Replies to post #13151 on ***Precious Metals Investors Club***

[RogueBravo]

First, a quick clarification: spot price is the instantaneous contract price (determined by the powers that be) for 1 oz of the precious metal; spot price can be tracked here: http://www.kitco.com/charts/livesilver.html

The selling price, however, for an individual coin/round can vary significantly (above spot price) dependent on the actual coin/round in question, year, condition, etc. You are correct in the realization that an American Eagle, a Canadian Maple Leaf, and a generic silver round ultimately only contain 1 ozt. of silver. In the eyes of a refiner, or industrial manufacturer, yes its value is only worth the current spot price. However, coins such as the eagle and maple leaf often (if not always) will carry an extra, significant premium. This premium is due to the increased numismatic value of the coin as a collectible. Also, coins issued by government mints (such as the Am Eagle (USA) or the Maple Leaf (Canada)) are recognized worldwide and are guaranteed to contain the stated quantity/purity of metal in question, in your example 1 ozt, of .999 fine silver. Rounds from a private/3rd party mint, may not prove to be as highly revered or sought after, and thus you can find at a price much closer to spot.

Hope that helps.

[DTGoody]

I guess it depends on your own preference? When I had gone to my local coin dealer a few months back they said that there was No Demand for Canadian Maple Leafs in my area. (Allentown PA) They said there was a Huge Demand for American Silver Eagles. However, they were only willing to pay spot prices for American Eagles? On Generic Silver Bars and rounds they paid .50 cents behind spot.

For myself this answered my own question on buying Expensive Silver Eagles or Generic Silver. I have completely switched over to just buying .999 fine silver 5 ounce bars. APMEX, Silver Town, and Sunshine Bars are all good. Unless you want to take the time for the numismatics or list stuff on EBay you won't get much over spot for your Silver products. All I look for is .999 Fine Silver! ;)

I just purchase this 5 ounce APMEX bar today on this Silver Dip! ;)

http://www.apmex.com/Product/40249/5_oz_APMEX_Silver_Bar_999_Fine_.aspx

[tomdiana]

I buy the American Eagles because they are a trusted source of silver and if I ever had to take them out of the country you can claim them as only 1 dollar each since they are legal currency. I also buy pre-1965 dimes as they are also well known as silver. I guess I am just paranoid and thinking that if the dollar ever collapses more Americans who never used silver before will trust the 1964 and older coins and AMSE as real silver. I am not saying this is the best way to buy silver, its just what works for me.

[Norton1973]

I buy a little bit of everything in regards to Silver, just depends on my mood, i guess. I like all of the different types of Silver up to 100 oz. bars, but i did sell my 50 and 100 oz. bars on the past Silver high. I like to hoard, but i believe in taking profits. I have been stacking on the dips. :)