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 Replies: 53 / Views: 8,807 |
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Pillar of the Community
United States
5855 Posts |
I can certainly understand hoarding junk silver coins you may find in circulation, but is there any advantage to buying junk silver coins unless you can get them at or below spot price?
I don't own a lot of silver, but when I want to buy coins I want to buy the nicest quality I can get simply because they look better (I'm not talking about slabbed investment grade coins here - it just makes me sad to look at a coin that is severely worn or damaged). If I were interested in buying coins simply for their silver value, however, I might as well just buy generic silver bars or rounds since the junk coins are just that -- junk. Maybe I'm a fool for paying a premium for nicer (AU or BU) silver coins, but I just don't see the point in buying worn or damaged silver coins for their silver value.
Can you, in fact, usually buy junk silver for less than spot? If not, what is the appeal? And are they any easier (or harder) to resell later on than silver bullion?
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Valued Member
United States
297 Posts |
I usually buy junk silver in small denominations, and only if I can purchase it at spot or below. I do this as a small method of stacking, but also in case of a SHTF event. The smaller denominations will be easier to trade for things and because they are US coins, their validity does not come much into question as a silver bar or foreign coin would. Whatever your prefered method, I think buying silver is a good thing. |
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Pillar of the Community
United States
1659 Posts |
Personally, I prefer junk 90% silver when I am looking to buy silver. (Not that I don't like bars and rounds of course  ) I like the fact it is easily divisible if I only want to sell part of my holdings. I enjoy searching junk lots for missed goodies. I'm usually able to get it very near spot with a little patience. It has been my experience it is very easy sell. |
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Pillar of the Community
 United States
5855 Posts |
Quote:The smaller denominations will be easier to trade for things and because they are US coins, their validity does not come much into question as a silver bar or foreign coin would. Yes, but wouldn't that be the same for non-silver coins as well? Or are you saying that if the cost of silver ever truly plummeted back down to historic levels ($4-5/oz.) the junk silver coins might have more value than the bullion simply because they would still be legal tender? |
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Valued Member
United States
297 Posts |
I was referring to a possible SHTF event. If I had to trade some silver for food or wood or something, I think a US coin would make the trade easier. The coin is backed by the mint as being 90% silver. A silver bar could be more easily faked, and a foreign coin would be more suspect with an acual silver content maybe not known.
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Pillar of the Community
United States
4132 Posts |
Numismatists should buy "junk" silver coins in preference to bars and rounds to reduce the demand that causes good collectible coins to get melted. They are a widely known weight and fineness, and are an alloy that is used as-is and doesn't need refinement. Privately minted bars and rounds are not necessarily as trustworthy.
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Pillar of the Community
United States
5855 Posts |
Ah, gotcha. Assuming people understand that a pre-1965 coin is 90% silver and can figure out how much pure silver is in each coin, I can see where you're coming from. On the other hand, though, I suppose some people might be more willing to buy bullion because the total amount of silver is stamped right on the coin/bar.
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Pillar of the Community
United States
2424 Posts |
I wouldn't worry about that barryg for a while.
i would ask neighbors, friends, relatives for their change first, then keep hitting up banks to get your silver for BELOW spot.. then I would try here. you can usually get silver here for (+)(-)5-10% depending on the seller.
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Pillar of the Community
United States
4132 Posts |
Quote:
I suppose some people might be more willing to buy bullion because the total amount of silver is stamped right on the coin/bar. I can stamp a weight and fineness on a block of wood, doesn't make it true. |
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Valued Member
United States
302 Posts |
Here is a list of reasons why junk silver is desirable: 1) Easily divisible. 2) Easily recognizable. 3) Standard silver content ignoring wear and tear. 4) Easy to sell. 5) Easy to buy. 6) Little or no premium on the silver content. ASEs, bars, etc. never have all of those qualities although many may have some of them. For example, ask the average man on the street what an ASE is and you will get a blank stare - He does not recognize it as anything of value. And if you are patient, you can find junk silver below spot. I bought some at 18 times face last week when spot was 24 times face. Today spot is 25 times face. I made an instant "paper" profit of hundreds of dollars there. Edited by mmerlinn
10/31/2011 2:28 pm
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Pillar of the Community
United States
667 Posts |
Junk coins were extremely popular when XY2 was coming. People were predicting the breakdown of the economy and everything else. I never understood their point and I still don't. The worse case scenario I cut my ASE into 4 parts making 4 quarters. It was done in the very old days. If you can buy junk silver cheap go for it. Don't expect always be able to sell it for spot price. Some will pay that but most will not. ASE's carry a premium that generally you can get. Personally I like the Maples with their $5 dollar value as a coin. For me the appeal of junk silver is that I always buy under spot. They are circulated don't look that great so who cares how I store them. They are the first sold when silver goes up for me giving me a nice profit. |
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Pillar of the Community
United States
4008 Posts |
Quote:The worse case scenario I cut my ASE into 4 parts making 4 quarters. It was done in the very old days. It sure was, MK. This is where the phrase "a piece of eight" came from. The old Spanish coins in early America were often cut into 8 pieces and used to buy small items. I've seen a 1-oz. silver round that had deep grooves in it in the shape of a "+". These made it easy to use pliers to break the round into four 1/4 oz. pieces. Same idea as cutting coins into smaller pieces but a bit neater and easier to do. |
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Pillar of the Community
United States
3540 Posts |
The major reason for buying silver coinage, the buyer/seller does not have to worry about the content of silver in the generic rounds.
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Bedrock of the Community
Australia
21788 Posts |
I have about 9 ounces ASW junk silver. It has been partially accumulated and partially bought as part of other lots of coins on spec.
I guess that makes me a small time speculator. Average price of purchase would have been around $8 per ounce, but I have not sold any. No great motivation to do so. Perhaps I may buy some decent coin with an exchange some day.
To me, old coins seem to be more interesting than newly manufactured bullion.
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Pillar of the Community
Australia
7096 Posts |
I like to get small lots of "junk" Silver, That way I can noodle through them and pick out the better coins. The rest I keep ( I hate the idea of melting pre decimal coins). Some of the coins I keep are worn but most of them are in good shape but are common dates. Due to the low mintages of Aussie pre decimals these tend to become more valuable over time. If I am wrong about this they still have their intrinsic value for their silver content. A win win situation I think |
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Valued Member
United States
187 Posts |
I agree with you barryg, about buying higher grade coins for your collection instead of several poor quality coins for the silver. I can see it if someone were to collect junk silver and sell it for a profit, buy why hoard it in a closet and never sell? From some of the posts I have read, some are doing that. What is that going to do for you if you never sell?
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Replies: 53 / Views: 8,807 |
Posted 10/31/2011 10:35 am
