Silver Prices are Still Down, But Overall Demand is Up!

For those of you who loosely follow the stock markets and commodity prices will by now have figured out that silver has been on a flat trend.  The way I examine it, is it's a prime time to stack up on all of your favorite bullion, whether it's silver bullion bars and rounds or scrap silver.  The stock market has a lot to do with the trending nature of the precious metals market.  If the economy is robust and the dollar is performing well, people will have less of a need to hedge against that with any one of the precious metals.  However, the same can be said for the opposite.  Here's a look at some of the silver product trends:

Uncirculated Mint Silver Products - Now when I bring this up, I really mean the bullion products like Silver Eagles and Maple Leafs.  And not the hyperpriced commemorative coins or any of that mess.  These are still trading at a monumental premium, most outlets and online bullion dealers sell one ounce rounds for upwards of $10 over spot.  Just last week, I paid $6 over spot for the new 2014 Canada Maple Leafs.  I expect this trend to continue, even if silver dips down even further.

Junk U.S. 90% Silver - Still a continuing choice among older stackers, any pre-1964 junk silver is trading at unheard of premiums.  Most Walking Liberty Halves and Mercury Dimes are retailing for at $3 over spot per one dollar face.  Now why is this?  I think it has a lot to do with the pliable availability of the stuff and the penchant for older, classical type coins has always been a hot spot among junk silver stackers.  But have no fear, I would call around for quotes, because there are still plenty of dealers that are sitting on kegs of these coins.  Deals can be had reasonably.

**Buyer Beware**

Misc. Foreign Silver Bags - Wowzers, there's nothing more risky than buying up a bag of foreign material. The biggest x-factor with this stuff, is the wide array of varying compositions that are available.  You might pay a lot less for the group, but you'll have to invest valuable time sorting and researching what you have and try to turn it into some sort of profit later on down the road.  Very difficult to achieve unless you are a foreign coin expert or if you can negotiate a great buy.

40% Silver - We all love the occasional Kennedy 40% half dollar.  But if you're a big time stacker/physical investor, 40% silver is not for you.  The premiums are still there at a retail standpoint, but if you're buying to sell for a profit, 40% will yield the lowest return on investment.  It's just not as popular because the silver content is so much less than sterling or junk U.S.  Unless you are stacking for budget, I would highly encourage you to look elsewhere.