Just starting my stack

Discussion in 'Bullion Investing' started by 68KennedyHalf, Sep 22, 2018.

  1. 68KennedyHalf

    68KennedyHalf Junior Member

    I've been a collector of numismatic coins for many years, and have just made my first bullion purchases in the last couple of days.

    I have five 2018 Canadian Maple Leafs and an ASE on the way from JM Bullion, and I picked up a couple of 1989 Maple Leafs on eBay.

    I was drawn to MLs because I collect a number of Canadian numismatics, most notably dollars (1935-67), dimes and both large and small cents.

    I'm trying to buy bullion at prices as close to spot as I can; I've been advised to avoid paying significant premiums for slabbed coins, as I should only be expecting to get spot prices when I try to sell.

    My plan is to spend about $100-140 a month building my initial stack over the next 12 months. During that first year or so, I plan to concentrate on government-minted coins; I don't have a great deal of interest in bars or generic rounds at this time.

    Is there anything about the current environment that suggests a different approach to building? Or any contrary advice in general?
     
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  3. rte

    rte Well-Known Member

    Sounds like a good enough plan.
    I like the vintage silver art bars at a dollar over spot when I can snag them.
    They have lower a mintage then most silver government production rounds.
     
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  4. Deserttaxguy

    Deserttaxguy New Member

    If you are buying coins like ASE or Maple Leafs, I would surely buy a whole tube of them at a time. That way you have a nice group in a storage tube, and you don't wind up with 2 or this or 5 of that.
    Keep your purchases to whole units. ASE is 20, Maple Leafs 25..
    I like 10oz Silver bars too. Good luck and enjoy yourself.
    No Slabs!
     
    68KennedyHalf likes this.
  5. oz_in_ohio

    oz_in_ohio Active Member

    Its ok to buy this stuff but when a significant increase comes in the
    market, dont be greedy and simply sell them off and earn your profit.

    In 1970, australia issued a 50c coin made of 80% silver...It got hoarded away
    by many many people including my dad.... Silver was going up weekly and i told him to sell them off but he wouldnt...Needless to say the hunter brothers came along and ruined the market.... You do as you wish but a small profit is better than any loss..... I personally buy mint stamps at 40% to 50% of face value and use them on mail and packages....I am then earning almost 100% on my money..... I place them on business envelopes and sell them off at 90% face value including the envelopes to different busnises...It is a tax deduction for them and i am earning money within 48 hours....I think that is better than any silver or gold investment.
     
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  6. medoraman

    medoraman Supporter! Supporter

    No real way to stack OP, whatever works for you works. I would say it is a very good time to start, as prices are attractive right now. I have been buy a hundred ounces here and there of silver when opportunities present itself. It is hard to turn down these prices. I just wish more low premium platinum was available.
     
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  7. Mkman123

    Mkman123 Well-Known Member

    OP main thing is to have fun with it! I do like your plan however!
     
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  8. 68KennedyHalf

    68KennedyHalf Junior Member

    Many thanks to all for these responses.

    @rte - Are the vintage art bars fairly easy to sell, either to dealers or elsewhere?

    @Deserttaxguy - Wow -- 20 or 25 at a time, eh? That might be difficult for me; part of the appeal of stacking silver for me was being able to add to it gradually, hence the $100-$140 per month limit I've set. But maybe down the road, once I've built up a year's supply, and I'm starting to accumulate four to five times a year.

    I know there are all kinds of complexities, but is it fair to say that the main thing to watch in determining where spot prices are headed is the strength/weakness of the dollar? I know it's very strong right now, but I've been wondering what Trump's tariffs are going to do to it over the next couple of years.

    I recall selling my albums of numismatic Peace Dollars and Canadian halves in spring 2011 when silver was around $48, due to a setback I experienced around that time; I hadn't paid much attention to the commodities markets until then. Some of the cursory reading I did at the time indicated that the weak dollar had made PMs cheaper for overseas investors to purchase, and that American buyers were following suit, but beyond that I couldn't see why silver had spiked. When spot prices crashed, I saw traders being quoted as saying the market had just gotten too far ahead of itself, etc.

    Again, I know there's much more to it, but just wondering if it's a useful shorthand while I learn more about the other factors.
     
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  9. Randy Abercrombie

    Randy Abercrombie Supporter! Supporter

    The only way to stack silver is the way that is fun and fulfilling for you. Personally, I sometimes buy rolls of cull dollars. I sometimes buy rolls of ASE’s. As has been said, current prices make it an attractive time to buy. When I started stacking years ago I kept the market spot charts on my desktop. I realized that doing so only created stress into something I wanted to do for my fun and to have something for my kids & grandkids. Have fun and enjoy it.
     
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  10. Don P

    Don P Active Member

    You picked a good time! very low prices. I would put that $100-140 per month on the side until you build enough to buy a roll. You'll get the best average price per coin.

    If you live in America, I recommend the ASEs or AGEs for the easy and high resale value.
     
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  11. DWSchmidt

    DWSchmidt New Member

    Don't give up on your LCS's (Local Coin Shops) for your bullion needs. I am lucky and have three LCS's within a 15 mile radius that have excellent prices with very reasonable premiums on silver. I recently purchased a 5oz ATB silver quarter, Mount Rushmore, SD, for $90 when APMEX was pricing their random date bullion ATB's for $101. Pays for the gas money and then some.

    One shop I frequent has a box of 1 oz bullion coin culls that go for spot + $1.50. There often are ASE's, Maple Leafs, Libertads, Britannias, Philharmonics, various Perth mint coins, and others. I have obtained quite a few of the Canadian wildlife series from that box. Some are scratched or dirty or tarnished but most clean up fairly well. (Alright, ladies, quite gasping, I heard you. Many of them were in the box because they had already been cleaned and they are BULLION.)

    If you are fortunate enough to have an LCS nearby, go in and develop an relationship with them. And no, I have no familial relationship with an LCS, only the friendships I have made by being a customer.

    DWSchmidt
    Grayslake, IL
     
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  12. myownprivy

    myownprivy Active Member

    I think you've picked a great strategy.

    Eagles are the best to sell in the US (by best I mean recoup most of the premium you paid). Maple Leafs are a very close second.

    But the reason I also choose Maple Leafs over Eagles is because they are very easy to authenticate and therefore easier to resell.
     
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  13. 68KennedyHalf

    68KennedyHalf Junior Member

    So my first bullion coins are here; I ended up grabbing a couple more Maple Leafs off eBay, 1989 issues with no milk spots. The Harris tubes I bought turned out to be too small for ASEs (though the MLs fit perfectly), so I have 10 larger tubes on the way.

    It feels odd not to be putting the coins into an album or air-tites, but putting them straight into tubes seems make the most sense for my current strategy.


    Interesting angle regarding entire rolls. Maybe I'll try that in October when I get my second paycheck of the month.

    Part of my resistance to ASEs has to do with my numismatic side. I really love Walking Liberty halves, and it just seemed lazy to me that the Mint opted to use Weinman's obverse design for the ASE. They'll still be a part of my strategy, but I kind of smirk at them.

    I live in Chicago, so there are a few LCS options that should work. I've been recently thinking of trying a couple of them for numismatic purchases, so hopefully as they get to know me for those, they'll be inclined to offer deals on bullion.



    [​IMG]
     
  14. Mulligan

    Mulligan Junior Member

    While I like the Maple Leaf the milk spots kinda put me off. I have a couple of tubes around here somewhere that are quite milky. I know at the end of the day they are still silver but when it comes time to sell milk spots could be a factor.
     
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  15. myownprivy

    myownprivy Active Member

    Do not buy Maples in full tubes. It is much better advice to buy your $140 worth within your budget when there is a good deal.

    There is a $1.59 over spot sale on Provident Metals right now for Silver Maples. There are typically sales like this on Provident and JMBullion several times during the year.

    Here are the advantages to buying a few at a time instead of a full roll:
    1) Buying a few per month on sale will get you the same price as buying a full roll. The "sale" price is typically the same as the volume price or lower. So there's no need to stretch your budget. You'll get the same price per Maple anyway
    2) Buying a few per month allows you to spread around your price-per-Maple risk around which is probably better in the long term due to price changes
    3) Buying a few per month allows you to buy different years and have more variety. Yes, Maples are just bullion, but why not have a little variety if you enjoy them?

    Of course, this advice does not apply to buying something like Gold whose price is far better buying in the full ounce variety.
     
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  16. 68KennedyHalf

    68KennedyHalf Junior Member

    Ah OK. This is more in line with my initial thought. I'll see how things go in the next three months or so and figure out which approach works best for my budget.
     
  17. 68KennedyHalf

    68KennedyHalf Junior Member

    This is my one concern about MLs, but I am going into my strategy assuming that I won't be getting a premium on the bullion I'm stacking. If someone says they won't even pay me spot due to the milk spots, I'm headed out the door.

    I also hope the RCM is correct that it has found a way to prevent the milk spots going forward. Most of my initial purchases are going to be 2018s that have supposedly been minted to avoid this problem.
     
  18. 68KennedyHalf

    68KennedyHalf Junior Member

    Though selling is obviously not something I intend to do in the short term, what are some of your thoughts on who to sell to?

    I hear that dealers can be fair, but some will try to convince you to sell for under spot. I hope I'll be in a position to take my bullion elsewhere if I run into someone like this, but my sense is that I would try LCS first.

    Ebay seems like a reasonable outlet, but between eBay's fees and the shipping costs I'd be incurring, the cost of sale might be excessive.

    Pawn shops would seem to be out of the question, as their very existence seems to depend on their ability to lowball sellers.
     
  19. myownprivy

    myownprivy Active Member

    Stick to selling to local dealers. Just ask around to find out which ones will pay the most for Maples. You should always get at least spot for them, but often a little over.

    The buy back prices from online dealers often look good. So I am curious if I would ever sell a large amount of my Maples all at once to one of them. I think that would often the shipping charges.

    No pawn shops. No craigslist. No antique stores.
    Yes to local coin shops. Yes to online coin dealers. Yes to coin shows.
    Maybe to ebay.
     
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  20. rte

    rte Well-Known Member

    Well there goes my reading comprehension, missed that question.
    Well the older Art bars seem to have a following and some do well over spot pricing on resale.
    (I have Not sold to a dealer as they generally wont give you anymore $$$ then their generic silver price)
    For the silver art bars you would be looking to sell to another art bar collector.
     
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  21. green18

    green18 Sweet on Commemorative Coins Supporter

    A purchase here, a pickup there, and fast forward 15 years....... you got a bunch of stuff you can't lift........
     
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