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Silver bullion coins.

Friday, November 23, 2012

Sharing photos of some silver bullion coins I own:






I still believe that people who have some extra cash should own some investment grade gold and silver as a hedge against the flaws of fiat currencies. Where silver is concerned, I think the Canadian Maple Leaf is one of the purest around. Relatively cheaper too.

Read my latest piece on the topic in my blog on precious metals:
Gold and silver: Still important assets to own.

Related post:
Buy gold and silver as insurance.

20 comments:

seth said...

hi AK,

how may we purchase silver bullion coins in Singapore? and if we wish to sell them for a profit in the future? thank you for taking time to answer the questions. =)

EY said...

Cheap as in 1 coin for '5 Dollars'? :P

JCK said...

i agree.... :)

However it seems the Perth Mint silver coins are of higher standards.

There has been some complaints of dicolouration of the Canadian mint items

i buy silver coins only for numistatic value. i invest in silver through ETFs rather than horading physical. Just cant afford the space!

AK71 said...

Hi seth,

If you are thinking of trading silver i.e. buying low and selling high for a profit, you could be better off with a UOB Silver Savings Account which I have too. It is more liquid.

You could also do what JCK is doing and that is to buy silver ETFs which is even more liquid. This, I am not doing and, perhaps, JCK can share with us how he does this.

Buying physical silver and gold bullions is really with a crisis mentality. If there is a global reset and fiat currencies go kaput, silver and gold will be the two dominant forms of money which will be universally recognised.

So, some experts say that keeping 10% of our total wealth in precious metals is a good hedge. Personally, I am still working towards 5%.

AK71 said...

Hi EY,

Haha.. Droll. ;)

Well, the Canadian Maple Leaf has the highest face value for a 1 oz silver bullion. The American Silver Eagle's face value is US$1.

This has little practical value at this point in time, of course. It could be of some importance in the event of a global financial crisis where fiat currencies go kaput. ;p

Anyway, 1 oz is 1 oz. So, what makes the Maple Leaf a better choice than the Silver Eagle? It is 99.99% silver whereas the Eagle is 99.9%.

AK71 said...

Hi JCK,

The Canadian Maple Leaf silver bullions are 99.99% silver. I think that is good enough for me. Some tarnishing is OK since I am not buying silver coins for their beauty. ;p

If you are collecting silver coins for numismatic value, you would be paying a few times more than the spot price of silver. Of course, you would also be buying silver proof coins instead of silver bullion coins.

For me, I am buying silver for the silver and not the numismatic value. A crisis mentality is what motivates me to keep a % of my limited wealth in precious metals. The UOB Silver Savings Account (ie paper silver) doesn't do this well enough and they also charge an annual service charge, although modest.

I bought my first PAMP gold bar when I started work more than a decade ago. I think for 20g, it was S$500+. Cheap, huh? But it was easily a fifth of my monthly take home pay then.

I only bought more gold bullion coins when it was US$800+ an ounce (31g) a few years ago and started a silver savings account when silver was US$15+ an ounce.

In those days, I did not have many options to buy silver bullion coins in Singapore. Now, many companies are bringing in the coins. No GST on investment grade gold and silver from 1 Oct 2012 makes it more attractive now to buy bullion coins in Singapore too.

There is some wisdom in what my maternal grandparents used to say. They were rather poor but would buy gold when they had some extra money because the yellow metal "bao zhi" (retains value).

Singapore Man Of Leisure said...

AK,

Your silver coins looked "goldish".

It always wise to listen to the collective wisdom of our Asian forebears.

For Teochew, when marry, must have "shi dian jin" or 4 gold items.

Our Indian friends are even smarter!

Centuries of war, famine, and natural disasters have been imprinted in our collective memories ;)



AK71 said...

Hi SMOL,

The photos were taken at night and the coins reflected the light from my table lamp. ;)

Collective memories indeed. In times of crisis, gold and silver are the universal currencies. Having a bit of crisis mentality cannot go too wrong. :)

JCK said...

Silver ETFs

iShares Silver Trust (SLV)

ProShares Ultra Silver (AGQ)

ALL traded on the NYSE....

Beware of the AGQ. This one tracks 3 times the change in silver prices...eg when silver price changes 2%, AGQ changes 6%

JCK said...

When i first invested in gold in 2002, it primarily to a kinda 'short' position on the USD.

At the time we were expecting the US economy to tank and USD to be printed to no end.

In all honesty i was expecting gold to top out at $1700.....but it seems the whole financial crisis is only to start in REAL terms!

At the time, gold was $230. Appears the Fed has managed to delay the inevitable by heavily pump priming the stock exchanges.
This as we expect will lead to further inflation in commodities.

USD is still being printed to no end AND the world financial crisis is still seeing NO END.

Still heavily invested in gold and gold related instruments

AK71 said...

Hi JCK,

Thanks for sharing. Very useful and educational. You are one of the early movers in precious metals. :)

People who are still staying 100% or mostly in cash will have the most to lose in time. Of course, not all fiat currencies are created equal and Singaporeans are luckier, for example. Even so, high inflation is eroding the real value of our savings.

Work hard and save money for a better future? Sheesh. The most industrious savers are being penalised the most.

See: Low interest rates' a double whammy for some.

Tan said...

Hi AK,

Yours coin is 1oz or 10oz? Pahseh ar.. i can't recognized....

Gregg

AK71 said...

Hi Gregg,

See the second photo. I think that one is clearer. 1 oz. :)

AK71 said...

Stephen Leeb says silver is a better buy than gold right now due to its indispensable role in renewable energy production.

Speaking to King World News Leeb asserts that silver "is really going to soar" not only because of its pivotal role as a monetary metal in an inflationary environment but also due to its varied applications in modern industry, with the most prominent amongst them being in renewable energies.

There is not going to be enough silver to satisfy the demand for solar energy.

Leeb envisages silver rising well beyond $100 per ounce, with governments scrambling to get their hands on the precious metal in order to support their domestic energy needs.

Silver is a better buy than gold.

AK71 said...

Reuters reports last month's sales of American Eagle gold coins appear on track to reach levels last seen in 1998.

Gold coin sales reached 136,500 ounces – triple last year's monthly tally and the best in 14 years.

Dealers ascribe ballooning sales to "uncertainty surrounding the U.S. fiscal crisis and the presidential election" which set off a wave of safe-haven buying.

American Eagle silver coin sales doubled from the number achieved November last year at 3.1 million ounces.


Source:
http://www.mining.com/american-eagle-gold-coin-sales-soar-to-14-year-high-98206/
Dated: 2 Dec 12

AK71 said...

You know what is interesting about the numbers by REUTERS?

Sale of silver coins was 23x more than that of gold coins. Geologically, there is only 15x more silver than gold in the world...

JCK said...

Major difference between gold and silver

a) silver is an industrial PM
b) gold is perceived money

So begs the question: While geologically thers 15x more silver than gold,

a)how much of that silver is JUNKed? as in waste
b) how much of tht gold is held in firm Central Bank hands

So essentially how much free float of those respective PMs are available to markets?
AND ummmm.... dont bet that Fort Knox still hold all those tonnage of gold in their fort. They have leased most of that out the last 30years. They dont allow audits of their holdings.

Plus Germany and other Euro countries have their gold in this fort.........go figure :)

AK71 said...

Hi JCK,

In ancient China, silver was used as money too. Now with gold so high in price, more are turning to silver which is considered poor men's gold. ;p

Of course, you are familiar with all the arguments why silver's price is set to rise. In a nutshell, higher demand from more varied industrial applications and higher demand from global investors. The price is driven by fear...

Would it double in price and how long is it going to take? That is anyone's guess.

Anyway, you are all set with your huge investment in gold. :)

JCK said...

i do agree that silver has a BIG potential as far as volatility is concerned.

However, the geological rarity comparison without thoughts of the hoarding effects does not present the holistic picture of price potentials.

Right now silver has a 'use'. Gold does not. MY guess is silver is still priced for 'use' rather than monetary perception at this time.

The hoarding effect is anybody's guess. Imagine if Germany demands its overseas gold from U.S and the Knox is found wanting! :)

AK71 said...

Hi JCK,

We would have a tsunami of an event if Germany were to find its gold missing!

Going by the number of silver bullion coins that are being minted and sold in recent times, it seems that the hoarding effect is continuing to grow. However, like you said, how big is this effect going to become is anyone's guess.

Definitely, gold is the more valuable precious metal in more ways than one when compared to silver. :)

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