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Thread: Silver Rounds

  1. #1
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    Aug 2008
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    Default Silver Rounds

    I am new here - and have been buying silver and gold coins for some time. Just bullion value. I only have purchased minted coins and never silver bars or rounds.

    My local shop has a few hundred 1oz silver rounds.
    I was a little skeptical- since they are not "minted" coins, but rather just silver rounds.

    Since I have always stuck with what I know (US minted coins) - I have shyed away.

    Is there something I should KNOW about purchasing silver rounds?
    How do I check the real value? How do I KNOW I am buying 1oz silver rounds?

    Any and all comments and suggestions welcomed.
    "Paper money eventually returns to its intrinsic value --- zero."
    Voltaire (1694-177
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  2. #2
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    Mar 2008
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    42

    Default Silver Rounds

    Some would say that a Silver Round is a Silver Round.
    However, I can tell you from personal experience that you can Squeeze more premium out of "Name Brand" Rounds. Bars and Rounds manufactured by a NYMEX or COMEX approved refiner/assayer or National Government Mint as well as meeting minimum fineness requirements will typically yield a higher premium for you than those refiners or assayers that are not NYMEX or COMEX approved. Hope that helps.

    OP

  3. #3
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    Default

    I like sunshine, engelhard and amark rounds the best.
    if you don't hold it, you don't own it.

  4. #4
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    Mar 2008
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    Default

    Quote Originally Posted by Prohobo View Post
    I am new here - and have been buying silver and gold coins for some time. Just bullion value. I only have purchased minted coins and never silver bars or rounds.

    My local shop has a few hundred 1oz silver rounds.
    You didn't ask, but if you want to make some ounces free, take a few ounces of that gold back to the shop and swap it for those silver rounds. An exchange rate of 56 is a good place.

    I was a little skeptical- since they are not "minted" coins, but rather just silver rounds.
    I just buy silver rounds. And a little gold on swaps when the ratio is good.
    Local shops don't care much what they are, unless they are eagles or something that is supposed to be pretty, in which case they trade at a premium (I never made any money on one). I pretty much just stick with utility stuff that says what it is and is in good shape.

    I did buy a morgan, a peace and something with Ben Franklin on it once for my sons coin folder though. Nice trinkets, but not a lot of silver in 'em for the price.

  5. #5
    Join Date
    Jul 2008
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    15

    Talking .999 fine silver markings

    Same at my coin shop. a common round is a common round unless its a less than perfect eagle. I picked up 6 yesterday at $1.00 over spot . They looked very good for common eagles. I try to look at it in a pessamistic "selling" mindset, most coin shops probabaly will only give you spot price (really less than) when you sell so don't pay premium unless its something special. I try to avoid special rounds, but have some Maple Leaf's and Australian Kookaburras, but being an old school coin colector, can tell you, when silver rises, special rounds, usually, but not always, turns into bullion. One rule I broke yesterday; I bought a round marked "ONE TROY POUND" nothing else. I saw a small nick on the edge, and when I got it home last night, IT LOOKED COPPER. I'M NOT SURE IF IT WAS, BUT IT TAUGH ME AGAIN, TO ONLY BUY ROUNDS MARKED .999 or fine silver. Today, they exchanged it for 12 common eagles, same $1.00 over spot. I feel much better now; it bothered me all last night. I got my wife interested in the rounds by picking out different designs, usually, if I go to pick up a certain number, I come home with more because she likes neat looking designs, Just have fun buying while investing for your future!!

  6. #6
    Join Date
    Aug 2007
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    Default

    My 2-cents....
    Privately minted bars and rounds are a good avenue of diversity...IMO important because nobody has a crystal ball to see specifically what is going to happen in the future.

    Bars and rounds like all other forms of gold and silver have "pros" & "cons". A big pro of bars and rounds is that they trade at a lower premium (are cheaper)than government struck coins so give a person more silver for their dollar. A down-side to bars and rounds is that they do not enjoy legal tender status and don't provide a government guarantee of how much metal they contain, and it's purity. The only way to really know the metal content of a privately struck bullion item is to assay it and assaying incurrs time, efforts, and costs.

    That said, rounds and bars are very good ways to diversify. Before the 1967 when So. Africa introduced the 1-oz. gold Kruggerand, bullion coins and small units of PM's were not available = only rich people, banks, and governments could acquire bullion. Kruggerands were introduced as "gold for the people" and they took off like a rocket in popularity and cause citizens to pressure their governments to create gold and other PM coins. The overwhelming popularity of the government coins caused private refineries and privately owned mints to follow suit with small weight units of gold, silver, then platinum followed by palladium items...that the average person wanted and could afford.

    1. There are four classes of silver rounds & bars: "Name brand", "generic", "art", and "commerative". "Art" and Commerative items are struck for collector market and often sell at comparatively high premiums...though they not infrequently get thrown in with other rounds & bar lots by individual dealers who do not want to hold them waiting for a collector to come along who is willing to pay a couple of extra bucks to get the item.

    Concur: Acquire ONLY rounds and bars that show their metal content and purity, i.e. "1/One oz./Troy oz." and ".999/999 fine/pure silver".

    2. Name brand rounds & bars are by far prefered by people who want to acquire silver as a store of wealth and preserve some of their money from the the ever-decreasing value of currency. Name brand rounds and bars are produced by refineries/mints that have become well known and recognized for their credibility. Foremost in the U.S. are Englehard and Johnson Matthey (JM), followed by Sunshine Mint/Mining, AMark, Silvertowne, U.S. Assay Office, Northwest Territorial Mint (NWM), World Wide Mint (WWM), and Pan American (Pan Am).

    Name brand bars will be more liquid (readily traded) when a person decides to part with them - period. As a result they frequently trade at a little higher premium then generic or generically priced art & commerative types. This is particularly true of Englehard "Prospectors" and Johnson Matthey rounds and bars. The only JM rounds that are generally seen are from a set of 10 "Bill of Rights" items that report as an example "The Right to Free Speech").

    Englehard and JM items generally trade a $1.00 over spot, and other name brand items not frequently trade at .75 to 1.00 over spot depending on the dealer and the dealer's business/personal situation needs at that time & place.

    Anytime you can get Englehard or other named brand rounds or bars (whether rounds, bars, or a mix is what can be found and personal choice) at or near .50 over spot GRAB 'EM. .50 is the amount over spot that generic rounds & bars usually trade at.

    3. IMO it's important to limit self to acquiring 1 oz. rounds because they are more liquid then 2-plus oz. rounds.

    4. IMO it's also important to limit self to acquiring 1, 5, and 10 oz. bars. Avoid bars over 10 oz. (a) because many, many extruded 100 oz. Englehard bars were drilled out and filled with lead years back when Ag hit $50/oz. and many exist today though you may never encounter one...but who wants to take the risk?, (b) because smaller bars are more liquid now and will particularly be in the future when silver prices get muc higher....more people can/will be able to afford the smaller size bars; (c) a person can easily make 100 oz. out of 1, 5, and 10 oz. bars but can't reasonably make lesser weights from a 50 or 100 oz. bar, and (d) when silver prices get high it will be much preferred to drill and fill 50 and 100 oz. bars then smaller items...particularly 1 oz. bars and 1 oz. rounds.

    5. After you become familiar with some of the different generic 1 oz. rounds that are available, it will be easy for you to decide which to get. Specifically you want to get the ones that (a) are most readily seen because they were prolifically produced and most readily recognized and accepted now and will be in the future, and (b) report their metal content and purity.

    6. Don't be afraid of easily recognized and accepted name-brand and generic rounds. Re 1 oz. and other weight bars, I would stick to name brand items.

    7. And again, currently generic's trade at about .50 over spot, and name brand bars from .75 to $1.00 over spot. Rounds are more popular then bars (I believe because they are a familiar "coin" or money form).

    8. Don't pay too much for the items you get and work to cost-average the prices (of the items you acquire) over the long-haul period of time.
    Last edited by goldminer; 10th August 2008 at 08:27.

  7. #7
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    Very good advise Goldminer,from begining to end.
    if you don't hold it, you don't own it.

  8. #8
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    Aug 2008
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    Thanks very much.

    I guess my concern is - (because I am NOT in the know) - how do I KNOW if it IS real silver (or for that matter 99%)?

    I guess if I keep with the Name Brand rounds - that should not be a problem.

    Thanks again for all the information.
    "Paper money eventually returns to its intrinsic value --- zero."
    Voltaire (1694-177
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