I'm a newbie stacker - done a bit here and there but not regularly or in large amounts. I'd like to get back into it. I have some questions on premiums when stacking silver. I realize this will differ by person, but would love to hear how you decide… I have a limited budget so cannot purchase large amounts at a time. Especially if I want to dollar cost average. It would be probably about 1 ounce per month, on a regular basis. Maybe very occasionally I could make a little bit larger purchase, if the right opportunity appears. I want to keep my costs as low as possible. So obviously will look for “deals” and probably end up with generic rounds, mostly. Or whatever happens to be the best deal at the time. But I would like some diversification and be able to purchase eagles, maples, britannias, etc. at some point, occasionally. Knowing I would likely be paying somewhat more. How do you determine what is a “reasonable” premium to pay on these items – knowing that you want to keep your cost down overall, but would still like to include some in your stack, when possible? What level premium would you look for to determine now is the time to purchase these? At what level do you say that premiums on rounds, or whatever else may be the best deal, are just too high and you’re not buying anything at that time? Any other suggestions/insights would be appreciated. Thanks
I been stacking for a long time. I tend to look in the oddball places. Jewelry repair shops tend to be good haunts. I also have a connection with a fellow that buys abandoned storage houses. He drops by my office once or twice a year with a baggie or cup of oddball coins. I always mention old coins when talking with folks. The ladies at the bank set their oddball coins aside for me. I have folks in my office bring in old coins for me. Over the years, these sources have really added up...... Now I do have dealer buddies but don't usually do my bullion purchases with them. I know they have to make money and I don't fault them for that... Occasionally I see buy in deals advertised from Apmex and those kind of places and I'll jump on them. But right now bullion is super hot so I doubt there will be any buy in deals at the moment. But that will change. It always does. Welcome to a lifelong addiction!
Thanks, Randy. I appreciate the information. I definitely have noticed that things are a bit crazy right now, so I'm trying not to get in too deep - but it's hard. Definitely an addiction!
This is the "age old question" for all bullion purchases. I have studied, reviewed, planned and debated the best method possible. My research has led me to the following conclusions: 1. Your goal is to purchase as close to spot as possible. I have found this to be extremely difficult as dealers always manipulate spot prices when selling and buying so the purchaser losses on both. 2. Don't purchase from a local dealer; it's cheaper to purchase from a major bullion distributor (JM, Apmex, etc.) or certified bullion coins from Ebay. 3. The sweet-spot for silver bullion are 10 oz generic bars. Smaller amounts you pay to much premium, larger amounts you may have trouble selling it to anyone but a dealer. An exception is that when prices are up and bullion dealers are selling so much above spot it's actually cheaper to purchase high quality certified silver eagles from Ebay. Usually you can purchase the certified coin at or below what the bullion dealers are selling the raw ungraded coin. 4. "Dollar-cost-averaging" doesn't work well with precious metals. It takes to long to make a profit based on the wild swings in pricing. For example if you bought at the high point it could take 10-12 years before you just break even. Therefore buy when prices are going down and sell when prices are going up. I have always made a good profit doing this. Good Luck
I notice advertisements for major coin dealers selling ASE's below spot. Probably the best bet is 90% "Constitutional" silver which you can get at melt or a little less. It's also instantly recognizable and easy to get rid of.
I like 90% constitutional silver because then you have the market for stackers and coin collectors if you need to sell. Otherwise, generic rounds seem to have the lowest premium.
