Buying "random year" silver bullion coins

Most billion sites have this as an option when buying the major bullion coins like ASE's and SML's. It's usually a bit cheaper than buying a specific year coin in bulk, which is the main reason I'm considering this option. I can't think of many reasons, barring potential numismatic factors (can't see that affecting ASE's or SML's much though), to pay more for a bunch of coins from a specific year. Perhaps resale could be a bit more difficult and timely if you have a whole bunch of random years versus, say, tubes of a single year. Though from what I've read, quite frequently these random year purchases contain mostly or all coins from the same year, whatever year that may be. Usually pretty modern. I don't have any specific plans to resell for decades. Are there any other reasons I should pay more for, say, a tube of guaranteed all 2018 ASE's? Just curious, as the higher premiums would definitely add up.

 

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Some folks collect solid date rolls. Some of the early dates seem to bring a little more. Probably because they are harder to find. I would just go with random dates.

 

I suppose it is possible that the same date tubes (rolls) would be subject to less handling which might improve the odds of receiving coins in better condition. Whereas, tubes of mixed dates might suggest that the coins have been "processed" for higher grades and the condition may be affected.

This is just speculation and is assuming that the buyer might want to submit some coins for grading.

Chris

 

I would guess that it's less about picking out higher grades, and more about simple inventory management.

The dealer might get in a monster box of 2016 one day, and three boxes of 2014 the next. If they've got orders for "random year", they can turn them over quickly regardless. If they offer only specific-year ordering, they might have to sit on the 2014 for a long time, while turning away people who order 2015 (because that date hasn't come in recently).

 

For gold I think you should not buy random year. You are paying too much for a coin to take a risk on it not being new and perfect.

However, for silver it's a different story. The premiums on silver are already much higher than gold. Saving on that premium by buying random years is a smart move. What I have found is that if you buy random years of any significant quantity they are often always the same year. Big online bullion dealers often use "random years" to sell whatever they have available. That can include the current year, that include a monster box of last year's coins someone sold them, or that can include 6 2014 ASE out of the tube they have at the front of their inventory.

I think it's fine to buy this way for silver, not so much for gold.

 

I love this question as this can bring up so many opinions. There isn't a right or wrong answer! People collect years, build sets, or collect just for the overall weight. I think the question you need to ask yourself, what do you want to do with your investment and if/when you sell, what is your target type buyer? If you like to gain as much weight as possible, years don't matter at all as you will sell for weight in the future. If target, I would try to pin point low mintage years or obtain as many different years as possible. Again, this comes down to your tastes and future plans which no one can give insight for except you.

My portfolio is diverse. I collect for weight and I also collect for years. So when I do sell (If I sell), I have opinions to maximize my investment. Also when I buy certain years, I make sure my position compared to the premium to other coins is very close. You will always pay a premium on silver/gold coins, I just try to find as close to spot as possible while being diverse in the years/types I get. When I buy for weight, cheap as I can get it. I hope this helps.

 

Yes there are reasons why the costs go up. Mainly supply and demand. But are you a collector, speculator or an investor? The price you are willing to pay is based on that answer. If you are a collector then you are willing to pay top dollar to get what you want or need. If you're an investor then the amount you are willing to pay is less than a collector. In the end, an ounce of silver is just an ounce of silver.

 

Oh, I disagree. Not for the reasons you mentioned specifically. I disagree that there isn't a right or a wrong answer.

In a society where our tax dollars contribute to the common good, our "fellow man's" behavior is very much our business. So a person who flushes their money down the toilet on high premium silver, lottery tickets, or copper "bullion" is definitely spending money in the "wrong" way. And that "wrong" behavior is likely contributing to them becoming more of my and my tax dollars' responsibility.

 

That's a reach.

You've never been the beneficiary of a public social safety net?

 

Is there a right or wrong way to spend your money? There isn't as it's your money and you can do whatever you want with it, opinions aside. I will do whatever I want with my money and the OP can do what he wants with his money. Who are we to tell someone if your right or wrong to spend money on whatever that person wants? Its a decision for that person. Your opinion is your opinion, mine is mine. Lets leave the opinion of "is silver/gold a good investment" at the door, he asked about the benefits if buying random years vs specific years, is there benefits or cons and so forth. Lets help people by asking the questions that people need to ask/answer for themselves as the answer is different for other people.

 

We all have, be it public roads, college grants, subsidized loans, receiving more Social Security than we actually paid in, etc.

So everyone's actions are subject to "right" and "wrong" judgements from the rest of society.

 

Judge not, lest ye be judged.

Throwing stones in glass houses, etc.

 

Clearly you didn't read my post. I expect to be judged as well because I, too, utilize government services. My financial decisions impact that usage and my ability to pay into the system.

 

I did read it...and I hold to my intent.

 

I've bought all the same and random year ASEs in the past.

If I bought a tube (20) of ASEs more than likely it will be the same year.
If I bought less than 20 then it may be mostly the same year or a complete spread of years.

It all depends upon the current "stock" of random year coins they have.

Don't expect to get the more "wanted" high valuation years though. Just check the resale value of just a couple years. Those are pulled and sold for more.

Of course, since you pay less of a premium, also expect less of a premium if you were to turn right around and sell back.

Also, if you buy new 2019 and pay the "new premium" expect to pay or get a "modest premium" when the 2020 coins are available (ie, you'll lose money assuming spot hasn't changed).

Also expect the premium to vary over time. I used to track the premium over "spot" but many times when spot decreased their premium just goes up and slowly over time the total price will decrease .. ie, windfall profits like they do in oil/gasoline. Of course, when spot goes up expect immediately increase in total price (like oil/gasoline).

 

But how? They're putting that money in the hands of someone else who will presumably be taxed on it, and be kept further out of the clutches of "social safety nets" by it.

If you're concerned about social impact, it seems to me that you should worry more about the people who are hoarding money (or, as I was taught to think of it, "saving prudently").

 

You've missed what I expressed was my concern. My concern is that people who spend money unwisely harm me. They harm me because they will take greater advantage of social welfare systems that everyone pays into. If we can avoid people having to utilize those systems so much, we benefit.

For example, a person who maximizes their 401k, I would wager, is much less likely to need SNAP or Medicaid in retirement.

When I hear about a worker buying PMs I wonder if they have already maxed out their retirement accounts. If not, I am concerned by their behavior.

And if the PMs they are buying is super high premium "semi numismatic" silver produced by the Perth mint, I am really concerned!

 

I sometimes wonder if I'm being harmed by people who unwisely spend their attention on other people's spending practices, rather than apportioning it to tasks and goals that are, for want of a better term, "their own business".

Look, I get it. I think people who cash out their 401(k)s to buy gold or silver or Bitcoin because they think it's "going parabolic", or people who buy state quarters in mahogany presentation cases because they're "going fast", are foolish. But saying "this is bad for everyone because it makes those people more reliant on social safety nets" seems like way too much of a stretch to me.

 

'ya guys just need to give me all of your money to soothe your concerns.
I know what to do with it

 

Great insight!