If you sold your premium bullion for generic, you would have?

I was watching a video on youtube about a guy who flips his premium bullion for generic bullion. He gets the premium bullion at a good price and waits a year or so to resell. On the average he is getting atleast 2-1 in value and sometimes more depending on what the particular items are. If you were to sell your premium silver or gold for a more generic bullion, how much bullion would you actually have?

I thought this was a pretty good idea when watching what he was saying. Think about this, most reselling that you do is gonna be online or to your LCD. If you do sell to a LCD, your not gonna get the premiums back that you paid on the more expensive bullion, so if you could double or even triple up your bullion before reselling, your atleast making your money back plus some if you catch the market at the right time.

What are your thoughts about this idea?

 

Log in or Sign up to hide this ad.

I personally wouldn't do that because I don't like generic round. If you are to planning to do that, flip premium for generic round, you might as well flip premium bullion for scrap metals. I mean if all you care is how much silver you get, why not goes for scrap metals. To me, Generic round is base solely on Spot price. You pay a small $1 or so above spots for them and you usually sell them for -$1 below spot. There's not safe guard there when the silver bottom out. As for Premium coin, at least you may able to find someone that need it to finish their collection and willing to pay a bit more for it.

That's my 2 cents.

 

It's not that hard to figure out that he's looking to get max ounces and let his premium stuff pay for it. There are plenty of cool generics out there, or govt issue for a few dollars over spot, and if you can get others to pay for your ounces, why not?

 

Thats actually quite smart...especially if you go under the thought pattern that silver is silver reguardless of who minted it. And there are some highly recognized generics out there too. You could probably do this really easy with bullion that changes every year(pandas/koalas/kookaburras). It would certainly help the value factor.

Plus there are always ways to test to see if silver is genuine...

he strikes me as a silver for bartering kind of silver stacker---and if thats the case and silver becomes the currency its not going to matter if its got a cool picture of a panda or leaf or eagle. The only thing that will matter is if its real and what purity. Just because it's government minted isn't going to make it more valuable in my eyes...in a social breakdown where paper money becomes exactly what it is...worthless. However, silver won't be the only thing of value...food/water/alcohol(as in booze)/ammo/ etc)

 

If you sold your premium bullion for generic, you would have a more risky investment with all your eggs in one market, relying on a worst case economic scenario to profit, rather than taking advantage of a possible healthy collector market as well.

 

I turn over some premium silver depending on the piece and how much I acquired it for. I have bought silver rounds and bars in the past and made a killing on them, (Youngstown Coke Bars to name a few) with some of it going back into basic silver. But of course I`m no different than anybody else in the fact that I too like some of the higher end silver and have and will pay a mega premium for certain pieces.....so it evens out in the long run.

 

It's not something I pull off every week, but today I sold a bullion 5oz Hawaii for $300...I will turn that into 12oz...so all in all, it's a good deal for me...and if I can turn that 12 into 18 within 6 months or so, it'll be even better... with some very good luck, maybe even more...and I have more of the 2012 ATBs, that may have solid future potential, so??? just saying

 

On sorta same topic. I've recently flip some fancy numismatic coins and use it to buy semi-numismatic coins (2014 Somali Elephant).

 

spoke of something similar on another forum...
in this case the Unc. Au Eagle. The greysheet shows a 'generours' premium to spot.
The mintages for the last several years have remained below 10,000.
I have purchased "premium"/numi to 'flip' but the Unc. Eagle maybe the first coin that I purchase to purposely treat it as bullion and as stated, use to purchase "generic".

 

I'm in the middle of selling those buffalo liberty silver bar to buy American Eagle.
Trying to sell off my generics for Eagles.

 

Anyone buying with the intent of reselling is simply making a profit regardless of what he does with the proceeds. If he wishes to do so, and more power to him if he is making a buck, good for him.

I am simply old fashioned I guess. I don't try to flip coins. I buy coins or bullion for what they are. Then they simply get put down a rat hole for the next 40 years.

 

there are all kinds...
I fall into several categories.
* buy and "bury" (stacker/hoarder)
* collector/numismatist (I like the shiny)
* flipper (buy and sale quickly)
* giver (gifts)
* seller (buy, long term hold[year+], sale)

will add *dealer in the future

 

And nothing wrong with any and or all of those. However you like coins is great with me.

 

Personally (and this is just me) I can't see me selling off my 'eagles' to buy some 'generics'. Maybe I'll miss the bus on the profit taking but so be it. Love's my Eagles......

 

I think we all, first and foremost, are collectors. Some have deeper pockets than others. Some prefer to sell some of their stacks to expand their collections.

 

I like this idea, and I would do it except that I get too attached to my semi/premium coins. Being able to get them for close to spot during their year of issue, and knowing I could sell them for more than I paid even if spot drops is plenty of motivation for me to hold on to them, but really I just buy what I like and keep it. Sure if I ever had to melt it or barter it I will take a hit, but since I didn't overpay I'm not concerned.

Yes I could be making money on them or maximizing ounces, but profit is not my primary aim, and the most important thing for me is securing my stack at current prices while I still can since I believe the reward in buying power by the time I retire will more than make up for any unrealized gains at this juncture. I would rather hold on to the coins that can weather the volatile PM markets personally.

If I were to do this strategy I would modify it slightly and instead of buying generic I'd pay the extra couple bucks for eagles or maples just to ensure ease of resale. I would then only swap eagles into generics during severe downturns like we saw this summer where eagle premiums ballooned.

 

I'm even worse... I love the Silver Eagle Proofs

 

i sold off practically all my generics back when silver was in the 40s, I was able to purchase a nice ornate back Martha washington silver certificate with the money

 

Gotta agree with you up there. I guess if you have hundreds of ASE's then you may get a better profit margin, but first off the list is I don't have hundreds of ASE's. Second of all, I've sold generics before and they're a hard sell at times, depending on what you have. Third of all, not me not now and not ever. ASE's rule and everyone knows it, just maybe not in Canada. I'll leave all the risks to you heavy hitters.