In “Business Insider Trolls Against Gold“, I wrote in a comment “APMEX Fractional Silver is a better deal than Shire Silver.”
Shire Silver is an example of “nice idea, lousy execution”. For Shire Silver, the premium to spot silver is too huge. It is better to use fractional generic silver rounds from APMEX.
I didn’t realize this was an important subject, until someone left a hostile trolling comment:
“You can get 1/10 or 1/4 or 1/2 oz silver coins from APMEX, which is good if you’re using silver as barter money. APMEX fractional silver is a better deal than Shire Silver.”
If you’re talking about investments, yes using APMEX is a better deal than Shire Silver. But Shire Silver isn’t meant to be used as an investment. Its meant to be used as a currency or barter tool.
No one except hardcore gold/silverbugs are going to use traditional bullion for trade. Its too inconvenient, bulky, heavy, and the smaller coins are difficult for people to use. For example, how many times have you dropped a penny or dime on the floor only to have it roll under the store counter?
The masses moved to paper because for most purposes it is superior to coins. They don’t really care about inflation as long as its low and relatively consistent – even if in the long term it is very harmful. And even if we could temporarily get people back to using coins during a SHTF scenario, as things settle out people will desire a return to the convenience of paper. And of course, the typical “Problem! Reaction! Solution!” solution of the banksters would have everyone returning to a system that gives them control. That is where Shire Silver really shines. It breaks the cycle of control by giving the people a precious metal based currency that is approximately as convenient as paper.
And seriously, ounces are retarded.
Silver rounds are a much cheaper cost per ounce than Shire Silver. I don’t see the point of paying the substantial premium for Shire Silver.
Shire silver still is based on FRNs as money, according to this link. 1 gram = $2, 5 grams = $10. That is wrong thinking. The exchange rate from silver to FRN should be floating and not fixed.
1 troy ounce is 31.1 grams. 1/10 fractional APMEX rounds are $4.67 right now. (spot = $34.55/oz when I wrote this) To get 3.11 grams of shire silver, that costs $6.22. Shire silver is 33% more expensive than generic silver rounds.
Also, the 5 gram card has the same huge markup rate as the 1 ounce card. That is wrong. If you take into account the labor for making the card, the 5 gram card should be worth less than five 1 gram cards.
It is reasonable to pay a premium to spot for rounds, especially small denomination rounds. Shire Silver is a ridiculously high premium, compared to what is available elsewhere.
It isn’t that hard to convert from grams, troy ounces, or FRNs. I know how to multiply and divide and use a calculator. Fortunately for the operators of Shire Silver, the people who use Shire Silver are mathematically and economically illiterate. They are idiots for paying such a huge premium to generic silver rounds.
I don’t see the advantage of cards vs. rounds. I could always laminate or protect my rounds. Even if cards are better, it isn’t worth a 33% premium.
1/10 of an ounce is small enough to make change for most transactions. APMEX fractional silver is intended for use as barter money. For serious investment, you should get 1 ounce or larger. Otherwise the markup is too great, due to the cost of manufacturing the coin.
And seriously, Shire Silver is retarded and anyone who uses Shire Silver is retarded. Shame on Shire Silver, for overcharging people for silver. Shame on the people who use Shire Silver, for getting fooled so easily.
I appreciate the hostile trolling comment. That indicates the importance of the subject. When I wrote on node.js, the trolls who disagreed with me also called me a retard. I didn’t realize that Shire Silver was such a big ripoff. I did a brief comparison once, and concluded APMEX fractional silver was better.
Shire Silver is another scam like the Liberty Dollar, charging people ridiculous premiums compared to generic silver rounds. They are exploiting people who want to use gold and silver as money, and charging ridiculous markups. If someone wanted to pay me in Shire Silver, I’d only give them credit for the melt value and not the ridiculous premium.