It always pays to be an educated consumer, and the metals market is no exception to this. Most advice for what to buy depends on what spot price is doing. When spot price is low, the generally accepted advice from the stacker community is to buy bullion as close to spot as possible. When spot price is high, many will tell you to buy collectibles, since they will retain their value even after spot price eventually drops.
We're now at the point where silver spot price has risen dramatically over the last few months. Just over Thanksgiving and Black Friday the price went from around $51/oz to $56/oz. We're in historically uncharted territory here.
You would think with spot price being so high, buying collectibles is the smarter purchase, right? Check the price comps before you hit that "Buy" button. Let's look at an example.
Back in July, I found a very unique, beautiful piece combining the Mona Lisa and Van Gogh's "Starry Night" on a 1oz silver coin. According to Kitco, spot price for silver in July was around $36/oz. Here's what I paid through Amazon for the coin: $64.66.
So I paid about a $28 premium over spot for the coin.
Here's silver spot price now.
Here's the same coin and what it's selling for now.
The premium on this piece now is $38.82, or roughly $10 more of a premium compared to when I bought it in July. That's a little over 25% more premium now than four months ago. Now, the supply is limited and they may be running low on stock, but if you're going to buy a collectible this may not be the one, at least right now. If you don't care about the large price increase, then go ahead and buy it. It's a beautiful coin, and if no other coin will do, then go for it. Otherwise, shop around and check price comps. You can save yourself a few dollars, and more money kept in your pocket is always a win.
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