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 Replies: 15 / Views: 1,491 |
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Pillar of the Community
1119 Posts |
with the rise of silver prices, I have started to wonder what the impact is on the book value of silver coins. I have only been doing this for a short time and am yet to learn how the price fluctuations of silver affect the value of coins. does a coin with a book value of say $20 in vg increase at the same rates?  |
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Bedrock of the Community
Australia
21786 Posts |
A calculator is a useful tool to get around this problem.
Have a look at the premium for a silver coin over the silver value in a catalogue Multiply the premium only by the compound inflation over the number years that are applicable.
Add the current silver value to that.
This should give you a rough guide to what the current market price for the coin should be. Check it against the price of a coin that is being offered.
In the end you have to make your decision anyway. At least you have better informed yourself.
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Pillar of the Community
United States
524 Posts |
Just my opinion but it seems a lot of semi keys get eaten up by a rise in silver prices. What had a slight premium a few years ago has basically become a common. This has shown the most in some higher grade coins not having much of a premium over lower grade melt coins.
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Valued Member
United States
264 Posts |
I have been wondering about the impact of silver spot on Numismatic coins myself for awhile now too. A perfect example would be the Australian Kookaburra Silver Coin which is going for bullion prices on ebay when graded lower than MS 69. I snag these up at every opportunity.  |
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Bedrock of the Community
United States
20753 Posts |
Not really sure but I've never really noticed any types of price differences over the years except the normal increase I would expect from just normal inflamatory systems. I do know that Gold coins are now much, much higher that ever before in the past but for some reason I don't see massive increses in Silver coinage the same way. As an example of this I used to always be able to buy standard, everyday, common Mercury dimes for about $1 or less. But that was several years back. Now at almost any ocin show or flea market, those same coins are going for about $3 or less. I really think that would have happened even if Silver would have stayed at about $7/ounce. If for some reason Silver prices drop, I highly doubt those same Mercury dimes will go back to the $1 ranges. |
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Valued Member
United States
306 Posts |
Even with all the coins that have probably been melted in the recent past I would be surprised if it raised the numismatic value of any of them.
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Pillar of the Community
United States
4132 Posts |
It depends on how bad the spot is.  |
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Pillar of the Community
Australia
4411 Posts |
I don't think the numismatic value would increase with silver price much. If it is $20 in VG and the the silver melt value of all coins of that denomination becomes $25 I don't think you would get much extra just because its a key date. If spot stayed at a high price for a long period it might adjust itself though. I have not done research though and this may prove otherwise.
Edited by enworb
02/03/2012 9:10 pm
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Pillar of the Community
Australia
7096 Posts |
The big advantage of a high silver price is that a heap of scarcer coins are offered up for sale to take advantage of the silver price.
I picked up some really nice key and semi key dates when the price went up over $40 for close to melt.
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New Member
United States
3 Posts |
Why are so many people high on Mercs? Are they rare or something? To me, dealing with dimes as 90% is a pain because they are so tiny. I can't understand how they would keep a premium over any 90% coinage.
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Rest in Peace
United States
9104 Posts |
Quote:
does a coin with a book value of say $20 in vg increase at the same rates? No. A coin has three components of value: - face value--what it can be spent for
- PM value--what the refiner will pay
- collector value--"book" price
The value is whichever of these is the highest, not the sum of them. If a Barber half was worth $5 when silver was $10 an ounce, that's its "true" collector value. If you buy one today for $10 thinking you're getting a great price on it for your collection, you're not thinking clearly. Yes, you got a good price vs its PM value, which is the highest of the three at the moment, but if silver drops back to $10, you've got a $5 coin again. If you wouldn't have paid $10 for it back then, that's not its collector value today, either. Today's book value reflects the PM value on most issues. |
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Pillar of the Community
 1119 Posts |
interesting replies and points to ponder.
when spot climbs its time to use the book for buy prices, and vice versa for when spot falls is how I will start looking at it.
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Rest in Peace
United States
9104 Posts |
One year, the Bluebook listed proof sets higher than the RedBook, which came out earlier. |
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Bedrock of the Community
United States
20753 Posts |
Quote:
Why are so many people high on Mercs? Are they rare or something? To me, dealing with dimes as 90% is a pain because they are so tiny. I can't understand how they would keep a premium over any 90% coinage. 1. One of the best designed Obverse side coins we have in the USA 2. Not to bad a Reverse either. 3. Not necessarily rare or even difficult to find but recent enough that most required to complete a set are always available 4. They are small though but still large enough for nice details. 5. No a real lot of varieties to make it a mess in order to complete as with Lincoln Cents or Large Cents. 6. Only from 1916 to 45 so also, not a real lot to worry about as with Quarters, for example. 7. Small enough to easily steal. 8. And they are just pretty too. |
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Valued Member
United States
67 Posts |
@rgathright - why would the Australian Kookaburra go for more than spot? Isn't it just a bullion coin or am I missing something? |
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Rest in Peace
United States
9104 Posts |
Many coins start out as bullion and gain collector value.
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Replies: 15 / Views: 1,491 |
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Posted 02/03/2012 04:57 am
