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lmwstamps

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  1. lmwstamps

    Provident metals 2oz rounds

    Perhaps I misunderstood the intent of the OP's question and of your response to it. If the intent was to look at "largescale" flipping then I don't have much insight to offer. My apologies.
  2. lmwstamps

    Provident metals 2oz rounds

    It depends on your definition of "real money". Is it enough to quit my day job? Probably not. But I'm a hobbyist stacker so if I flip 2 of those at $10 each, I can add an oz to my stack AND have fun doing it. So in my hobbyist stacker world, 1 oz of silver traded for "labor in the hobby" is "real money". I don't have a lot of discretionary income to spend on the hobby, so flipping coins helps to grow my stack. I'm not suggesting this is for everyone, but it works for me and my circumstances.
  3. lmwstamps

    Hello, I’m a new stacker.

    I only have a couple of LCS in my area. In one, premiums are high on everything so I rarely go there anymore. In the other, it varies, but I would tend to agree with you. It may be, though, that this is more a function of the cost of the item rather than the metal. Percentage wise, you will pay more for 1 Oz silver rounds and fractional gold than you will for larger silver bars and 1 Oz gold rounds/bars. The reason for this may simply be a lower demand for higher priced items. Not everyone can afford spending $1200+ on a 1 Oz gold bar, but most people can afford spending $17 or $18 on a 1 Oz round. I completely agree with you on your price points. There is so much available sub $17 right now if you are patient that there is no need to "chase the coin". It has to be a special coin/round to induce me to pay more than $18 per oz. On a few occasions I've had "buyers remorse" due to buying something at a price higher than I should have. I'm still learning to be patient and wait for the right opportunities. It has to be the right coin AT the right price and not just the right coin. I constantly have to remind myself that if I go out to purchase PM's and don't find anything worthwhile to purchase that it's OK to come home with the same amount of cash I left with. There will be other opportunities.
  4. lmwstamps

    Provident metals 2oz rounds

    My son picked up 3 of the Privateers on the secondary market for $40 each. He's sold a couple on eBay for a small profit but still hasn't sold the third. It appears that while still collectible the premiums on most of the coin series have dropped somewhat. My gut feeling is that the collecting intensity for this series (Privateer) has already peaked and so have the premiums. Recent sales on eBay run between $40 to $55 with a couple of the series bringing higher prices. Provident is selling them for around $50, so it looks like there's not much profit left for the secondary market.
  5. lmwstamps

    Premiums

    I've often wondered the same thing which is why I've begun keeping records on premiums vs spot. The source I use is goldprice.com which has records back to 2015. Prior to that I only have anecdotal evidence. What follows concerns the US market since I don't know what else was happening around the world at the time. In 2008/2009 spot silver dropped from about $20 per oz to $9 per oz. During that period, the premiums stayed fairly high and even rose. Purchasing coins at 22 when spot was 20 became purchasing coins at 15 when spot was 9. This must have been because many felt silver was undervalued at the time and didn't want to sell at a loss. Fast forward a couple of years to 2011 when silver was $40 to $50 and ounce. Premiums at that time were about $1 over spot and premiums on semi-numis ran about the same. The value of the silver content dictated the price rather than the rarity or desirability of the coin. Fast forward a few years to now and the slow steady decline of silver. Average premiums have stabilized to between $1 and $3 per oz and semi-numi's have higher premiums once again. With all that said, there doesn't seem to be a hard and fast correlation concerning premiums. I would extrapolate what I've seen to the following: A sharp increase in silver spot creates lower premiums on all bullion generic and semi-numi with little difference between the two. A sharp decrease in spot creates higher premiums on generics with standard premiums on semi-numis. Gradual increase or decrease in price creates stable premiums with differences between generics and semi-numi's. THese statements are merely observations and past performance is no guarantee of future performance. As stackers, we need to understand the current environment and be as prepared as possible for changes in the environment in order to maximize our resources and stacks.
  6. lmwstamps

    Avg price/oz of your stack? What have you learned?

    FFkook, I'm from the US, so I guess my observations may not be able to be generalized everywhere but #1 has been my experience. In 2011, junk US silver was commanding substantial premiums of up to 50%. Now, I can often find it at or below spot. It was a matter of supply and demand and right now the demand for all things silver in the US is low and the prices and premiums reflect it. As to #2 I was referencing what can be purchased from dealers. You always get a better price when you can buy something that a dealer doesn't want or doesn't know. Then, if you are inclined to do so, you can sell those items to people who may be looking for them in the collector market. I guess if I lived in the Netherlands, my approach would be to seek to buy the coins and rounds from the dealers and sell them to collectors on such venues as eBay. Simultaneously I would be looking for underpriced bars from eBay or from unknowlegdable dealers to sell to the knowledgeable dealers. I guess my thought process boils down to the simple axiom "buy from someone who doesn't want and sell to someone who does". As a stacker, being the middle man means I get to keep whatever oz's I haven't sold (which I purchased for lower prices) and put the profits of the sales back into stacking to increase the stack.
  7. The title says it all. Another thread contains a discussion of a personal ration. Having recently considered implementing a personal ration, I'm wondering on its benefits. For those who have one, what purpose does it serve in your stacking? A more disciplined approach? Diversifying? Something else? What factors do you consider when establishing your personal ratio?
  8. lmwstamps

    Hello, I’m a new stacker.

    The acceptability of the premium depends on the purpose you have for buying the coin. If you are buying just to stack, the lower the premium the better. With silver currently in the $15.50 range, the lowest prices I've seen have been $16 per oz (about 3.5% premium). If you are buying to resell, then there is a little more flexibility in the premiums. I've bought bullion in the recent environment for $18 per oz ( 16% premium) thinking that I can sell the bullion for more than that. If you are buying to collect (which I don't do much of), then its totally up to you. Your desire to own the coin, how readily available it is, and the level of your patience will dictate how much you are willing to pay at that moment. Being from the US, I can say that by far the best prices I've found are at coin shows and local coin shops. I have bought online before from APMEX, Gainsville Coins, and Silver.com since I was looking for certain items, but did so knowing that the premiums were high. With regard to fakes, the best defense is knowledge and familiarity. Research what fakes are being produced and how to identify them. I stack mostly silver with a smattering of gold, but here are some guidelines that I tend to go by: For silver: Learn what an ounce of pure silver feels like and looks like. Many of the fakes are going to be silver plated. Silver plating just has a different look to it. Many of the fakes are going to reproduce well known coins and rounds such as ASE's, Maple Leafs, Engelhard rounds, Sunshine products, etc. If you are purchasing those type of rounds, be a little more cautious. Fewer fakes are merely generic rounds or bars. Most of these that I've seen are of the plated variety and the designs and look of them are just "off". I second what Matrawr said about a scale and bullion test app. That's a low cost way to check for most fakes. I own both, plus a Sigma Analytics PMV, but have found that I rarely used them prior to purchasing. I've used them primarily to verify purchases. If something seems off or doesn't feel right with either the product or the seller, just walk away. I prefer purchasing in person, so these are the guidelines I go by. First and foremost, knowledge and familiarity are the keys. For gold: Tungsten is used mostly in larger bars. It's not cost effective to fill gold coins 1 oz or less with tungsten, so you don't have to worry about those type of fakes on smaller gold coins. What you do have to worry about is gold plating and fakes/forgeries. Some of the same guidelines apply for gold as well. Fakes tend to be of better known items such as PAMP bars or gold maple leafs. Learn what is being and has been faked and be on the lookout for those. Some fakes/forgeries may not matter if you are a stacker. In the 1960's, Saudi Arabia produced fakes of US and worldwide gold coins using the correct amount and purity of real gold. These fakes were done in order to get the gold out of the country. As a collector, you might not want it, but as a stacker, it's still gold in weight and purity it's supposed to be. As with silver, knowledge and familiarity are the keys. Hope this helps.
  9. lmwstamps

    Avg price/oz of your stack? What have you learned?

    Just a quick thought on the 4th point of why this seems to be a good environment for this type of "flipping". There are at least 2 reasons for this. 1) Have stacked for quite some time it's been my observation that when silver prices are rising, everybody wants to buy and sellers can maintain their premiums and margins. The opposite is true when silver prices are stagnant or falling. Nobody wants to buy. With silver being depressed, it's now a buyers market. Many full-time coin dealers need to move inventory in order to keep their cash flow so they are willing to reduce their margins and premiums in order to induce buyers. 2) Secondly, dealers often specialize in coins, not bullion. Consequently, many dealers lack knowledge concerning government bullion coins, so key dates can easily slip under the radar, particularly if the government bullion is from a foreign country. Many dealers simply look at foreign bullion as 1 oz of silver and price it as such. This will always be the case regardless of the fluctuations in the silver price. .
  10. lmwstamps

    Avg price/oz of your stack? What have you learned?

    Interesting thread. As others have said, my primary goal # of oz's, but I do keep track of my avg cost per oz. Right now it stands at $15.81. Without getting specific, I'll just say that my stack is currently in the hundreds of ounces I'd like to address the "What I've learned" portion of the question. I've learned that 1) my stack began to grow at a faster pace once I started focusing on the avg cost per oz. The reason is not because I was buying premium rounds and switched to buying lower cost generics. In fact, just the opposite is true. When I began stacking I bought the lowest premium rounds I could find. While that kept my cost per oz fairly low, spot plus some percentage would always be the floor of my cost per oz. That led me to learning that 2) in order to decrease my cost per ounce I needed to sell. Since low cost generics are tied solely to spot they are not good candidates for sale in a flat to decreasing market so I began buying premium rounds. The catch is the by careful searching I can buy them for the cost of generic rounds. If I then turn around and sell them to collectors, I can recover the premium. For example, I can often find key date silver eagles for a couple of dollars over spot. The last coin show I went to a couple of weeks ago I bought several for $18 each. One has already been sold for $22. So how does that decrease my cost per oz. If I buy 1 oz for $18 that's my avg. But if I sell that coin for 22, and buy another for 18, I still have 1 oz that I paid 18 for but have an extra $4 IN my pocket effectively reducing my avg to $14 per oz. Which leads me to 3) a happy benefit of selling is, oddly enough, a larger stack with better quality coins. The extra money from selling premium coins gets plowed right back into purchasing more premium coins to sell. After all, for me, an oz is an oz but if a collector wants to pay a premium for one of my oz's then I'll gladly sell it to them and replace it with an oz plus a little more. Which leads me to 4) this is a pretty good environment in which to do this. By buying and selling premium coins, in the past year I have decreased my avg cost per oz by over $0.60 and increased my stack by a couple of hundred oz's. If I keep doing this, at some point my whole stack will have paid for itself. My apologies for the length of the post.