Whats the best way to buy silver bullion?

I thought this would be an interesting topic.. Everyone has their own ideas.. So let’s hear them!:hail: For me personally I like buying in silver rounds.

 

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I personally like ASEs from some of the lower mintage years because I believe that someday the US Mint will discontinue the series, and every ASE will immediately accrue at least some numismatic value because the supply will be fixed but demand will continue to rise. And if this never happens, it is still a great bullion investment. It costs a bit more but also will net a bit more on resale because of its popularity.

But silver rounds and bars are also excellent. I like the older prospector rounds.

 

ASEs?

 

I too like ASE's. They're fun to collect and if you want to turn 'em around real quick there's always someone ready and willing to pay top pop.....

 

American Silver Eagles...

 

Ya i agree! American silver eagles are almost a double investment, nice

 

ok, i didn't know the abrev.

 

I have about half my silver in rolls of ASE's, Maples, Philharmonics. The other half is in junk silver, Mostly Uncirculated Kennedy's. but also a lesser amount of quarters and dimes (just in case). Also have a roll or 2 of common date Morgan silver dollars that I paid melt value for.

Diversification is the best way to buy silver bullion!!!

 

Ya go to sell junk silver and the dealers are gonna diddle with you. "This ones too worn", "that ones got too many scratches". ASE's, Philharmonics, Maple leafs, they ain't gonna do that....as long as they're in decent shape. Most of the guys buyin' silver right now are looking to turn it around real fast and the 'big & shinny coins" turn around the quickest.

 

Ya Dan I’m going to have to agree with the maple leaf.. It has one of the lowest premiums out there and in the end (at least for me) the silver is what matters

 

Roll searching at face value.

 

i'll buy whatever i can get a deal on

 

I think your question is not something that can be answered generically.

I'd rather know how much you plan to invest initially, and over time. Also, what your short and long term investment goals are. Next, how liquid you prefer to be.

You will need to identify your resources. To not only buy from, but whom will you sell to.

In general, as a pure investment, then the lower the premium the better. The premium's on Legal Tender coins may or may not be a good way to diversify your holdings. I believe you want to own physical silver, probably the best way to go.

The rounds or bars must be properly marked, .999 fine silver is what you want for bullion bars and rounds. Smaller sizes are easier to work with, though some people buy 100 oz bars also. I do not recommend anything smaller than a marker 1 Troy Ounce bar or round for bullion. 90% silver coins are great, use www.coinflation.com as a guide. READ the forum here for lots of existing advice.

Buying from your Local Coin Shop (LCS) might be your best source as you may want to have a working relationship with the best place to sell your bullion quickly. Lots of info in the forum to now read....

 

I'd say roll searching, or from banks for face value too, the cheapest way to make a profit at least...talk about a return on your investment

 

I buy whatever is the best deal. Although I do like circulated Morgans and Peace dollars for the fact that even if silver drops back down to $5 or $6 an ounce they still hold a numismatic value.

 

Howdy,

Go to your local book store and buy a copy of Coin World or Numismatic News (weekly newspapers) and check the ads. Go to www.apmex.com and check the various sections of silver and prices.

Silver bullion comes in coins and ingots. There are older coins that were made out of silver but many governments around the world mint silver coins these days and sell them to the public. Most are 1 ounce in size. The U.S. has our Eagles, Canada their Maple Leafs, China their Pandas, Mexico their Libertads, etc. There are also ingots that come in round or rectangular shapes starting with 1 oz, and having 10 oz., 50 oz., 100 oz., up to a kilo.

Each form of silver will cost you the spot price of silver (market price of bullion) PLUS a premium over the spot price. This premium will vary for many reasons but you generally want to minimize it. Shop around and buy in bulk to get any volume discounts. Try to buy silver with smaller premiums but remember that plain vanilla is cheaper than top shelf but top shelf is generally better. For example, a Silver Eagle has a higher premium (12%) than a Maple Leaf (8%) at my local coin dealer as I write. However, some will say that a Silver Eagle would be easier to sell than a Canadian Maple Leaf and therefore has a higher demand. Same goes for silver ingots. You can get some plain vanilla art bar from BillyBob's Mint of BF Nowhere for less than a stamped ingot from Englehard. However, who is going to buy the former AND will they pay you as much as they will for the latter?

just some thoughts,

peace,

rono

 

I don’t think we will live to see $5/oz silver again, but who knows. Your point on buying Morgan or Peace dollars makes good sense, and in truth over the last few years most of my bullion additions have been in the form of older silver dollars and halves. I have also, from time to time acquired some British sterling (.925) coins, as they are both high grade silver and very collectable, as well.

 

After buying A.S.E. at $3 premium and selling for $1.5 premium, I'd say that's the best. Junk silver sells for a % over spot, and I haven't found a place willing to buy for more than 91% of spot. With the spot price at $35, a 10% lose is over $3 for junk. You can't beat A.S.E.

 

My LCS pays spot for common bars and rounds, sells them for about $1 over. The mark-up on the ASE's tows that line, they charge about $2.70 over spot but also pay about $1.50 over for them. Their prices on 90% are marginal, but they pay below spot to cover the fees from the refiner.

What amazes me is some people pay close to spot price per $1 ace value for 90% coins?

 

Exactly. People tend to look at the buy price, but not at the round trip net.