At what premium do you drop sovereigns for generics?
I go back and forth on this constantly.
The recognition premium on sovereigns makes sense to me — easier to move, nobody squints at it. But there's a spread where I start feeling like I'm paying for the logo instead of the metal, and I can't honestly tell whether my cutoff is reasoned or just a number I picked once and never revisited.
Mine's around $4–5 over spot. Above that I take generics.
Where's your line? And if you've actually sold a decent amount of both — did the recognition premium pay for itself, or was the spread tighter than you expected on the way out?