More thoughts on silver stacking: collecting, investing, or wasting money?

Discussion in 'Bullion Investing' started by myownprivy, Jan 14, 2018.

  1. myownprivy

    myownprivy Active Member

    As you know, I am fascinated by this idea of "stacking." On the one hand, it seems to be a perfectly logical complementary investment or savings. But on the other hand, it often seems like it's usually the unsophisticated working man's way of "saving" money, erroneously believing they are doing something smart for their future. When, in reality they're really not because they are paying double digit premiums. That mean silver has to rise way more for them to make any money in the future. They are also often putting way too much of their savings/investment into buying silver instead of smarter investments.

    The working man I have described above is not the type of silver buyer who interests me the most. After all, this is unlikely to be the type of person who can write coherent sentences on a message board or, even less likely, make a youtube video of their "stack." So, for me, I hardly ever come across these types of people except in person. But of course, in person I am MUCH less condescending and elitist when I bump into them at a coin shop.

    Instead, the type of silver buyer who interests me most is the person who is both collecting and investing. Here, the question that I have is: why are so many buying so much new crap? Why is their "collection stack" composed primarily of new gimmicky stuff like Pandas, Privys, and Lunar releases? I, myself, have fallen prey to the privys and do collect them in my "stack." However, I am also fascinated by all the different types of silver coinage that has been minted in the past. So my "stack" is made up of circulated silver coinage from all around the world, plus some Mint sets and some commemoratives I was also able to purchase near spot. This gives me something to collect and some variety. Plus, with circulated silver coins, I can fondle my junk without worrying about damaging it. You can't do that with 999 silver.

    So, my question is why do so many of these silver stackers not have anything old and interesting? It seems like most of what they buy and stack are things you can buy from any online bullion dealer. Don't they ever go to the coin shop and discover that cool coins containing silver have been issued for YEARS AND YEARS AND YEARS? Maybe they should get to know their "working man" silver stacker who's in his 50s or 60s and does still buy his silver in person from his local coin shop.
     
    juris klavins and Drawde like this.
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  3. Blissskr

    Blissskr Well-Known Member

    It's probably because they've never actually sold any silver yet and encountered the hosing their going to take liquidating most of that fancy stuff. This is also a general thing with many coin collectors imo though. Many seem to have no idea what it would be like to actually liquidate and the reality of the true cash value of their collections.
    With the high premium fancy stuff sure sometimes that stuff is win but in general I think most is a losing proposition with the high premiums. If you like something for your personal collection, then sure buy what you like as long as you have no expectation of ever getting the premium beyond the spot price back for it. In general with buying and selling I've done much better with 'junk silver' average circ and uncirc pre 64' and ASE's than anything else.
     
  4. myownprivy

    myownprivy Active Member

    Excellent point! I think you're right that much of their naivety is due to having never sold significant parts of their "stack" before.

    And I will admit that I have probably sold nowhere close to as much as others on here probably have. However, I regularly sell back to coin shops if my "stack" is approaching more than 5-10% of my savings/investment.


     
    Galen59 likes this.
  5. Histman

    Histman Too Many Coins, Not Enough Time!

    I stack primarily the way you do. I do not buy anything that is not within 5% of melt. I love buying foreign silver of all denominations for the purpose of stacking it. It may not have as easy a resale opportunity as some of the 90% stuff, but as a collector, that is okay for me. I, of course, will take the new stuff too if it is close enough to spot.
     
    Stevearino likes this.
  6. longnine009

    longnine009 Most Exalted Excellency

    From Him what is soooo exalted and sophisticated: "...I can fondle my junk without worrying about damaging it. You can't do that with 999 silver."

    Yeah those "unsophisticated" working stiffs probably don't fondle their junk too much. But then again they probably don't take bubble baths either.
     
    Last edited: Jan 14, 2018
  7. myownprivy

    myownprivy Active Member

    I just wish someone would help some of these guys out. How many youtube videos do you see of people sharing their "stack?"

    A lot of these guys have all sorts of 1 gram gold bars that they paid a double digit premium on that they will get only spot for if they sell. They have hand poured silver bars that they are collecting that were sold at a premium by Provident, JM, or someone else that they will get only spot for. Ugh, I feel bad if they are unaware of how much money they are likely to lose.
     
  8. Don P

    Don P Active Member

    Some of the rarer bullion does have somewhat of a numismatic value, no doubt.

    I mainly stick to ASEs since they're so easy to liquidate and I know I'm not paying too much over spot for a hyped up value.

    Also, remember that on the selling end, for example Ebay: if you paid $2 over spot for a silver coin, Ebay will take 10% selling fee and then a Paypal fee. Silver would need to roughly go up 20% in value for you to make a tiny 5-6% profit. Just using simple math.

    It's only worth what someone else is willing to pay on the opposite end. Book value is only a ballpark figure.
     
    SilverMike likes this.
  9. longnine009

    longnine009 Most Exalted Excellency

    How humanist. But if they are wrong so what? Leopards have to eat too. Only bankers get coddles and bonuses for screwing up.

     
  10. Au H2O

    Au H2O New Member

    WOW!!! I know there are condescending, holier-than-thou buttholes out there but rarely do I see anybody actually say (or write) things that prove me right.
     
  11. rte

    rte Well-Known Member

    Your doing it Wrong.
    You need to sell to the end user, Not a coin shop to realise your $$ gain.
     
    Last edited: Feb 17, 2018
    Stevearino likes this.
  12. rte

    rte Well-Known Member

    The golden rule is, It's your money, Buy What You Like.
    I think your confusing a stacker with a collector.
    A stacker should be buying on the cheap.
    A collector may pay a little premium for a piece he OR she likes.

    You can sell anything for a profit IF you buy it right.
     
    SLACKACTION and Stevearino like this.
  13. Bman33

    Bman33 Well-Known Member

    I sold my entire stack back in October of 2016 to a dealer. It was a good time to sell due to demand as I got melt for 90% and Generic and $1.50 over for ASE’s. I rebuilt and have found new avenues to sell to consumers. I only buy ASE’s and 90% junk. Have a plan on how you will sell your stash and it’s a great idea to sell some just to get a feel for it. If your only avenue to sell is to online dealers do it. Figure out shipping, insurance, all that stuff. This will give you confidence because you now have an exit strategy when the time is right. Also, I say this a lot but make sure you can afford to buy silver. Be responsible. If you are in any kind of credit card debt pay that off first! You should have cash, savings, and other investments too. Don’t forget to get gold also!!!
     
    Stevearino likes this.
  14. Randy Abercrombie

    Randy Abercrombie Supporter! Supporter

    I am a collector/stacker. Been that way since last decade. I never consider selling my bullion. However I have used it to barter deals. I am also a bass guitar player and two years ago bartered a deal for a custom build 1300 dollar bass. All said and done I had less than 800 invested in the deal. And now that luthier is a coin nut like me. I’ll never sell outright however I will barter with my stacks.
     
  15. Collecting Nut

    Collecting Nut Borderline Hoarder

    I stack and I do it in many different ways. Bars, rounds, 90% silver, silver dollars, cull silver dollars, certified coins, etc. In the average lifespan the PM's go up three times to new highs. One must be patient to be a stacker and profit from it. It's a great way to set aside a little from your weekly paycheck. It's easier to spend your cash than save it. Silver is currently in the $16 dollar range and my average costs are just over $10. As I stated, one must be patient and I have the patience of an oyster. ;)
     
    SLACKACTION likes this.
  16. Drawde

    Drawde Lurking and learning...

    I am 81 and I got most of my silver right from circulation. I have a 1916d Mercury dime that came from the NYC subway change-booth back in 1954... And I pulled a 1928 Silver-Dollar from a $100-bag sold to me across the counter at the Treasury Dept. Cash window in DC in 1964. How does that factor into your calculations?
     
    Tater, Adam34falcon, -jeffB and 5 others like this.
  17. gold standard db

    gold standard db Active Member

    My grandpa showed me his coin collection when I was 7. Mostly silver bullion. Englehard 10oz bars, rolls of mexican silver, peace dollars, and pages of bullion coins. He said pay close to spot as possible. Gave me an Andrew Jackson 999 1/2oz coin. Liberty Lobby it said, I looked it up, was some crazy group that did a coin run. My grandfather got me collecting with bullion as basics.
     
    Johnnie Black likes this.
  18. Ron W

    Ron W Member

    I just bartered some Gold & Silver for a new beautiful sidewalk and some home repairs that I did not want to do , saving a lot of out of pocket money on this work.
     
  19. steven bagliore

    steven bagliore New Member

    for stacking purposes only is cull a good investment?also 90% silver does it matter if u purchase quaters,halves or does it matter at all?
     
  20. TheFinn

    TheFinn Well-Known Member

    I sold all of mine in April 2011 for $42 an ounce. It went to $48, but I wasn't concerned about having to hit the top when I was in most of it between $6 & $10 an ounce. I was very popular at the coin show and had customers lined up. They couldn't believe I was selling, and I couldn't believe they were buying. When they asked, I would ask them if they knew what a bubble was.
     
    Galen59 and Bman33 like this.
  21. rte

    rte Well-Known Member

    So Finn was the one responsible for Not Sending me the Memo to unload the truck.

    Maybe next time.
     
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