Thursday 28 April 2022

Stacked some silver

I normally just have a regular $200/mo savings plan with Perth Mint Online Depository to purchase $100/mo of silver and $100/mo of gold at a 0.5% premium to the spot price. It is one of the cheapest ways to add some precious metals to my overall investment portfolio as there is no fabrication, shipping or storage costs involved. However, there is still something nice about holding physical gold and silver. But as I already have some piedfort proof gold coin sets and some miscellaneous 1oz silvers coins and 'bars' I normally don't both to buy physical bullion products due to the fabrication and other costs.

But the rectangular silver 1oz 'dragon' bars are just so pretty I had to buy one:

I was toying with the idea of buying a 'tube' of 20 coins, or even a 'monster box' of 200 coins (which would cost around A$8,000) but in the end I decided to just buy one coin to admire. The 'premium' above the 'spot price' is pretty horrendous:

1oz coin             A$40.51

shipping             A$17.50

bullion insurance    A$ 0.75

credit card fee      A$ 0.77

TOTAL                A$59.23

This includes A$1.63 GST, which doesn't apply to my online depository account bullion purchases.

At the time of purchase the spot silver price was around A$32.90, so buying the physical 1oz coin cost an 80% premium over the spot price. And about 60x the "face value" (which is $1).

Not a very sensible 'investment' but I can afford this once a year as a frivolous expense for fun.

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