Which silver coin is the best to buy?

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dave606
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Which silver coin is the best to buy?

I am new here and apologize if this subject has been covered extensively and i just do not know how to find it. What do people here consider the most advantageous silver coin to purchase. Is it better to buy the cheapest silver round you can find. Or should you buy silver coins that have a high numismatic value. On the other hand is it better to buy silver eagles that demand a higher premium but are exempt from tax form 1099 reporting when you sell them. They are also more recognizable and trustworthy. Or maybe silver maples are a better way to go. They are made from a purer silver (.9999 vs .999). They are also 1099 exempt. Is the premium you pay on eagles or maples worth not having to report your sales to the tax man? I would really appreciate some opinions on what you consider the best coin or maybe bar that you consider the best value. Thanks

Edited by admin on 11/08/2014 - 05:08
boomer sooner
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Welcome

Yes to all your questions.  Most have a little of everything.  Personally, I do not do numi's because I do not have an eye or time to put into the research to determine what has more value.  I am a scale person, weight matters, and low premium.  Back when I started, weight mattered over premium.  Now premium matters, mainly because I have switched to AU for now.  Should be on silver, but have enough for time being and need to balance the scale so to speak.

stackaloha
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Welcome and great questions!

I hope that you get many replies from many turdites. 

Imho there are 3 types of silver stacking types: I will list them in no particular order.

1) stacking for when the "SHTF", as in economic collapse and being prepared for a time when vendors and people will simply not want your federal reserve notes. If you consider this to be  a possibility (many of us do) it would be wise to stack plenty of 90% silver dimes and quarters because you will not want to be giving a whole ounce of silver to purchase small items from your neighbor, a farmer, etc.

2) stacking as a way to preserve purchasing power over time due to constant inflation of prices over a lifetime. Imo any type of low premium silver will work for this in the years ahead but with the rampant manipulation of markets there is no guarantee for this.  I suppose high premium silver numismatics would work for this although I am not experienced with high premium numismatics so I will offer no advice there.

3) stacking for profit. Many people stack as part of a speculation that spot will rise and so they just buy ASE's, Maples, Philharmonics and such. Personally I feel that those are poor choices when compared with low premium limited mintage options. I think that better choices are things like ATB 5 oz bullion coins, Perth lunar, Kookaburra, Koala and the new wildlife series, mainly 1 oz types but also 1/2 and 2 oz types also. I currently think that the Perth saltwater crocodile coins are a good idea, being quite low premium but limited mintage AND first in a series. I have also done quite well flipping the earlier Zombucks rounds such as the Walker and also the Morgue Anne but to a lesser extent. I think that if young people begin buying en masse similar to 2010-11 again the zombie stuff will fetch nice premiums. Provident Metals has also just begun a Hercules series which I hope to stack. 

Personally I have some of all the types I have listed. What I have learned however, is that the low premium limited mintage coins gain value, even if spot price does not rise. Unslabbed ASE's, standard Maples and the like won't do that for you. 

For example, I just flipped some(not all)  ATB 5 oz Mt. Rushmore coins for $155 per although I only paid $115 for them in November/December last year. My Zombuck Walkers doubled in value in less than a year too. 

You didn't mention if you have already begun stacking or what type you might already hold. You really can't go too wrong at these prices as long as you stay close to spot, I think. 

If anything I have said needs correcting then I hope some good Turdite will do so. 

pailin
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If you don't have any silver

If you don't have any silver or are far from your "target" oz count (something you need to set if you haven't)...just get the most, cheapest ounces you can. Most likely that's one oz rounds from here or here.

Those Sunshines at .60 over is a pretty good deal.

After you get a respectable oz count, say 80% or more of target, then you can play games speculating at limited editions, flipping, all that stuff. If that's even appealing to you. But understand what you're doing: speculating. So no different than buying AAPL on a dip or grabbing some scratchies at the liquor store.

Nobody has addressed yet how you should buy, so I will. Many think you should dollar cost average, buying a set dollar amount ($100 or whatever) at regular intervals (payday?) and when prices are higher you buy less ounces and when prices are lower you buy more, but end up with a lower cost average.

I couldn't disagree more.

Silver price is volatile. And there are distinctly advantageous and disavantageous times to buy. Time of day matters, so too does 'season'. On any given day -in general- the lowest price is going to be between 7 and 11 am ET. And any given year the best 'season' to buy is late February to early May. Picking an exact time and day isn't the way it works. But some amateur chartwork or hanging around Pailin's Trading Corner will probably help a bit. It's not science, there's some gut sense involved for sure, but ultimately your dollars will go longer (buy more ounces!!) at the lower prices these times and months tend to produce.

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pailin
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and a bit more

pailin wrote:

...any given year the best 'season' to buy is late February to early May.

Ugh. Can't believe nobody called me out on this yet :) All wrong. What I wrote above is the best time to sell (if you're a trader or just need some liquidity!) Best seasonal time to buy is June. This year is odd in that we might get a lower price than June soon. Or not? For that matter the low came early June when it's usually late June, and late June was a big spike up...so who knows. This is not exactitude anyway. But an approach that has worked nicely has been to save all my silver spending for June each year and then just go in on one good-sized bulk buy for the year and be done with it (until next June). Much better than a few bits every other week or a month or something more periodic at generally higher prices (and more shipping outlay if you're buying online).

Sorry 'bout that, yesterday was a looong day.

:)

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