where he was from and he said "We are in New Hampshire but also in S. Carolina. He may have said N. Carolina and I may not have read the logo correctly. What's strange is that all the ads I have ever seen place Gaithersburg coins in Maryland.
Anyway he had a bunch of bullion and I asked for several prices. The 2009 ASE price was $16 and the 2009 Philharmonic was $15. I bought one of each and handed him $30 saying "You can do it for that, right"?
He said ok. I then asked prices on 2009 one tenth oz. Canadian gold Maple leaf. It was $107 and the $2009 Austrian one tenth oz. gold was $104.
I offered $200 for both coins and it was declined.
I didn't buy but wanted to return later after walking through the show.
Anyway I got stuck at a table buying old US stamps and by the time I was ready to return the bullion dealer had packed up.
So yup I should have loaded up on the ASEs even at $16 each.
However I am not a flipper just a collector and I already have enough 2009s.

 

I don't know if everyone knows this or not, but valleycoin dot com offers a monthly "Bullion Acquision program". Just go to their site and the link is on the left hand side.

I am not promoting this - know nothing about it. But I have bought air-tites from them and have been very happy

 

AH HA... now we know the truth of it... you used your Jedi mind tricks!

That is pretty close. What I am thinking of would be a little more automated with a log-in system to track purchases, etc.

Thanks for the input.

Regards,
Michael

 

I would never do this, unless it was a dealer I trusted implicitly.

You never know when the dealer is going to set the "spot" price. Even if there is a set day, the dealer could just pick the high price for the day, and say that's when he looked at the price.

 

I prefer to order as I'm ready to order rather than having orders come automatically, I tried that with silver snowball, which I had to cancel due to budget concerns. The point is, for me, my budget varies from month to month, so one month, I may have an abundance of money to buy alot of silver with, whereas the next month, I might not have any money to buy silver with, it just depends on the month, so while it may sound like a good idea in theory, it's not always feasible for me to buy the same amout of coins every month or even to buy the same number of coins every month for that matter.

 

Monthly Silver

There is a website called mymonthlysilver.com that does exactly that. I emailed that company a few times in order to check it out. I wanted to see if it was legit, and I think it is. Check it out and tell me what you think

 

Are you advertising? Don't answer that, I already know. I don't care either way, but why would you want to lock yourself into whatever silver closes at on the last day of the month? Cost averaging is key, but why take that kind of advance risk, or why add another risk to this type of investment? It doesn't matter to me as I'd never do it, and yes, I've paid more than I've wanted to or needed to on plenty of ASE's or private mint bullion, but I knew the risks and made a decision at that time. I've never gone back and wondered what I "had to pay", because of a previous decision or commitment. I'm sure you'll get people to commit to it, but I'm not one of them.

 

I wouldn't do it unless the premium over spot was lower... on a 10 oz. bar a $1.99 premium adds $20 to the price... add shipping to that and the 10 oz. bar will cost me $25-$30 over spot each month!!! I can get a lot closer to spot than that on a bar by just going to the local coin shop or local monthly coin show. In looking at it as in investment, that is a huge transaction cost... and that doesn't even factor the hit the investor will take when selling their holdings as I'm assuming they won't be able to sell back at the $1.99 over spot price. Of course I realize not everyone lives in a big city where they can get silver easily too so maybe that level of premium works for some folks.

 

I have posted on other threads regarding our website that does this type of thing and in my signature line. If you would like to see more information you can find it.

Josh
Invest in Silver - SilverSaver by Mass Metal LLC

 

The site that I checked out was 14% over spot on private mint bullion coins and 24% over spot on Silver Eagles. I did the math and that is about standard throughout most websites. The cheapest I've seen is about $15-$20 over spot on a ten oz bar on bullion direct. I've gone to coin shops around Orange County and they're a rip off. Usually around 30-40% above spot, and when you sell your silver, most will only offer less than spot. Anyways, I'm holding silver for the long term, as most people should (when the silver to gold ratio comes much closer together).

 

Personally I do not see any advantage of setting up a monthly account to recieve silver, especially in small amounts as any savings is eaten up by shipping and insurance. It is sort of like playing the lottery as you have no control of the spot price on whatever given day it is. If you are truely interested in investing in silver why would you not just make a monthly purchase from one of the numerous trusted online retailers?
For the dealer it is simply a recurring revenue model and I see these types of offers as only benefitting the dealer with no real advantage to the consumer, other then chosing to be lazy about how they invest.
It's not as bad of an idea as the $100-$10,000 a month mail order coin club, but IMHO not far from it.

 

I've just been looking for something, and that was the closest thing I found. Please let me know if you find something better, or something that seems more legitimate. I haven't started on the website that I mentioned bc I wanted a few friends advice first, but I like the concept. I know, with something like that, you might pay a few dollars more, but to have it on autopilot would be nice. The cheapest ive seen bullion over spot is bulliondirect, but I've bought some from APMEX and my first and only bar was from NWT. Anyways, thanks for the response bro, later.