Confusion from the Precious Metal Gods

piecesofme

This was inside of my fortune cookie today, messing with my mind (what's left of it) that going the collectible silver bar route vs. the generic bar path may not be the way to go.


(thinking out loud here, pay no mind as most here do)
4 oz Engelhard that went for $3200, 7's having gone for $2700 if I recall correctly, the premium that comes with just about any type of more-well-known and desirable bar...those buyers are "holding the bag" bigtime now because 4's have come down to roughly $1000. Purchasing collectible silver, and paying the premium (it's a different story if you're not having to) is speculating.

Purchasing more generic type silver, or even 90% and attempting to simply accumulate oz's is investing. I am re-thinking everything now. I once had a substantial amount of 90% and much less collectible. That is inversed now. I know, I know...diversification is the key. Just contemplating if I am too heavy on the collectible side now.
I guess there's convincing pros & cons either way. Maybe I need to step away from it all for awhile. thoroughly now

tneig

Its what you make it and what you make of it.

jmski52

The same thing holds true for most Modern Bullion in terms of shrinking premiums. This is a two-edged sword however, and in time the pendulum will swing the other way as well.

Collectable stuff makes it interesting when there's nothing else going on. There is always some value in collectability. The only problem I see with bars is that the market is probably more thinly traded than it is for Mint stuff.

piecesofme

That's one of the things that play into it jmski52. I have absolutely none, zero interest in metal made by the Govt. that is produced in the mass that they are for the premium that is demanded by them. I refuse to fall into that trap.

bronco2078

<< <i>That's one of the things that play into it jmski52. I have absolutely none, zero interest in metal made by the Govt. that is produced in the mass that they are for the premium that is demanded by them. I refuse to fall into that trap. >>





How many mai tais did you have ?

The fortune makes it pretty clear you need to buy pandas , not some silly bars.

piecesofme

LOL bronco

chumley

I am heavily weighted to the collectable side because odd ingots and bars please me...as for return on investment,my son will turn silver into cash for his mother when the time comes...they dont have a dime invested so that is a pretty good return.....meanwhileI am enjoying my silver.....simple minds,simple pleasures

cohodk

At a certain price it will all be valued the same.

PeacePeople

I believe the reason many people go back and forth from collectibles to bullion is they don't define what they're trying to accomplish. Are you a collector or a stacker? There is nothing wrong with being both or either. I'd guess that having some of each is probably a good thing to take advantage of the ebb and flow of the price of each of them. When premiums are lower on one, but more of that and if high, go ahead and sell. Unfortunately many do the exact opposite, when something is hot they overpay the premium, and when it's cold they sell because they're nervous it won't come back to them. Human nature is fickle beast...too many people afraid they're going to miss out...and they usually do

BlackBeard

Welcome PeacePeople.

I go back and forth on the collectible and straight bullion. Usually after paying a premium for something I want because of cool factor, I swing back the other way for the next purchase and maximize oz per dollars spent. I love the NTR bars for this as I don't really like them for some reason and they are very low premium. The fact that I don't like them makes them very easy to turn loose come time to sell. They will be the first to go. I think the Libertads have good potential for appreciation as they are desirable and some have very low mintages, plus I just love the look of them.

PeacePeople

Thanks for the welcome.

I believe having some balance is not a bad idea at all. I buy some low premium bars and such with the idea of using them as a savings account. I sell them when business is slow and my cash flow is more of a trickle than a flow. I wouldn't say I don't like them, but there is no attachment either. Oddly enough, I've bought those dragon and snake 10oz bars the last couple years and since I usually sell in Jan/Feb the seller has been out (provident) and it usually works out to my advantage.

ricko

Welcome aboard PeacePeople..... I like the coins.... bars intrigue me (silver/gold, not the drinking kind ), however, I prefer the monetary metal. Cheers, RickO

Townes

That was quite a drastic drop in price on 4oz Engelhards in a very short time frame. Sightings were rare on EBay, and when one sold for 3200.00, they came out of the woodwork in quick succession. However, the Engel hobby is relatively new (think Morgan's w/ new collectors entering the market. Plus ALLENGELHARD.COM is gonna be a game changer... Nothing like holding a Engelhard, so these little nuggets will bounce back. Might be the time to pick up a few at these low prices

Townes

Check that, the 1st 4oz closed at $3700.00....That seller certainly called the top of the market!

piecesofme

Check that, the 1st 4oz closed at $3700.00....That seller certainly called the top of the market!

OUCH! That has to hurt, but I'll guarantee that collector would say something like, it's for my personal collection and no one will own it besides me as long as I'm alive, I may even consider having it buried with me

Townes

You could buy a nice silver inlayed coffin for that price LOL... It's also gotta hurt buying pre-sale HOF 1/4 oz gold at $850+, & now U can pick em' up for $250 less, ouch!