Is Silver next?

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  • snorko

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    What is a physical silver eagle worth today if one had an opportunity to buy today? Value in physical 100oz lots?

    I
    Premiums are very high right now with physical silver. In the before, generic 1 oz rounds could be had with a $1.00 per oz premium and sometimes less. US Eagles were typically in the $3-4 premium range.

    To your question, par Provident Metals the current spot is $27.36/oz. One hundred US Eagles from them would cost you $38.63 per coin or a premium of $11.27 per coin over spot. Provident will buy your Eagles today for $28.54/coin.
     

    DoggyDaddy

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    Premiums are very high right now with physical silver. In the before, generic 1 oz rounds could be had with a $1.00 per oz premium and sometimes less. US Eagles were typically in the $3-4 premium range.

    To your question, par Provident Metals the current spot is $27.36/oz. One hundred US Eagles from them would cost you $38.63 per coin or a premium of $11.27 per coin over spot. Provident will buy your Eagles today for $28.54/coin.
    Seeing this kind of thing makes me wonder how anyone could ever make any money investing in silver? Seems like you're starting at 30% in the hole aren't you? :scratch:
     

    teddy12b

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    In the past I've bought silver from Apmex.com and currently most of what they have to offer is out of stock. There's a reason for that and some are the cycle of a new year and creating new coins, but in all my years of looking at precious metals I've never seen the inventory so picked over.

    Where can you actually buy precious metals at today? That's a question, but also something to consider. Much like empty ammo shelves at stores, it may be too late.
     

    Tyler-The-Piker

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    Seeing this kind of thing makes me wonder how anyone could ever make any money investing in silver? Seems like you're starting at 30% in the hole aren't you? :scratch:
    I remember when I was younger and people said the same thing when silver was $10oz.
    Physical silver is a long term investment/ hedge against the dollar.
    If you think it will hit $50oz then trading paper fiat (before inflation) for silver @ $30 or $40oz makes sense.
    It's all personal choice but it's for sure a risk. I would never suggest more than 10% into PMs. I also just enjoy the collection and the thought of long-term protection.
     

    DoggyDaddy

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    I remember when I was younger and people said the same thing when silver was $10oz.
    Physical silver is a long term investment/ hedge against the dollar.
    If you think it will hit $50oz then trading paper fiat (before it inflates) for silver @ $30 or $40oz makes sense.
    It's all personal choice but it's for sure a risk. I would never suggest more than 10% into PMs. I also just enjoy the collection
    Might not be for me then. Hell I don't even buy green bananas anymore! :oldwise:
     

    snorko

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    Seeing this kind of thing makes me wonder how anyone could ever make any money investing in silver? Seems like you're starting at 30% in the hole aren't you? :scratch:
    Well US Eagles command a very high premium but also have a strong demand. This is true to a slightly lesser extent for other sovereign coins such as Canadian Maple Leafs or Austrian Philharmonics.

    Early mid 1019 was a good time to buy. I bought a few Philharmonics from Provident for $15.63. They are selling them for $33.67 now and have a buy back price of $28.39. I could probably sell them for a higher price than that but if I sold them back to Provident I would realize an annual return of 39.85%.
     

    Tyler-The-Piker

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    Well US Eagles command a very high premium but also have a strong demand. This is true to a slightly lesser extent for other sovereign coins such as Canadian Maple Leafs or Austrian Philharmonics.

    Early mid 1019 was a good time to buy. I bought a few Philharmonics from Provident for $15.63. They are selling them for $33.67 now and have a buy back price of $28.39. I could probably sell them for a higher price than that but if I sold them back to Provident I would realize an annual return of 39.85%.
    We bought 55 eagles at $14.45ea OTD...wasn't that long ago either...
     

    DoggyDaddy

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    So it sounds like there's more to it than simply $$/oz.? By that I mean it sounds like coins command a premium over say, bullion. Is that correct? In other words an ounce doesn't always equal an ounce when it comes to cost/value.
     

    Tyler-The-Piker

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    So it sounds like there's more to it than simply $$/oz.? By that I mean it sounds like coins command a premium over say, bullion. Is that correct? In other words an ounce doesn't always equal an ounce when it comes to cost/value.
    When supply or spot price is down then premiums go up.
    When a dealer is sitting on silver that isn't moving then premiums go down.
     

    shibumiseeker

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    I just sold most of my silver except for some reserve holding I have because I like the designs. Some of my sale is being put into my "buy a 20mm" fund which is getting pretty close, and some of it has been used to fund my full suspension downhill mountain bike build which, kinda like ARs, I've been building a bit at a time. But I took most of my "profit" and went down to the salvage yard and bought lead. Pure and wheelweights. I used be be able to get them near free at tire shops, not any more. Lead prices are slightly lower than they have been in a while and I cast, so I can always use lead. I do the same thing when I bring in a truckload of aluminum cans. Worst case my heirs can sell it pretty readily. Will I lose out if it goes up to $50? Sure. Do I really care? No. Losing out on a few hundred when I already made my initial investment back well beyond anything I could have gotten by dumping my money in some account to make some Wall street guy richer. Will I buy more if it goes back down again? Probably.
     

    DoggyDaddy

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    Thanks, and I understand that (numismatic vs. not), but that's still really not what I'm asking or trying to understand I guess. Put simply, is a 1 oz. Silver Eagle worth more than a plain 1 oz. silver bar? Or is the cost per ounce the same, with only the premium being the variable (higher for the coin)? If it's indeed only the premium that varies, then it seems like the bar would be a better investment. But I know nothing about this stuff, so I appreciate the info!

    Another analogy is stocks. Let's say I can buy 100 shares of XYZ from TD Ameritrade and they charge me $1 per share in broker fees. Now let's say I can buy 100 shares of XYZ from Schwab but they only charge me 50 cents per share in broker fees. From that standpoint, buying from Schwab makes more sense. Is that a valid way to look at this?
     

    Ingomike

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    Put simply, is a 1 oz. Silver Eagle worth more than a plain 1 oz. silver bar? Or is the cost per ounce the same, with only the premium being the variable (higher for the coin)? If it's indeed only the premium that varies, then it seems like the bar would be a better investment. But I know nothing about this stuff, so I appreciate the info!


    But I understood in a SHTF type scenario the coins would be more valuable because of the security factor of buyers having confidence in the authenticity vs. a fairly non descript appearance.

    And would love to know more about spot pricing. Thanks!
     

    snorko

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    The cost of the silver going into the production of a generic 1 oz 0.999 silver bar is the same as the cost for the silver needed to produce a US Eagle coin. This should not be confused with price though. Spot price is the expression of the cost or price of a commodity. When the Chicago Board of Trade says corn is $4.00 per bushel, you won't pay that at the store. If you did, that 16 oz can of corn would run $0.05.

    So the price of a unit of silver has to include the cost of production. So since the cost to produce a 1 oz bar, excluding the silver cost, is about the same as that to produce a 10 oz bar, the premium on the larger bar is lower per troy ounce. Many buyers and investors perceive added value to sovereign coins as they are a known quantity and less likely to be of lower quality or even counterfeit.
     
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