Your thoughts on "premium" silver

[Copper Member]

I'm seeing more and more "premium" silver coming onto the market. Just about every animal under the sun is being featured on 1 oz round from a million different countries. Seems many are paying what I would consider crazy money above and beyond spot. Personally, I buy the cheapest silver available but was wondering how many out there are buying this stuff. Please take note, that I am not condeming those that do, just curious how much of this is going on.

[db23]

There are a lot of people that actually collect the coins, not just speculate on the silver value.

Coins with low mintages, like the Rwanda series are hugely popular with collectors because of the design and the fact that so few are minted. Those factors both lead to higher than normal premiums.

Looking at the Somalian Elephant, still not a bad design, but unlimited mintage, they have premiums in line with other less rare bullion coins.

[shinnosuke]

I bought a handful of 2012 silver Chinese Pandas a few bucks over spot when a nice guy over at BS put together a group buy. I've seen them for sale at $60 which seems way out of line. I guess the dealers are trying to tell us what prices will be for an ounce of silver next year.

[doug]

About like the premium on copper rounds.

[Robarons]

When the mintage is low and the design I can see them having some value.

Might have been silver Australian Kangaroos with 50,000 mintages- stuff like could be nice buys, but who knows. But bullion is bullion for the most part

[Sheba]

Agreed for long term, hedge type holder of silver. Excessive premiums make no sense to me. However, for those who enjoy collecting nice coins with the 'chance' of increase in value, go for it and best regards in getting good ones. For me, just a very little silver bullion at as cheap a price as possible when a little fiat is avialable.

[Rosco]

Agreed for long term, hedge type holder of silver. Excessive premiums make no sense to me. However, for those who enjoy collecting nice coins with the 'chance' of increase in value, go for it and best regards in getting good ones. For me, just a very little silver bullion at as cheap a price as possible when a little fiat is avialable.

Me three

Truth I do have Three Ks but only about $4.5 over on one Koala

[Rastatodd]

When I first got into gathering of silver, I was buying the Grizzlies, Libertads and the Koalas and so on and so. But the premiums started to ramp skyward and I came to the conclusion that I'm a silver speculator not a collector. Of course my wallet had a say as well. So the least expensive .999 for me. Toned ,scratched, dinged it doesn't matter. I am now into gathering pre-1945 Australian sterling junk. I am getting it below melt quite frequently. But to the collectors of the primo stuff gather as you like, I wish you good hunting.

[Engineer]

There's a place for premium and bullion silver just like there's a place for premium and bullion copper.

I still remember a big copper wash tub my parents had when I was a kid. We used it as an indoor place to store the firewood, and I'd gladly give more than 2X melt for another like it today.

IMHO, investing in collectible bullion is a bit of a gamble because tastes change and you have to sell while they're hot. That's especially true if you're paying big premiums for mintages in the hundreds of thousands.

Key date premiums go up and down somewhat, but are less driven by fads. I happen to like low mintage poured bars like the YPS and Rodebaugh stuff, but I also keep an eye on how they're doing. What sells for a 50% premium today may only be worth a 10% premium tomorrow...or it could go to the moon if circumstances are right.

For the long term, though, I think useful sterling items similar to that copper tub will outperform straight bullion. Those sorts of items are getting rarer by the day as people melt them down for a quick buck on the bullion content.

[AGgressive Metal]

Every now and then I'll "splurge" and get something thats pretty to look at if its only $5-$7 over spot. Otherwise I don't want to go more than $3 over for gov't bullion or $1 over for private rounds/bars.

I don't understand the people who pay $70 for some animal bullion or whatever, but to each his own. I collect older foreign silver because it has lower premiums and better numismatic value potential than modern "numismatics", in my opinion. Technically all coins are numismatic - I hate how its become a buzz-word for limited mintage items.