Bullion & Gemstones Archives - Page 2 of 4

The Investment Case for Hand-Poured Silver Bars

A set of artisan hand-poured silver bars from Prospector’s Gold & Gems. The wonderfully irregular surfaces and unique character of hand-poured silver bars are a big draw for silver stackers and investors.

Today’s hard asset investor has a multitude of choices when it comes to buying silver bullion. There are government-issued bullion coins, private-mint rounds, bars and junk silver, just to name a few. The number of silver investment options is so broad as to be overwhelming at times.

So it shouldn’t come as a surprise that many people who invest in physical silver default to the simplest choice possible. They purchase the cheapest silver available, regardless of its form. And while I certainly won’t fault anyone for choosing this approach to silver investing, it may leave some very tantalizing corners of the silver market untouched.

For instance, hand-poured silver bars are one of these curiously overlooked areas of the bullion market.

Now, I’ve already written an in-depth investment guide about vintage silver bullion bars. I love the look and feel of these older silver bars and the market agrees with me. Prices have risen for this type of vintage silver bullion dramatically over the past 10 to 15 years.

But today I want to examine the investment case for modern hand-poured silver bars.

Silver bars can be made via three basic methods – striking, extrusion and pouring. Today, most bullion bars are either struck (also called pressed) or extruded because these two production methods are easily automated. As a result, modern poured silver bars are generally slightly more expensive than their struck or extruded counterparts.

For example, the cheapest 10 troy ounce struck silver bar on APMEX in August 2018 had a premium of about 10% over spot. The poured silver bars that I looked up had premiums that ranged from 13% to 30%, depending on the manufacturer. However, a couple companies were offering poured bars for the same price as APMEX’s cheapest struck bar – 10% over spot.

So prices can, and do, vary!

In any case, we are interested in knowing if this premium over generic silver makes sense. Should you pay the extra couple dollars an ounce for hand-poured silver bars or are you better off buying the cheapest generic silver possible?

Funnily enough, you might already be buying high premium silver without realizing it. Anytime you buy a government issued silver bullion coin, such as an American Silver Eagle, Canadian Maple Leaf or Chinese Silver Panda, you are usually paying well above spot. In fact, even bulk lots of generic 1 troy ounce silver rounds normally trade at premiums to 100 troy ounce bars.

In light of these facts, I tend to think that modern hand-poured silver bars can make wonderful investments, provided you understand why you’re buying them. They not only possess substantial intrinsic value, but also have an alluring appearance and rich history – attributes that really make them stand out in the hard asset universe.

All of these traits combine to form an investment concept known as optionality. Optionality is any investment characteristic that you don’t pay much for today, but has the potential to be worth a lot of money later. Optionality is, simply put, the hidden potential of an investment.

And hand-poured silver bars possess a lot of it. In contrast, a modern struck silver bar that you buy today has little chance of ever trading significantly above its bullion value.

But a poured silver bar is a handcrafted work of art. It carries with it the gravitas of a proud monetary history stretching back centuries. And there is every probability that someday that appeal will be worth more than the extra couple dollars an ounce you pay today.

One only has to look at the burgeoning field of vintage silver bars to see that collectors love the appearance and quality of these classically-styled ingots. And they are willing to pay up for them, too. Older poured silver bars routinely trade for premiums of 40%, 50%, or even more on eBay. Is it really so strange to think that one day modern hand-poured silver bars will be just as desirable?

Another factor that makes hand-poured silver bars desirable is their historical connotations. The uniquely rugged looks of these silver bars echo the American Old West. More specifically, they are a throwback to the culture and traditions of mining in the Old West.

Several different locations in the U.S. were famous for their silver mining in the late 19th and early 20th centuries. The first major U.S. silver discovery was the famed Comstock Lode, in the mountains of Western Nevada in 1859. In the late 1870s, the towns of Aspen, Leadville and Telluride were founded as a result of the great Colorado Silver Boom. In 1884, the Coeur d’Alene mining district was discovered in the wilds of the Idaho panhandle. Coeur d’Alene has been one of the world’s most prolific silver mining regions, producing 1.2 billion troy ounces of silver to date.

Every single bit of ore extracted from these incredibly rich mines was laboriously hauled to the surface, crushed and smelted before being cast into countless hand-poured silver bars. Then these silver bars would be transported under armed guard to the local bank or depository before being carefully tallied and stacked in a vault. This age-old process didn’t change much between the inception of U.S. silver mining in the 1850s and the demonetization of the white metal in the 1960s.

It was only during the great commodities boom of the 1970s that newer silver bar manufacturing technology was developed. Struck and extruded silver bars could be made much more quickly and with less variation than was possible with hand-poured silver bars. These new production methods also had a cost advantage because poured silver bars cast in the traditional way were (and still are) very labor intensive to make.

To create a hand-poured silver bar, the correct weight of .999 fine silver shot must be melted in a crucible. Then a mold of the right size, either made from graphite or cast iron, must be pre-heated. Next the molten silver is carefully poured by hand into the mold. After it has solidified, the still hot bar is dumped out of the mold into a vat of water to finish the cooling process.

The work doesn’t stop there, though. After the poured silver bar is completely cool, it must be weighed to ensure it is within specification. Then it is hand-stamped with the weight, fineness and maker’s mark or logo. Finally, the silver bar is tumbled, sanded or chemically treated to clean up its surface, giving it the proper patina or finish.

If you are interest in seeing this process firsthand, this fascinating YouTube video by Yeager’s Poured Silver shows it quite clearly.

Because hand-poured silver bars are so labor-intensive to make, they tend to have much lower mintages than you’ll find with mass-produced struck or extruded bars. Shockingly, poured silver bar mintages are sometimes as low as just a few hundred specimens, although higher mintages are more common.

This might not matter very much today, but rarity is a key factor that impacts the desirability and pricing of older silver bars. And today’s new silver bars will eventually become tomorrow’s old silver bars.

Because they are often crafted in short runs, hand-poured silver bars are available in a dizzying variety of shapes and sizes. Do you want a few tiny 1/2 troy ounce poured silver bars to hand out as stocking stuffers at Christmas? You can get them. Do you want mammoth 100 troy ounce poured silver bricks in order to stack them high and deep? No problem.

In addition to traditionally-shaped loaf and kit-kat bars, it is also possible to find poured silver squares, wedges, cubes and buttons.

There is even a thriving market in 3-D hand-poured silver bars. These 3-D bars are available in an endless number of interesting designs, such as skulls, stars, pyramids, hearts, lions and more. This massive assortment of styles and designs is completely absent from the struck and extruded silver bar market.

Another aspect of hand-poured silver bars that many collectors love is the fact that you can handle them without worrying about damaging them or reducing their value. By comparison, casually holding your struck silver bars and private-mint rounds will often cause unsightly dings and scuffs.

Government-issued bullion coins – with their mirror-like surfaces – are even more sensitive. Bumps or scrapes on these coins will render them culls, which generally sell at heavily discounted prices.

But poured silver bars are meant to be jumbled together. They are meant to be cradled in your bare hands and allowed to drip through your fingers. Their rugged appearance is actually enhanced by the occasional blemish or mark. Owning poured silver bars means you never need to worry about fussy cotton gloves or sterile plastic holders when handling your stash.

Now that I’ve covered investment considerations, I want to give a brief synopsis of eight major poured silver bar producers that are currently active.

Our first poured silver bar maker is SilverTowne, based in small-town Winchester, Indiana. This firm started out in 1949 as a coin shop founded by Leon Hendrickson, who originally sold coins out of a cigar box under a lunch counter. However, in 1973 SilverTowne started minting its own silver bars and rounds in order to meet customer demand.

SilverTowne produces hand-poured silver bars in 5, 10, 50 and 100 troy ounce sizes, in addition to a 1 kilogram poured bar. The larger size bars (1 kilo and up) are emblazoned with SilverTowne’s famous prospector and burro logo.

The smaller 5 and 10 troy ounce sizes don’t have room for the full logo, so they use the SilverTowne name written in cursive script. Regardless, these smaller bars are longtime favorites with silver stackers because of their convenient size and sugar-frosted appearance.

Silvertowne Hand-Poured Silver Bars for Sale on eBay

(This is an affiliate link for which I may be compensated)

Vulture Peak Mines, also referred to as VPM, is another small company that sells hand-poured silver bars. It is located in Bandon, Oregon, on the Pacific Coast near the mouth of the Coquille River. Most of Vulture Peak Mine’s employees are former miners or veterans, all of whom share a passion for poured silver bullion.

Vulture Peak Mines produces hand-poured silver bars in a variety of sizes from diminutive 1/2 troy ounce bars to substantial 20 troy ounce examples. Each of their bars is proudly emblazoned with the Vulture Peak Mines logo – a crossed pickaxe and shovel – and comes with a certificate of authenticity that guarantees its weight and purity.

In addition, Vulture Peak Mines offers some silver bars that have been made with cast iron molds. This gives the bars a slightly rougher, pock-marked look that can’t be achieved via standard graphite molds.

Vulture Peak Mines Hand-Poured Silver Bars for Sale on eBay

(This is an affiliate link for which I may be compensated)

The next hand-poured silver bar manufacturer on our list is Prospector’s Gold & Gems. This company refines precious metals shipped from mines, jewelers and pawn shops and then uses it to create amazing poured gold and silver bullion bars. Founded in 1999 by David Emslie, Prospector’s Gold & Gems is based in Fort Collins, Colorado.

Prospector’s Gold & Gems produces silver bars from 1 to 10 troy ounces in size. These bars come in two distinct varieties: the first has the company logo, a crossed pickaxe and shovel over a gold pan, while the second uses a skull and crossbones theme. They also produce select sizes of silver bars that have a coiled Gadsden rattlesnake with the motto “Don’t Tread on Me” underneath.

Hand-poured silver bars from Prospector’s Gold & Gems have a unique, matte finish with a silky-sheen that I find very attractive.

Prospector’s Gold & Gems Hand-Poured Silver Bars for Sale on eBay

(This is an affiliate link for which I may be compensated)

Another major poured silver bar maker is Scottsdale Mint, based in sunny Scottsdale, Arizona. This firm is both a bullion dealer and a producer of gold and silver bullion products.

The Scottsdale Mint makes a variety of hand-poured silver bars stamped with their crowned lion logo, including 5, 10 and 20 troy ounce sizes. They also produce a slightly smaller 100 gram poured silver bar for those who prefer the metric system.

However, I think that Scottsdale Mint’s most intriguing offering is their “Tombstone Silver Nugget” series of bars. These captivating poured silver bars have a dimpled, honeycomb pattern and a rough oblong outline. Each one also comes with its own certificate of authenticity and a handy storage bag.

Scottsdale Mint Tombstone Silver Nugget bars are available in 5 and 10 troy ounce weights, along with a hefty 1 kilo size. These impressively chunky, hand-poured silver bars are a deliberate throwback to the prospecting and mining heritage of the old Arizona Territory. And I think that the Scottsdale Mint has perfectly captured the spirit of those pioneer days.

Scottsdale Mint Hand-Poured Silver Bars for Sale on eBay

(This is an affiliate link for which I may be compensated)

Monarch Precious Metals, sometimes known as MPM, is another maker of poured silver bullion bars. Located in Southern Oregon’s majestic Rogue Valley, Medford-based Monarch Precious Metals has been a favorite among hand poured silver bar enthusiasts since its founding in 2008. Their perennial popularity among silver stackers is undoubtedly because their poured silver bars have some of the lowest premiums in the marketplace.

Monarch Precious Metals offers a wide range of silver products, with sizes from 1/2 troy ounce right up to mammoth 100 troy ounce bars (and everything in-between). Poured silver bars from MPM feature the company’s crown logo and name.

Unlike many other poured silver bars, most MPM versions are squared-off, which they refer to as “flat stackable”. As the name implies, this makes their bars easier to pile high for bullion buyers.

Monarch Precious Metals used to produce larger, hand-poured silver bars in a classic loaf shape, but has since discontinued this type of bar. These older bars occasionally come up for sale on the secondary market, where they are still quite popular.

Monarch Precious Metals Hand-Poured Silver Bars for Sale on eBay

(This is an affiliate link for which I may be compensated)

Even the bullion giant APMEX has recently gotten into the poured silver bar game via its subsidiary, 9Fine Mint. These streamlined cast bars come in sizes ranging from chunky 100 gram squares to imposing 100 troy ounce bricks. APMEX only launched this line of boutique silver bars in the spring of 2018.

9Fine Mint products are characterized by their precise lines and highly polished surfaces. They also arrive in distinctive, custom-designed black and orange packaging.

9Fine Mint bars are an appealing option for investors who like the idea of hand-poured silver bars, but want to pay the lowest premium possible. In this regard, they are priced very similarly to Monarch Precious Metals poured bars. As an added bonus, all aspects of 9Fine Mint silver bar production occur in the United States, including their design, minting and packaging.

9Fine Mint Hand-Poured Silver Bars for Sale on eBay

(This is an affiliate link for which I may be compensated)

One of the smaller poured silver bar manufacturers is the Atlantis Mint. This family-owned firm is headquartered in Parsonsburg, Maryland, on the Delmarva Peninsula. The Atlantis Mint specializes exclusively in silver products in order to provide the best possible quality, price and experience for their customers.

Hand-poured silver bars from the Atlantis Mint vary in size from a miniscule 5 gram piece all the way up to a hulking 1 kilo bar. However, most of their production focuses on the smaller 1 to 5 troy ounce range.

Atlantis Mint silver bars often bear the triple skull and crossbones logo, which is the unofficial brand of the company. They also cater to silver bar enthusiasts looking for something a little more daring by offering a selection of 3-D hand-poured silver bars, such as skulls, dice and eagles.

Atlantis Mint Hand-Poured Silver Bars for Sale on eBay

(This is an affiliate link for which I may be compensated)

The last poured silver bar maker that I want to feature is Bison Bullion, located in rural Buffalo County, Nebraska. This silver foundry exclusively produces artisan hand-poured silver bars, eschewing any automated production methods.

This means that Bison Bullion doesn’t make any struck or extruded silver bars, unlike many larger refiners and manufacturers. In addition, they craft all of their 3-D molds in-house, resulting in the highest levels of craftsmanship.

Bison Bullion offers silver bars that range from 1 to 100 troy ounces. These poured silver masterpieces come in two broad categories: standard bullion bars and 3-D or “fancy” bullion bars.

Bison Bullion’s fancy silver bars often reflect Native American, Great Plains or other Wild West themes. Their standard poured silver bars are a classic loaf-style shape emblazoned with the firm’s namesake bison logo.

Bison Bullion Hand-Poured Silver Bars for Sale on eBay

(This is an affiliate link for which I may be compensated)

There are a number of other noteworthy hand-poured silver bar makers that I haven’t profiled above, including Yeager’s Poured Silver (YPS), MK Barz and Bullion, Shiny Bars, Pit Bullion, Mutiny Metals and Backyard Bullion. Unfortunately, I had to draw the line somewhere, so I won’t be giving a synopsis of these companies here. But if you are interested in small-batch, hand-poured silver bars or 3-D poured silver bars, these small firms are worth checking out.

Those of you who are curious about Yeager’s Poured Silver can check out my in-depth investment guide on YPS grab bags.

Before I bring this article to a close, I would like to leave you with a word of caution. Please don’t expect to be able to buy modern poured silver bars and then turn around and immediately flip them for a profit. It is highly unlikely you will be able to do so.

If you buy poured silver bars, you must be willing to wait for the collector’s market to mature in order to recover your premium. I estimate that 7 to 10 years is a good minimum holding period. If you are forced to liquidate your holdings shortly after buying due to unforeseen circumstances, you will likely only receive slightly above spot for most pieces.

Despite this minor drawback, hand-poured silver bars are definitely one of the best investments available in the bullion market today.

Read more in-depth Antique Sage bullion & gemstone investment guides here.

Investing in Americana – Old Semi-Numismatic U.S. Gold Coins

Pre-1933 semi-numismatic U.S. gold coins – like this 1904 Liberty Head quarter eagle ($2.50) gold piece struck in Philadelphia – are compelling investments that combine intrinsic and collector’s value. Premiums on semi-numismatic U.S. gold have collapsed in recent years, granting hard asset investors a unique opportunity to acquire these premiere tangible assets cheaply.

Choice, the presence of good options in one’s life, is a great thing. It can give you a sense of freedom as well as control. Unfortunately, many of us today have fewer good options than we might prefer. This is particularly the case when investing. Among the traditional investment classes, many stocks seem egregiously overvalued while most bonds don’t seem much better. However, there is one overlooked investment that is still a great choice: old, semi-numismatic U.S. gold coins.

Numismatics derives from the ancient Greek word for “coin” and refers to the study or collecting of coins. Therefore, numismatic coins, unlike common circulating pocket change, are pieces with special value to collectors. Semi-numismatic coins, therefore, trade partially on their bullion value and partially on their collector’s value, including their condition, design and history.

All semi-numismatic U.S. gold coins were struck at least 85 years ago, before 1933, when the United States was still on a classical gold standard. These beautiful and historic tangible investments feature some of the most aesthetically pleasing coin designs the U.S. has ever issued. Perhaps most importantly, semi-numismatic U.S. gold coins are the material expression of frontier America’s industry, invention and optimism. In short, they are the physical embodiment of traditional Americana stamped into solid gold.

Struck in 900 fine gold, these high denomination coins not only circulated freely in the Old West and the Great Plains, but also in the big East Coast cities like Boston, Washington D.C. and New York. In addition, many dates and denominations were minted in substantial quantities, ensuring a significant number have survived to the present. This is a great boon to modern-day tangible asset investors as it ensures there is a ready supply of these remarkable old coins available.

It is vital to understand the concept of premium when discussing semi-numismatic gold coins. The term “premium” refers to the amount over its bullion value that a coin sells for.

$5.00 Liberty Head (Half Eagle) Gold Coins for Sale on eBay

(This is an affiliate link for which I may be compensated)

South African Krugerrands, Canadian Maple Leafs and other bullion coins generally sell for premiums of less than 10%. But a 2,300 year old ancient Greek gold stater coin bearing the image of Alexander the Great is a strictly numismatic piece, with a premium of several hundred percent or more. Pre-1933 semi-numismatic U.S. gold coins trade between these two extremes with premiums that range from about 10% to around 100% of their bullion value.

This exceptional positioning makes old U.S. gold coins especially attractive investments. When you buy a semi-numismatic gold coin, most of what you are buying is gold, the bedrock of any good tangible asset portfolio. But semi-numismatic gold coins also include a modest dose of collector’s value, which is reflected in the premium.

These two components – bullion value and numismatic value – do not always move in lockstep. This gives semi-numismatic gold coins two distinct, non-correlated return components. Non-correlated assets are the holy grail of modern investment theory, as they provide diversification.

Worried about gold declining in value? No problem, the numismatic value of your coin may rise to offset a drop in the gold price. Likewise, a falling numismatic premium may be balanced by a rise in precious metal prices. In the best case scenario, you “win” twice via a rising gold price and rising premiums. Of course, in a worst case scenario both the bullion value and numismatic premium of an old gold coin can decline. Thankfully, this is a very rare occurrence.

$10.00 Indian Head (Eagle) Gold Coins for Sale on eBay

(This is an affiliate link for which I may be compensated)

It is important to point out that semi-numismatic U.S. gold coins have underperformed gold bullion over the last 15 years or so. Why has this happened? Well, the price of bullion is generally driven by economic instability and fear of currency debasement. And the last 15 years has seen a lot of both of those things with the Great Financial Crisis of 2008-2009 and global central banks’ subsequent policy of Quantitative Easing (money printing). Hence, the price of gold has risen strongly over that period.

Numismatic premiums, in contrast, are driven largely by strong economic growth and a booming economy. In fact, there is a direct relationship between the size of a country’s GDP and its coin prices. When a country’s economy is healthy and incomes rise, some of that wealth naturally bids up the value of collector’s coin. Therefore, it shouldn’t come as a shock that the recently stagnate U.S. economy has been reflected in broadly lower premiums for semi-numismatic U.S. gold coins.

Investors shouldn’t buy numismatic coins in anticipation of the end of the financial world. Instead, numismatics is a play on financial recovery – the economic dawn after the recessionary night. And while I strongly advocate that people buy bullion to protect themselves against severe economic dislocation, I also think it is prudent to invest in numismatics in the expectation of happier and more prosperous times in the future. Old semi-numismatic U.S. gold coins conveniently allow the savvy investor to do both in a single investment vehicle.

Some people, primarily bullion and rare coin dealers, don’t like semi-numismatic gold coins. You can read many internet articles by bullion dealers decrying how well-intentioned, but ignorant investors got scammed into paying outrageously high prices for old, common-date U.S. gold coins when they could have done much better just buying plain, no-frills gold bullion.

Of course, if you’re scammed into overpaying for any investment, you can expect to do poorly. So this is hardly a convincing argument.

$20.00 Liberty Head (Double Eagle) Gold Coins for Sale on eBay

(This is an affiliate link for which I may be compensated)

But bullion dealers also have another objection which is partially valid. They correctly claim that you will always be able to buy more ounces of physical gold for a given amount of money when buying bullion coins compared to semi-numismatic gold coins. But this criticism misses the point.

The numismatic premium that you pay for old gold coins is a potential source of future return. The premium level has the possibility of moving independently from the underlying price of gold. This gives rise to a financial idea known as optionality. In brief, numismatic optionality is the potential for a collector’s coin to rapidly increase in value at some indeterminate point in the future. An ingot of gold bullion, in contrast, possesses no numismatic optionality and is always completely dependent on the whims of the gold price.

Rare coin dealers also often criticize semi-numismatic gold coins. These self-interested dealers claim that only really rare gold coins make good investments. Semi-numismatic U.S. gold coins are relatively common, having been struck by the tens of millions. And, although huge quantities have been melted since their demonetization in the 1930s, these coins are still readily available in the marketplace.

Rare coin dealers’ assertion that only extremely rare and expensive coins make good investments is mostly based on the fact that this same class of coins has experienced superb investment performance over the last 20 years. But these abnormally high returns have been largely driven by the rise of the super rich over the same time period – our modern day robber baron class. These nouveau riche U.S. gold coin collectors have collectively poured hundreds of millions, if not billions, of dollars into their collecting passion.

$5.00 Indian Head (Half Eagle) Gold Coins for Sale on eBay

(This is an affiliate link for which I may be compensated)

This insatiable market demand has driven up the prices of legitimately rare U.S. gold coins to tremendous heights. In fact, it is doubtful if much investment upside remains in this part of the U.S. coin market. However, old semi-numismatic U.S. gold coins have been largely left behind, ignored in the rush to cater to bullion buyers on the one side and ultra-wealthy collectors on the other.

The historical origins of pre-1933 semi-numismatic U.S. gold coins add to their investment allure. In the late 1830s, the designs of the U.S. $2.50, $5.00 and $10.00 gold coins were updated by Christian Gobrecht, the Chief Engraver of the U.S. Mint. These iconic American coins, known as the Liberty Head series, feature a bust of the personification of Liberty wearing a coronet on the obverse. An eagle clutching an olive branch and bundle of arrows with its wings spread graces the reverse.

The Liberty Head series of U.S. gold coins were minted with only minor variations for approximately 70 years, from 1838 to 1908. These coins were, in many ways, foundational to the identity of the young American nation. They were witness to every major episode of U.S. history during this time, from the devastation of the Civil War to the taming of the Old West to the establishment of the National Park System.

Until the late 1840s the gold eagle, or $10.00 gold coin, was the highest denomination piece struck by the United States Mint. However, the discovery of a major gold find in California in 1848 prompted the U.S. government to investigate the striking of an even larger denomination gold coin, the legendary double eagle, or $20.00 piece. A unique Liberty Head design was created by Chief Engraver James B. Longacre for the new double eagle denomination and introduced into circulation in 1850. It was issued with few changes until its discontinuation in 1907.

$10.00 Liberty Head (Eagle) Gold Coins for Sale on eBay

(This is an affiliate link for which I may be compensated)

In the first decade of the 20th century, President Theodore Roosevelt wanted the nation to have gold coins that would rival the magnificent coinage of the ancient Greeks. To achieve this, he contracted the famous American sculpture Augustus Saint-Gaudens to prepare new coin designs. While Saint-Gaudens died before he could finish his work, his breathtaking designs were still adopted for the $10.00 and $20.00 gold coins.

The $10.00 Indian Head gold piece features the bust of a noble American Indian with a feathered headdress on the obverse and a perched eagle on the reverse. The $20.00 St. Gaudens double eagle depicts a robed Liberty, holding an olive branch and a torch, boldly stepping forward on the coin’s obverse and a majestic, powerful eagle in flight on the reverse. Struck from 1907 to 1933, these two gold coins are generally considered the most beautiful U.S. coins ever produced.

In fact, the obverse of the modern-day U.S. mint’s popular American Gold Eagle bullion coin series is almost an exact copy of the iconic St. Gauden’s design.

Due to the premature death of Augustus Saint-Gaudens, the $2.50 and $5.00 gold coins were redesigned by his former student, the American sculptor Bela Lyon Pratt. These two series are similar in design, although not identical, to the $10.00 gold coin created by Augustus Saint-Gaudens. The $2.50 and $5.00 Indian Head gold coins feature a Native American in full headdress on the obverse and a perched eagle on the reverse.

In addition to being attractive in their own right, the $2.50 quarter eagle and $5.00 half eagle Indian Head series are notable for being the only U.S. coins that were struck in incuse, with the design features sunk into the flat field of the coin. They were struck from 1908 until production ceased in 1929.

$2.50 Indian Head (Quarter Eagle) Gold Coins for Sale on eBay

(This is an affiliate link for which I may be compensated)

When considering pre-1933 semi-numismatic U.S. gold coins for investment purposes, eye appeal is paramount. Anything that helps make a coin look better is desirable, including attractive toning, a full strike and a minimum of ugly contact marks. However, condition is perhaps the most important characteristic.

Serious investors should only acquire specimens that grade Extra Fine (XF-40) or better in condition. This will help guarantee maximum eye appeal by ensuring that most of the coin’s details are intact. But this rule can be relaxed under certain circumstances, such as when dealing with less common, pre-Civil War dates and mints.

You can quickly enter full numismatic territory here though, so be careful.

Some collectors will not consider semi-numismatic U.S. gold coins unless they are in uncirculated (MS-60) condition or better. I don’t personally believe semi-numismatic gold must be in uncirculated condition to be investable. However, if you do choose to purchase uncirculated coins, you may want to consider pieces certified by a third party grading service.

The two most popular grading services for coins are PCGS (Professional Coin Grading Service) and NGC (Numismatic Guaranty Corporation). These companies authenticate, grade and then encapsulate coins in tough, clear plastic holders called slabs. This allows coin collecting and investing novices to buy and sell these slabbed coins with confidence.

$20.00 St. Gaudens (Double Eagle) Gold Coins for Sale on eBay

(This is an affiliate link for which I may be compensated)

Anything that detracts from the beauty of a coin should be avoided. This advice is especially important for common-date semi-numismatic U.S. gold coins, as they can’t rely on rarity to enhance their appeal. Unattractively toned, weakly struck or harshly cleaned specimens should all be eschewed. Any sort of significant damage, such as major rim bumps, scuffs or scratches, is also unacceptable. You want to buy clean, problem free gold coins.

You should also beware of unscrupulous coin dealers or telemarketers that may try to sell semi-numismatic gold coins at extravagant mark-ups. They usually target those with little collecting knowledge. Do not fall prey to these scam artists. Nothing cripples the long-term performance of an investment more than overpaying.

As of mid 2018, with spot gold trading at around $1,270, prices range from just under $250 for $2.50 quarter eagles to around $1,400 or $1,500 for $20.00 double eagles. However, it is important to note that the prices of semi-numismatic U.S. gold coins fluctuate with any sizable movement in the price of gold.

If you are looking for maximum exposure to gold and minimum numismatic exposure, larger gold coins like the $10.00 Liberty Head, $20.00 Liberty Head or $20.00 St. Gaudens series are your best options. These coins currently have premiums that range from a modest 10% to 20% in the marketplace.

The $5.00 Liberty Head, $5.00 Indian Head and $10.00 Indian Head coins will give you a slightly higher exposure to numismatic value. These semi-numismatic coins have premiums between 15% and 35% right now.

$2.50 Liberty Head (Quarter Eagle) Gold Coins for Sale on eBay

(This is an affiliate link for which I may be compensated)

The Liberty Head and Indian Head $2.50 gold coins have the highest premiums among U.S. semi-numismatic gold coins, hovering around 80% at the moment. This gives quarter eagles an almost even split between bullion and numismatic value. These smaller gold pieces tend to have rather low mintages compared to the larger denominations and, in my opinion, represent exceptional value at this time.

I’ve compiled a table that shows the premiums on pre-1933 semi-numismatic U.S. gold coins as of the summer of 2018 below. This data was compiled using realized eBay sold prices for lightly circulated specimens; uncirculated examples would cost more. The gold price used in the calculations is $1,310 per troy ounce.

	Gold		Average
	Content	Bullion	eBay	Premium	Premium
Denomination	(in troy oz.)	Value	Price	(in %)	(in $)
$2.5 Liberty	0.12094	$158	$297	87%	$139
$2.5 Indian	0.12094	$158	$280	77%	$122
$5 Liberty	0.24187	$317	$375	18%	$58
$5 Indian	0.24187	$317	$415	31%	$98
$10 Liberty	0.48375	$634	$719	13%	$85
$10 Indian	0.48375	$634	$772	22%	$138
$20 Liberty	0.96750	$1,267	$1,422	12%	$155
$20 St. Gaudens	0.96750	$1,267	$1,450	14%	$183

The world may not be giving us as many good options as we would like, but there is at least one good investment option left to us – pre-1933 semi-numismatic U.S. gold coins. These overlooked pieces of historic Americana represent great value in an otherwise lackluster investment landscape.

Read more in-depth Antique Sage rare coin investment guides here.

-or-

Read more in-depth Antique Sage bullion & gemstone investment guides here.

Chasing Perfection – Collecting Gold Bullion Coins

Here is a superb example of a 2006 one troy ounce U.S. Gold Buffalo coin. Although not traditionally considered collectors’ pieces, modern gold bullion coins that possess strong designs and low mintages will inevitably become favorites of the numismatic community.

Perfection is a something that most of us have chased at one time or another. Unfortunately, perfection is a notoriously fickle thing. Almost everything in the world has its quirks or flaws. Regardless of how great your mobile phone might have seemed at the wireless dealer, once you’ve used it for a month, you know its shortcomings. Likewise, your late-model car may look great from a distance, but get up close and the ugly little scratches and dents become all too visible. Even our interpersonal relationships have their warts, rarely achieving the ideals that we initially envision for them.

However, there is one thing in life where perfection isn’t just possible, but is practically mandatory – gold bullion coins. These paragons of tangible wealth nearly transcend the material world in their quest for absolute perfection. Struck by the most well-respected government mints from around the world, these internationally recognized bullion pieces are minted from the very purest gold, using the very latest industrial processes. Free from even the smallest of blemishes, gold bullion coins embody the ideal of physical perfection. In a world of digital crypto-currencies and virtual offshore accounts, gold bullion coins are pristine, physical treasure that you can hold in the palm of your hand.

Collecting gold bullion coins offers the aspiring numismatic connoisseur a lot of advantages over collecting older coins. First, bullion coins are made out of gold, giving them an immediate cachet that more pedestrian coinage lacks. And these masterpieces in gold are also usually struck in a variety of sizes to accommodate every budget. Governments mint everything from small, but affordable 1/20 troy ounce gold bullion coins right up to impressively hefty one troy ounce examples.

Another overlooked benefit of gold bullion coins is that there are rarely any key or rare dates. This puts a complete collection of most bullion series within the reach of the average collector. This contrasts markedly with traditional coin collecting, where ultra-expensive key dates often render complete sets unrealistic.

Finally, the monetary risk of collecting gold bullion coins is generally quite limited because most of what you are paying for is bullion value. Under normal circumstances, high quality, collector-oriented gold bullion coins with substantial numismatic potential can be purchased for a modest 5% to 25% over spot. Even for very rare pieces, the premiums are rarely more than 50% over spot.

The Mexican Libertad is one of these great gold bullion coin bargains. In fact, I view it as the hidden investment sleeper of the gold bullion coin world. Struck intermittently from 1981 until the present, gold Libertads come in one troy ounce, 1/2 ounce, 1/4 ounce, 1/10 ounce and 1/20 ounce sizes. From 1981 until 1988 the Mexican gold Libertad series was struck in 0.900 fine gold, but starting in 1991 the composition was changed to pure 24 karat gold.

The gold Libertad obverse features Mexico City’s famous Angel of Independence statue in the foreground flanked by the volcanoes Popocatépetl and Iztaccihuatl in the background. Mexico’s national emblem, a golden eagle tearing apart a rattlesnake while sitting atop a cactus, graces the reverse. Libertad gold coins underwent a redesign in the year 2000. Although the major design elements were not changed, they were updated to a more modern aesthetic.

The Mexican Libertad is one of the lowest mintage regular issue gold bullion coins available in the market today. Excluding the first year of production, when mintages were significantly higher, the one troy ounce Libertad gold bullion coin has averaged less than 15,000 specimens per annum. As shockingly low as this number might seem, the mintages on the gold Libertad fractional coins are even lower. Gold Libertad proofs have the lowest mintages at all, with numbers struggling to reach the four-figure mark in many cases.

Mexican Libertad Gold Bullion Coins for Sale on eBay

(This is an affiliate link for which I may be compensated)

The Australian Gold Nugget/Kangaroo is another great bullion series for the aspiring collector or investor. First minted in 1986, the Nugget/Kangaroo features a portrait of Queen Elizabeth II on the obverse. The reverse featured famous Australian gold nuggets for the first three years of production before switching over to kangaroos, hence the reason the series is commonly called the Nugget/Kangaroo. As an added incentive for investors, the kangaroo design on the reserve is altered every year to increase collector interest.

Minted in pure gold, the Australian Gold Nugget/Kangaroo has been struck in sizes ranging from the monstrous 1 kilogram (32.15 troy ounces) coin to the diminutive 1/20 of a troy ounce (1.56 grams) coin. Mintages have generally been modest, with the 1 troy ounce gold Nugget/Kangaroo averaging only 152,000 specimens every year from 1986 to 2016. The maximum mintage was 2013 when just over 341,000 examples were coined.

China’s entry in the global gold bullion coin competition, the Chinese Panda, was first issued in 1982. Struck from 99.9% pure gold, Chinese Panda coins feature Beijing’s famed 15th century Taoist Temple of Heaven on the front. The back has a depiction of a Chinese giant panda in a natural setting that is redesigned every year.

From the series’ inception in 1982 until 2015, Pandas were struck in 1 troy ounce, 1/2 ounce, 1/4 ounce, 1/10 ounce and 1/20 ounce sizes. However, starting in 2016, the Chinese authorities decided to embrace the metric system. As a result, more recent Chinese gold Panda coins have been issued in 30 gram, 15 gram, 8 gram, 3 gram and 1 gram sizes.

Australian Kangaroo/Nugget Gold Bullion Coins for Sale on eBay

(This is an affiliate link for which I may be compensated)

Chinese Pandas are some of the most popular modern gold bullion coins with collectors due to their attractive designs and quintessentially Chinese cultural themes. In addition, mintages have been very limited for a bullion issue, with 1 troy ounce pieces averaging an annual mintage of less than 60,000 annually from 1982 through 2006. Due to their perennial popularity, the Chinese government increased mintage numbers modestly starting in 2007.

The final gold bullion coin I want to showcase is the American Buffalo. These .9999 fine pure gold coins feature an adaptation of the acclaimed U.S. Buffalo Nickel, which was originally minted between 1913 and 1938. The U.S. Buffalo gold coin has original artist James Earle Fraser’s iconic Indian head bust on the obverse and his powerful rendition of a wild bison on the reverse.

Unlike most other gold bullion series, the U.S. Gold Buffalo is a relative newcomer, having only premiered in 2006. American Gold Buffaloes are also the first coins the U.S. mint ever struck from pure, unalloyed gold. With the exception of 2008, when 1/2, 1/4 and 1/10 ounce pieces were also struck, the mint has made the curious decision to issue the coins in only one denomination – the one troy ounce size.

Mintages for U.S. Gold Buffaloes are surprisingly low for a popular U.S. bullion series. Except for the first year of issue, 2006, one troy ounce pieces have averaged just over 225,000 minted every year. These mintages include both uncirculated bullion coins and proof collector coins. These numbers are exceptionally low compared to its counterpart program, the American Gold Eagle bullion series, which has averaged over 600,000 one troy ounce coins per year.

U.S. Buffalo Gold Bullion Coins for Sale on eBay

(This is an affiliate link for which I may be compensated)

For those collectors who are looking for even more exclusive gold bullion coins, the U.S. mint recently released a set of three very special issues. These bullion pieces borrow iconic U.S. coin designs from the early 20th century – the Mercury dime, Standing Liberty quarter and Walking Liberty half dollar – beautifully rendered in pure 24 karat gold. These three classic American coins were faithfully updated and released in 2016 on the 100th anniversary of their original issue in 1916.

The 2016 U.S. Walking Liberty Centennial gold half dollar weighs a full 1/2 troy ounce of .9999 fine gold and measures 1.063 inches (27.00 mm) in diameter. The front of the coin depicts Liberty confidently striding forward while the sun rises majestically behind her on the horizon. The reverse of the Walking Liberty Centennial gold piece features an American bald eagle nobly perched on a rocky outcropping. The original Walking Liberty half dollar design was so well loved that it was also adopted for the obverse design for the ubiquitous American Silver Eagle bullion coin.

The 2016 U.S. Standing Liberty Centennial gold quarter weighs 1/4 of a troy ounce of pure gold and has a diameter of 0.866 inches (22.00 mm). The obverse shows the personification of Liberty standing serenely with a shield in her left hand and an olive branch in her right hand. The reverse depicts an eagle in flight with its wings outstretched.

The 2016 U.S. Mercury Dime Centennial gold coin is struck from 1/10 of a troy ounce of 24 karat gold and is heavier than the original silver Mercury dime. The gold Mercury dime measures 0.650 inches (16.50 mm) in diameter. The front shows the head of winged Liberty, which is often identified with the ancient Roman god Mercury, while the reverse features a Roman fasces entwined with an olive branch.

2016 U.S. Gold Walking Liberty Half Dollars for Sale on eBay

(This is an affiliate link for which I may be compensated)

These three gold centennial issues have extremely limited mintages: 125,000 pieces for the dime, 100,000 for the quarter and only 70,000 for the half dollar. These coins are also notable because their original silver analogs often suffered from weak strikes due to the complexity of their designs. This is an oversight that the United States mint was finally able to rectify with modern minting technology, giving collectors the opportunity to own some truly iconic gold coins in stunningly pristine condition.

However, in my opinion, the ultimate gold bullion coin for the truly discerning collector is the 2009 Ultra High Relief Double Eagle. The name is quite a mouthful, but this coin is worthy of its weighty title. It is a one troy ounce bullion piece struck from pure 24 karat, .9999 fine gold. But any similarity with lesser bullion coins promptly ends there. In order to understand why the 2009 Ultra High Relief Double Eagle is so special, you need to first know the history behind this unique piece of numismatic Americana.

In the early 20th century, President Theodore Roosevelt wanted to give the burgeoning American nation a coinage to rival that of the ancient Greeks. Ancient Greek coinage has been renowned through the millennia for its incomparable beauty, in particular its high relief designs. High relief is when a coin’s devices (designs) are substantially raised above its flat background, or field, giving an impressive, almost sculptural effect.

President Roosevelt commissioned renowned artist Augustus Saint-Gaudens to create new dies for the U.S. double eagle, or $20 gold piece. Saint-Gaudens then designed the legendary St. Gaudens double eagle, which has been copied and adapted many times over the years. It features a robed lady Liberty boldly moving forward while holding a torch in her right hand and an olive branch in her left hand. The reverse portrays a noble American eagle soaring over a brilliant sunrise.

However, when Saint-Gaudens tried to have these magnificent new coins struck at the mint he ran into technical problems. The design was rendered in such high relief that the minting technology of the time was not up to the task of fully striking the coins. Consequently, the dies had to be redesigned in lower relief in order to accommodate the minting technology available.

Only 11,250 high relief double eagles were struck in 1907 for circulation before the dies were changed. These special high relief gold coins are especially coveted by knowledgeable U.S. coin collectors. In perennially high demand, prices generally start in the low five-figures for worn examples and rapidly escalate for nicer specimens.

In 2009, the U.S. Mint decided to finally right this historical wrong. Its Director, Ed Moy, resurrected the original high relief St. Gaudens double eagle design and adapted it into a limited edition, one troy ounce gold bullion coin. Except this time, the mint would make sure it would be fully struck in gloriously high relief as sculptor Augustus Saint-Gaudens originally intended.

Saint-Gauden’s original plaster dies were pulled out of their hundred year storage at the U.S. Mint and digitally scanned. With the resulting digital design, the die was updated with the year, 2009, and the motto “In God We Trust”, which was not present on the original 1907 version. In addition, four stars were added to the existing 46 stars around the rim of the obverse to reflect the additional four states that had joined the Union since 1907.

And with that, a masterpiece was born. The 2009 Ultra High Relief Double Eagle measures 1.0630 inches (27.00) mm across and an unbelievable 0.1575 inches (4.00 mm) in thickness. These impressive gold bullion coins have been meticulously struck in the highest relief and to the most exacting standards. In fact, the standards were so exacting that it took a century before the technology was developed to make them a reality. And, of course, the mintage for this one year type is low, with only 115,178 pieces in existence.

2009 U.S. Gold Ultra High Relief Double Eagles for Sale on eBay

(This is an affiliate link for which I may be compensated)

Nearly all of the gold bullion coins I’ve presented here are pure, 24 karat gold. While that is partially coincidence, there is also a solid financial reason to recommend it: attrition. Because pure gold is very soft, circulating gold coins have traditionally been alloyed with a small amount of other metals (primarily copper and silver) in order to harden and toughen the gold. However, gold bullion coins are not intended for circulation and can, therefore, be made from pure gold.

But as a result, 24 karat gold bullion coins frequently acquire scuffs, scrapes, rim bumps or other minor damage if they are mishandled. This doesn’t impair their value as bullion pieces, but it does render them unacceptable to serious coin collectors. So the already small populations of the collectible gold bullion coins listed above will inevitably be whittled down further over time via carelessness and accidents. The remaining pristine coins will, predictably, appreciate in value as they become rarer.

There are a host of other very popular gold bullion coins that I have not mentioned. These include American Gold Eagles, Canadian Maple Leafs, British Britannias, Austrian Philharmonics and South African Krugerrands. I want to make it clear that while these coins certainly have some collectible attributes, it is unlikely they will ever be as desirable as the gold bullion coins specifically highlighted in this article.

Mintage plays a significant role here. The Mexican Libertad, Australian Nugget/Kangaroo, Chinese Panda and U.S. Buffalo series have never had a mintage higher than one million pieces in any year through 2016. However, American Gold Eagle and Canadian Maple Leaf mintages have commonly exceeded this amount. Since 2013, British Britannias have only been limited in supply by the number of coins the market will absorb in any given year. South African Krugerrands, one of the only gold bullion coins available in the 1960s and 1970s, were struck by the tens of millions during that period. High mintages for gold bullion coin series are not conducive to future numismatic price appreciation and should be avoided.

Another factor that makes certain gold bullion coins more collectible than others is design. Modern coins, particularly commemorative coins, have been notorious for decades for the overall poor quality of their designs. The specific bullion issues discussed in this article buck the trend, making truly aesthetically pleasing designs available to the collecting community.

In contrast, many lesser gold bullion coins wallow in their own stylistic mediocrity, content to be thoroughly uninspiring, albeit utilitarian. There are degrees of nuance here, of course. Canadian Maple Leafs and American Gold Eagles both have reasonably pleasing, although not exceptional, design, but are rendered less desirable by their high mintages. Specially struck proof and burnished uncirculated American Gold Eagle issues are special exceptions, as they have very low annual mintages of tens of thousands or fewer.

In any case, it is important to collect what you like. But if numismatically-oriented investment return is important to you, then low mintage figures coupled with compelling design is a must. While larger 1 troy ounce gold bullion coins should theoretically be more desirable than smaller examples, this size advantage may be offset by the lower mintages and better affordability that fractional issues enjoy.

Condition, as always, is also a key factor. Because modern gold bullion coins are manufactured to such high standards, imperfections that would normally be acceptable on older collector coins are absolutely forbidden here. Examples include scratches, nicks, scrapes or any other damage visible without magnification. Modern gold bullion coins are one of the few collecting areas where absolute perfection is almost a necessity.

Gold Bullion Coin Sets for Sale on eBay

(This is an affiliate link for which I may be compensated)

Prices for gold bullion coins usually track the spot price of gold fairly closely. Common date one troy ounce U.S. Gold Buffaloes and Australian Nugget/Kangaroos sell for relatively small marks ups of about 5% to 10% over bullion value. Expect to pay a bit more for one ounce Chinese Pandas and Mexican Libertads. The premiums on these bullion pieces can range from about 8% on the low end to well over 100% for some of the rare Chinese Pandas.

The 2016 U.S. Centennial gold coins also command substantial premiums over their bullion value. Currently, the alluring U.S. Walking Liberty gold half dollar trades with a premium that is about 40% over spot. The gold Standing Liberty quarter and Mercury dime both have higher premiums than this. But these elevated premiums are to be expected, as smaller gold bullion coins usually have higher premiums than their larger counterparts.

The outstanding 2009 Ultra High Relief Double Eagle sports a hefty 50% premium right now. However, its premium has been even higher in the recent past. Honestly, a 50% premium over spot seems pretty tame to me for the ultimate gold bullion coin, but you can make your own assessment.

It is the height of irony that we live in an age when the world’s central banks pursue rampant inflationism while their national mints simultaneously strike tremendously beautiful and profoundly collectible gold bullion coins. Consider it a sign of the times, a reflection of the developed world’s monetary cognitive dissonance. Whatever its cause, don’t let this opportunity slip by you. Gold bullion coins currently offer one of the lowest risk investment options for the savvy coin collector or shrewd tangible asset investor.

Read more in-depth Antique Sage bullion & gemstone investment guides here.

-or-

Read more in-depth Antique Sage rare coin investment guides here.

Yeager’s Poured Silver Bars – Investing in a YPS Grab Bag

Here is a luscious spread of 999 fine Yeager’s Poured Silver bars with sizes ranging from 0.5 troy ounces to 5 troy ounces. The meticulous attention to detail on these hand-cast silver bars is truly breathtaking, underscoring their superb quality. These were purchased as a 1000 gram YPS grab bag in March of 2017.

I was checking the tangible asset allocation of my investment portfolio the other day when I discovered something alarming. I was underweight silver bullion. A situation like this can sometimes creep up on me because I regularly buy art and antiques for investment purposes. But this investing strategy also requires me to “balance” my tangibles portfolio with occasional bullion purchases.

“Easy enough to fix”, I thought to myself. I’ll just fire up my computer and head over to one of the major bullion dealer websites like Kitco, Apmex or JM Bullion. They all offer competitive pricing on a wide range of silver products, including government issued coins, private mint rounds and bullion bars.

But I’m always looking to get the most for my investment dollar. To be specific, I’m usually searching for an investment characteristic known as optionality. Optionality is any aspect of an investment that costs little money upfront, but can return big rewards later. Most assets that deliver huge, multi-decade returns, including real estate and stocks, operate on the principal of optionality.

That is when I stumbled upon the website of Yeager’s Poured Silver. Yeager’s Poured Silver, also known by the acronym YPS, is a company that has been making and selling hand-poured silver bullion bars since 2012. Now, I love vintage poured silver bars, but I have been undecided about the investment merits of new poured silver bars.

At least, I was undecided until I researched Yeager’s Poured Silver. David Yeager, the founder and owner of the business, has spent years perfecting the art of hand-casting some of the most beautiful silver bars I have ever seen. He sells a variety of traditional .999 fine silver bars ranging in size from a diminutive 1/2 troy ounce “nugget” to a substantial 1 kilogram specimen. However, he also offers imaginative 3-D art bars cast in the shape of skulls, pyramids and lion heads, among other things. He even offers Halloween, Christmas and other holiday themed poured silver bars.

Yeager’s Poured Silver Bars for Sale on eBay

(This is an affiliate link for which I may be compensated)

Although he charges fairly high premiums over the spot price of silver, YPS bars aren’t simply bullion. They are art. Or, to be more precise, they ride the fine line between bullion and art in much the same way that government issued bullion coins like Chinese Silver Pandas, Canadian Maple Leaves or American Silver Eagles have both precious metal value and collector’s value simultaneously.

Because of the high premiums Yeager’s Poured Silver bars typically command over spot, the item that really caught my eye was the 1000 gram YPS grab bag of silver bars. As the name implies, this is a full kilogram (32.15 troy ounces) of YPS silver bars of varying sizes and types. They are all chosen from excess inventory, so the buyer cannot request any specific kind of silver bar. The upside of the 1000 gram YPS grab bag, however, is that the cost per ounce is significantly lower than if you were to order items individually.

When I placed my order, the 1000 gram YPS grab bag was selling for $634 while silver was trading at $17.26 a troy ounce. This means the YPS grab bag contained approximately $555 worth of fine silver. The difference between the purchase price of $634 and the bullion value of $555 constituted the premium I paid above spot. In this case the premium was about $79 or 14.3%.

In contrast, you can currently buy 100 troy ounce silver bars for about 75 to 85 cents over spot. This translates into a premium of between 4% and 5%. So generic silver bars in large sizes are certainly the cheaper option if all you want is raw silver for the lowest possible price.

But those cheap silver bars have some drawbacks. For one, they are much, much larger than the 1/2 to 10 troy ounce poured bars you’ll get in a YPS grab bag. Those 100 troy ounce behemoths are also likely to be generic bars from lesser known refineries. And, finally, large silver bars are likely to be struck or extruded rather than poured.

This last point is important because poured silver bars have a tendency to hold their premiums on the secondary market better than other kinds of silver bars. You simply can’t expect to sell modern struck or extruded silver bar for more than spot. Yes, there are certain niche situations where they might command a premium over spot, like a severe physical silver shortage. But these circumstances are unlikely; you certainly can’t count on them.

But if you want to buy silver at a premium, you also need to be able to sell it at a premium in order to come out ahead. And that, in my opinion, is the biggest reason to buy a YPS grab bag over generic silver bars – the expected future premium upon resale.

Yeager’s Poured Silver consistently sells for a healthy premium no matter where you look. It sells at a premium on the YPS website. It also sells at a premium on the eBay secondary market. YPS poured silver bars are miniature works of art and are priced as such.

Yeager’s Poured Silver Cubes for Sale on eBay

(This is an affiliate link for which I may be compensated)

More importantly, I strongly suspect YPS poured silver bars will always command meaningful premiums over spot. But here is the really interesting thing. The premium I paid on my YPS grab bag over comparable silver bars – if you can call generic 100 troy ounce silver bars comparable – was really quite modest.

In fact, my breakeven point versus generic silver is only around 10%. If YPS silver bars sell for less than 10% over spot in the future, then I will make less money than I could have by purchasing generic silver bullion. But this potential relative underperformance is actually very limited.

However, if YPS silver bars sell for a premium higher than 10% in the future, then all that upside belongs to me. And that potential upside is uncapped. YPS silver bars could eventually end up like vintage Engelhard or Johnson Matthey poured silver bars are today, with premiums ranging from 20% to 60% over spot, or even more. YPS poured silver bars represent a classic example of optionality in investing.

Below is a list of the items I received in my 1000 gram YPS grab bag. I placed the order in March of 2017 and the total weight delivered was 32.1829 troy ounces (1001 grams):

3 – 100 gram bars
2 – 100 gram cubes
1 – 5 troy ounce “YPS” bar
1 – 3 troy ounce “Slim” bar
1 – 3 troy ounce wedge
1 – 2 troy ounce cube
1 – 1 troy ounce cube
1 – 50 gram “Plata Muerta” (Dead Silver) round
1 – 0.5 troy ounce “Nugget” bar

And I’m happy to say that the 1000 gram YPS grab bag I received completely exceeded my rather lofty expectations. Even though you can’t stipulate the inclusion of any specific bar in a grab bag, I did give a general preference for traditionally-shaped bars and cubes.

Much to my delight, David Yeager went out of his way to accommodate my wishes. This is in spite of the fact that he was under no obligation to do so whatsoever. The choice of silver bars in any YPS grab bag is completely at his discretion.

Yeager’s Poured Silver 3-D Art Bars for Sale on eBay

(This is an affiliate link for which I may be compensated)

I was not only extremely pleased with the type of poured silver bars I received, but also with the quality of the bars. It was obvious that they were all hand-fabricated with incredible attention to detail, including serialization (numbering) on several different bars. They all had beautiful, bright finishes while still maintaining that classic, rugged look that poured silver is famous for. These are all little touches that set YPS poured silver bars apart from the boring struck and extruded bars that are so common in the bullion market today. Yeager’s Poured Silver is premium silver.

If you are interested in either bullion or coin collecting, I think a strong case can be made for investing in some poured silver bars from YPS. Unfortunately, as of the spring of 2018, it appears that Yeager’s Poured Silver no longer sells 1000 gram grab bags. However, he still offers 10 troy ounce grab bags of his classic bars, cubes and rounds. And if that isn’t what you’re looking for, you can always go with the 10 troy ounce 3-D art bar grab bag. Either way, you can’t go wrong with Yeager’s Poured Silver; it is some of the best premium silver available today.

Read more in-depth Antique Sage bullion & gemstone investment guides here.

Older Posts

Newer Posts