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 Replies: 20 / Views: 3,852 |
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New Member
United States
4 Posts |
*** Moved by Staff to a more appropriate forum. ***I am new to this forum and collecting. I am mainly in this for investment purposes instead of collecting specific coins. I am wondering what is better silver rounds or Franklin half dollars. I got a quote on 345 brilliant uncurculated Franklin half dollars for 5,000$ This is 14.50 a coin. I just wondering if this is a good price with spot at 33.77. I know I can get a few more rounds for this money but which is better.
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Moderator
 United States
14463 Posts |
If spot silver is at $33.77 per ounce, a Franklin half contains $12.22 worth of silver. Your 345 Franklin Halfs contain $4214 of silver. $14.50 per coin means almost 18.6% premium above spot, or buying silver for $40.07 per ounce. I think the premium on silver rounds might be less. Edited by Fuzzy317
01/28/2012 03:05 am
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New Member
 United States
4 Posts |
As I am new at this that's what I don't know is the premiums. Is an 18.6 premium over spot considered high for this coin? It seems alot of online dealers are higher than this but it didn't look like ebay was getting these premiums. |
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Pillar of the Community
United States
817 Posts |
I don't like silver rounds, many people do.
With silver coinage you know exactly what you have.
With silver rounds a lot of them one has no idea where they came from.
I think Silver Eagles or coin silver are the best bet, but don't over pay.
One or two dollars over $1 face value is a good way to buy.
So with Fuzzys numbers $1 face would be $24.44 so $25.5 to $26.50 would be reasonable.
BU coins would carry a higher preium. What that is would be up to you.
Always better to buy at or under spot if you can.
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Pillar of the Community
United States
2424 Posts |
i share the same sentiment as vegas larry.
if I had $5000, I would buy up the BU franklins. for 2 reasons.
1. 90% silver coins that are BU do carry more premiums.
2. in my opinion, most franklins, for example '63, were melted down in the height of the silver boom in the 80's. In 15 years you are better off with 90%. because then if silver tanks, you still have half dollars worth face value, so you didnt short yourself completely
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Pillar of the Community
United States
6394 Posts |
Kinda depends on dates and actual condition, I think. Generic 90% silver halves are running about $13 now at retail and that price will immediately jump if silver prices rise. Silver content of each coin is worth about $12.21 at the spot price of $33.77 per ounce. If those Franklins are really uncirculated coins without any cleaning or problems then $14.50 each could be a good deal, even though you will be paying about $40/ounce for the silver. If any better dates like 1955, 1953, or 1949-S are included then it becomes potentially an excellent deal. Do you have any more details about the specific coins in the lot?
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Bedrock of the Community
United States
20753 Posts |
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Valued Member
United States
318 Posts |
You got that right, Carl. It would work for me because I would think there is more where that came from.
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Pillar of the Community
Australia
7096 Posts |
Quote:
As to your problem. Forget ever using coins or Silver or Gold or such item for an investment. Use your spare money to buy a Ferrari and go pick up girls with it.
I only have a Hilux that's probably why I collect coins instead of wimmen  Besides how would you fit a tow bar on a ferrari to launch the boat  |
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Valued Member
United States
197 Posts |
I'd stick with with Franklins too. Sure you pay a premium over spot, but you can also ask for a premium when you sell. Also, coins are safer. Someone who sells a fake silver round has a problem with the buyer; someone who sells a fake U.S. coin has a problem with the Dept. of the Treasury.
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Pillar of the Community
United States
4008 Posts |
Quote:
someone who sells a fake U.S. coin has a problem with the Dept. of the Treasury. And problems like that are best avoided! I've used a similar tactic on people who may be running a scam. I try to pay them with a US Postal Money Order. Honest folks tend to like these. If they balk at that, it is likely that they are up to something and don't want to get tangled up in a USPO investigation of their activities. |
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New Member
United States
4 Posts |
Thanks everyone for your responses. It has been great help to me. The following is what I ended up with. This of course was spot at 33.77. The total price was 4,750 dollars.
200- Circulated Franklins at 12.50 a coin- .24 over melt
167- Brilliant Uncirculated Franklins at 13.50 a coin- 1.24 over melt
I was able to talk the guy down a dollar on the BU's which made me feel better. I didn't want to go with all BU's as it doesn't really matter to me and I wanted the lowest premium possible with the most Ounces of Silver. I went with both in case some day there is a drastic premium on BU's. Also for the slight chance of a survival situation nobody is going to give me more bread because my coins are BU. They won't care and the premium won't help there.
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Valued Member
United States
361 Posts |
Tony, I would say you did quite well.
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Pillar of the Community
United States
2168 Posts |
Yes I too would buy Franklins. You did well. I am lucky that I have a local dealer that charges 3percent over spot for junk silver. The rounds are fine but the Franklins are easily recognizable and smaller silver value if things go bad with our fiat $ and silver is used again for currency. Even if that doesn't happen utah has already passed a law on using PM as currency as well as quite a few others are seriously considering doing sO
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Valued Member
United States
172 Posts |
Sounds like you are concerned about the collapse of the dollar. I cannot fault you for thinking that, since we use paper money (or an image of paper money, numbers transmitted to ATMS...think about it, because you know a pin number you buy stuff or get cash from any bank machine!)....
So what will be made illegal first? Legal tender coins issued by the US Mint...or Silver Bullion? I am no lawyer or judge, but would have to say Franklins have more numismatic value...since they are not merely one troy oz, (or slightly less than 1/2 oz in the case of Franklins) but are more durable in terms of possible negative socio-political-economic trends...hope that makes sense.....
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Valued Member
United States
172 Posts |
By the way, this reminds me of the guy who paid his employees 20 times less than they were worth...but paid them face value in 90% silver coins...on paper they earned so little their tax bracket was lower since they were earning 1/20th of what they should! So, instead of $40k per year, they were earning $10k per year, right?
So, if the gov't invents pesky rules about how much cash you can carry, why not carry silver halfs?
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Replies: 20 / Views: 3,852 |
Posted 01/28/2012 02:53 am
