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Discussion Starter · #1 ·
This is a dumb question, but here goes!

(I know nothing of investing in PM's)

I'd like to buy some of those Pamp Suisse 1 oz silver bars. If silver is around $40 an oz., why is the price of them $60+ ??? If I buy some, won't I lose $20 per oz right off the get go?

I've checked monex and ebay, etc., and it seems everyone is selling for over $60.

Thanks!
 

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It's the premium. That and there is likely some noise between the physical market and the paper market right now. That said, that premium seems high for bars. How much are u looking to buy?
 

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Discussion Starter · #4 ·
What is "the premium" and this "noise" you speak of? (I'm sorry, I don't even know the lingo of PMs)

I'd like to buy 10 or 20 of them, to start off, strictly for if the shtf and someone has something I need and they'll only trade in pm.

I like the Pamp Suisse, just because they're pretty, and if the s never htf, well then, I'll have something pretty to look at!
 

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What is "the premium" and this "noise" you speak of? (I'm sorry, I don't even know the lingo of PMs)

I'd like to buy 10 or 20 of them, to start off, strictly for if the shtf and someone has something I need and they'll only trade in pm.

I like the Pamp Suisse, just because they're pretty, and if the s never htf, well then, I'll have something pretty to look at!
There are fake bullion and numismatic coins out there.

If you invest in Pamp Suisse Bars, they are serial numbered and tracked in their database. The people out there know this, so there is a premium because of its desirability.

When the time comes to sell, fewer people will doubt their authenticity, so they will be more liquid (easily bought and sold).

As the price of silver goes to triple digits, you will feel the $20 premium less and less. However, you are right, a $20 premium may not be as transferable to the buyer if your holding timeframe is short.

I like them, but I find them to be too pricey.

Start with raw American Silver Eagles. They carry a $3-4 premium. Buy only from reputable sources, as they are counterfeited. Typically the counterfeits are too light, or have a date that doesn't coincide with the production years.

They are legal tender, and probably the most liquid form of Silver Bullion in the US. There are other advantages with American Silver Eagles as their declaration value is $1 per coin as far as customs are concerned.

American Silver Eagles are considered money in the state of Utah. Five states have since filed to give the Silver Eagle similar status.

http://en.wikipedia.org/wiki/American_Silver_Eagle
 

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This is a dumb question, but here goes!

(I know nothing of investing in PM's)

I'd like to buy some of those Pamp Suisse 1 oz silver bars. If silver is around $40 an oz., why is the price of them $60+ ??? If I buy some, won't I lose $20 per oz right off the get go?

I've checked monex and ebay, etc., and it seems everyone is selling for over $60.

Thanks!
You'd be charged a $20 premium over the actual price of the silver because Pamp Suisse is the Cadillac of bullion, serial numbered and with very elaborate artwork on them. It's almost as much jewelry as it is precious metal. If that's what you want, the extra $20 probably won't matter, as you'll be able to charge the same $20 premium when YOU sell them, assuming the price of silver doesn't fall precipitously before then. However, if all you want to do is buy some silver, you can get much plainer, more basic bars or rounds at a much lower premium - $3-$5 over the current price - by shopping around. Here's a link to the Silver page of APMEX, an on-line PM trader that I've used and never had problems with. You can see what they're charging for various things, and make plans accordingly.

http://www.apmex.com/Category/503/Silver.aspx
 

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If you're going to buy, BUY COINS. Why? coins are considered a "double hedge". You have the value of the PM which protects you from the devaluing dollar but then you also have the value of the coin as a collectors item as another type of value.. You'll pay a little more over a bar but five years from now the bar will be worth the spot price and the coin will (at a minimum) be worth the spot price but more than likely have increased in value.

PLUS.. One more thing to think about is if you buy Silver Eagles, they have an actual "face value" of $1USD and are considered legal tender. (Not that you'd use them for 1USD but just something to think about..)
 

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$20 sounds like a huge premium.

Right now you can check on goldeneaglecoin.com that a 1oz silver bar from Silvertowne is selling for $43. That's about $3 dollars over spot.

If you're looking to invest in silver then don't get hung up over PAMP suisse which are a particularly treasured brand because of their beauty.

At the end of the day a 999 bar from Silvertowne, PAMP, AMark and others is the pretty much the same quality and worth the same amount from an inherent silver bullion quantity point of view.
 
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