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TerryGriffiths

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Posted

Hi

 

I am relatively new to stacking Silver, started in Feb 2014.

 

I was wondering how long you guys have been stacking for?

 

Were any of you around in 2008/2009 when silver was even cheaper around $8. I Believe it was $3-4 (£2.50 in proper money) between 1990-2002. If so, what premiums were you paying on coins?.

 

I remember seeing a video that said American Silver Eagles were being sold for $16.50 when it was $8 (100% + mark up) in 2008.

 

I think if we do see silver much much lower, the prices of coins are not going to drop that much. The Vendors have to make a profit too.

 

Any thoughts from the veterans of stacking?

 

 

Posted

This is exactly what i have been questioning myself today. With refining, manufacture, shipping, dealers premiums and costs, I'm not sure how much lower coins will actually go. There is already a huge demand at these prices and ebay prices have not changed in the spot drop, in some cases (pre decimal junk) its gone up.

 

That said there is billions of ounces of bullion out there, who knows maybe it will go to £6/7 per coin. Cant see it but then couldn't see these prices two years ago neither..One thing for certain is the potential upside is bigger than the potential downside now.

 

I'm pretty damn close to putting in a 80 oz cheap bullion order.

Posted

I'm struggling to resist lol, Gold is awesome , and i definitely want more. But I think it may have further to fall compared to silver. 

 

Be very interesting to see what bullion coins cost back in the early 2000s, and if there was demand for them at that price?

Posted

I think there were far fewer silver bullion coins back in 2000 - although most of today's mainstays were being made, they were in very limited quantities compared to today, so its not a fair comparison really; we now have a proliferation of bullion coins which was not necessarily the case 10-15 years ago. 

Posted

https://web.archive.org/web/20081007223628/http://www.apmex.com/Category/160/Silver_American_Eagles_Uncirculated_2008__Prior.aspx

 

Apmex oct 7th 2008

 

You can try and find if there are dealers sites that have archived pages like above from 2008 to look at past prices 

Help thread for members new to silver/gold stacking/collecting

The Money Printing Myth the Fed can't and don't money print - Deflation ahead, not inflation 

Posted

Great find Kman thank you:) sees the premium was a little higher than we pay to be shipped here but not to much more. 

 

"As low as $4.79 over spot!" (on ASE)

Posted

https://web.archive.org/web/20081007223628/http://www.apmex.com/Category/160/Silver_American_Eagles_Uncirculated_2008__Prior.aspx

 

Apmex oct 7th 2008

 

You can try and find if there are dealers sites that have archived pages like above from 2008 to look at past prices 

 

Silver price was at $11.60 and they were selling the eagles for $17.44. (1-19). I make that 50% over spot. 

 

I think as the silver price falls the coin premiums as a percentage will increase. 

 

Today at Apmex, ASE's are 26% over spot, (coincidently STG is about the same), so we've still a way to go for silver to fall before the premiums rise. But I think once premiums get to say 30% over spot for ASE's then we know we are hitting the lower limit of what coins can be sold for.

Posted

Great find Kman.

 

Thanks for the responses.

 

It does look like we are nearly at the floor in terms of coin prices.

 

If silver does drop another 50% we may only see a 10-20% drop in the coin prices.

Posted

Have been collecting PMs since the early 80's and in a simply answer, yes the fixed overhead costs distorted the margin % vis a vis retail prices for silver

 

For silver bullion during the 80's It was simply a matter of basic economics and the economies of scale which can be applied by miners, refiners, dealers and retail sellers who each in turn added cost into bringing the items to market. Those that were most competitive survived, while the rest went to the wall. 

 

Because it is not in our collective psyche in the UK, we are probably unaware that a lot of mints/dealers went to the wall in the US during the 80's and due to them not being able to command economies of scale in their operations  

Posted

I collected coins as a kid and bought some silver Thalers and sovereigns back around 1980 but because there was no internet and a scarcity of local dealers prices were high except when you came to selling anything when the one local dealer or jewellers would offer you much less than you paid.

I can't recall there being many silver bullion coins available back then but then I didn't have much money to spend and had to buy and sell coins wisely to try and increase my pocket money. :)

The internet has really levelled the playing field for the average person.

Posted

sorry if i a little bit thick, or maybe because ive had a few pints tonight after darts nights Weds 

 

Could someone post the formula calculation of how to confirm the % over spot we are paying or any other relevant calculations to useful to precious metals

 

%'s was never my big thing at school sorry, im rusty

 

many thank yous in advance :)

Posted

sorry if i a little bit thick, or maybe because ive had a few pints tonight after darts nights Weds 

 

Could someone post the formula calculation of how to confirm the % over spot we are paying or any other relevant calculations to useful to precious metals

 

%'s was never my big thing at school sorry, im rusty

 

many thank yous in advance :)

 

If a coin is £12.50 and spot is £10.61 to work out % over spot you divide £12.50 by £10.61

 

12.50/10.61 =  1.178 = 17.8% over spot

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