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Lately I have been taking the proceeds from my weekly silver sales and using them to buy .999 silver fractionals from various sources. We've commented before on the pros and cons of this, but I thought of a new reason you might want to join me in this endeavor. Most people feel that you can just buy junk silver coins, and that fulfills the same function as would fracs, at much less cost.

But consider this. Rather than joining Max Keiser's earlier attempts to take down JPMorgan by buying physical silver, you need to consider what type of silver you are buying. If you buy 90% silver... you are not taking it off the market, you are merely moving it "from weak hands to strong hands" as they like to say. But if you purchase newly fabricated silver fractionals from a private mint, they have to source their silver in the open market, and you are genuinely assisting in the depletion of the real aboveground stores, hastening the day when that scarcity will drive much higher prices. That in itself is a good enough reason to sustain my own efforts, plus... it's a lot cheaper to buy them now than it will be two years from now.

How 'bout I support the effort by buying your 90%, and thus allowing you to have the funds to buy the fractionals?

Not ALL of us are particularly interested higher prices. Many of us are still (as you well know) at the Genesis of our stacking.

It's interesting that on this site, we often have diametrically opposed views of where we'd like to see the silver market go. I suspect 1/2 of the 1000+ post members would like to see things go higher, while likely 1/2 of the under 500 post members would like things to go lower for a while. And there's a nice middle ground where folks don't really care where it goes. If it goes up, neat! If it goes down, opportunity!

If you've found a smokin' deal on fractionals, though, I'd do that. It seems to me that the premiums on fractionals are just too dang high for me to pay.

I think the desire for higher prices is age-related. Both chronological age and stacking age. Those who are up there in years would appreciate higher prices so as to have a chance to enjoy the fruits of their labors. Those who have been stacking a decade or more are getting tired of being patient. Of course, if you're a noobie to the whole thing, you want as much silver as you can get for your money, the cheaper the better.

Ray, I have a couple of rolls of Indian incuse 1/10ths (thanks treetop) that I think are as cool as can be. Showed them to exbingoaddict and Market Harmony. They were equaly impressed with the quality and design. So yes, Fracts are very cool. I, like others, hate the premium. But I do think it's just.

I will maintain a core of 90% junk with a handfull of other cool silver products.....and of course the sexiest morgans I can find.

Keep selling and as Rich says.....I will keep buying them from you.

Rodebaugh wrote:Ray, I have a couple of rolls of Indian incuse 1/10ths (thanks treetop) that I think are as cool as can be. Showed them to exbingoaddict and Market Harmony. They were equaly impressed with the quality and design. So yes, Fracts are very cool. I, like others, hate the premium. But I do think it's just.

I will maintain a core of 90% junk with a handfull of other cool silver products.....and of course the sexiest morgans I can find.

Keep selling and as Rich says.....I will keep buying them from you.

The premium is not fun but they are cool looking. I'll admit to buying a few from Doc. Though I'm a fan of bullion over 90%. Again, as he said, they are just cool.

I have a few of the indian incuse and they look great. not a real fan of the size. 1/4 is as small as I really want.

Hades12 wrote:I have a few of the indian incuse and they look great. not a real fan of the size. 1/4 is as small as I really want.

I wanna be sitting on a big stockpile of them when silver hits $500 an ounce

i just sold 2 engelhard prospector 1/2ozers on ebay for $31 a pop and bought a pair of stagecoach divisible bars for $59 shipped

I have a few frac's but like others have said the premium is tough, I like the idea of divisible rounds because they don't have the premium when you buy them and if you needed to break them up for barter (SHTF) you can.

All in all I want to eventually have a pile of fracs and divisible along with 90% and regular .999 for diversity.

I have had my eye on these for a while http://qualitysilverbullion.com/index.php?route=product/product&path=41&product_id=69

I was considering hosting a group buy on these http://qualitysilverbullion.com/index.php?route=product/product&path=44&product_id=66 in a month or so if prices are still low.

All the best...Bob

beauanderos wrote:I think the desire for higher prices is age-related. Both chronological age and stacking age. Those who are up there in years would appreciate higher prices so as to have a chance to enjoy the fruits of their labors. Those who have been stacking a decade or more are getting tired of being patient. Of course, if you're a noobie to the whole thing, you want as much silver as you can get for your money, the cheaper the better.

I'm 74 an still stack-en so I like lower prices

And now, all the time, we're hearing more and more about fake silver!!! So, it's getting to be a kind of no-brainer for me to buy mint direct, and just figure that part of the premium is a form of insurance

Um
.....dimes

I like em too....had ZERO luck finding any at the FUN show in Orlando on Sat.

I'm hoping for the chance to buy a bunch more of those A&M 1 gram bars sometime soon.................HINT!

aev wrote:Um
.....dimes

Exactly. You cannot go wrong with $500-1000 face value bag(s) of Rosy's or Mercs. Washington quarters too. I have bags and bags of them... plus a few $500 bags of JFKs just for good measure.

Even sheeple are familar with Rosy's, Mercs and Wash quarters. Sheeple look at a silver round and are like: "what the f**k is that?"

90% is the best for SHTF money.

Cu Penny Hoarder wrote:

aev wrote:Um
.....dimes

Exactly. You cannot go wrong with $500-1000 face value bag(s) of Rosy's or Mercs. Washington quarters too. I have bags and bags of them... plus a few $500 bags of JFKs just for good measure.

Even sheeple are familar with Rosy's, Mercs and Wash quarters. Sheeple look at a silver round and are like: "what the f**k is that?"

90% is the best for SHTF money.

There will be a perceptual shift as silver advances in price, fractionals will become more commonplace and readily accepted due to the ease of calculating their worth. It's not a bad idea to have both. Sheeple aren't going to be the ones buying your silver at the peak.

Everyone likes to collect differently. It's great to read how others go about the game/hobby. I do like seeing the smaller rounds at various mints, I do like the idea of group buys, it should really be expanded on because of the hit smaller buyers take on every purchase, and look at Ebay, it's ridiculous. The biggest reason I hear from people to buy 90%, I believe many chase the numismatic part of it, as well as stocking up on 90% with higher likeliness of being melted, and thus possible rarity later, etc. I have problems with room so I see a 10 oz. as fractional to 100 or 1000 oz. bars, it just seems to me, quantity is the only way I can find a good deal.

A couple of thoughts.

I can appreciate the concept of owning fractional bullion if one believes in a SHTF/Barter scenario. But, if the goal is to deplete above ground store, wouldn't buying 1oz. and bigger be a better choice. Primarily to not have to pay those steep premiums. One would be "removing" more Ag per FRN than with the fractional s.

If things do get bad enough that there is a "run" on physical Ag, and there being more paper claims than physical. Wouldn't the junk silver be in demand to be refined into bullion resulting from the inevitable parabolic demand? I would think that keeping it in "strong" hands will have the same effect as buying bullion.

Therefore I would think buying the junk silver to serve as fractional s could give the same results. And again, one would have a better Ag to FRN ratio.

I don't even like fractional gold. 1oz'ers all day baby!! or 10----------------------------------------------------------------------------------------------------->

Bluegill wrote:A couple of thoughts.

I can appreciate the concept of owning fractional bullion if one believes in a SHTF/Barter scenario. But, if the goal is to deplete above ground store, wouldn't buying 1oz. and bigger be a better choice. Primarily to not have to pay those steep premiums. One would be "removing" more Ag per FRN than with the fractional s.

If things do get bad enough that there is a "run" on physical Ag, and there being more paper claims than physical. Wouldn't the junk silver be in demand to be refined into bullion resulting from the inevitable parabolic demand? I would think that keeping it in "strong" hands will have the same effect as buying bullion.

Therefore I would think buying the junk silver to serve as fractional s could give the same results. And again, one would have a better Ag to FRN ratio.

You make some good points. I am not against stockpiling some one ounce rounds... but I've already done so. I could use more, but what I have very little of now is the smallest fractionals. And yes, you could remove above ground silver faster by purchasing one ounce rounds at more reasonable prices than paying outrageous premiums. I do that as well, buying rolls of private mint rounds in addition to eagles. I try to minimize my premiums by making periodic large purchases from the private mints, so the premiums are not so bad, still ... silver will have to move $7 or so for such tactics to prove profitable. I am quite confident (given time) that silver will move $70, even $700 higher... so giving up a few percentage points of profit at this time is of little concern. I already have enough junk that I don't want to purchase more, what I want is more balance between my 90% and 999.

I also agree there will come a time when demand raises prices so high that folks will turn loose their junk, including numies, for melt. At that time, the practicality of having owned fractional will become apparent to more. I like to think five years ahead or so, so often my ideas appear absurd. If I were just starting out, as opposed to this being my ninth year of heavy investment, then yes... one needs to begin with the cheapest forms of silver to reach a stockpile size that is sufficient to them. That size differs for each person, you'll know it when you reach it. Thus, I am not advocating that noobies begin with fracs, I am merely promoting another reason it might make sense to diversify, so that down the road, if you get someone who doesn't appreciate junk silver... you have an alternative.

Besides, really? It's just something to do in a sideways trending market to prevent boredom. My Ag to FRN ratio is already above 99:1

I'd like to have some fractionals, but I always thought the premiums were too high. I looked at the incused indian fracts at Golden State Mint and was surprised the premium wasn't higher to tell the truth. You must buy 100 oz to order directly from them though. I didn't check any other mints, but there might be better prices from someone else I'm not aware of. If someone were to organize a group buy, I'd definitely participate.

If I have $30 to spend now, I can buy an oz of silver. If silver shoots to $300, I'll be looking for 1/10th oz, right? I agree with beauanderos, it could be a great idea to be sitting on a pile of fracts if/when that day comes.

tractorman wrote:I'd like to have some fractionals, but I always thought the premiums were too high. I looked at the incused indian fracts at Golden State Mint and was surprised the premium wasn't higher to tell the truth. You must buy 100 oz to order directly from them though. I didn't check any other mints, but there might be better prices from someone else I'm not aware of. If someone were to organize a group buy, I'd definitely participate.

If I have $30 to spend now, I can buy an oz of silver. If silver shoots to $300, I'll be looking for 1/10th oz, right? I agree with beauanderos, it could be a great idea to be sitting on a pile of fracts if/when that day comes.

The prices at GSM are quoted as premium per round not premium per ounce. Therefore the premium to buy 100 one ounce rounds is $1.39 per round equaling $1.39 per ounce. The premium for 1/10 ounce rounds at the 100 ounce level is $.59 PER ROUND or $2.36 per ounce.

bigjohn56 wrote:

tractorman wrote:I'd like to have some fractionals, but I always thought the premiums were too high. I looked at the incused indian fracts at Golden State Mint and was surprised the premium wasn't higher to tell the truth. You must buy 100 oz to order directly from them though. I didn't check any other mints, but there might be better prices from someone else I'm not aware of. If someone were to organize a group buy, I'd definitely participate.

If I have $30 to spend now, I can buy an oz of silver. If silver shoots to $300, I'll be looking for 1/10th oz, right? I agree with beauanderos, it could be a great idea to be sitting on a pile of fracts if/when that day comes.

The prices at GSM are quoted as premium per round not premium per ounce. Therefore the premium to buy 100 one ounce rounds is $1.39 per round equaling $1.39 per ounce. The premium for 1/10 ounce rounds at the 100 ounce level is $.59 PER ROUND or $2.36 per ounce.

Yep, I was surprised it wasn't more. With it comes the security of buying mint-direct.

beauanderos wrote:

Cu Penny Hoarder wrote:

aev wrote:Um
.....dimes

Exactly. You cannot go wrong with $500-1000 face value bag(s) of Rosy's or Mercs. Washington quarters too. I have bags and bags of them... plus a few $500 bags of JFKs just for good measure.

Even sheeple are familar with Rosy's, Mercs and Wash quarters. Sheeple look at a silver round and are like: "what the f**k is that?"

90% is the best for SHTF money.

There will be a perceptual shift as silver advances in price, fractionals will become more commonplace and readily accepted due to the ease of calculating their worth. It's not a bad idea to have both. Sheeple aren't going to be the ones buying your silver at the peak.

Damn... you mean I'll be stuck with 1000's of ounces of all these shiny things?

Yeah, I gotta hurry up and dump all my silver while the price is low. If I wait too long, no one will be able to afford it "now where's my MENSA application?"