Those of you who invest in precious metals probably already know that silver is trading well below $18 per ounce at the moment. For those who don’t follow the market, it was over $40 per ounce briefly, less than two years ago. To me, the current price represents a buying opportunity.
The problem is that everyone has increased the premium for everything silver that they are selling. Ungraded bullion coins like the US silver eagle or the Canadian maple leaf have always commanded premiums of two to three and a half dollars over spot. Rounds, on the other hand, have historically gone for a dollar or less per ounce over spot.
Not now. Rounds are going for $2.50+ over spot, right beside coins. Presumably because most of the current inventory was acquired when the spot price was several dollars higher, and they are trying not to lose their ass. But such is any commodities market.
In order to take advantage of the current price, and offset the purchases I made when spot was $37+, I bought
100 some RCM Maple Leaf coins. I paid right at $3 above spot, which is a dollar more of a premium than I’ve paid in the past. That was the best current deal that I could find, though. A couple years ago, the US mint went up on their premium for silver eagles, and since then I have bought more silver maple leaf and Austrian philharmonic coins than eagles.
I’ve bought rounds in the past, but got away from it several years ago. I figure that if I ever need to do casual exchanges, most folks would be more trusting of a highly recognizable government (spit!) minted coin than a round, even if it was from a well-known private mint. Plus there is the whole conspiracy theory of them outlawing private ownership of bullion again. Although it would be easy enough for any such law to be written in a way that ignored the fact that these coins are technically legal tender. It’s already been done, in the absence of any lawful basis. But such is the abuse we’ve come to expect from our overlords.