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Modern Commems As An Investment

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 Posted 03/23/2021  11:36 am Show Profile   Bookmark this topic Add Ballyhoo to your friends list Get a Link to this Message
Would it be wrong to buy modern commemoratives as an investment based solely for their bullion value? What I'm referring to are the many being sold on EBAY at or just over current spot. I'm putting some serious thought into it for my girlfriend's son's future. Good idea or bad?
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 Posted 03/23/2021  11:41 am  Show Profile   Bookmark this reply Add TobyJ to your friends list Get a Link to this Reply
Nothing wrong with regularly buying silver bullion. Anything pure like Maples and Britannias, Kookaburras or Libertys etc. If you can get high percentage silver bullion at close to spot then that's amazing. Everything in the UK is going for way over spot price, the premiums are huge.
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 Posted 03/23/2021  12:01 pm  Show Profile   Bookmark this reply Add oriole to your friends list Get a Link to this Reply
Why modern commemoratives vs. bullion? I doubt very much that the stuff trading at bullion now will trade for more than bullion anytime in the near future.
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 Posted 03/23/2021  12:54 pm  Show Profile   Bookmark this reply Add commems to your friends list Get a Link to this Reply

Quote:
Why modern commemoratives vs. bullion? I doubt very much that the stuff trading at bullion now will trade for more than bullion anytime in the near future.

I don't understand.

Don't bullion coins trade based on bullion value? If you buy a modern silver commemorative dollar as a bullion piece (as the OP is suggesting) at or below its intrinsic bullion value, how will it trading for bullion in the future be any different from what happens to a coin struck specifically as a bullion piece (e.g, ASE or Canadian Maple Leaf)?

What am I missing?

Collecting history one coin or medal at a time! (c) commems. All rights reserved.
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 Posted 03/23/2021  12:59 pm  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply
I was the LCS and the comms where selling at a small premium over spot (about $2) while the ASE were selling for $5 over spot. Its pretty surprising when a bullion coin is worth more than a non bullion coin.
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 Posted 03/23/2021  1:49 pm  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply
Bullion is bullion. It does not really matter what it looks like, so you might as well buy something attractive to your eye. If that is a modern commemorative coin (at bullion price) then so be it.
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 Posted 03/23/2021  1:59 pm  Show Profile   Bookmark this reply Add Classic Coins to your friends list Get a Link to this Reply
An important consideration when accumulating modern commemoratives as an investment is; although the designs may appeal to you now, they may not maintain widespread appeal to others, and that may make them difficult to sell when the time comes. A dealer, for example, may not even offer slightly below spot if they think they would have a hard time moving them for a profit.

Bullion coins like ASEs or Canadian Maple Leafs have current widespread appeal, and likely will for the foreseeable future.
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 Posted 03/23/2021  3:25 pm  Show Profile   Bookmark this reply Add oriole to your friends list Get a Link to this Reply
@commems, sorry if I was not clear.

I meant that modern commemoratives are as good or as bad as the other bullion coins as an investment. Both are solely an investment based on the silver price. Whether buying silver is a good or bad investment is a different question.
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 Posted 03/23/2021  3:30 pm  Show Profile   Bookmark this reply Add NumisEd to your friends list Get a Link to this Reply
In this case, Modern Commemoratives basically are silver rounds. When selling, you probably get close to melt at a bullion dealer but much less at a LCS or eBay.
For instance, a local bullion dealer I trust buys 90% silver dollars, halves or similar for spot - $1.
Edited by NumisEd
03/23/2021 3:32 pm
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 Posted 03/23/2021  4:14 pm  Show Profile   Bookmark this reply Add Zurie to your friends list Get a Link to this Reply
The premium over spot may reflect the demand for certain types of bullion coins, like ASE's that are highly liquid with a narrow spread. Modern silver commemoratives will track bullion prices, but probably will never have a premium over spot because they just don't have the demand to be able to resell them easily. But there's nothing wrong with buying them at spot if liquidity isn't a concern.
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 Posted 03/23/2021  4:29 pm  Show Profile   Bookmark this reply Add suipakpaikungfu to your friends list Get a Link to this Reply
One other thing to consider is that most dealers will also want the OGP
when buying. This will add a LOT of space to wherever you are holding them.
I stopped collecting proof sets and modern commems for this reason.
I will still buy the ones with designs I like.
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 Posted 03/23/2021  4:45 pm  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply

Quote:
One other thing to consider is that most dealers will also want the OGP... I stopped collecting proof sets and modern commems for this reason.
I agree on commemoratives, but proof sets maybe not as much. It seems to me that most are split up so the coins can be sold singly at a higher price.
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 Posted 03/23/2021  9:17 pm  Show Profile   Bookmark this reply Add Ballyhoo to your friends list Get a Link to this Reply
Thanks for all the replies. Good sound advice. Like I mentioned, my adopted son will be turning 11 next month and with silver currently at $25 spot, the twenty year return is 361 percent had you bought it back then. So that's what I'm seeing, or somewhere in that general range when he turns 30. As to why commemoratives, cost. Generic rounds are running around $30 when there are 1 ounce commems selling for $25-30 on EBAY. A few sold for under $25. Granted the vast majority are 90% versus .999, but it still comes out as a better cost. Yet the collector in me cringes at the thought of remelting them. In which case I'll narrow it to heavily toned or hazy.
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Edited by Ballyhoo
03/23/2021 9:19 pm
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 Posted 03/23/2021  11:21 pm  Show Profile   Bookmark this reply Add commems to your friends list Get a Link to this Reply

Quote:
...when there are 1 ounce commems selling for $25-30 on EBAY.

Just remember that US silver dollar commemorative coins are not one-ounce coins.

Those struck between 1983 and 2018 weigh 26.73 grams. At 0.900 fine, they include 24.057 grams of silver; this equates to ~0.77 troy ounces of silver.

As I write this, silver spot is $25.12 per ounce. So, a modern commemorative silver dollar has a silver value of ~$19.34 not $25.12.


Collecting history one coin or medal at a time! (c) commems. All rights reserved.
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 Posted 03/24/2021  09:30 am  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply
In February 2020, I picked up comm's for a fellow collector for $14 without packaging. That seems like a world away now.

I got the below for him for under $200 and that included me shipping it to him.


Edited by hfjacinto
03/24/2021 09:41 am
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 Posted 03/24/2021  10:31 am  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply

Quote:
I got the below for him for under $200 and that included me shipping it to him.
Well done!
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