How Would you Spend $1000 on Silver?

I am relatively new to stacking. I usually buy an ASE each week to throw in the safe.

After talking to my father today, he expressed interest in buying some silver.

I was trying to convince him to buy ASEs, but he can't get over the $3-$4 premium he would have to pay over spot. So, I suggested he do some research on rounds and bars to see if this would be a better fit for him.

If you had $1000 to spend on silver, what would you purchase given this situation? Would there be liquidity issues if he purchased generic rounds and bars?

 

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I hold out for opportunities to buy below spot, mostly on eBay BIN listings.

This produces the opposite sort of "liquidity issue", though; such opportunities are few and far between, so if I wanted to put a lot of money into silver right now, I couldn't use this strategy.

I'm a big believer in junk 90% -- lower premium, generally a lower buy/sell spread from what I've seen, and optimal liquidity.

 

I wouldn't buy bullion silver. I would buy numismatic silver. That's my preference.

 

spend another 600 and buy a 100oz bar, while someone will say they are hard to move around here they sell faster than they come in the lcs as they have a waiting list for them but thats here.

about .50 over spot https://www.providentmetals.com/elemetal-100-oz-silver-bar.html

 

I would ask 3 questions (1) Is the money to be used completely disposable ( wouldn't suffer if lost completely), (2) Do you have security to safely and anonymously store it, ( 3) Is there any time frame, or just hold for the "big one" or pass on to relatives on death. There is always the other one ( WHY?), but that is too varied as to agreement, it is useless usually.

Big bars or ASE are easy to divide among survivors, silver dimes are usable in case of monetary failure and if you want to set in an empty bathtub and shower them over your head Rounds I would not buy, buy that which someone will accept on face rather than having to assay or analyse it.

 

Same way as I usually do. Run of the mill items of usable sterling silver from George III to George V that I pick up at local auction rooms for no more than 10% over spot, and sometimes spot or just below.

Make your stack useful and decorative

 

One of the dealers I buy from online is $.85 over spot on Sunshine Bars. They run these deals all the time. Another good choice is junk silver coins.

 

I've been buying Walkers and 10 oz. bars.

Stevew

 

Could buy a different government issue with a slightly lower premium. Philharmonics or maples or something.

 

I also have a bit of advice that I wish I had taken myself when I bought some gold a few years ago: I bought three ounces in one shot, and you guessed it, it dropped and has never hit that level since. If I could do that one over, I would have "dollar cost averaged" by buying each ounce a couple of months apart, at least.

Steve

 

Go to one of the silver distributors. Someone else can post the name of the site that has the best value listing for various quantity/types. I thought it was silverprices.com but I'm not sure and don't want to mislead. I've bought from JM Bullion over a dozen times in the last couple years. Very reliable. You may have a favorite, but this way you maximize your silver value.

Remember to plan an exit strategy. While you may pay less premium on 10oz bars, remember they are harder to sell at a premium. The 1OZT bars and rounds will command the highest premium on ebay, and are most common.

ASE's are easy to sell on ebay or to your neighbor.

 

Is he buying in hopes of making money?
What is his motive?

Regardless I say
Buy what he likes... Or calls to him...

 

Thanks to everyone for the replies! This is very helpful.

His motive is to diversify his assets and invest. He will probably hold on to it for a few years unless silver really spikes before then.

 

Personally, I like government issued. Eagles, Britannia, Maple Leafs, or 90%. Easier to liquidate, in my opinion. Just make sure you get it at the "cheapest" price per ounce, relative to when you buy it. Buying in bulk is best, if you can afford it. Sometimes Sunday night is a good time to buy, after the overseas markets have opened, if you're buying from a dealer that has spot based pricing.

Nothing wrong with buying high grade older silver coins either.

 

https://comparesilverprices.com/

Good site to compare silver prices. I always include shipping in the cost per ounce. Some don't have shipping costs. I'll let you figure that out!

 

He might even consider 40 oz of silver (approx. $790) and 2 - 1/10oz gold eagles ($275). That would be about $1065.

 

ASE's.........even with the premium, they're preferable (my opinion) over rounds or bars. Easily liquidated if necessary.

 

Thank You for that link. You have no idea how much time I spend when I am looking to buy silver checking different sites, writing prices down in a notebook and then comparing... I like to mix it up and buy a few different Gov minted 1 oz coins depending on prices. that site has everything right there!!!! AWESOME!!!! Thanks again!!!!

 

I would try to look at local pawn shops. Find one that does mostly coins and gold. They have good prices and you can walk out with silver/gold in your hand. I would also split the money in gold and silver.

 

I'm big into "lowest price over spot" which varies from day to day and from distributer to distributer. So after a while, you'll have a wide variety of coins, rounds, and bars. Once I stacked a decent number of ounces, I diversified into whatever appealed to me and of course, numismatics. The "dollar" aspect is cool, but most importantly, HAVE FUN!!!!