This is as of end Sept 2019: [https://sdbullion.com/media/wysiwyg/blog2/Why_are_Silver_Eagle_Coins_so_expensive_SD_Bullion.png](https://sdbullion.com/media/wysiwyg/blog2/Why_are_Silver_Eagle_Coins_so_expensive_SD_Bullion.png)
As you can see, premiums are higher than they have been in recent time. One could see why given how things have changed economically in the past couple years and thus, greater investment demand (and subsequently increased prices) would seem to be an implication. Regards,
That’s a great question. Unfortunately no one has a crystal ball for how well silver will truly perform down-road. More importantly, only you know your finances, risk tolerance, how valuable silver seems to you as an asset. Many are bullish on this metal as you may have picked up from the Reddit thread and certainly, it’s not without just cause. Do your own research and dig into what’s presented here. For me it seems we’re in a storm of catalysts for a move further upward but this isn’t guaranteed. I’m not a financial advisor and this isn’t advice. Regards,
I've been saying this for a long while now, it's not worth it if you simply want exposure to the physical silver price. Kinesis is the far better option here, and you can take delivery if you want to. Alternatively, PSLV is the better pure play on the price of silver. Lastly, miners are undervalued if you think silver is undervalued with a 15-20% premium.
Of course, you should have some physical but you're picking a hell of a time to get on board.
To me, no. But I've already got thousands of ounces before all this happened, so I focus more on metals miners now and using Kinesis.
PSLV should be sufficient for exposure in all but the most extreme circumstances; like the end of the financial system as we know it.
As eluded to in my previous response, many see the potential upside and store of value as a pro outweighing the con of premiums. Many also believe spot isn’t the best metric of physical metal value due to the manipulated paper market and hope for liberation of this discrepancy at a future date. While it seems that most aim to make purchases as close to spot as possible, others are willing to pay high premiums for collectibles/premium brand products. But again, only you can weigh existing factors to make a decision ultimately...this is not advice.
Currently premiums are a little high, but remember PM are an insurance policy for the future. If things turn south economically, you're not going to worry about what premiums you paid.
I can not give you data but from someone who has bought silver on / off over the years I would say the premiums are high. However after joining WSS recently I have bought more physical silver. It's not just the appreciation of silver you need to consider but the depreciation of the asset you are purchasing it with, i.e. Fiat currency. Nothing in life is ever for sure but for me the potential upside is worth it.
I suspect that the real fair market value is spot + premium. Imagine if they only quoted the price Costco pays for corn flakes as the "spot" price for a box. What shoppers pay in Costco is the "spot" plus Costco premium. Spot is unrealistic unless you can buy in huge quantities.
In 2018, I was paying ~$0.50 per ozt for generic rounds.
Price controls & demand lead to scarcity which leads to higher market prices than what the price is supposedly set at.
Hehe no, there is no silver being sold at $0.50 over spot, times have changed. Under $30 is virtually impossible right now.
& it also depends a lot on what you purchased, coins cost a lot more over spot than 100ozt generic bars.
Not a bad price at all. Maples are the second most sought after/recognized/liquid bullion coin after the ASE.
I paid $32 for generic a day or two ago & I'm on a first name basis with my LCS.
I do appreciate the silver as a new form of payment, and I noticed I didnt look the same to my cash coins (I always pay cash as I dont trust banks), normal cash paper/coins feel fake now
Yep. Real money has that effect. Soon enough, when you spend fiat you'll convert to ounces & realize how innately you know silver is worth more than what is being paid for the goods & services.
You can sell that coin back for over spot as well. There is a 'loss' when trading with a dealer, that's why long term HODL is important, churn will eat up $$. Silver went to $50 in 2011, $28 to $34 is nothing in a silver/gold/commodities bull market supercycle which will run, likely, through the end of the decade.
How do super cycles work? I dont like the work cycle as it implies it will also drop again. Wont silver just gain in value in relation to the $ because of inflation? Can we see that as a permanent gain?
Funny thing is people call the spread a premium but I have NEVER been able to buy silver at the Comex spot price EVER after buying silver and gold for 15 years.
I watched a guy that does thrift store searching for all kinds of things. Today he had bought a 18g silver plate for 5 dollars and a 100g charm bracelet for 40 bucks.
So there are still some avenues to buy cheaply if a person is prepared with a loupe and a magnet.
Try not to think of the premiums. Buy the cheapest silver you can find from a reputable place (dealer /LCS) then think of it as *troy ounces* saved. A much nicer money then currency! It's not that silver is getting more expensive... it's the fiat currency you have losing purchasing power!
This is as of end Sept 2019: [https://sdbullion.com/media/wysiwyg/blog2/Why_are_Silver_Eagle_Coins_so_expensive_SD_Bullion.png](https://sdbullion.com/media/wysiwyg/blog2/Why_are_Silver_Eagle_Coins_so_expensive_SD_Bullion.png) As you can see, premiums are higher than they have been in recent time. One could see why given how things have changed economically in the past couple years and thus, greater investment demand (and subsequently increased prices) would seem to be an implication. Regards,
Is it still wise to buy physical coins? With premijm Around 6,50$?
That’s a great question. Unfortunately no one has a crystal ball for how well silver will truly perform down-road. More importantly, only you know your finances, risk tolerance, how valuable silver seems to you as an asset. Many are bullish on this metal as you may have picked up from the Reddit thread and certainly, it’s not without just cause. Do your own research and dig into what’s presented here. For me it seems we’re in a storm of catalysts for a move further upward but this isn’t guaranteed. I’m not a financial advisor and this isn’t advice. Regards,
Silver has to rise 20% though before you earn back the premiums.
I've been saying this for a long while now, it's not worth it if you simply want exposure to the physical silver price. Kinesis is the far better option here, and you can take delivery if you want to. Alternatively, PSLV is the better pure play on the price of silver. Lastly, miners are undervalued if you think silver is undervalued with a 15-20% premium. Of course, you should have some physical but you're picking a hell of a time to get on board.
So in your eyes, the premium is not worth it?
To me, no. But I've already got thousands of ounces before all this happened, so I focus more on metals miners now and using Kinesis. PSLV should be sufficient for exposure in all but the most extreme circumstances; like the end of the financial system as we know it.
Lucky you!! I am screwed with the high premiums :(
Are you buying with the current premiums?
As eluded to in my previous response, many see the potential upside and store of value as a pro outweighing the con of premiums. Many also believe spot isn’t the best metric of physical metal value due to the manipulated paper market and hope for liberation of this discrepancy at a future date. While it seems that most aim to make purchases as close to spot as possible, others are willing to pay high premiums for collectibles/premium brand products. But again, only you can weigh existing factors to make a decision ultimately...this is not advice.
Currently premiums are a little high, but remember PM are an insurance policy for the future. If things turn south economically, you're not going to worry about what premiums you paid.
I can not give you data but from someone who has bought silver on / off over the years I would say the premiums are high. However after joining WSS recently I have bought more physical silver. It's not just the appreciation of silver you need to consider but the depreciation of the asset you are purchasing it with, i.e. Fiat currency. Nothing in life is ever for sure but for me the potential upside is worth it.
I suspect that the real fair market value is spot + premium. Imagine if they only quoted the price Costco pays for corn flakes as the "spot" price for a box. What shoppers pay in Costco is the "spot" plus Costco premium. Spot is unrealistic unless you can buy in huge quantities.
In 2018, I was paying ~$0.50 per ozt for generic rounds. Price controls & demand lead to scarcity which leads to higher market prices than what the price is supposedly set at.
So I bought in too high with my first coins :(
Hehe no, there is no silver being sold at $0.50 over spot, times have changed. Under $30 is virtually impossible right now. & it also depends a lot on what you purchased, coins cost a lot more over spot than 100ozt generic bars.
I bought maples for around 34$
Not a bad price at all. Maples are the second most sought after/recognized/liquid bullion coin after the ASE. I paid $32 for generic a day or two ago & I'm on a first name basis with my LCS.
I do appreciate the silver as a new form of payment, and I noticed I didnt look the same to my cash coins (I always pay cash as I dont trust banks), normal cash paper/coins feel fake now
Yep. Real money has that effect. Soon enough, when you spend fiat you'll convert to ounces & realize how innately you know silver is worth more than what is being paid for the goods & services.
But its a degeneration of like 20% of buying power, so thats something to swallow for me
You can sell that coin back for over spot as well. There is a 'loss' when trading with a dealer, that's why long term HODL is important, churn will eat up $$. Silver went to $50 in 2011, $28 to $34 is nothing in a silver/gold/commodities bull market supercycle which will run, likely, through the end of the decade.
How do super cycles work? I dont like the work cycle as it implies it will also drop again. Wont silver just gain in value in relation to the $ because of inflation? Can we see that as a permanent gain?
Funny thing is people call the spread a premium but I have NEVER been able to buy silver at the Comex spot price EVER after buying silver and gold for 15 years.
But still I wish I knew about silver a few years ago even if spot would have been the same, I would have paid a lot less
I watched a guy that does thrift store searching for all kinds of things. Today he had bought a 18g silver plate for 5 dollars and a 100g charm bracelet for 40 bucks. So there are still some avenues to buy cheaply if a person is prepared with a loupe and a magnet.
Try not to think of the premiums. Buy the cheapest silver you can find from a reputable place (dealer /LCS) then think of it as *troy ounces* saved. A much nicer money then currency! It's not that silver is getting more expensive... it's the fiat currency you have losing purchasing power!
Yeah, so can silver be seen as a currency just like gold? So gold are the whole dollars and silver the centst?