Silver Stacking Question 1 1

[Coin & Bullion Collector]

Hello, what is the most cost effective silver coin to stack? I know that someone has done the math to figure out what the best is, so what do you think? I want to stack coins as low to spot price as possible. I don't need to stack 100% pure silver BTW.  Thanks in advance!

[Henri Charriere]

Quite frankly, no one here can possibly answer your question without needing some basic information.  I would need your age, years of formal schooling and employment, financial goals, whether you are single, married or married with children.  Your assets and liabilities -- your short- and long-term goals.

Stacking is the easy part. You can start with the ordinary round or bar and amass your accumulation regularly.  Some are one-way stackers.  They buy, buy, and buy, by the by and by. They never sell.  Others are fanatic.  They consult a number of sources, come to a determination, and buy low and sell high.  Only problem is the people you rely on for that information are not as intimately familiar with all the variables as they should be.

I placed my faith in universally recognized and accepted hallmarks.  The only thing my modest silver holdings shared in common was fineness: all .999.  You get what you can afford.  It stands to reason generic silver will be cheaper (closer to spot) but what if that may prove to be a problem. Less problematic, but costing more are the well-known brands. APMEX seems to enjoy a good reputation.  But again, a small-scale hoarder cannot be compared with a Blue Whale with unlimited resources and a staff to manage his portfolio. I hope member @GoldFinger1969 weighs in on this.  There are other members who do this routinely as a matter of business.

My idea of stacking is limited to how much I can physically amass.  How many 1-ounce silver coins equal a troy ounce of gold?  What would you rather have: a massive, bulky, Monster Box of ASEs or one or two kilo bars of gold?  That's why only you can answer your question.  Others are free to weigh in, and many will, but each of their individual situations may differ radically from yours. Capiche?

[ldhair]

On 8/8/2024 at 7:05 PM, Coin & Bullion Collector said:

Hello, what is the most cost effective silver coin to stack? I know that someone has done the math to figure out what the best is, so what do you think? I want to stack coins as low to spot price as possible. I don't need to stack 100% pure silver BTW.  Thanks in advance!

Coin silver is fun if storage space is not a problem. It's a bit bulky. Half dollars would be my choice.

Silver rounds are good as long as you are able to stay clear of all the fake stuff out there.

I don't know enough about silver bars to have an opinion. Some of the early bars are collected for the history behind them and bring much more than spot.

Silver Eagles are out if you are trying to stay near spot. I never saw that coming. If I had, I would have filled a large safe with them. I did find a 2016 monster box at spot years ago but only because the dealer just wanted to dump it and I had the cash in my pocket. I don't know if that is even possible in today's market.

I never really had a plan for stacking silver but would jump on a great deal when I saw it. Long term, this has worked well for me. I don't do anything short term. It can drive you crazy watching the spot price. My only problem are the taxes I will pay when it's time to sell. Not something I can take the risk of trying to hide. 

[Numisdoclaw]

There are more than several ways to go about it.  Usually the rule is,  lower purity has less premium, if any at all. Also the higher the weight of a piece can lower premiums or completely remove them. I have bought kilo bars several times that were for spot or less,  due to their size. Big silver doesn't move well. You could do a few ounces a week, 10 ounces a month,  maybe a kilo every 2 months. Gotta figure out what is best for you based on your finances. 

[The Neophyte Numismatist]

If you are looking for more than just "stacking", I suggest Constitutional Silver.  You could get a nice start filling an album with the unique dates/mints you find, and through the lesser-quality duplicates in your silver stack.  It's 90%, but it could add a fun dimension to what you are doing.  Good luck.

[RWB]

Try this approach:

Make a list of silver sources with the lowest premium per Kg of pure metal

make an ordered the best 10 from lowest to highest, including shipping, taxes, etc. This is total acquisition cost per Kg.

Using the same 10 sources, find the lowest total cost of selling. This is both the offered price (bid) but any charges for assay, M&R, shipping, minimum quantity, taxes. This is your sales cost.

Subtract the sales cost from the acquisition cost to find the lowest cost to you per Kg of buying silver.

Next, estimate your storage expenses such as bank box, insurance, liability, inflation, etc.

Add this to your acquisition cost per Kg. The result is the minimum your must receive to break even on sale at the end of your term of ownership.

Typically, you must either act quickly on spot price moves, or hold long term to yield a meaningful profit. (Assume a 50Kg minimum quantity.)

Edited August 10 by RWB

[Coin & Bullion Collector]

Thank you everyone. I'm stacking without much problem of space or weight, and just making a little investment in it. Nothing big. As far as junk silver, is any coin

(half dollars, quarters, dimes, nickels, Etc.) have the same amount of silver? What I mean is, if you put $5 of silver halfs, and $5 of dimes side by side, would they

have the same amount of silver? I don't want to spend on premium, just silver. I hope that makes sense. Let me know. 

[Coin & Bullion Collector]

On 8/9/2024 at 7:50 AM, ldhair said:

Coin silver is fun if storage space is not a problem. It's a bit bulky. Half dollars would be my choice.

Silver rounds are good as long as you are able to stay clear of all the fake stuff out there.

I don't know enough about silver bars to have an opinion. Some of the early bars are collected for the history behind them and bring much more than spot.

Silver Eagles are out if you are trying to stay near spot. I never saw that coming. If I had, I would have filled a large safe with them. I did find a 2016 monster box at spot years ago but only because the dealer just wanted to dump it and I had the cash in my pocket. I don't know if that is even possible in today's market.

I never really had a plan for stacking silver but would jump on a great deal when I saw it. Long term, this has worked well for me. I don't do anything short term. It can drive you crazy watching the spot price. My only problem are the taxes I will pay when it's time to sell. Not something I can take the risk of trying to hide. 

Also, why are Silver Eagles way above spot?

[RWB]

On 8/9/2024 at 5:42 PM, Coin & Bullion Collector said:

Also, why are Silver Eagles way above spot?

In part because they are sold to a handful of wholesalers who sell to dealers and MS-70 speculators. The mint already has a full-cost recovery price on the tokens and is paying a bonus price to suppliers to guarantee inventory and purity, and to accept rejects at mint cost. There is no "added value" to the product.

[Rob’s Coins]

Plenty of info out there on weights and percent silver content on each.  Gonna have to brush up on the math and research skills and put them to work.  Looks like you’re in for a fun time.  Pay attention to dates.  A 2023 S proof silver dime or a 1950 dime?

I feel that Eagles are priced high because it is more about production quality, reputation in the market also what the initial price the mint is asking for one.  RWB is much more knowledgeable than me and I liked his response.
Sure, the silver is $30 but to make one with USA labor and machine time is not free.  Look at the cost to buy direct from mint at usmint.gov

[J P M]

On 8/9/2024 at 5:42 PM, Coin & Bullion Collector said:

Also, why are Silver Eagles way above spot?

I find only certain year ungraded and MS graded ASE's sell above spot. For the most part if you take any year ungraded ASE to a dealer you will only be offered spot price.