ASE investments

Junk I could probably pick up for melt from a dealer that is really good to me.

 

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You might like this recent thread for various insights: Junk Silver Coin Preference

 

I get this question a lot at the shop... My answer is it depends on if your specific investing goals. If you spend $1,000 on eagles and $1,000 on bars and rounds your going to get more actual silver by 5-6 ounces (right now) with the bars and rounds... You get more when you sell eagles (as long as the premiums keep up)... but you get more actual silver with generic bars and rounds.

 

How much is reasonable for a common date Canadian Maple Leaf or ASE? Like what percentage above melt is reasonable?

 

5%-10% I would say.

 

Thanks LostDutchman!

 

The premium will always be there I think. For example if silver's spot price is $20.00 and there is a $3.00 premium over spot I don't see why the premium won't still be there if the spot is $30.00. The reason there is more of a premium on these is for several reasons. I think the main three reasons is they are guarenteed by the US government, they are quite beautiful, and these two make them very popular. Another thing is the premium possibly be a little more for you at the 30 versus 20.

I don't buy these as investments, but if I did shipping and handling would be more of a consideration than premium. I like Krispy's idea of finding a dealer you trust and deal with a dealer directly. Might help to say buy 2 to 3 every couple of months compared to say one per month.

After saying this about the dealer you may have to show some consistency before the price to you starts to get a little cheaper.

 

Something that tends to happen as coins get more expensive is that people are more hesitant to pay a premium. When coins are cheaper folks are more likely to pay a premium. For example generic classic gold coins, specifically generic circulated $20 gold pieces are getting cheaper as the gold price goes up and the premium erodes.

 

Bottom line...long haul. No gettum in gettum out....

 

I think the best chance for you to get off of the lawn mower someday would be to put the money into a common stock mutual fund, leave it there, and add to it whenever you can. ASEs are good for some goals, but not for others.