First time silver/ASE buyer

[bpt233506]

Hey guys,

I have for a while now been looking to buy some silver with some cash I have sitting in my savings account. I tried to do research but have found it difficult to come up with concrete advice/answers. I'm looking to purchase silver for investment purposes and it seems like one ounce ASEs is one of the safest ways to go.

My main and most important question is, how does someone new to the subject like me know when is the best time to buy? The prices right now don't seem that bad, but silver seems to be really volatile right now. I'm not looking to buy much; maybe tubes of 20 ounces at a time, depending on how good of a deal/good of a time it is to buy.

APMEX has them for basically $6-7 over spot right now. I haven't checked locally but I guess my main concern is also how much over spot should I be looking to pay?

Maybe someone can at least point me in the right direction on where to get all the info I need.


Thanks,
Brandon

 

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[bpt233506]

I was also wondering what the significance is of different mint years and mint marks as far as I need to be concerned?

 

[TreasurePirate69]

Well, you will get a lot of different answers out here. I am personally of the opinion that silver will continue to fall to $16 in the next 2 years. It has been on a downward trend of lower highs and lower lows for really almost two years since the $49 high. Whether or not you will be able to buy physical silver at those prices is another matter entirely.

I also believe that there is very little reason to buy larger amounts at today's premiums because they are basically asking you to pay around $26-$28/ozt for silver. In other words, the price could rise to around $26 and you'd still pay the same price as you pay today. So why not wait and see what silver does? You have plenty of time. Perhaps it will continue to go down. The longer silver stays at $23 the lower those premiums will ultimately go. And if silver goes back up to $26 you really didn't miss anything because you currently can't purchase at true sub-$26 prices anyway. Keep watching the premiums and buy when you feel the premiums are reasonable again. This will be an indicator that the spot price and demand price are at equilibrium.

As far as buying silver eagles, the mint marks and dates can add a little value to certain coins in the eyes of collectors. So you need to decide if that is what you want to get into. Personally, collecting bullion grade coins seems like a bit of a stretch to me so I just buy whatever ASE's I can get my hands on at the best prices. But if someone else likes to collect special dates and mint marks then by all means, have at it. Finally, ASE's always sell for a little over spot. Depending on the price of silver at the time, it is not unusual at all to pay $3-$4 more per coin. Actually, the current $6-$7 premium isn't terrible. In comparison to junk silver coins the ASE's are actually a decent deal right now. But you are still paying way above the standard premium for them.

 

[jim4silver]

My take is quite different from TreasurePirate's. If a person is just now waking up to what is coming and wants to buy silver, there is no need to wait. However, getting anything near a good deal now will require much hunting and searching.

I cannot recommend any particular type of silver because now the premiums are crazy. I would avoid any silver that costs more than $2- $3 per ounce over melt. Right now that includes most silver unless you have good "connections". I spent the past few years developing good relationships with a few local coin dealers (some large operations and some small) and it has helped me get far better deals that someone who just walks in off the street.

Today I spoke to a friend who works at a much smaller store and he offered me 90% for 18.1X face, which is what his wholesaler would pay him. However he can sell to me and not have to wait for his check from the wholesaler and I can basically buy at wholesale. I even think 18.1X is too much for 90% but he said he had some halves I could have at that price and that is what I plan to look at.

Trying to time lower prices and hoping that physical is available will end badly I predict. But if TreasurePirate is correct and the price goes to $16 and stays there for a long time, then everything I said is wrong.

Jim

 

[Marchas45]

I'm of the same mindset as Jim. I buy on all of the dips if I have spare Fiat and the more it goes down (if it does) the higher the premium it will cost. I see the physical price breaking away from the paper price and it's just starting.
I only Stack 90% and Silver Eagles because if TSHTF those will be the most recognizable to the general public. As for Numismatic Value, I don't care about dates just the Silver content. By the way it's getting hard to get silver as a lot of the dealers are having a hard time getting stock or are sitting on it because of the low spot price. But I believe it's the lack of stock as people are overwhelming the dealers. Hell even the mint has just put a hold on the 1/10 gold coins today. Shortage? Who the heck knows.

 

[bpt233506]

Great explanations guys, thanks a lot. So essentially it may be best just to sit back and let this play out a bit. I'll be keeping my eyes peeled.

 

[CoinFetcher]

Marchas, I know you stack more bullion types than that!

 

[SilverHoarder07]

I recommend any 90% coins or .999 rounds/bars you can get at spot, under spot or not much above spot. If you are looking for a profit on buying and selling you will find a little money saved on premiums can make a large difference to your wallet depending on what size invester you are.

 

[Marchas45]

Marchas, I know you stack more bullion types than that!

Nope mostly 90% and AE's sure I have a few rounds and bars and Medallions and the list goes on. Lol