Opinion on Size/Weight Purchases

Mark

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Well, being new to investing, I feel like I may've made a few early mistakes, thankfully, however; I didn't invest too much in those mistakes. As stated in a previous post, if I had some spare change lying around, I'd purchase silver in increments less than an ounce. I've purchased 1 gram bars (buffalo, Valcambi, etc...) up to 1/4 ounce (Scottsdale round-though pretty cool). After receiving some direction from the forum and doing the math, it's easily discerned that the purchase of anything less than an ounce seems like a very big waste of money. ex.: 1 gram can translate into $100.00/oz. So, I've decided that from here on out, I'm going to stick with purchases of no less than 1 oz at a time, be it bar or round. Instead of buying a Slim Jim or RC with that spare change, I'll just hold on to it until I have enough for an ounce. So... what say you? I plan (in the future) to actually purchase Ag in 1/2 lb, 1lb, etc..., but for now, I'm checking the lowest prices for 1 oz purchases. Is this OK? Is it recommended? I like the American Silver Eagles and have paid $35.00 for one. Is this a good or bad idea? I'm NOT purchasing "art" bars or the like, just sticking with known assayers. All opinions are welcomed. Thanks. BTW, I read the article on the pros and cons of certain weight purchases.
 

benjamen

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For silver, it is a lot more cost effective to buy at least one ounce.

It may work better if you save up for periodic (monthly?) purchases. The more you buy at one time, the lower the per ounce cost will be.

Regardless of where you chose to buy from, here are few things to think about:
Avoid credit card purchases (this adds 3%).
Look to see how many ounces it takes to get a discount (10, 20, 25,..?).
Watch for sales; These can be very nice
For a local coin store, they may give you discounts if you buy from them regularly
 

pmbug

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... for now, I'm checking the lowest prices for 1 oz purchases. Is this OK? Is it recommended? I like the American Silver Eagles and have paid $35.00 for one. Is this a good or bad idea? ...
OK? Hell yes.

recommended? I've done it before, but if you want to maximize ROI, save up for a larger purchase where you can get some volume discounts.

good/bad idea? If you aren't forced to liquidate the asset for cash, I believe that in a few years you are going look back on the decision with great satisfaction and feel like Albert Einstein.
 

Cybrsk8r

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Definitely register at some of the more reputable online dealers (Apmex, Kitco, etc). You'll get e-mail alerts to specials. Usually, APMEX will run specials where you'll get the lower premium even if buying lower quantities. If looking for something in the 5 oz range, check into the 5 oz "America the Beautiful" bullion coins. I have two of them and they're about the size of a drink coaster.
 

superhero

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Well, being new to investing, I feel like I may've made a few early mistakes, thankfully, however; I didn't invest too much in those mistakes. As stated in a previous post, if I had some spare change lying around, I'd purchase silver in increments less than an ounce. I've purchased 1 gram bars (buffalo, Valcambi, etc...) up to 1/4 ounce (Scottsdale round-though pretty cool). After receiving some direction from the forum and doing the math, it's easily discerned that the purchase of anything less than an ounce seems like a very big waste of money. ex.: 1 gram can translate into $100.00/oz.
Yes, terrible waste of money.


So, I've decided that from here on out, I'm going to stick with purchases of no less than 1 oz at a time, be it bar or round. Instead of buying a Slim Jim or RC with that spare change, I'll just hold on to it until I have enough for an ounce. So... what say you? I plan (in the future) to actually purchase Ag in 1/2 lb, 1lb, etc..., but for now, I'm checking the lowest prices for 1 oz purchases. Is this OK? Is it recommended?
Several things to consider:
1) Are you paying shipping for that 1 oz? If you're buying from an online retailer, it's likely they're charging you shipping. Even if the retailer (e.g. Silvertowne) says free shipping, it's likely they built the cost of shipping into the premium.

2) Are you paying taxes on that 1 oz? What's the tax situation in South Carolina? E.g. in California you pay taxes on purchases < $1,500. To avoid paying 7.75%, I'd save until I'm buying more than $1,500 of metal.

3) Are there volume discounts? Some vendors (e.g. APMEX, Provident) charge you more if you buy 1. Charge you a little less if you buy 20, less if you buy 100+. Other vendors (e.g. Goldmart, Liberty CPM) don't have minimums. Stick to the vendors with the lowest premiums for the quantities that you purchase.

4) Are you still using a credit card? Because that's 3% you'll never get back. Obviously don't spend $30 to wire money for a $30 purchase. So look for the vendor that'll accept personal checks.


I like the American Silver Eagles and have paid $35.00 for one. Is this a good or bad idea? I'm NOT purchasing "art" bars or the like, just sticking with known assayers. All opinions are welcomed. Thanks. BTW, I read the article on the pros and cons of certain weight purchases.
Going through old posts, it seems like you made your first purchase ~ 07/19. Looking at July/August silver prices, silver briefly hit a high of $28.26. If you paid $35 for an ASE, you paid $6.74 over spot (about ~24%). My LCS's price for ASEs is $4.50 over spot, and I think he's insane. Why in the world would you pay that much?


Go back to your "Just an Observation" thread and read it over and over again. Plenty of good advice there.
 
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EASJ369

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funny, fractional silver is what i enjoy to collect. lots of the bars are fairly rare (excluding all this new 1 gram stuff) most shops i go to usually charge 3 or 4 dollars over spot for eagles while regular bars and rounds are a dollar or two. start going to some coin shops and become a regular, once they know you they usually start throwing you deals.
 
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