| Author |
 Replies: 26 / Views: 9,350 |
|
|
|
Valued Member
United States
466 Posts |
I try and buy silver coins when silver is low. Of course since I have the means right now I am jumping all over silver. The thing is that it is an investment. I have something that will be worth something and something that I feel I can't lose money on. I don't have that much extra silver as I trade it off for other silver coins. I try and complete sets at melt. It is difficult, but rather fun when it works out. A kind person became my helper on here and I managed to get all but the key and semi key Mercury dimes, and guess what? The grades aren't terrible. I traded him silver roosies which I found in roll hunting. He was holding his coins for an investment. They had the same value if they were mercs or roosies so he helped me out. I am very grateful to this member. He still has his melt value, and I have my set at what melt value was for me. No loss, just different coins. Do I ever plan on selling any of my coins you may ask? Well, I never have sold a coin at this point in my life, only traded. If I need money, I know I can sell off what I have even if for nothing else but around what spot is at that time. I really like the hobby aspect of coin collecting. The fall back plan just makes it really nice. I could collect comic books for example, but if I got in a tight spot with money would I be able to sell average comic books away at what I bought them for or a premium? (I say average comic books because I have average silver coins) I might, but they might be harder to sell. It seems to me that coin collecting, especially when it comes to silver pieces is a bank account for me. I figure that since I am not earning any interest in the bank I might as well invest in something I doubt I can lose on and have fun collecting all along the way. As of right now I have running sets of the following silver coins that I am working on, or done with -JFK half dollars (64-70D) done -Jefferson nickels ( War Nickels) missing 42P, 43D -roosevelt dimes (1946-1964) missing 49S and now starting my second dansco! -mercury dimes (1916-1945) missing 1916d,1917,1921, 1921D,1926S -washington quarters (1932-1964) missing 57 different dates but I have a mixed roll of earlier dates I just purchased on the way. I will trade the doubles for stuff I still need, silver value for silver value. -I am now just starting Walking Liberty halves I have 20 different dates, 12 are on there way from deals with CCF members -I am now going to start trying to get together as many lower grade Barber coins as possible in all denominations, Why not, melt is low and hey I love working on sets! |
|
Valued Member
United States
318 Posts |
In my mind, when someone speaks of buying coins at or below melt, I automatically think of junk coins with worn out dates or really bad grades. And I also think that they just want to have silver coins in hopes of turning a profit one day.
I used to work at a jewelry store and we bought and sold gold and silver jewelry and bullion by the ounce. Most of what we bought back from customers were broken chains, bent items, parts and pieces, tangled messes, etc. - you get the picture. We did not care what it was - it was bought by weight anyway. It was all going to be sent off to get melted. Our prices that we SOLD and BOUGHT at were directly tied to that days spot price.
As previous posts stated, you have to have the volume to get the best price when all this stuff gets turned in. After enough weight was collected, then packaged for shipping and sent to the refinery.........I am sure some money was made, but how much I dont think the owner knew because of the fluctuating prices during the time he was collecting all the gold and silver.
I think most individuals are just "hoarding" the intended "future melt" silver they have and nothing will ever be done with it. Reason: By the time they actually bring it somewhere to sell off they are not going to get anything close to what they thought. Unless of course, silver skyrockets and there is a bigger "spread" for them between their buy and sell prices.
This is how my mind works.
|
|
Bedrock of the Community
United States
10635 Posts |
Quote:
I am a coin collector not a coin recycler Well said.  |
|
Bedrock of the Community
United States
20753 Posts |
Quote:
this may sound like a controversial or inflammatory topic but that is not my goal. I read fairly regularly folks willing to sell their silver for less than melt here on the forum. I ask myself why would they do that? As to the original question. Why not. Members here are basically, naturally not all, coin collectors. Being a coin collector I would rather just give another collector a coin, Silver or not, rather than sell to them. And I have given away many coins in the past. Just one of the many little things about being a coin collector. |
|
Moderator
 United States
188560 Posts |
I have never sold a coin, which includes "junk" silver (bulk, bullion, melt, etc.). I have, however, traded my that silver with a local coin dealer for coins that I needed for my collection.
|
|
Valued Member
United States
318 Posts |
The market is where people are actually willing to buy and sell. The quoted price is what hedge funds, pension funds, and gov't buyers are trading train car full quantities at. This gives you and me a grounding for value, but local prices will always vary.
Would you drive 20 miles to save a nickel a gallon on fuel? If I were a trucker with thousand gallon saddle tanks on my semi I needed to fill twice a week, sure. When I buy twenty gallons every other week, no way.
|
|
Pillar of the Community
United States
3283 Posts |
And then of course there is speculation.
If silver prices are perceived as going up people will buy over spot.
When silver was briefly at $50 I had no interest in "junk" coins at the time, although a lot of people were unloading
and buyers were available. I guess lots of folks lost money, but only if they sell. I've been in that position, waiting for
an investment gone sour to get back up there to break even and it doesn't always happen' but I digress..
|
|
Valued Member
Virgin Islands (U.S.)
68 Posts |
Two thoughts here: 1) Even if you sent a silver coun to a refiner to be paid on the silver content, they would pay you a percentage (the one I use pays 90%) of the spot value of silver at the time the coins were received. 2) Coin dealers only pay wholesale prices, so it's not unreasonable to expect a private collector to do likewise, thereby paying less than melt. And really, at the end of the day, the only *true* value of any coin -- no matter how pristine or trashed it is -- is its precious metal content and whatever the spot price of that metal is at the time. "Collector value" is merely relative and subjective.
|
|
Pillar of the Community
United States
2637 Posts |
Ironic to see this thread revived, as my LCS is offering $20 for each $1 of pre-65 US silver. Spot is $18.8.
|
|
CCF Master Historian of USA Commemoratives
United States
12277 Posts |
Quote:
the only *true* value of any coin -- no matter how pristine or trashed it is -- is its precious metal content and whatever the spot price of that metal is at the time. "Collector value" is merely relative and subjective. I completely disagree. "Collector value" is not something that can just be waved away as "subjective" and therefore irrelevant! The value of many coins goes well beyond the coin's intrinsic value and fluctuations in the spot prices of the precious metal(s) it contains has little to do with its market value. For example, whether silver spot is $15 an ounce or $50, an 1893-S Morgan dollar in properly-graded AU condition is still going to be worth north of $20,000. Higher-graded examples become six-figure coins! Their price has absolutely nothing to do with the spot price of silver - it's about supply and collector demand. Yes, this is an extreme example, but it is repeated over and over among coins of lower collector value as well. Collecting history one coin or medal at a time! (c) commems. All rights reserved.
|
|
Moderator
United States
188560 Posts |
Quote:
"Collector value" is not something that can just be waved away as "subjective" and therefore irrelevant! I can see how a coin can maintain a premium above melt if enough people fearing its population can shrink with examples being melted by the uneducated. |
| |
Replies: 26 / Views: 9,350 |
First Page
Posted 01/05/2012 01:06 am
