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Spending an extra dollar on an ounce of silver can really add up fast! For example. If you had $2,000 to buy silver with, you could get 100 ounces at $20/oz. But if you bought in at $19 you could have an additional 5 ounces of silver! That $1 premium really adds up. That extra $1 on 1,000 ounces could mean 50 ounces left out of your stack!

This is precisely why I buy generic 1 oz silver rounds instead of ASE's--they're $3 cheaper per round which will be a huge savings in the long run!

pennypicker wrote:This is precisely why I buy generic 1 oz silver rounds instead of ASE's--they're $3 cheaper per round which will be a huge savings in the long run!

Exactly, while some may argue that you get the premium back when you sell, I tend to have a different opinion. That extra $2 premium you pay that you get back would be put to better use buying more of the metal. Because as the price goes up that premium will condense and will not expand at the same rate that it used to be. I would rather have 1,050 ounces, then 1,000 ASE's

paymehigher wrote:

pennypicker wrote:This is precisely why I buy generic 1 oz silver rounds instead of ASE's--they're $3 cheaper per round which will be a huge savings in the long run!

Exactly, while some may argue that you get the premium back when you sell, I tend to have a different opinion. That extra $2 premium you pay that you get back would be put to better use buying more of the metal. Because as the price goes up that premium will condense and will not expand at the same rate that it used to be. I would rather have 1,050 ounces, then 1,000 ASE's

I agree with your point..but there is some value to the added liquidity you get for the ASE premium.

If I put a generic and an ASE up for sale here each for .99 over spot which one do you think would sell first?

How many seconds would the ASE last?

Thogey wrote:

paymehigher wrote:

pennypicker wrote:This is precisely why I buy generic 1 oz silver rounds instead of ASE's--they're $3 cheaper per round which will be a huge savings in the long run!

Exactly, while some may argue that you get the premium back when you sell, I tend to have a different opinion. That extra $2 premium you pay that you get back would be put to better use buying more of the metal. Because as the price goes up that premium will condense and will not expand at the same rate that it used to be. I would rather have 1,050 ounces, then 1,000 ASE's

I agree with your point..but there is some value to the added liquidity you get for the ASE premium.

If I put a generic and an ASE up for sale here each for .99 over spot which one do you think would sell first?

How many seconds would the ASE last?

True, but I still believe that the generic rounds are best if you see silver going back to the 10:1 GSR.

paymehigher wrote:

pennypicker wrote:This is precisely why I buy generic 1 oz silver rounds instead of ASE's--they're $3 cheaper per round which will be a huge savings in the long run!

Exactly, while some may argue that you get the premium back when you sell, I tend to have a different opinion. That extra $2 premium you pay that you get back would be put to better use buying more of the metal. Because as the price goes up that premium will condense and will not expand at the same rate that it used to be. I would rather have 1,050 ounces, then 1,000 ASE's

What if the price goes down?

TXBullion wrote:

paymehigher wrote:

pennypicker wrote:This is precisely why I buy generic 1 oz silver rounds instead of ASE's--they're $3 cheaper per round which will be a huge savings in the long run!

Exactly, while some may argue that you get the premium back when you sell, I tend to have a different opinion. That extra $2 premium you pay that you get back would be put to better use buying more of the metal. Because as the price goes up that premium will condense and will not expand at the same rate that it used to be. I would rather have 1,050 ounces, then 1,000 ASE's

What if the price goes down?

TXBullion hit the nail on the head. Pure silver is more volatile and more susceptible to the whims of the paper market. Premium bullion is more "sticky" on price.

Which one is wisest to choose depends on your circumstances. For a short-term stack that you may need to cash in to pay bills, it may be wisest to go with the premium rounds. If you plan to buy and hold for decades, hundred oz bars may be your best bet.

I don't think you get the growth on the premium if silver goes to new highs. But who knows? It will be the discretion of LCS's and online buyers, both pro and the drive-by Ebay buyer. When premium differentials are 10% of spot right now, that is 10% of $20 equaling the premium delta of generic vs. an SAE, I have some difficulty believing that at silver price of $50 an Eagle will go for a $5 delta over generic. I think the market will offer up silver at thinner margins than that.

Premiums tend more toward a fixed number rather than a percentage.

I read an article once that related various price points as the price has risen the last decade or so. The premium on ASEs actually grew as much as the value of the silver itself according to the article. I wasnt buying that whole time so I wouldnt know.

For me it is ASEs, maples or libertads. Like to cover all bases, and local stores pay much better for those then anything else. certainly the last way Id choose to sell, but best to keep options open.