I buy silver world bullion coins that catch my eye. I try to buy them as close to silver spot as possible, but it seems that the premiums over spot on these issues are increasing especially for coins with limited mintages. The premiums on the proof issues are even greater than the BU issues. If these coins are graded by a TPG, the premiums can be quite substantial. The silver world bullion market seems to have exploded with the rising PM market over the past few years. What are your views on the future of the silver world bullion market as either collectables or investment? Do you think the limited mintages will always maintain the premiums over time? Do you think the premiums are way too high and that these coins will basically be worth spot silver in the future? TC
I like world silver bullion a lot also, TC, and have noticed the same things you have. Premiums seem to be stretching to the point of ridiculousness. My opinion (and we all know what an opinion is worth) is I think we can all agree bullion coins will most probably always maintain an intrinsic value. As far as their premium holding in years to come, I would reflect on the following: baseball cards, Pokemon, beanie babies, Cabbage Patch dolls, homes and tech stocks. These are all instances in which rational people knew, in reality, the stratospheric values were overdone, but continued to pursue them anyway due to a herd mentality and getting sucked into the frenzy. My philosophy is buy what you like and can afford and simply enjoy it today. If you buy what you like, the chances of being disappointed in the future are lessened. Also, I have found less is more. I used to have all kinds of silver bullion and found I had so much, I couldn't really appreciate it all. Since I have reduced my holdings and narrowed my strategy, I find I am able to like what I have a lot better. Another thing I try to keep in mind is demand is a much more important factor than mintage.
Mints around the world are becomming smarter at marketing. They realized that if they issue a series of "limited edition" bullion coins, they can charge more for them than for a single type. In time, there will be so many limited edition coins floating around that it is unlikely that any single one will command a premium among most collectors, although there may be pockets of folks who keep the price up by buying and selling to each other.
A lot of bullions' premium going to get start disapperaing as mints' pump out more and more coins saturating the market as treehugger pointed out. In fact in a scenario where Spot prices go 2x to 3x is not good for 999s that are selling for premiums because they will not see such a increase and premiums could vanish. Those limited issue coins' could end up going for spot or less, as sellers start dumping them to take $$$. IMO i stick with coins i can get for spot and only pay premium for coins that are truly rare.
I see the premiums increasing as well. I was lucky to buy a Thai rhino coin this weekend for just $47, they had been going over $60, (about .83 ounces). I think the market for years was just weak, and with people buying PM they noticing these. That, along with US collectors thinking in terms of US mintages, they think these are "rare". Tricky call TC. I think if silver falls these will hold a premium, but move down with silver. If silver goes up I see premiums dropping of course. My default answer would be if you like owning them, you have already received some "return" from the purchase, so I would not sweat some premium over spot if you love the coin. I know its not very helpful man, but its all I got. This is what I do, my wife is Thai, I love rhinos, so I bought the coin at the cheapest premium I could find. Chris
The world's mints have the best marketing people money can buy. I remember a thread not long ago debating the future of this hobby based on the absence of young people at coin shows. Well demographics is certainly the key and the mints are taking full advantage of the "baby boomers." The boomer years are 1946-1964. I'm 1950, and I only discovered my lost interest in coins late summer past. Even Barry from Art&Coin says this market has grown 20fold since 1999. So until us boomers die off, I see this "bubble" only in it's infancy. And since I have not experienced your concern of higher premiums in the recent years, then my "Ignorance is bliss." Nevertheless, I see a vibrant market and I'm enjoying it!
Just as a follow-up to this thread: The Perth Mint has decided to re-strike older dated Kookaburras (for now the 1992 issue) up to the the maximum mintage of 300,000. Here is link that details the story: http://www.bullionbaron.com/2012/04/perth-mint-reminting-early-1992.html More reason not to pay high premiums for "limited mintage" world silver bullion. There is also a rumor going around on the internet that they made 200K more 2012 1 ounce lunar silver dragons increasing the mintage to 500K. Not sure if this is true or not (I hope not), but wanted people to be aware of these things before chasing a numismatic rarity in a limited mintage silver bullion coin. TC
Indeed good information. I think this will bite them in the rear, since it will make all of their products from here on out less valuable if collectors feel they can be reissued at any time. The US mint caught heat for not striking more 25th Ann sets, but they did the right thing and honored the mintage commitment that people relied on. Reading this, I would never again pay any premium for a Perth mint product.
Indeed, interesting movement. I have shyed away from Kooks, just based on my lack of interest in the bird design. I love the finish, tho, so I've kept considering them. But now I feel satisfied I have not, and probably will not. Does this have something to do with Perth not being gov't?
I love birds. Not sure why Australia chose the Kook though when it has Rossellas, Cocktoos, Bundies, Zebra Finches, Goulds.... Ruben
The 2008 and 2009 are awesome coins. The 2oz are even nice and the 10oz is spectacular. I don't have the 10oz 2009, but I'm a sucker for the 08 design. The 04 or 05 is allso all kinds of cool, but I don't have one as I traded it to somebody that collects them. Me? I just buy them when they're cheap...
