Premiums on Foreign Silver Bullion Coins

Discussion in 'Bullion Investing' started by Bman33, May 8, 2016.

  1. Bman33

    Bman33 Well-Known Member

    I have been wanting to get some foreign silver and I wanted to know how much over spot I can sell it back at. Specifically I want to get some Austrian Phils. Anybody have experience selling these?
     
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  3. Paul M.

    Paul M. Well-Known Member

    Since you're talking about selling them "back", I'll assume you mean to a dealer. I'll give you an example using current spot pricing and APMEX's buy/sell prices.

    As I write this, silver spot is $17.53/oz. They are currently buying 2016 silver Austrian Philharmonics for $18.53 and selling them for $19.62 in volume. (That means transactions over $10K.) Their buy price will be less on smaller volume, but they don't specify how much. Also, their sell price currently is $20.62 via check/wire or $21.44 via CC/Paypal.

    So, basically, if you want to make money, and you can't buy and sell absurd quantities, you have to wait for the spot price to significantly exceed $21/oz to do so.
     
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  4. Bman33

    Bman33 Well-Known Member

    I should have clarified, I always want to know the sell back price before I buy to make sure there is a demand out there. I wouldn't sell these back right away. I'd probably sit on them for awhile. So they sell for two over and buy back at one over. Do dealers at shows and LCS's pay about the same for them?
     
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  5. John King

    John King Member

    That really depends on the dealers and the particular LCS's. The last show I went to I thought everything was going for retail prices and I did better with my local coin shop although he is a dealer as well. You do best if you are always willing to walk away. The bullion market is so volatile that you may have to sit on that silver or gold for many years to make a real profit. If you buy a silver coin for $25 and the price of silver goes to $30 the dealer might offer you 20-25 bucks for the same coin because he has to make a profit if this is his means of making a living. For silver to got from say $18 an ounce to $30 an ounce is a huge move. It has done this in the past but you may have to wait 25 years while it just bumps along between $7-20 an ounce. There have been just three real bullion bull markets in the last 100 years. All these bullion bull markets were result of economic calamity. Bullion is a form of insurance IMO. If you have 1 million dollars then maybe $50,000 should be in gold and silver. This is the investor point of view. If you collect coins just for fun you will be happier and you may still make a profit one day when you cash out. I am also dazzled by gold and silver coins, but I try to keep in mind that for all but rare coins the bullion price is important value of the coin gold in particular.
     
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  6. Paul M.

    Paul M. Well-Known Member

    Couldn't tell you for sure, because what any individual dealer pays for bullion is dependent on a lot of factors. What I can say is that a show is probably a better opportunity overall, because you get to talk to a ton of dealers in one day, rather than just your LCS. Also, I'd avoid the "we buy gold" places, as they're unlikely to pay much, if any premium over spot.
     
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  7. Bman33

    Bman33 Well-Known Member

    So if you had a choice between ASE's and Silver Phils what which would you choose? Paying a little more for the ASE but you probably have a higher demand for them too.
     
  8. Paul M.

    Paul M. Well-Known Member

    I don't buy bullion, but I'd probably pick ASEs because they'd be easier to sell. Almost any US dealer will probably buy them, if not as bullion, then as coins.

    Personally, I'd go for a world type set of bullion coins, but that's just me. :p
     
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  9. Bman33

    Bman33 Well-Known Member

    I sold off all my silver bars and most of my rounds recently. Made a little money because I bought back in the first week of January this year. I'm hanging on to my Eagles and now I am going to just buy them because they are so liquid. Is this a good strategy, ignoring rounds and bars?
     
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  10. Paul M.

    Paul M. Well-Known Member

    I have no idea if it's a good strategy or not, as I'm not a silver stacker by any means. I do prefer coins over rounds and bars, though. And, if liquidity is what you're after, ASEs are the way to go. You buy at a bit of a premium to spot but I think that evens out when you sell.
     
  11. joecoincollect

    joecoincollect Well-Known Member

    I had some ASEs that were 5-10 yrs old and the dealer gave me a little less because they were not BU. So keep that in mind. Either keep them tight in rolls or put the few you have in flips. Maybe keep one as a pocket piece too
     
  12. Bman33

    Bman33 Well-Known Member

    I've got mine in air-tites. Hope that worksz
     
  13. Speedbump

    Speedbump Not a New Member

    If you like to admire them a lot, then little capsules are good, but for storage, the capsules do take up a lot of room as you acquire more coins. Simple tubes provide good protection and take up less space in the safe. Also, a tube is only like $2 for the official mint ones that hold 20 coins, and aftermarket tubes are less than $1. Air-tites can be over $0.50 each.
     
  14. Bman33

    Bman33 Well-Known Member

    I put them in air-tites because I got them in flips. You are right, they are difficult for storage. From now on I will buy them in mint tubes and not even open it in order to keep them BU.
     
  15. Kentucky

    Kentucky Supporter! Supporter

    I know this is small potatoes, but I recently bought 20 ASE's for $16.95 each (should have bought more...hindsight) and then sold 15 of them to a dealer friend for $19 each. He re-sold them for $21.
     
  16. Speedbump

    Speedbump Not a New Member

    I use to put my 1/10 gold Eagles in air-tites because they were so small and I didn't want to drop or lose them. As I got more and more over time, I realized I was storing mostly air and plastic. I dumped the air-tites and just drop them in a dime tube now.
     
  17. Bman33

    Bman33 Well-Known Member

    I put my ASE's in air-tites because I was afraid of putting them in tubes and getting them scratched by doing so. How do you put coins in tubes without messing them up? Whenever I do it they clank around. I thrashed some silver rounds trying.
     
  18. Soiled

    Soiled Everyone has coin Avatars. I chose space.

    Where did you sell your bars/rounds? LCD? EBay?
     
  19. Bman33

    Bman33 Well-Known Member

    To a dealer at a coin show. He bought them for spot price too.
     
  20. Speedbump

    Speedbump Not a New Member

    I stack them up on the table then drop the tube down over them, tilt over and cap.

    Eagles are shipped in these tube normally and hold up fine. From the time the coin pops out of the press, to the time it arrives at your door, it's clank'ed against its fellow eagles countless times. Bullion Eagles are typically not going to be perfect by the time they get to you anyways. Small contact marks are inevitable. So long as you aren't putting stretches or dents in them, you're fine.
     
  21. Bman33

    Bman33 Well-Known Member

    Sounds good. What technique should you use for getting them out of the tube?
     
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