Made my first invest today at +$1 over spot on maple leafs. Is it too good to be true?

Discussion in 'Bullion Investing' started by chungt, May 25, 2020.

  1. chungt

    chungt Member

    My understanding is that i will at least get spot price for the silver on resell even with the spots. Dont really care for the premiums when i convert these into whatever.
     
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  3. fretboard

    fretboard Defender of Old Coinage!

    Maybe this one came from the same roll! j/k :D

    milk.jpg milk2.jpg
     
  4. medoraman

    medoraman Supporter! Supporter

    In a normal market that will not be true sir. Heck, I see such items, like milk spotted, fingerprinted, or colorized ASEs at spot or less from dealers. If you can find another silver buyer maybe, from a dealer in a normal market I would say you would expect $2-3 back of spot per ounce in general.

    Just as a general observation, (not specific to you OP), too many people think their silver should be worth at least spot. Remember spot is for guaranteed silver quality and in a standardized shape for industrial production. Take random silver, (even if all .999), and someone has to take the risk of a fake and smelt this down and recast this in order to achieve melt from an industrial user. Therefor, they have to pay less than melt for their raw material. Once a coin ceases to be a collectible coin, it really goes from something with a premium to spot to something well below spot in value.

    This is why I completely stopped ever buying Canadian products, even for silver. Now I see how bad philhamonics are, I will make sure never to buy them either, again even if for junk. Its a big hit going from coin bullion silver to "melting silver" in terms of premiums.
     
    Last edited: Jun 18, 2020
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  5. FryDaddyJr

    FryDaddyJr Junior Member

    Maples have a different process now and do not milk spot. I like the purity and the low price
     
  6. FryDaddyJr

    FryDaddyJr Junior Member

    Made my first invest today at +$1 over spot on maple leafs. Is it too good to be true?

    let's see that cheap silver you bought

    ???
     
    Last edited: Jun 26, 2020
  7. chungt

    chungt Member

    I posted the philharmonics if you scroll back. They were badly milk spotted but i dont care as long as i get spot price (which i already confirmed with apmex). He could not get the Krugerrands so he gave me unopened tubes of eagles as an equal replacement. Surely, i thought he would charge me more but he didnt. No doubt these are 100% real. I replaced the maples with a 1oz gold eagle for $1810. Gold is going rocket. With this second wave of corona the market is on verge of a sell off any moment now. Only thing left for me to receive from him are the maples and at this stage, i am not overly concerned. I can see this guy being a crook to some people but if right relationship is maintained, i think this could mutually work.
     
  8. FryDaddyJr

    FryDaddyJr Junior Member

    So you're still waiting for those maples.
     
  9. chungt

    chungt Member

    Yup. Still some balance left on the maples. The guy is shady for sure so i have to keep him in line but the guy is quite loose in other direction as he gave me good price in gold and “lost” quite a bit giving me the eagles in place of krugs. And so far, he has come through every time when pushed. Lol
     
  10. FryDaddyJr

    FryDaddyJr Junior Member

    patience is a virtue LOL
     
  11. medoraman

    medoraman Supporter! Supporter

    More patience than I would ever have concerning PM. This market has a long tradition of shysters.
     
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  12. fretboard

    fretboard Defender of Old Coinage!

    Could be your smartest move so far, hopefully you can hang onto it until gold reaches your selling price! Sometimes long term is the only way to go with gold! ;)
     
  13. chungt

    chungt Member

    Maybe it helps i do this for a living. This = commercial negotiation
     
  14. chungt

    chungt Member

    I think it will be less than a year before it should be cashed. And then wait to buy back for long term.
     
  15. chungt

    chungt Member

    Closed out the balance today. He didnt get the maples so he replaced it with canadian mint 1.5 oz conservation series in untouched tubes (pictured). In the end, fortunately, all turned out well. Going forward, he is asking for +$50 for gold eagles and +20 for all other gold coins. Silver coins other than eagles are +1. He explained to me his sourcing process so i know his margin is more than what i pay over spot.
     

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  16. JD Bartlett

    JD Bartlett New Member

    Isn't "spot" price based on the good delivery of, at least, 5,000 oz's of silver at a future date, just like wheat, oil, corn, etc?
     
  17. Mr.Q

    Mr.Q Active Member

    An online financial advisor from a well known channel said, keep cash on hand! My question is, why... If a recession hit very hard I would think the dollar would be the major cause of failure? We are keeping our precious metals very safe and not buying at this time.
     
  18. chungt

    chungt Member

    I am not sure in what context he spoke but he could mean that when the market goes down, one should have cash on hand to take advantage of the bargains. But generally speaking, these advisors never really consider buying pm since they dont consider it as an invest and they dont believe in apocalypse.
     
  19. Mr.Q

    Mr.Q Active Member

    Great answer, thank you! Be safe
     
  20. medoraman

    medoraman Supporter! Supporter

    If you are happy with it man. I can honestly say tens of thousands of investors have lost money paying cash up front, and physical delivery later. Just stating the risks.
     
  21. chungt

    chungt Member

    Certainly the terms will be different next time. It will be cash and carry on the spot.
     
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