Discussion
We would like to buy some 1oz silver bars on eBay.
We would be looking to buy around 20 or so over the next year, and put them away for our children, we would release them to the children when they are 21.
I know values can go up or down, but if silver is low when they get them, we would hope that they would hold onto them, until values rise again.
What we are wondering is
1, Is there anywhere else where we could buy cheaper?
2, Is there anything we need to watch out for? I am reading up on silver, so we will know what we are looking at, and we know to watch out for people carefully wording silver plated as solid silver.
3, Yes we did consider shares, but we want something solid we can hold ourselves.
Any tips are welcome guys
We would be looking to buy around 20 or so over the next year, and put them away for our children, we would release them to the children when they are 21.
I know values can go up or down, but if silver is low when they get them, we would hope that they would hold onto them, until values rise again.
What we are wondering is
1, Is there anywhere else where we could buy cheaper?
2, Is there anything we need to watch out for? I am reading up on silver, so we will know what we are looking at, and we know to watch out for people carefully wording silver plated as solid silver.
3, Yes we did consider shares, but we want something solid we can hold ourselves.
Any tips are welcome guys
You could go for 1oz coins via CoinInverstDirect.
Cheaper than Ebay if you use 'Pick up in Germany' option (although shipping fees are steep), but far more attractive than bars.
Cheaper than Ebay if you use 'Pick up in Germany' option (although shipping fees are steep), but far more attractive than bars.
I used this company to buy some silver recently.
You don't actually take possession of the silver, but it does avoid the VAT cost.
http://www.bullionvault.com/
You don't actually take possession of the silver, but it does avoid the VAT cost.
http://www.bullionvault.com/
It's certainly a lovely idea for your kids but it is worth asking if it is the best thing to do.
I don't know how old your kids are but if we guess that it's at least 10 years before they receive the gift that's 10 years of not just having no yield at all but in fact paying every year to hold the physical (you would keep it in storage never take delivery as you pay a premium to buy and take a hit when selling).
If it is just some fun alongside some proper investments for your kids then fine but if it is the main investment then I think you would be wasting a lot of money and not doing your kids any favours.
I don't know how old your kids are but if we guess that it's at least 10 years before they receive the gift that's 10 years of not just having no yield at all but in fact paying every year to hold the physical (you would keep it in storage never take delivery as you pay a premium to buy and take a hit when selling).
If it is just some fun alongside some proper investments for your kids then fine but if it is the main investment then I think you would be wasting a lot of money and not doing your kids any favours.
DoubleSix said:
He wouldn't incur any storage costs if using an ETC
With the right account. The only downside I would consider is that over the coming decade or more you would have to keep track on whether the product was pulled or changed etc. not 100 fire and forget if that is a requirement.
DoubleSix said:
Just buy an ETC (Exchange Traded Commodity) and avoid all the risk of theft hassles etc
Off the top of my head i think the exchange code is PHAG for silver...
I am not an expert, but also worth noting that not all ETCs / ETFs are physically backed. I think PHSP is a physical fund, ie there's audited metal in a vault and you have an allocation of it, rather than just a paper instrument tracking the price of the commodity. Also a precious metals basket, which may be a better bet, given how much silver moves around? I've held PHSP in the past, and it can be something of a rollercoaster, especially when it drops 25% in one day...Off the top of my head i think the exchange code is PHAG for silver...
hornet said:
DoubleSix said:
Just buy an ETC (Exchange Traded Commodity) and avoid all the risk of theft hassles etc
Off the top of my head i think the exchange code is PHAG for silver...
I am not an expert, but also worth noting that not all ETCs / ETFs are physically backed. I think PHSP is a physical fund, ie there's audited metal in a vault and you have an allocation of it, rather than just a paper instrument tracking the price of the commodity. Also a precious metals basket, which may be a better bet, given how much silver moves around? I've held PHSP in the past, and it can be something of a rollercoaster, especially when it drops 25% in one day...Off the top of my head i think the exchange code is PHAG for silver...
Edited by DoubleSix on Friday 25th May 17:26
englisharcher said:
The kids are 2 and 5.
This is something my parents want to do for them.
The only stipulation is that we must be able to physically hold the item, and not just own it on paper.
That makes more sense. It's not a financially prudent action but that's not the point, it's a wonderful legacy to grandchildren on their 21st. This is something my parents want to do for them.
The only stipulation is that we must be able to physically hold the item, and not just own it on paper.
I think CrazyCraig has it. Coins are more exciting etc. I believe you can get tender coins in sealed containers which helps defend their value.
It's always going to be a loss of an investment financially but it's a case of minimising this.
I'd be a little wary of EBay and spend some time benchmarking against someone like Kitco.
DonkeyApple said:
englisharcher said:
The kids are 2 and 5.
This is something my parents want to do for them.
The only stipulation is that we must be able to physically hold the item, and not just own it on paper.
That makes more sense. It's not a financially prudent action but that's not the point, it's a wonderful legacy to grandchildren on their 21st. This is something my parents want to do for them.
The only stipulation is that we must be able to physically hold the item, and not just own it on paper.
I think CrazyCraig has it. Coins are more exciting etc. I believe you can get tender coins in sealed containers which helps defend their value.
It's always going to be a loss of an investment financially but it's a case of minimising this.
I'd be a little wary of EBay and spend some time benchmarking against someone like Kitco.
Crazycraig said:
You could go for 1oz coins via CoinInverstDirect.
Cheaper than Ebay if you use 'Pick up in Germany' option (although shipping fees are steep), but far more attractive than bars.
I have been looking at this recently. Checked to see if it has been discussed on PH and bing a thread. Cheaper than Ebay if you use 'Pick up in Germany' option (although shipping fees are steep), but far more attractive than bars.
I am a little confused. The comments above say its not a good buy. I have looked at a few sites including the one above. It appear the coins are sold way above the silver's value so why do people buy these coins? Its not like they are rare, you can buy them in multiples of 100 if you want. So why do people buy them?
Cotty said:
I have been looking at this recently. Checked to see if it has been discussed on PH and bing a thread.
I am a little confused. The comments above say its not a good buy. I have looked at a few sites including the one above. It appear the coins are sold way above the silver's value so why do people buy these coins? Its not like they are rare, you can buy them in multiples of 100 if you want. So why do people buy them?
Why do people buy anything that retails for more than the value of the resources comprising them? I enjoy coins, so have a few bits of gold and silver to satisfy that interest. They do indeed cost well above the metals content, but you have an additional market should you wish to sell at some point in the future. Plenty of people will look for coins from a certain year (birthday gifts, special events or what have you), or perhaps a year to complete a sequence. I have the Canadian wildlife series simply because I like how they look, and I'd love a 1974 Sovereign purely because it's the year of my birth. Doesn't have to be rational and isn't always an investment decision.I am a little confused. The comments above say its not a good buy. I have looked at a few sites including the one above. It appear the coins are sold way above the silver's value so why do people buy these coins? Its not like they are rare, you can buy them in multiples of 100 if you want. So why do people buy them?
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