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I never thought I'd buy silver rounds, but I did. Your thoughts?

jmski52jmski52 Posts: 22,266 ✭✭✭✭✭

My attitude has always been to keep my precious metals in gov-issued coinage. My reasoning has always been:

1) Easier to know the stuff is real.
2) Govt coinage is more universally-recognized, therefore more liquid.

It's been awhile since I've made a bulk purchase in silver, so market conditions have changed. Have perceptions also changed? I recently bought a box of .999 silver buffalo rounds because:

1) The premium was much lower than ASEs.
2) My dealer convinced me that silver rounds won't be subject to any new confiscatory laws concerning US coinage.

Comments?

Q: Are You Printing Money? Bernanke: Not Literally

I knew it would happen.

Comments

  • MilesWaitsMilesWaits Posts: 5,297 ✭✭✭✭✭

    Enlightening observation. My dealer agrees. Although when he is looking for American Eagles to buy nothing else will do for his customers. I like when I go in and he has some obscure or unique role of rounds for my discerning pallet.
    And sometimes I will pay a bit more as I did with the recent 2 ounce werewolf rounds. In a roll of 14!
    Truly a beast of a roll.

    Now riding the swell in PM's and surf.
  • SonnyDSonnyD Posts: 190 ✭✭✭

    I actually don't mind rounds, except when dealers have a collectors price on generic stuff. It's not made for "collecting" it's made to buy and sell as commodity IMO. So it kinda gives me a kick playing the melt game. As long as the price is low and from a trusted source, rounds can hang with me anyday.

    Ounce by ounce the stack grows .

  • RobMRobM Posts: 527 ✭✭✭

    I would argue dealer is wrong. First, there is no longer enough gold or silver in the hands of private US citizens to make it worthwhile to confiscate. Second, generic rounds would be confiscated just like coins. Third, government would be more likely to impose some sort of windfall profit tax on gold or silver sales instead. Finally, most gold and silver holders are not going to obey any immoral orders when it comes to their PMs; and another confiscation would be 100% immoral

  • cohodkcohodk Posts: 18,498 ✭✭✭✭✭
    edited November 16, 2021 2:27PM

    @jmski52 said:
    My dealer convinced me that silver rounds won't be subject to any new confiscatory laws concerning US coinage.

    Is this the scare tactic du jour?

    Glad to see you are realizing that silver is silver.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • rickoricko Posts: 98,724 ✭✭✭✭✭

    @MilesWaits .... I like those Werewolf silver rounds.... will probably get one, but not a whole tube. Cheers, RickO

  • MilesWaitsMilesWaits Posts: 5,297 ✭✭✭✭✭

    I hear you Ricko.
    You have not only the weight and density of that tube as a potential defense; but as an added bonus, the tube is loaded with Weaponized werewolves.

    Now riding the swell in PM's and surf.
  • jmski52jmski52 Posts: 22,266 ✭✭✭✭✭

    historically, it is the precious metal that is confiscated, not the coinage.

    I can't think of such an instance. Can you provide an example of precious metal confiscation by gov.com?

    generic rounds would be confiscated just like coins.

    I don't know of any precedent for such a move. Is there one?

    government would be more likely to impose some sort of windfall profit tax on gold or silver sales instead.

    Possibly. I wouldn't put it past them. They seem to be doing just about anything they feel like doing.

    most gold and silver holders are not going to obey any immoral orders when it comes to their PMs; and another confiscation would be 100% immoral

    FDR's confiscation order was 100% immoral, and that certainly is a precedent where it concerns US-issued gold coinage. However, when gov.com began issuing gold & silver coinage beginning in the 1980's, the coinage was specifically sanctioned by gov.com for investment purposes. Therefore, any future case for confiscation is substantially weakened in my opinion.

    Is this the scare tactic du jour?

    So, you dispute the idea that gov.com might confiscate personal property these days? Your blind faith in gov.com and in your banking cartel is duly noted. When you realize that they can turn on you in an instant, it may come back to haunt you one day.

    Glad to see you are realizing that silver is silver.

    There are valid justifications for ASEs - namely overall market acceptance and the official status & quality assurance of US coinage which argue in favor of ASEs. The ASEs I bought years ago had low premiums, and if I were to sell some of them now I would benefit not only from the higher price of silver but also from the higher premiums that are now prevalent in the market.

    The sword cuts both ways.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • JWPJWP Posts: 16,515 ✭✭✭✭✭

    When I want to just add silver to my collection for investments, I'd rather just buy the silver rounds. The lower the price of silver means more silver rounds that i buy. Uncle Joe is going to try to
    tax what ever you have.

    USN & USAF retired 1971-1993
    Successful Transactions with more than 100 Members

  • TomBTomB Posts: 20,613 ✭✭✭✭✭

    "FDR's confiscation order was 100% immoral, and that certainly is a precedent where it concerns US-issued gold coinage. However, when gov.com began issuing gold & silver coinage beginning in the 1980's, the coinage was specifically sanctioned by gov.com for investment purposes. Therefore, any future case for confiscation is substantially weakened in my opinion."

    What most folks fail to mention, and likely do not realize, is that there were multiple exemptions from Executive Order 6102. Gold exempted from redemption included "customary use in industry, profession or art", which included gold within various trades and arts; also "gold coins having recognized special value to collectors of rare and unusual coins" could be held privately as well as an allowance for every citizen to own $100 face value in gold coinage (about five-ounces of gold for every family member). If every citizen kept $100 face value in gold coinage then the amount of gold coinage kept in private hands would have exceeded the amount the US Mint had produced since its inception.

    Those who did redeem gold were paid in silver, silver certificates or government notes at the prevailing gold value of $20.67 per ounce.

    Thomas Bush Numismatics & Numismatic Photography

    In honor of the memory of Cpl. Michael E. Thompson

    image
  • CoinHoarderCoinHoarder Posts: 2,381 ✭✭✭✭✭

    When I buy silver rounds, I try to stick to the recognized private brands, such as Sunshine Minting. I have a Sunshine Mint Decoder to verify authenticity.

    And with bars, I also try to stick with recognized brands, such as Engelhard or Johnson Matthey.

    By sticking with recognized brands, it will probably be easier to sell when the time comes.

    However, I do have many other brands of bars and rounds picked up over time.

    In the end, it’s all silver I guess.

    I don’t ever consider the possibility of confiscation. If it comes to that, we will have much bigger issues to be concerned with.

  • MeltdownMeltdown Posts: 8,608 ✭✭✭✭✭
    edited November 18, 2021 8:32PM

    I pretty much stick to silver rounds just as a collection. I like not paying heavy premiums when I just want to buy a few here and there. Over the years, they've added up. I have 45 in this album and probably close to a tube of 20 misc. in flips.
    When I buy rolls, I stick with ASE's or Libs.


  • JBKJBK Posts: 14,532 ✭✭✭✭✭

    The OP's original reasons for avoiding private issues are not wrong. but there is room for some private bullion from recognized sources.

    I have a little of both. It doesn't have to be either/or. ;)

  • pmh1nicpmh1nic Posts: 3,117 ✭✭✭✭✭

    I stopped buying ASE's when the premiums got ridiculous. I've purchased rounds from reputable dealers and go with the lowest premium. I check every round (Sigma, weigh and dimensions) and ultimately it's about the metal.

    The longer I live the more convincing proofs I see of this truth, that God governs in the affairs of men. And if a sparrow cannot fall to the ground without His notice is it possible for an empire to rise without His aid? Benjamin Franklin
  • derrybderryb Posts: 36,022 ✭✭✭✭✭

    $100 silver cares not what form it is in as long as it is .999 or greater.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • jmski52jmski52 Posts: 22,266 ✭✭✭✭✭

    At $100/oz. those ASEs won't have much of a premium if any, but at $100 nobody will care too much.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • jdimmickjdimmick Posts: 9,577 ✭✭✭✭✭

    Exactly!

  • blitzdudeblitzdude Posts: 5,294 ✭✭✭✭✭

    @jmski52 said:
    At $100/oz. those ASEs won't have much of a premium if any, but at $100 nobody will care too much.

    I'd bet on $10 ASEs long before $100 lol.

    The whole worlds off its rocker, buy Gold™.

  • TwoSides2aCoinTwoSides2aCoin Posts: 43,758 ✭✭✭✭✭

    I think you're wise. Lower premiums for the same thing, minus government intrusion.

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