What to buy and sell silver?? Pre...

[TimZim]

I buy silver all the time and have sold it many times. I have found that the big pre.. silver is not the way to go. When you sell silver eagles you get about $1 over. Silver bars and odd silver you seem to get spot so why put out the extra cash? In my area the pre.. on silver eagles is $250 to $310 Just my two cents. My last box a big fat -o-zero

 

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[Avago]

I agree. Silver is silver to me. I did some calculations when I was shopping for 100 oz bars. If you get an OPM bar ("reclaimed" silver I believe they call it) the premium was about 3.1% but if you wanted to get one of those purdy APMEX struck bars with the mirror finish the premium was 10.9%... on 100 oz! JM fell right in the middle at 6.7% for a 100 oz bar.

Once you get to the 10 oz and 1 oz bars you can end up pushing 15% per. Right now on JM if you buy 100 ASEs by check, the premium is 17.8%.

You can think of the ramifications of the premium in a couple ways. Take the ASEs through JM. You can say, I hope silver will rise 17.8% so I can BREAK EVEN. Or I like to think of it as having to pay 17.8 extra ounces of CRH silver to buy LESS SILVER (if you're trading 90% for bullion). If it's cash, it's just $300 down the tubes that you can hope to make up later.

Like I said, to me silver is silver. I'll likely be going the OPM route. TZ, what kind of 100 oz. bars do you have?

Edit: Note, my calculations might come out different than yours. In some but not all cases I included my credit card cash back rebate and/or shipping costs.

 

[TimZim]

I had 6 a few diff.. kinds. I got spot for all of it. Not bad if you ask me. The silver eagles I got $1 over so I lost $1.50 to $2.00 Not good!

 

[fistfulladirt]

I used to think silver is silver until I tried to sell some silver shot and solder.

For those that buy in anticipation of using bullion as currency during SHTF, government-backed silver (ASE's, etc) could be the way to go, so the premium payed might be worth it.

Otherwise, for bulk stacking for short term sale, of course the less the premium, the better.