Over paying spot price

[Robda1986]

Would any one go over spot price and premium for a bar they have fallen for reason I ask is I've found a bar but it's more than I'd normally pay for a normal bar so the question is dose/ would anyone else make exceptions when buying silver?

[Darr3nG]

I didn't think I would, when I started stacking (bullion only for me  ).

That was until I found out about the S.S. Gairsoppa Shipwreck Silver bars and went a bit nuts, paying way above spot & premium.

I have also picked up some excellent hand-poured silver which commands a high premium, but I love the look and feel of them, so not in any way upset about my purchases.

[sixgun]

i was actually thinking just that as well today - imagining paying a big price for a bar and then imagining selling at a future date and only getting offered spot price by a buyer who could take it or leave it. It is easy to buy silver but members have often found it is not as easy to sell or at least sell at a price they would like. 
i would look at what you could sell for in the market minus costs. How much does such a bar actually sell for at the moment - then you have a guide. If you don't find buyers as keen as you are right now you will likely end up selling at a loss in today's terms. Now the bar might be a bar you absolutely just must have but that is not generally the case. 

[Xander]

I used to, not anymore, it's spot or slightly above from now on. 

[Robda1986]

Head vs Hart decision I think 

[StevenDS]

5 hours ago, Robda1986 said:

Head vs Hart decision I think 

When in doubt, follow the head.

For me, I have the rule to always keep minimum 80% of my silver in the lowest premium. The other 20% is meant for higher premium, but with the intention to sell for profit and acquire the lower premium silver.

In your case, if you don't think you can sell it at the higher premium, then it's just collecting. Determine a percentage for yourself how much of your total silver you want for collecting rather then pure stacking. Keep you from too many regrets later on imo.

[KitboyE17]

7 hours ago, Robda1986 said:

Would any one go over spot price and premium for a bar they have fallen for reason I ask is I've found a bar but it's more than I'd normally pay for a normal bar so the question is dose/ would anyone else make exceptions when buying silver?

I think it depends on what it is and why you want it. If its for adding to your stack for accumulative wealth then calculate your average £/oz over your entire stack and see if you can absorb it. If it’s a must have for your personal ‘lust’ then what’s the harm of over paying if you intend to keep and admire and enjoy it. If you can afford to take the hit - take it and enjoy it 👌

[SilverPirate007]

Where in the uk can you get bars so cheap? I have been a little silly and bought a couple of bars from stockdale mint (cheap from them but 20% VAT) 

[daca]

29 minutes ago, SilverPirate007 said:

Where in the uk can you get bars so cheap?

Only TFS

Cheapest in UK is secondary market, also try german secondary market and/or coin bars (no/lower vat, higher premium)

 

[AurumArgenti]

I'm quite taken with royal mint 100oz Britannia bar's but they seem to super expensive for what they are. 

So no I wouldn't.

[Robda1986]

3 hours ago, SilverPirate007 said:

Where in the uk can you get bars so cheap? I have been a little silly and bought a couple of bars from stockdale mint (cheap from them but 20% VAT) 

I've spoken to most if not all the local pawn shops in my area let them know what I'm after and they have my number so if anything comes up I get a text or a phone call also has the added advantage if some one tries to nick and flog my stack I'll stand more chance of finding it 

[Robda1986]

[SilverPirate007]

Good idea that!

I haven't thought about talking to the Pawn shops

[StevenDS]

23 hours ago, daca said:

Cheapest in UK is secondary market, also try german secondary market and/or coin bars (no/lower vat, higher premium)

I'm in doubt about coin bars. They carry a higher premium then normal bars, but in Europe we do not pay VAT on them, being a sovereign coin. Premium is quite high on the coin bars, but lower then the equivalent in 1 oz maple leafs. You get about 3,5% more silver buying coin bar over 1 oz silver maple at Goldsilver.be atm.

For 1 oz maples however I know how much premium I will get back when selling. I do not know how well premium is preserved when selling coin bars. I guess it all depends how sought after physical silver is at the moment of selling.

[LiquidMetalsUK]

For me personally my silver is a collection. Stuff I love so will pay premiums. As a libertad mentalist 🤪 I have no choice but to pay premiums. Silver in general is a pain to sell with weight ect. As for saving/stacking that's what my gold is for and try to buy as close to spot as humanly possible. Only 38 so many more years to put gold in the safe 😁

[Robda1986]

189.99 10oz bar Inc delivery more than I normally go but hopefully worth it 

[fastlanwan]

We all need to remember and use as guidance what type of silver we are here for? We are a Stacker or flippers or art collector. That should guide all of us when it comes time to buy. 

Now if you see a piece that you see as beautiful and would like to possibly display, then purchase it. But not for its silver nor for intention of selling anytime soon, as you see it as art. Nothing wrong with buying art. Ask Van Gogh's sister in law. (AKA Theo's widow- that made the $ from their work) 

[Ceaiu]

So far I've paid a lot over spot for coins.

I'd pay over spot for a bar like the 1kilo from PAMP or Valcambi.

[JakeBB]

I'm a sucker for a cool design or something old and rare. Blessing and curse of working at a coin shop
Luckily Nebraska, USA is still tax free for gold & silver sales. Just have to file IRS paperwork on over $$,$$$ transactions. 

[Bibbs]

On 05/01/2020 at 11:09, daca said:

Only TFS

Cheapest in UK is secondary market, also try german secondary market and/or coin bars (no/lower vat, higher premium)

 

Newbi here, sorry but what does "secondary market" mean? 

[daca]

4 hours ago, Bibbs said:

Newbi here, sorry but what does "secondary market" mean? 

sale of preowned items.

Ex:  You've bought 10 kilo of silver years ago, now you need some funds and decided to sale back/or to other PM dealers 4 kilo.

The 4 kilo will be put up for sale by the PM dealer as preowned items =secondary market, this new operation will have lower/0 VAT, depends on the country where the PM dealer  it located.

 

[Tangomachine]

Paid over spot loads of times. I dont want a collection that's boring to look at. Plus my expensive stuff (usually vintage) is desirable so itll sell as quick as my gold should I ever need to

[Platinum]

Nothing wrong with paying over spot if you really like the item as a collector or if you believe the spot price will go up over time as an experienced investor.

[Becca]

As I am so new to the pm's I have real time experience of :

Buying because its pretty, Spending too much because its pretty, Taking a hit because its was pretty.

Now I could make a rule and stop buying things I like but where would the fun, the expectation, the buzz come from, all the things that hold my interest. It is really hard and I see myself doing it on a daily basis with coins and bars. Bars I now look at as paperweights there is too much of a premium to be anything else unless there is special antique value. Coins they are nice to have in hand but there are far too many being churned out by the mints that make you want to spend premium money on a series. 

If you are not a collector and you must buy general silver the only answer as I see it is as @KitboyE17 buy what you feel you like but keep your average for if you go over your average your just buying pretty paperweights 

IMHO

B

 

[JonCL]

I don’t collect anything fancy- mostly 1-2 ounce BUNC- probably like most here I like gathering complete series. I’ll buy proofs to finish a series but apart from that, I’m not particularly drawn to them. Similarly, I’ll buy a coin in average condition to fill a gap- figuring that I’ll buy a better example when I see one.

In other words, I collect coins which fall somewhere between scrap and numismatic collector appeal. But I have never paid anywhere near as low as spot for any of them. Granted most have come with a capsule which accounts for 50p or so but the prices have rarely dipped below £20 an ounce, perhaps a couple of 2oz coins dropped to £35 for a while but the range they sold at, whether on ebay or various dealers, is all much of a muchness and between £20 - £30 when spot has ranged between £12 - £15.