Commodity Crash! When Does The Numismatic Value Outweigh Bv?

Coins that trade like commodities (think 1966 VF quarters) will be the most affected. Although, when I was going through ebay on the weekend people still seem to be happily paying $30+/oz.... Coins that trade more on supply and demand won't be significantly affected. As one of the other members pointed out on a previous thread, if a 1 oz silver NCLT coin is selling for $149 then the fact that the value of the silver in it has dropped from $30 to $25 isn't really significant. Similarly a 1947 MS66 ML dollar currently listing at $6.3k won't be affected by a $3 decrease in its precious metal value.

Whenever the price falls below what the seller paid for them.

Coins that will benefit the most from this drop in silver price will probably be things like VF George VI and MS60-62 QEII coins.

Fear of central banks selling gold reserves thereby flooding the supply side leads to a drop in price forcing hedge funds and other leveraged 'owners' to sell causing a further drop in price continuing until the vulnerable positions are unwound and the surge in supply has finished working its way through the system. While it is certainly a better time to buy than, for example, last week, don't take that to mean there are guaranteed short term profits available in PMs right now. I wouldn't presume to call the bottom on this but prices still have a long way to fall to return to historical norms. And no, I'm not saying that they will fall that far either. I have no clue. Hedge your bets and proceed cautiously with any moves.

True. Good time to buy. Not so much to sell.

Since the crash the demand for physical PM has increased. It's not a time to sell. One thing that I found funny is that kitco has no more canadian bullion for sale in the last three days. Yesterday you had a choice of only six silver bullion available.

The gold miner stocks have been obliterated by the fall. Barrick trades for less than it did when gold was $350 an ounce. In fact, it it is back where it was 20 years ago. From an all-time high to 1993 in 15 months.

How many mines can make money with sub $1400 gold?

@dialog_gvf Production costs for mines vary significantly but are usually in the range of $700-$900/oz. So gold still has a long way to fall before they start shutting down production as no longer being cost effectiveness. My understanding is that the concern is the life of the mines owned by the mining companies. I don't remember the exact numbers but say the life of a mine is 20-30 years. So if it's been running for 15 years the company's production could drop off a cliff in as little as five years. The companies aren't finding enough new deposits and opening enough new mines to replace that production. Add in political instability around many of the existing/future mines (the mine may be great find but if the country nationalizes it then the company doesn't get any of the profits) and the risk of the price of gold returning to historical norms and a couple of major missteps by large companies and you can see why they're getting hammered on the stock prices.