New Fractional Silver Britannia! … The Shape of Things to Come?

[TutoredSoup232]

On 20/02/2021 at 11:59, TeaTime said:

Already on Ebay as a pre-order at £24.99. (GSBE £7.58).......

 

The tenth ounce 2020 tubes (16 coins) can still be purchased from the states at around £90 including post and tax. 😁

From which website?

[TeaTime]

Ebay - bought a couple of tubes from a USA seller at £61.62, £12 postage, £17 import duty per tube. £5.67 per coin - a hefty premium for pure silver content but reasonable for a silver coin.

[Bimetallic]

Premiums are always crazy for fractional. Silver is too cheap to make fractional sizes economical – even gold has inflated premiums for fractional sizes, but silver is often through the roof.

In normal times, according to my data, ¼ ounce silver premiums go as high as 43% in the US. ⅒ ounce premiums can exceed 100%. This is for privately minted rounds – we don't normally see government minted fractional silver coins, and I never heard of those ⅒ ounce Britannias until today.

That was all before the pandemic, when premiums on Eagles could go as low as 16% for singles, less for tubes, and on single Britannias we saw as low as 12%, less for tubes. For 10 ounce bars, we saw as low as 4% for Sunshine Mint (private), and 8% for the Royal Canadian Mint. So all that should give you a sense of normal premiums, at least in the US, with no VAT or sales tax (most states exempt bullion from sales tax).

Currently, one ounce coins have maybe 30% premiums or more, so premiums are roughly double what they used to be. If one ounce singles have 30+% premiums, then I think those new ¼ ounce products will have 50-100% premiums. Maybe higher. I would stay away unless you're a collector. Silver is best bought in bulk, essentially, in 10 ounce or kilo bars.

[TeaTime]

This forum has a good mix of silver investors and silver collectors.. Personally i do not buy silver in the hope of a price surge in the metal. Past experience has taught me that 'silver to the moon' has been touted for years with no evidence of it ever happening. The base price of silver always has, and in my opinon, always will, fluctuate between points that are not going to make anyone but the already rich, richer.. Owning a few hundred ounces of silver in the form of generic bars is a good way to store wealth but is a poor way to invest.

Anyone making money on silver at the moment is doing so by purchasing and selling smaller weight, high premium coins. That is where the potential profit lies - the weight of the silver is irrelevant in this scenario, be it 1/4 ounce, 1 ounce or 2 ounce.

It has been this way since i purchased my first silver 35 years ago.

I wish good luck to anyone who is investing in silver and hoping for the spot price to fly but the reality is, right now and for the foreseeable future, 'collectable silver' profits far outweigh bulk silver profits.... 

Probably 🤨

[StackemHigh]

It may be a good starting point for children that can spend some pocket money from time to time as an interesting hobby or the completeists who must have everything from the series!

[Robda1986]

Not for me 1/4oz is going to be Diddy if your looking for fractional silver the £20 coin is a better option 1/2oz and has a better face value