We get lots of questions from the public about precious metals.
Some people are curious about the basics. Others are skeptical about the case for owning gold and silver. Still, others are longtime customers who have highly specialized inquiries.
Here we will answer a few of the most common, most broadly relevant questions we get…
QUESTION: Are American Silver Eagle coins a good investment?
ANSWER: Premiums on Silver Eagles have finally come back down to earth, making them a better value than we’ve seen in years.
Silver American Eagle – RANDOM Year (Dates/Type our Choice)
For most of the last four years, these coins were quite possibly the WORST deal available in the silver bullion market, and we constantly encouraged folks to choose something more cost-effective. Premiums on United States Mint American Silver Eagles often ranged from $10 to $18 over spot, i.e. 40% to 80% markup.
By contrast, premiums on Silver Eagles have fallen into the $6 range in 2024, making the coins at least somewhat reasonable again.
All that said, privately minted rounds and bars – and even silver coins from other sovereign mints – are still available for significantly less and should therefore be seriously considered. In the long run, it’s mostly about how many ounces you own.
QUESTION: How much lower do you think premiums will go?
ANSWER: Premiums – the amount over the spot price you pay for a coin, bar, or round – are presently quite low… especially as compared to recent years.
This is because retail buying demand has cooled off, and there has also been an increase in retail selling.
With inventory plentiful on the secondary market, mints suddenly have a ton of unused capacity lately.
While it’s possible premiums could fall lower than where they are today, a hard floor is approaching.
At a certain point, it pays for wholesalers and refineries to melt down minted products into large commercial bars – and sell those bars in the official spot market.
Bottom line, investors can acquire gold and silver ounces in a more cost-efficient manner than has been possible for a long time.
QUESTION: Which bullion products offer the absolute lowest premiums?
ANSWER: Privately made bars and rounds, as opposed to government-minted coins, are hard to beat when it comes to low premiums. That is why Money Metals recommends these lower premium items so often. In silver, ten ounce, kilo, and 100-ounce bars are particularly cost efficient.
Investors will often find the combination of uncirculated beauty of rounds and low cost to be a “sweet spot.”
The only reliable way to lower costs even further on a form of gold and silver that can be shipped to you is to make some compromises when it comes to condition.
It is sometimes possible to buy scratched, dented, and/or tarnished items at a discount.
Investors who don’t care much about aesthetics may be able to get slightly more precious metal for their dollars. We classify scratched or dented gold and silver items as “Bargain Bin,” and they are discounted at MoneyMetals.com.
Money Metals has also created a super-low-cost way to accumulate ounces of gold, silver, platinum, palladium, and rhodium. It’s called Vault Metals, and through this depository-based program, you may acquire fractional ownership in large commercial bars. Go to MoneyMetals.com/vault-metals or call 1-800-800-1865 for more information.
