Tag Archives: finances

Silver – Buying and Premiums

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I bought my first silver 1 oz coin just over a year ago. I ended up paying $24.25 from a local coin shop. At the time the silver spot price was $19.43. This means I paid a premium of $4.82 or 24.81%. This was actually the lowest premium I paid for quite a while until November 2022 when I found some sales on www.SDBullion.com. 

By that time the silver spot price had risen to $21.43 and I paid $25.97 or $4.54 premium which was a 21% premium. The high premiums were partially because these were on sale. I was paying these 20%+ premiums because the stock market was doing poorly and people were selling out of stocks and buying into precious metals because they were seen as safe. 

Today, the stock market has been roaring, most of the year. The S&P 500 is up 17% this year as I am writing this. When the stock market is going up, people often sell gold and silver, and bonds, and buy into the stock market. 


When people aren’t interested in something is when you should consider buying it, if you are going to. 

The best deal I found was these 1 oz Golden State mint generic silver coins. The silver spot price was 22.84 and they were selling for a $2 premium, $24.84! Or 8.7% premium. This is just a little more than the first silver I bought over 1 year ago when the spot price was $19.43 or $3.41 lower than it is today. $24.84 is also lower than I paid in November 2022!

This is a trend I’ve watched over the last year. The spot price for gold and silver has risen but the premiums have actually fallen more! This makes it possible for you to buy the same amount of silver or gold for less than was possible a year ago, despite the higher spot price. 

The 2 websites I check frequently are https://sdbullion.com/deals . Specifically their “Doc’s deals” page which is linked here. The 2nd is https://monumentmetals.com/deals.html?page=1 Monument Metals – Deals page also. Basically every metals dealer has a “deals” page. And when you are looking for the cheapest premium that is often where it is. 
Other good sites are JM bullion (although usually more expensive) or as mentioned at the start Golden State Mint. 


The deals change weekly. It’s even possible that premiums or spot price continue to go down in the future! Buyer beware!


Read this before considering metals and know why you are buying physical metals, similar to any purchase or investment.

Bitcoin Intrinsic Value

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One of the main arguments I hear against bitcoin is that “it has no intrinsic value. The thing about money is that it doesn’t need to have intrinsic value. Money has to have a few things to make it “good money”.

It should be scarce. 

It should be divisible.

It should be transmissible.

It should be immutable. 

It should be difficult to counterfeit.

It should be assayable (easy to verify it is what it says it is).

Gold is good at some of these things, for example being scarce and immutable. But it is bad at others, it is not very divisible and it is not very transmissible. It’s very hard to purchase something with $1 worth of gold. It’d be a very tiny spec of gold that you’d have a hard time telling that it was really gold or just a dust flake. 

Fiat money (US dollars or other country dollars) are easier to transmit around the world (although they take a few days to settle international transactions or across borders). They are hard to counterfeit but they are easy for the US government to print more anytime they want.

I’ve collected a few articles and quotes about Bitcoin, money and intrinsic value. 

DOES BITCOIN HAVE INTRINSIC VALUE? – Bob Simon

There is no such thing as “intrinsic value” in the sense of an object having objective value in and of itself. As a thought experiment, think of assets typically assumed to hold intrinsic value such as gold, farmland, stocks and real estate. Now imagine a world where no humans exist. Do these assets still have value? The answer has to be no, because value only makes sense in the context of human existence.

Because of the luxury enjoyed by Americans and citizens of many developed countries, the benefits brought about by Bitcoin may not be as obvious as they are for many people in developing nations. Inflation in the United States has been persistent, but not devastating over the past two generations, and most people haven’t had issues with their banking services being shut down.

Bitcoin Has No Intrinsic Value — and That’s Great. – Conner Brown

The Rai stones used by the Yap people are another example of a store of value without commodity use.

Bitcoin is Not Backed by Nothing -Parker Lewis

“What backs the dollar (or euro or yen, etc.) in the first place? When attempting to answer this question, the retort is most often that the dollar is backed by the government, the military (guys with guns), or taxes. However, the dollar is backed by none of these. Not the government, not the military and not taxes. Governments tax what is valuable; a good is not valuable because it is taxed. Similarly, militaries secure what is valuable, not the other way around. And a government cannot dictate the value of its currency; it can only dictate the supply of its currency.

Venezuela, Argentina, and Turkey all have governments, militaries and the authority to tax, yet the currencies of each have deteriorated significantly over the past five years. While it’s not sufficient to prove the counterfactual, each is an example that contradicts the idea that a currency derives its value as a function of government.”