Collectible Bullion? Is it an Oxymoron?

Friends give friends good advice, and then let their friends do what their friends want to do, because their friends are grown ups and will make lots of their own dumb mistakes. And if their friend wants to get a permanent tattoo while drunk, that a friend knows they will hate come morning, after trying to talk sense into them, said friend stands by as witness so that when they complain and curse about it for the rest of their lives, said friend can say "I tried, I tried to tell you..." so that their friend can feel even worse about their dumb mistake than they already do.

 

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Just understand, if you buy Canadian Maples with privy marks, even if they contain your own privy, your coin shop with buy them back for approximately the same % over spot as they would a regular maple.

If you take a decade's worth of different year ASE to your coin shop, they will not care what the date of the bullion silver is.

So you tell me, is collectible bullion worth it?

 

What about some really nice 5 or 10 oz govt issued silver coins which cost you a similar premium as ASE? Chances are the mintages are not as high, which may make them more in demand. Of course it may not, but, who knows. And on top of that, you LIKE them. Would collectible bullion be worth it in that case?

Ditto the above for 1 or 2oz really nice lower mintage Silver Rounds. Would that collectible bullion be worth it? I'm thinking it may be.

It's fun to play around a little, especially with Silver where my risk is not as high.

I did this with a couple of Gold coins where I paid the same premium for the coins as the Maple Leaves, got limited mintage interesting issues, and I suppose time will tell. Of course I wouldn't play around with Gold coins in the same way as I would with Silver.

I don't know anything for certain, and only time will tell whether it was a good or bad idea. I'll let you know down the line if I'm here to tell the tale!

 

PS - For some reason that I don't understand, Canadian 1/20 oz Gold Maples cost a fortune of a premium to buy, but try selling them back to a dealer and they PAY SO LITTLE of a premium that the loss is HUGE. I'm not sure I understand this EXTREME difference in premium for fractional gold. This is one of the rookie mistakes I made. Live and learn...

 

A couple rules i follow when investing, dont become emotionally attached
To what your buying, if you do, you risk paying to much ! its ok to like it
Just dont love it...LOL

Also try and save up versus buying smaller quantities, i call this the
"Costco effect" you will always save major $$$ doing this, the smaller
You go the higher premium you will pay, like anything else PM,S
are no different, a good analogy, you will pay a higher percentage
For a 6 pack of coke vs a 12 pack ( cost per can )

So when you talk 1/20 oz Gold Maples you are at the highest percentage
per coin.

 

Gold Spot: $1321

From JMBullion
1/20 2019 Gold Maple: $93.04
https://www.jmbullion.com/2018-1-20-oz-canadian-gold-maple-leaf/
Premium over spot: $27
Buy back: $74. Total loss: $19
x20 for 1 one ounce: Total loss: $180

1/10 2019 Gold Maple $149.09
https://www.jmbullion.com/2019-1-10-oz-canadian-gold-maple-leaf/
Premium over spot: $17
Buy back $136. Total loss: $13
x10 for one full ounce. Total loss $130

1/4 Gold Maple Leaf $363.24
https://www.jmbullion.com/2019-1-4-oz-canadian-gold-maple-leaf/
Premium over spot: $33
Buy back: $336 Total loss: $27
x 4 for one full ounce Total loss $108

1/2 Ounce Gold Maple $710.48
https://www.jmbullion.com/2019-1-2-oz-canadian-gold-maple-leaf/
Premium over spot: $50
Buy Back: $668.49. Total loss: $41.50
x2 for one full ounce. Total loss $83

1 ounce 2019 Gold Maple: $1370
https://www.jmbullion.com/2019-1-oz-canadian-gold-maple-leaf/
Premium over spot: $49
Buy Back: $1329. Total loss: $41
x1 for 1 full ounce. Total loss: $41


The reason? One, we know there is a fixed cost to produce a coin of almost any size. If we imagine this fixed cost to be $5. Then you can see that if it's a one ounce coin how $5 is a tiny percent of a premium compared to $5 as a huge percent on a tenth of an ounce coin.

Other reasons? I don't know. I don't know why 1/20th is so much more expensive than any other size. My guess is that the mintage is very very small.

But this goes back to what every bullion buyer should know by now: buy 1 ounce coins. Below that has a higher premium, above that has a higher premium.

 

I believe the damage is higher than written for 1/20th ounce.

 

In addition to the reasons given above for why there is a premium on bullion made in fractions of an ounce of gold or silver is that there are buyers who want the 1/10 or 1/20 of an ounce for the coming economic collapse or Armageddon. This will allow them to buy low-priced practical things or services, without having to cut a larger coin into pieces.

Dealers don't care about economic collapse or Armageddon. They look at the melt value and price it below since the dealer needs to make his cut when he resells the bullion or when and if he sends the bullion to the melt.

 

Good argument but it does depend on what your purpose is from the
Get go, not sure how many people are thinking economic collapse
Or just a safe place to put your money.

 

Quite a few people I talk to who buy bullion tell me they like the fractional ounce coins (1/10 ounce, etc.) so they can spend it more easily "when the time comes." Maybe I need to reevaluate my circle of friends and associates.

 

Someone pointed out on CT a few years ago, that if there is an armgeddon, only two things will really matter: food/water and guns. I thought it was an interesting take.

 

After all you never Know.....

 

Yes, I realized that I made a BIG mistake buying fractional ounces of gold and I absolutely wont make that mistake again. Even though gold has gone up since my mistake, it hasn't gone up enough for me to even sell at a "reasonable loss".

In terms of Armageddon, who knows what we will need as a currency. I do believe Gold will help with immediate needs to get one out of the country, buy stuff, etc, but I think 1 oz pieces will suffice for that purpose.

Something will have to suffice as a currency for a LONG TERM day to day currency on the street, but I'm not so sure tiny pieces of gold will do it. I don't think there is enough of it to work as a day to day LONG TERM currency. But whatever it will be, gold 1 oz pieces (coins & bars) will suffice to buy whatever it is that becomes the currency.

There is something to be said for the idea of food, water, guns and ammunition being the only thing that will be worth anything - but I think that's longer term, when supplies are more scarce, not necessarily immediately, when I plan to get out of there and when hopefully gold will pay my way. This is based on my theory where I don't think the whole entire planet will face Armageddon all at once, even if half or 3/4 of the planet does. If the whole planet does, then I likely wont survive and hope that others do survive so that the human race can go on (even though the human race is not the nicest one around, and there are too many jerks among us, but I know some really good people and hope those are the kinds who survive, because if it's a human race of jerks, who needs it? And how's that for a run-on sentence?! )

 

Yeah, I realized that too late. But what I thought would happen is that the higher premium I paid when buying it would amount to a higher premium when SELLING it as well. But that's not the case, and I don't know why not. It doesn't make much sense.

Maybe if I tried to sell it to individuals and not to dealers I will get a higher price, but I'm not up to dealing with the hassle of individual buyers right now. That being said, if anyone reading this is interested in buying 1/20 oz Canadian Gold Maple Leaves at half the premium the dealers sell it for who wont make the transaction into a hassle, feel free to let me know (I have the invoice from when I bought them if that helps with validation).

 

So, everyone responded to my PS post, but nobody responded to my main point, above, which was following the theme of this thread. I'd be curious to hear if you agree or disagree.

 

Just remind them that “junk silver” will spend even more easily because it already looks like money. Then, when the time comes, they’ll have the same resource, i.e. small amounts of silver, but will have paid less for it. Fractional gold under a quarter ounce could be replaced by ounces of silver. The GSR would be problematic when the time comes.

I’m told bottle caps might be the currency of the future.

 

Well everybody know what Gold looks like, other precious medals such
As Palladium which has now rocketed past gold, Maybe not so much
Silver is a decent choice, however you would have to have allot and
That,s stuffs heavy !! if you had to go on the road, just ask these guys !

 

When I was 9 years old my mom convinced me to throw out my bottle cap collection. She thought it was a ridiculous thing to collect. This was one of those times when mom was wrong and sightless as to the future potential they held.

 

So if your going on the road, you want to take the most expensive, with
The least weight always a good combination.