Check Price Comps When Silver Spot Price Is High
It always pays to be an educated consumer, and the metals market is no exception to this. Most advice for what to buy depends on what spot price is doing. When spot price is low, the generally accepted advice from the stacker community is to buy bullion as close to spot as possible. When spot price is high, many will tell you to buy collectibles, since they will retain their value even after spot price eventually drops.
We're now at the point where silver spot price has risen dramatically over the last few months. Just over Thanksgiving and Black Friday the price went from around $51/oz to $56/oz. We're in historically uncharted territory here.
You would think with spot price being so high, buying collectibles is the smarter purchase, right? Check the price comps before you hit that "Buy" button. Let's look at an example.
Back in July, I found a very unique, beautiful piece combining the Mona Lisa and Van Gogh's "Starry Night" on a 1oz silver coin. According to Kitco, spot price for silver in July was around $36/oz. Here's what I paid through Amazon for the coin: $64.66.
So I paid about a $28 premium over spot for the coin.
Here's silver spot price now.
Here's the same coin and what it's selling for now.
The premium on this piece now is $38.82, or roughly $10 more of a premium compared to when I bought it in July. That's a little over 25% more premium now than four months ago. Now, the supply is limited and they may be running low on stock, but if you're going to buy a collectible this may not be the one, at least right now. If you don't care about the large price increase, then go ahead and buy it. It's a beautiful coin, and if no other coin will do, then go for it. Otherwise, shop around and check price comps. You can save yourself a few dollars, and more money kept in your pocket is always a win.
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Wow…. Talk about setting the Face Value too low…lol…
For the coin? They're always laughably low.
!BBH
!PIZZA
!ALIVE
50 Cents on a one ounce Silver Coin…
About eight to ten weeks ago the premiums around my neck of the woods were decent for Silver Maple leafs are now up to $7. Regardless, I continue my DCA-ish strategy and not sweat the premium.
!PIMP
I just can't do it at these premiums. I'll probably start looking into doing my own Sterling silver refining at this rate.
!BBH
!PIZZA
!PIMP
There will be a point where the premium is crazy so I won't buy.
But since Travel plans are suspended this year, why not put what I didn't spend into silver? According to my retirement plan I can afford a trip to Asia this year. Another 18 months I can visit Mexico and celebrate 'Day of the Dead'. Choices, assuming hyper-inflation doesn't happen. That's based on a 8% real inflation.
!LUV
!LADY
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Looks like we might see some action in Venezuela this weekend, if so, silver should continue its rise!
Nice coin btw.
What action in Venezuela are you talking about? Miners?
Thanks! I'm glad I got it when I did. There's no way I'd buy it at current prices.
!BBH
!PIZZA
!PIMP
Trump said this morning: “The airspace above and surrounding Venezuela should be considered closed in its entirety.” Appears something is imminent.
Ah, gotcha. Well, there's a lot of silver in missiles and bombs, so we shall see.
You can buy scrap silver without too much of a premium. Although I prefer ingots.
You can, but it's a lot harder to sell compared to refined silver.
!BBH
!PIZZA
!ALIVE