Taking the Silver Kilo Plunge

With the recent decline in the price of silver, some silver bullion coins have become more affordable. Whether or not current levels will prove to be the new lower threshold for prices remains to be seen, however I did use the occasion to purchase my first one kilo silver coin. The kilo coin is pictured below next to a one-half ounce silver coin.

A few months ago, I had taken a look at the one kilo sized 2012 Year of the Dragon Silver Coins produced by the Perth Mint. Each coin contains 32.151 troy ounces of .999 fine silver and the coins are struck with an unlimited mintage until the close of production at the end of 2012. At the time, the price of the coin was around $1,100, which was reasonable given the price of silver. For various reasons, I decided not to make a purchase that day.

When the market price of silver had fallen to around $27 in mid-May, I found my way back to the bullion dealer’s website and decided to make the purchase. My price was $962.52, which works out to $29.94 per troy ounce of silver. This was actually cheaper than purchasing 32 one ounce American Silver Eagles. It was also much cheaper than purchasing 32 of the one ounce 2012 Year of the Dragon coins, which still sell for about $75 each, due to their mintage limit.

Upon receiving the coin, I was somewhat surprised by the dimensions. I had perhaps expected it to have a wider diameter after becoming familiar with the US Mint’s 5 ounce silver bullion coins, which have a diameter of 3 inches or 76.2 mm. The 1 kilo dragon coin has a diameter of 100.6 mm, or just under 4 inches. The extra metal is instead incorporated into a larger thickness or 14.6 mm, or 0.575 inches.

The Perth Mint also actually produces a 10 kilo sized silver bullion coin, which is more than twice as thick and more twice as wide as the 1 kilo size.

Overall, I was very pleased with my kilo silver coin. Similar to other Perth Mint bullion, it has frosted fields and selectively mirrored design elements for the resemblance of a reverse proof finish. The design, which has now been used on a multitude of numismatic versions, looks impressive at a larger scale. The heft of holding such a physically large coin also adds to the experience.

In the longer term, I have a low purchase point (so far) for an investment in silver based on the intrinsic value of the coin, and I feel that the coin has better potential than generic bullion due to the popularity of the Dragon design.

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Comments

  1. Frankie says

    You can get these at apmex, providentmetals and gainesvillecoins for a very similar price. Those who are interested in the gemstone dragon kilo coin – gainesville is selling them for under $11/oz above spot (around $1300 incl. delivery) right now. That’s a good price for sure.

  2. Louis says

    I enjoyed this post, Michael. Enjoy your coin. BTW, are you collecting both ATB sets, or have you decided to focus on one or the other? I plan to try to continue the numismatic set but once in a while if silver is low and I like the design I may get a bullion coin too.

  3. says

    Michael, this is a great time to snap up kilo coins. I’ve been buying some larger silver denominations on and off for awhile. I’m contemplating getting the one kilo gemstone eye coin myself (when I get some money together, heh). Congrats on your first kilo! Mine was a kookaburra.

  4. Louis says

    My preference is the Libertad kilo if/when I can find enough change under my cushions!

  5. Michael Zielinski says

    I bought this one from APMEX. I know there are some other choices out there, but I have stuck with them for the most part.

    I am also going to continue collecting the US Mint’s ATB 5 oz coins, both bullion and numismatic. These are really a beautiful showcase of the design and with with some of the early enthusiasm abated, the later issues might set up for some lower mintages.

  6. Louis says

    Thanks, Michael. I like the El Yunque a lot (partly because I like birds, which remind me of my late brother who had several), so I got the bullion today and am getting the vapor-blasted one tomorrow.

  7. Sam Baker says

    Frankie,
    Thanks for the tip on the gemstone Kilo coin. Gainesville Coins does currently seem to have the best price around.

  8. Shutter says

    one ounce 2012 Year of the Dragon coins, which still sell for about $75 each, due to their mintage limit

    There is some weirdness here. Apmex has 1oz dragon in capsule for $77.24, and 2oz in capsule and box for $77.95. Now, I know that theoretically there is no limit on 2oz coins, but at the same price, I’d rather have 2oz than 1oz.

  9. Michael Zielinski says

    For a while the 1 oz size was priced over $100. That was part of the reason I started looking at the other sizes.

    A while back, I also bought the 5 oz version for less than the price of two 1 oz coins.

  10. Shutter says

    For anyone interested, Sydney Cove coin set can once again be ordered in USA. Also gilded mouse.

  11. says

    Shutter,

    I agree on the inflated one ounce prices. I prefer to stack the two ounce dragon coins myself and have been doing so sporadically for some time.

  12. Shutter says

    i bought the 1oz dragon from gainsville for $117!!!!!!!!

    Dude, why???????? That’s almost the price of a 5oz.

    I realize that of all the bullion coins in the world, dragons will probably perform the best in the long term. However at $117, most of the upside is already gone. And, there are oodles of Perth coins with the exactly same design as this one.

    For myself, I’m done with Perth Lunar dragons after acquiring HR and gilded. I’ve also been tempted to get a kilo coin, but since I already have HR Dragon and Kookaburra, I’d get a kilo Koala, if silver prices start going down again. Just to get a different design.

  13. Saucexx says

    Shutter,

    Thanks been waiting for the mouse, now I have all of the gilded. I’m a big fan of the high relief coins so I finally added Sydney Cove too. BTW for anybody who’s going to order one the shipping is like $50 but free if you order $300 or more.

  14. Saucexx says

    Samuel,

    Ouch! You can find MS70 coins for that now.

    In reality most of these coins will cool off after a while. Think of them like an IPO. If you can’t get in before they go public (sell out), wait a few months and most likely they’ll come down in price. Just make sure you don’t buy any “Facebook” coins………………..

  15. Samuel says

    Saucexx, sometimes it is just hard to guess. for example, the 25th set, it was pre-sold for around $450 at ebay at the beginning. and, the glow in the dark coin, was sold for around $60 at the beginning. u never know it is a goog or fb.

  16. Saucexx says

    Samuel, yes you’re correct. Rereading my post it came off a bit like I was judging. I was actually talking to myself and trying to make you feel better at the same time. I hate to think how many coins I’ve overpaid for……………..

  17. Shutter says

    Samuel,

    On the plus side. Recently Teletrade was auctioning a bunch of series I gilded coins in NGC MS69. Most of them had realized prices of $100-$120, but the dragon went to $160. I think the dragons will always do better than most other coins. You just need to try to get them at a better price. Something to plan for 2024.

  18. Shutter says

    Thanks been waiting for the mouse

    You’re welcome. I also bought these two plus the Marathon Run HR coin, which I saw in person a week ago and really liked. Because I needed it to get free shipping, It’s as if the Marathon coin cost me $50 (after saving $50 on shipping). I now have 3 years of Perth HR coins. Will be getting the latest Roo in July, although am a bit ambivalent about 2012 design. 2010 Was truly awesome.

  19. Broooster says

    Well honestly, unless I am over looking something, I don’t see any pattern. I have both the 2010 and 2011 UHR Roos, and they don’t match any other 2010 or 2011 Roos. Let’s hope the 2012 Roo does not match their current issue.

  20. Samuel says

    silverlunar dot com says—-“The designs won’t vary from the current format and will simply mimic the designs of the bullion Gold Kangaroo…”

  21. says

    The original price on APMEX is around $1500 at current metals prices, and on Perth’s site it’s even more expensive at $1798. At its current pricing it will never be cheaper.

    I think APMEX has Gainesville beat by just a smidgen with this current sale, but the prices are nearly the same. That’s why I made a gamble that silver won’t fall much under $28 and took the plunge tonight. I really wanted one of these and it doesn’t seem likely a better opportunity to get one will come along.

  22. Michael in Bama says

    What a kick in the nuts, NO US SALES FOR THE 5oz DRAGON. The news letter could have at least came out a week early to break the news!

  23. Louis says

    Michael, I agree. NY Mint seems like it has very high prices, and I could not even find the coin listed. At least Paradise handled the release well. Perth should have stuck with them.

  24. ultra-crepidarian says

    I just want everyone to know that the bullion kilo dragon is just a pure bullion play. The Perth mint reserved the right to produce these coins throughout the end of Series II – that is 2019 – the year of the PIG. Most people don’t know that.

    “No mintage limit applies to 1 kilo, 10oz, 5oz, 2oz and 1/2oz coins. Except
    for the 1 kilo release, production of these coins will close at the end of
    2012 and The Perth Mint will declare each coin’s official mintage.
    Production of 1 kilo coins will cease at the end of the series.”

    The kilo PROOF Dragon was limited to 500 coins. That was the one to buy if you expected any numismatic bump. I would stay away from the kilo dragon bullion coins. Buy Silver Eagles instead. They will be easier to liquidate.

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