Are American Silver Eagles A Waste of Money?
My first post on the #steemsilvergold tag had to be important - I figured I'd share my most controversial, hate inducing , mildly thought provoking and somewhat biased Youtube discussion.
The title says it all, Are American Eagles worth it?
The idea here is that American Silver Eagles (ASEs) are commonly viewed as a "safe haven" for stackers because they are easy to aquire, globally recognized and highly liquid. They generally demand a higher premium than your typical 1ozt coin or round, and they also kick back some of that premium when you go to sell them.
I have made a comparison and a quick analysis between an ASEs purchase price, sale price and rate of return against a kilogram generic bar.
While the comparison is a little lop-sided, the point is clear - ASEs may not be exactly what you think they are, they have their downsides as well.
I should note that it is an obvious argument that maybe 1ozt rounds should have been used as the comparison tool instead of the bar - but I assure you, the math was done for these as well! It turned out to be a small difference, considering the price paid over spot for a larger bar isn't much lower than the premium paid for 32 individual rounds (Very often can they both be acquired for the same premiums per ounce)
The TDLR of this discussion is this - if the premium pricing structure and market demand for these items stays the same in the future, regardless of spot price - the ASE only becomes "more profitable" or "less loss" when spot price is significantly higher than it is today. If you think silver prices will remain somewhat stable in the short term (Below $20) the generic silver may be a better purchase.
Let me know what you think, keep it constructive, keep in mind I am targeting an American audience with this discussion (Our tax laws are much different than those in the EU or other parts of the world).
Hope you enjoy, Hope you aren't lighting your torches.
silver is silver is silver.
I like to look at my eagles and my kookaburras and love to hold the kilo bars.
Its like a wad of cash you have a few hundreds a few fiftys twentys and tens , it depends what you want it for. If one day you are starving and it cost 1oz of silver for a loaf of bread you cant pay with a kilo bar, or if there's a moon shot and you want to buy a car with a kilo you dont want to used all your eagles.
Just sayin silver is silver and money is money. It just happens that silver is a better money than money.
I hear ya! I like to think of silver as me scratching an itch to spend money - while still stuffing a $20 in the sock drawer. Thanks for the input @marky, sometimes I just like to hear every side of the story!
There Worth every Cent! @silverfuture
I buy All my Silver with the Expectation of $50 an oz.
Any 1oz .999 Silver coin/round under $50 is a STEAL...
You have a great point - We spend a lot of time complaining about the "buys and don't buys", but if silver prices go north - who cares what shape/size it's in, we are all ahead of the game!
For me, I prefer the American Silver Eagles. The ASE are issued by the U.S. government and also have severe penalties for forgery.
With a large bar you sell all or none, but with the Eagles you can sell some and keep some. They are #1 minted silver coin in the world and are beautiful!
But aside from my preference I think most any physical silver is an excellent investment now with these artificially depressed prices! Buy and hold on!
I started of with maple leafs and then moved on to jM. Billion and some low montage coins for some reason never wanted sunshine mint but preferred Perth mint. Year of the dragon, bought some Indian head silver but their value is low for some reason.ASE hold value,,, stay thirsty my friend and keep stacking!
Haha, it always seems that regardless of your strategy, you always seem to veer off course and buy what you like =]
I don't think they are a waste of money, but the price over spot on an ASE from most companies is quite high. I think in the long run when silver goes up it will all be worth it.
@hoss403 I guess the title was a little harsh yea? I don't think they are a waste either, they are silver after all! I guess sometimes generic just makes more sense though (I still stack a fair amount of ASEs, but only if the price is right - just like you said!)
Sometimes I wonder if generic is better since they are cheaper. I mean silver is silver right? If the SHTF, would anyone really care if it was an ASE or generic silver? I know I wouldn't.
Unfortunately we may not ever know, until it's too late!
Silver Eagles can never be worthless. It's lawful money coined by the United States Mint and not to mention Legal Tender...
Love the image man, I didn't want to portray the ASE will be worthless - I still stack a fair amount of ASEs, I just don't want to put more emphasis on them over other options!
Nice post! I am here to up vote and follow in support of the community.#Steemsilvergold .
Thank you so much, lets watch this community grow!
I'm with you friend : )
to me, they are just a round, about the same price when selling.
I feel the same way man
I stack for weight, bars and generic rounds at spot or a little above and if I can grab some ASE for $1 over spot or less Ill jump on it. Gotta diversify your stack imo.
I agree @bscot020 - I am very diversified (in fact ASEs are still >30% of my stack!), I just wanted to discuss why thinking in terms of weight and generic is a good idea too! Keep stackin' my friend, and thanks for stopping by!
ASE's are 40% for me lol. Ive found good deals locally. No real preference just anything on sale. Keep stacking as well!
40% is good! I have a pretty big portion of my stack as ASEs too, I like to have a little bit of everything!
silver is silver is silver...it's all good. I just wish I didn't lose all mine in a boating accident.
Great video...looking forward to you next one.
Holy cow I can't even imagine... You're right though, as long as it's silver - I'm a fan. Thank you for the kind words
Thank you for doing the math, I figured as much, but now I know. Great to see steemsilvergold making such a quick and positive impact.
@spicyer I am excited to see this community grow - I have high hopes for steemit as a platform and the precious metals community is amazing to be apart of. I appreciate you stopping in!