Typically the mindset of stacking precious metals is to buy at the lowest cost per ounce, so when it's time to sell you will make a profit. That general goal will always be true, but what about when spot price is lower than your purchase cost and you have to sell to cover an expense? It's never ideal, but it can happen to anyone.
Selling When Spot Price Drops
Spot price may not be higher when the time comes to sell, and many private sellers and dealers won't pay much of a premium on generic bullion. This is where premium and numismatic pieces help. The value of these is more in their collectability and rarity, than solely based on their melt value. An excellent example of this is the large premiums a high grade, low mintage US Morgan Dollar will command, far above its silver value.
Collectibles Retain Their Value
When spot price is high, it makes sense to sell your generic bullion for a profit. When spot price is low, the premium and numismatic pieces will still hold their value and command a high premium, so it's ideal to have some in your stack for this purpose. As a bonus, collecting adds variety to stacking, which keeps things from becoming boring while you work towards your stacking goals.
There are many factors that drive the price of premium and numismatic pieces. The main factors are that it's in high demand, low mintage and is no longer being produced. It's still wise to seek the advice of experts before making a purchase, as not everything that is premium or numismatic will be in high demand later. With some premium pieces in your stack, you'll not only be prepared in case you need to sell when spot price drops, but their value will appreciate over time if you don't need to sell.
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