Is a precious metal bullion worth the face value plus the cost of metal?

[akshay]

For example, The $100 Franklin Silver Proof - 4 Troy Oz.999 Fine Silver.

Is it worth $200ish ($100 face value + around $25 per oz of silver X 4)

or just the value of the silver?

I don't own any bullion yet, but always thought something like that was worth face value plus cost of metal, yet I can get several of them for $150 each so...

[Numismatist]

Most U. S. Mint produced proofs are of bullion value only maybe with a slight premium; there are a few that have attained collectible status and bring a nice premium.

The best source of pricing information for these types of coins is actually eBay believe it or not. Watch a few sales over a period of time and you can get fairly accurate pricing.

[gimpex]

Originally Posted by akshay

For example, The $100 Franklin Silver Proof - 4 Troy Oz.999 Fine Silver.

Is it worth $200ish ($100 face value + around $25 per oz of silver X 4)

or just the value of the silver?

I don't own any bullion yet, but always thought something like that was worth face value plus cost of metal, yet I can get several of them for $150 each so...

Depends what you mean by worth it ?

As an investment into silver ? NO , you should buy silver coins for approx 10-15% above price of silver ( the normal markup for silver , where as gold is approx 5%)

As an investment as a collectors coin ? It may be if its limited etc. Sorry I dont know about US market

[prc117f]

Originally Posted by akshay

For example, The $100 Franklin Silver Proof - 4 Troy Oz.999 Fine Silver.

Is it worth $200ish ($100 face value + around $25 per oz of silver X 4)

or just the value of the silver?

I don't own any bullion yet, but always thought something like that was worth face value plus cost of metal, yet I can get several of them for $150 each so...

no and you should not be paying more than 2- 4.5% over the spot price of silver when buying bullion. That Franklin silver proof has no extrinsic value, it only has melt value.

4.5% being on the high side. To profit on a round trip trade if you bought and paid the 4.5% premium, silver would have to rise over 9% to start seeing any potential profits (assuming the spread does not widen)

And don't forget to add the cost of carry when holding physical bullion as well.

Anyways, there are reputable places that sell bullion at 2% over current ask on the silver market.

[gimpex]

Originally Posted by prc117f

no and you should not be paying more than 2- 4.5% over the spot price of silver when buying bullion.

Is that normal in the US ?

EU you will not find it below 10% - talking retail quanitites not like a ton

[Ebruner]

I sell gold and platinum bullion for 2.5% over spot and silver at $1.00 over. I own Glasgow Coin & Jewelry, a retail rare coin and precious metals dealer, and I deal in any quantity large or small.

-Eddie Bruner