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Premium silver

tydyetydye Posts: 3,894 ✭✭✭
in Precious Metals
I got into precious metals about 10 years ago as an investment. With few exceptions I would unload the premium stuff in order to purchase additional metal. That was when silver was in the 10-20 range and many bars would sell in the 25-50 range an oz.
The last year however I have been holding on to the premium items drifting into collecting. Not very logical if the reason I am purchasing metal is for investment. Am I foolish to hold to these items?

Comments

  • PerryHallPerryHall Posts: 46,111 ✭✭✭✭✭


    << <i>I got into precious metals about 10 years ago as an investment. With few exceptions I would unload the premium stuff in order to purchase additional metal. That was when silver was in the 10-20 range and many bars would sell in the 25-50 range an oz.
    The last year however I have been holding on to the premium items drifting into collecting. Not very logical if the reason I am purchasing metal is for investment. Am I foolish to hold to these items? >>



    The premium bars are less liquid. Take a few to your local coin shop and ask for an offer on them.

    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

  • tydyetydye Posts: 3,894 ✭✭✭


    << <i>The premium bars are less liquid. Take a few to your local coin shop and ask for an offer on them. >>



    On the premium part of the value I agree. But I never said I paid a premium to get the premium pieces in the first place. I used to use the premium to purchase more but lately I have been just sitting on it. It is a thin market here and ebay are the only venues that I am aware of that pay premiums on the stuff.
  • PerryHallPerryHall Posts: 46,111 ✭✭✭✭✭


    << <i>

    << <i>The premium bars are less liquid. Take a few to your local coin shop and ask for an offer on them. >>



    On the premium part of the value I agree. But I never said I paid a premium to get the premium pieces in the first place. I used to use the premium to purchase more but lately I have been just sitting on it. It is a thin market here and ebay are the only venues that I am aware of that pay premiums on the stuff. >>



    You should be able to get a premium for rare and unusual bars on the BST.

    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

  • bstat1020bstat1020 Posts: 2,151 ✭✭
    If you didnt pay the premium then I would just hold onto it. Thats just me.
    Madelyn's Birth Year Registry Set, Sophia's Birth Year Registry Set, My 10 Best Coins
  • rickoricko Posts: 98,724 ✭✭✭✭✭
    Hang on ... silver will be going up.... Cheers, RickO
  • Kd5ddoKd5ddo Posts: 208 ✭
    Like most things in life, 95% of what i get is bullion at prices as close to spot as possible. The other 5% are for the things that are more in the collecting arena, art bars, perth kookas, etc. I still don't know why I do it when my main goal in investing/inflation hedge. I guess I do it to have something pretty to look at..?

    Either way it is nice to have something very nice to look at which also encourages me to keep stacking. Kind of like a treat for doing so well sticking to the stacking plan...
    Remember that the market can stay irrational longer than you can stay solvent.

    BSTs with: Coll3ctor, gsa1fan, mkman123, ajbauman, tydye, piecesofme, pursuitofliberty

    Travelog - 20in20travels.com
  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    You should be able to get a premium for rare and unusual bars on the BST.

    Good luck with that...ugghh. You had it right the first time when you said "The premium bars are less liquid".
    If the OP didn't pay the premium when they were purchased, he should therefore be satisfied with getting a part for the premuim the bar(s) when selling them.

    If one paid a premium when purchasing the rare and unusual bars, then you're back to the "less liquid" status, unless you're willing to take the beating. That is of course if you are in a position of having to sell. Otherwise, you've got to have some patience if you're goal is to sell them.
    As you can see, it gets complicated and a whole range of emotions come into play. At least it has for me being in the latter position for the most part. I didn't pay a full premium on what I have of the rarer ones, but I did pay a premium. So now I'm in the position of asking myself how long I am willing to hold onto to them to find the "right" buyer, or do I just keep them, put them back and forget about them for a few years.
    To forgive is to free a prisoner, and to discover that prisoner was you.
  • jmski52jmski52 Posts: 22,822 ✭✭✭✭✭
    I got into precious metals about 10 years ago as an investment.

    Excellent move!

    With few exceptions I would unload the premium stuff in order to purchase additional metal. That was when silver was in the 10-20 range and many bars would sell in the 25-50 range an oz.
    The last year however I have been holding on to the premium items drifting into collecting. Not very logical if the reason I am purchasing metal is for investment. Am I foolish to hold to these items?

    I move back & forth between these two strategies. It allows me to prune my collectibles regularly and keep the stuff I really like, but it also forces me in the direction of cashing in on some of those premiums in order to buy more bullion.

    If I didn't cash in on the premiums, they might just go away some day - and really - part of the reason that I speculate in hot new Mint issues is because I am betting on doing just that - cashing in on the premiums in new coin issues that I've identified as having some potential.

    I'll keep stacking until I see no further reason to do so, and I don't care what the spot price happens to be. I'd love to put money into a small manufacturing business, but between the political scene the way it is and retirement goals - time's running out for that idea.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • tydyetydye Posts: 3,894 ✭✭✭


    << <i>If I didn't cash in on the premiums, they might just go away some day >>



    That is my concern. But on the flip side if silver goes down the premium stuff may cushion the fall.
  • Timbuk3Timbuk3 Posts: 11,658 ✭✭✭✭✭
    Not at all !!!
    Just sit tight, silver will
    likely go up.
    Timbuk3
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