1 ounce bars or an actual coin ? Whats best for investing?

Danny9995

The cheapest I can find any coin like ASE or Maple is $15. The maple leaf is $15 at TTD, and I see ASE's at about $15 minimum. However, I am finding the 1 ounce bars as cheap as $12.50. I expect to hold these for at least 5 years and see silver at at least triple todays price. So, I am wondering will the coins hold their premium over the bars if silver triples ? That is to say, if silver triple and the bars are $37.50, is an ASE going to be $45. I doubt it. Seems to me that the bars are better, if it is strictly for investment purposes. I just dont see ASE's or Maples maintaining a 20% premium over a bar when the price of silver is $40 or more.

dimples

I agree the higher the price the lower the premium.

lathmach

What's the rationale behind your belief that the price of silver will triple?
Sounds like nothing more than wishful thinking to me.
There's just too much silver in way too many weak hands.
The price of silver may fall to $3 or $4 an oz., as the recession deepens, and silver is liquidated for needed dollars.
Better you go to Vegas and "invest" by playing the slots. You'll probably lose less money, and the shows and food there are fantastic, so you'll have a great time blowing your wad.
To answer your question though, I'd want the coins if I were to hold silver.
Junk silver U.S. coins. Just my personal preferance.

Ray

cars

<< <i>
The price of silver may fall to $3 or $4 an oz. >>



And it may triple. I'd bet on $30 silver before $3 silver.

Danny9995

Thats the same argument we have been hearing forever. These weak hands probably sold most of their junk silver off as silver rose from $4 to $21, thats partly why it fell back down to earth. The recession has been on for a year now, silver has already been sold by the weak hands. They simply cant be snapping their fingers and always having their silver to sell over again.

roadrunner

The price of silver may fall to $3 or $4 an oz., as the recession deepens, and silver is liquidated for needed dollars

While this is possible, I think that $30 silver is many times more likely. In any case, to reach $3 silver in a "recession," would probably also require gasoline to fall to 50c/gallon along with all other basic consumables taking a similar % haircut. The silver would still maintain it's overall value compared to other goods. If it comes down to longer term deflation or inflation, the govt always ops out for the inflationary side.

roadrunner

lope208

<< <i>The cheapest I can find any coin like ASE or Maple is $15. The maple leaf is $15 at TTD, and I see ASE's at about $15 minimum. However, I am finding the 1 ounce bars as cheap as $12.50. I expect to hold these for at least 5 years and see silver at at least triple todays price. So, I am wondering will the coins hold their premium over the bars if silver triples ? That is to say, if silver triple and the bars are $37.50, is an ASE going to be $45. I doubt it. Seems to me that the bars are better, if it is strictly for investment purposes. I just dont see ASE's or Maples maintaining a 20% premium over a bar when the price of silver is $40 or more. >>



While I can't predict if silver will actually triple, I believe your reasoning is sound in the thinking the premium will disappear on ASE's if silver goes that high.
The same happened with gold for a while when it shot up over $1000. It became a bullion play more than a collectible play. The premium always disappears first.

timcoin

Don't get me wrong, I like yellow gold just as much as the next guy, but in terms of percentages, black gold sure seems cheap at the moment. You might want to look into an ETF like OIL or USO. I bought some OIL today. However, I sure as heck didn't sell any precious metals to make the OIL investment. I just decided not to buy more at the current level.

MillerJW

Where do you find siver bars for $12.50???

COINB0Y

.45 Caliber, 13 Shot Capacity Hand Gun, w/ (4) 12 Round Magazines + 1,000 Rounds of Ammo holds more of a premium over either a Silver Bar or a Silver Coin during a *real* breakdown of society.

If you are not worried about that, the American Silver Eagle or Canadian Maple gets almost instant acceptance, a Bar needs more trust in you from a Buyer, IMHO.

I would compromise and get 90% Junk Silver Halfs or Quarters.

With 90%, you get the best of both worlds, cheap and acceptance.