Is investing in 1 oz Silver Coins a Good Idea

All commodities follow the pattern you cite: be it metals, oil, natural gas, corn, cotton, soybeans and livestock.

 

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Yup, just trying to splash some common sense around.
There are exceptions, but some times there's gov't programs to help certain industries when supplies are way up, and prices down.

 

Unfortunately, precious metals buyers are constantly hammered through advertising and website pitches that create the impression that basic economics has nothing to do with silver and gold.

 

Or that metals are the only real economics. But like has been said a thousand times before, if sellers actually believed the hype they push they would only be buying not trading their metals for dollars

 

Unfortunately they do. IRA PMs, TV (as mentioned, then they go to sell and find out the real truth), etc. Luckily we're a bit more educated here. I know people that buy silver/gold ONLY through TV. Many that buy silver/gold in places like Facebook don't know where to get the stuff for cheaper, and don't even know that you can get stuff directly from the US Mint. It all depends upon how deeply people research a particular thing and how much they believe the spoken word on tv / print, etc.

This type of commodity reselling doesn't happen with perishable commodities. Imagine a Cheese TV channel referencing grey sheet cheese sales !!

PMs have always been visually to people as jewelry based. And the jewelry market is full of multiples of actual cost to capitalize on labor costs, overhead and profitability though maintaining a large inventory.

 

yep. why would those fools sell the shiny for worthless paper??

 

I have found it humorous and rather telling how the TV commercials have constantly been changing the time periods to be able to say that silver is up x percentage since 20xx.

 

You can easily say that Silver was UP in 2016 ... January 1 vs Dec 31 spot prices. As long as you didn't buy in between you are fine

 

Exactly. There is a way to play the PM game and some people can do quite well, but it is not assured and there are no floor prices and the prices do not have to ever go back up like some people say

 

they feed off of people's "hope" of making easy money buying at an inflated $$ now in hopes of hitting $50 again. Only realizing when nothing happens quickly and they sell, they find out they were deceived.

 

That's exactly what it is. I think by the time we see 50 again it won't have been worth the wait, but time will tell

 

A lot of these TV gold commercials are aimed at luring people in with bullion sales, then high-pressuring them to buy vastly overpriced and vastly overgraded classic gold coins. That, I suspect, is where the real money is for the sellers. The financial losses sustained by the buyers has been well documented.

No thank you, William Devane and Pat Boone.

 

just remember there are many many worse things you can spend your money on, and at least you have something to show for it

 

I'm just talking from an investment standpoint or profit point. If someone just likes it and wants it because they love it by all means go right ahead, the enjoyment of it would be the important part in that case

 

right. there are a lot of gold bugs who poison forums stating that doomsday is right around the corner and investing everything in metals is the only choice.

 

That's really what I wanted to correct. I will never criticize someone for collecting what they like as long as it's within their budget. Everyone enjoys different things.

 

Maybe not on TV, but they do have them ( Futures contract ) Don't buy a Swiss contract though, they have holes

http://www.cmegroup.com/trading/agricultural/dairy/cheese_contract_specifications.html

 

If one wants to learn more about what company did what in consolidating or closing mines etc you'll have to read their investor annual statements.
But this article will give you a good idea about one of them.
http://www.kitco.com/news/2017-01-09/Centamin-Exceeds-2016-Gold-Output-Guidance.html

 

Back to 1 ounce coins. ASE's vs. Generic Rounds. I vote rounds for investment purposes because the round trip is less. I can get rounds online for $.69-$.79 over spot and sell them back at spot. ASE's right now are going for over $3.00 over spot and the buy back is usually $1.50, sometimes lesss, from a dealer. Round trip is $1.74.

 

The thing to keep in mind is: with bullion silver coins, you'll need that buyer on the other side willing to pay the high price if/when silver does shoot up in value. If the price shoots up, the buyer supply will go down making it hard to sustain the high price. This is because of a large influx if silver sellers hitting the market that were hoarding it all these years. Simple supply vs demand. The numismatic valued coins will always carry their value.

On the other hand, if you would have purchased a silver ETF, such as Ishares SLV, you login and click that sell button at any time.... Done!

No Ebay fees associated with selling the coins/shipping and storage of all those coins in a safe area in your house/bank.

Just my 2 cents.