| Author |
 Replies: 14 / Views: 2,245 |
|
|
Pillar of the Community
Canada
849 Posts |
Hey,
I'm looking to start to invest in purchasing silver and was wondering where the best place to get it would be. I see spot is around $28 but the cheapest 1oz Coin is about $31-32 is that the normal? or is there a place I can purchase it closer to spot price?
--James
Moved to Bullion forum - Sap
|
|
|
|
Pillar of the Community
614 Posts |
Well, with bullion coins, you will always have to pay a premium. It really depends on the coin as well. To start an investment there are several good bullion coins. The American Silver Eagle, Canadian Silver Maple Leaf, Mexican Libertad, Australian Kookaboora and Koala, and the British Britannia. Personally, I think that the American and Canadian ones have much less of a premium over face value. At the current rate, I would expect to buy them at $30-$33 per coin.
|
|
Pillar of the Community
 Canada
849 Posts |
So its expected to pay over spot for these coins? Now I see the maples going for $32 for 99.99% silver and the Buffalo's going for $30.50 for 99.9% silver. Is it better to just get the buffalo's because they are cheaper? from an investment stand point that is.
|
|
Valued Member
Canada
111 Posts |
I don't think makes very much differencen between 99.9 or 99.99 for investment. I would go for the cheapest. Spot price is mainly the silver paper and the physical silver is for now just a little bit over.
|
|
Pillar of the Community
United States
745 Posts |
Canadian Silver Maple Leaf are the best with a $5 face value backed by Canada...  $5 Canada = $5.05 USD expect to pay $3-$4 over spot for Canadian Silver Maple Leaf, plus these are also collector items! Buffalos are cheap and not good from an investment stand point... not even sure who makes them or where they come from?  if silver ever drops to $2 oz these will become Buffalo chips, if you know what I mean!  Edited by Penny4Me
05/13/2012 10:04 pm
|
|
Pillar of the Community
Canada
849 Posts |
Where do you guys buy silver from?
|
|
Pillar of the Community
614 Posts |
|
|
Pillar of the Community
Canada
849 Posts |
I might want to mention I'm from Canada. Looking for the lower/cheapest place for Silver maples.
|
|
Valued Member
Canada
178 Posts |
Edited by Center Pin
05/14/2012 10:38 am
|
|
Pillar of the Community
Canada
849 Posts |
J&M still seems a little steep... I checked out gatewestcoin and is seems ok but sill about a $3.00 premium per coin + Shipping :(.
|
|
Valued Member
United States
196 Posts |
honestly if you have any local coin shops then I would go their first. They usually are cheaper on any silver bullion. Usually around $1 over spot on regular bullion and then $2-3 over spot on American silver eagles, Canadian maples or any other country mints. Your local shop is best bet
|
|
Pillar of the Community
United States
4008 Posts |
Quote:
So its expected to pay over spot for these coins? Sure. When you go to a restaurant you expect to pay more than the food costs, right? This is no different. In addition to the spot price of the metal, there are shipping, warehousing, and sales costs that need to be paid. A business has to make money on selling bullion or they can't do it. If they are buying at spot, they cannot turn around and sell it at spot. Coins like the American Silver Eagle and the Canadian Silver Maple Leaf are great coins to start a bullion collection. They are easily sold and you might get some of the premium back when you sell. As to the difference between bullion coins and silver rounds or bars, coins always cost a little more. They are legal tender which is government issued and guaranteed real money. The US and Canadian national mints guarantee the weight and purity of the coins they produce. This adds a bit to their value in the market place. I buy locally from a pawn shop and a coin shop. Sometimes they have some pretty good deals. I also buy 90% silver US coins, sometimes called "junk" silver. I can get these at spot from the pawn shop or at spot plus 4% from the coin shop. ASEs and SMLs are more expensive by a couple of bucks. I also buy on-line from APMEX, Provident, and SilverTowne. I have shopped the GoldMart web site a few times and they look OK too but I haven't bought from them yet. |
|
Pillar of the Community
Canada
849 Posts |
No local shops where I'm from which is to bad :(. Thanks for the great explanation Ed_B it cleared a lot of things up. I'm a newbie for sure when it comes to silver, I do think i'll start with the SML's they look great and hopefully like you said will hold there premium (I'm guess when sold separate). Thanks everyone for the great Tips.
--James
|
|
Pillar of the Community
United States
5855 Posts |
I just bought my silver maples from GoldMart. $2.09 per coin over spot for small quantities, $1.99 per coin over spot for a monster box of 500 ounces. Free shipping for larger orders (over $5000), but the regular shipping isn't too bad unless you're only planning on buying a few coins, at which point you may be better off finding a local "brick and mortar" coin shop to buy from.
|
|
Pillar of the Community
United States
4008 Posts |
You're welcome, James. Heh, we were all noobies at one time or other. Passing along what we have learned via experience and the comments of those who know more than we do is all part of the process of collecting. Most collectors are happy to pass on any tips or suggestions to the new-comers.  |
| |
Replies: 14 / Views: 2,245 |
|
Posted 05/13/2012 9:15 pm
