Buying Pre-1965 Silver Right Now Offers Downside Protection and Potential Upside Profit

The case for owning low-premium bullion products, and avoiding high-premium numismatic products, is straightforward.  Specialty coins that carry hefty collectible premiums above melt value put buyers an immediate disadvantage. If they have to turn around and sell, they might get back only a small fraction of the premium they paid.

Bullion coins that sell for close to melt value don’t carry that type of downside risk. They tend to closely track spot prices with relatively small bid/ask spreads.  At the present time, the best opportunity in 90% silver is to be a buyer.  That’s because premiums now sit at historically low levels. In quantities of a half bag or larger, junk silver can be had for under $1/oz over spot prices!.

You pay virtually nothing extra now to own an asset that could command much higher premiums in the future. It’s like getting a free option on rising premiums that never expires. When a period of extreme tightness returns to the market, you may wish to exercise that option.

In baseball terms, it’s a double play opportunity. You have the potential to make money two ways – from rising silver prices and rising coin premiums – with one purchase.  The silver bullion market is not merely the spot silver market. Each type of bullion product is its own market with its own bid/ask spreads and premiums. Most ordinary bullion bars and rounds don’t deviate much from spot prices in normal market conditions.

This perspective is courtesy of the Money Metals News Service.  To explore the topic in greater depth, click the link below or go to the Money Metals Exchange and sign up for their newsletter which offers many unique opportunities.

Source: Double Play Potential of Pre-1965 U.S. Silver