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 Replies: 16 / Views: 3,042 |
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Pillar of the Community
United States
1370 Posts |
Ok I am posting this for my business partner. He has roughly 15k in silver rounds he is considering liquidating them and purchasing some old gold (st gaudens or liberty double eagles). I made the suggestion of considering old morgans or Peace dollars that could be picked up close to melt. He is looking at this as more of an investment than anything, he likes old coins but is not a collector. What would you do in this situation? |
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Pillar of the Community
United States
2077 Posts |
I wouldn't give investment advice, but the value of any gold or silver coin that is common and lower grade or has problems will be influenced more by commodity market than the coin market.
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Pillar of the Community
United States
3184 Posts |
only buy what you like. I dont mind losing money and getting something I enjoy more. Also diversify !
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Pillar of the Community
United States
759 Posts |
Skip the exchange into Morgan or Peace dollars. Why incur the transaction costs and probably end up with less silver in the end, especially when what you're left holding you have little collector interest in? Not a bad idea to diversify though, so I'd say he should start with about a third and maybe target a move into 3 Saints or Libertys. Also, give this a try as a trade at a dealer or coin show as their ASE profit margins may mean he gives up one or two ASEs less for each $20 gold. He could then repeat the process if he's happy. All just IMO. edit: I assumed his rounds are ASEs. Even if not, I'd still go with the same general idea. Edited by OneBowl
07/13/2012 1:48 pm
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Bedrock of the Community
United States
36745 Posts |
Giving investment advice always gets you in trouble. All you can do is recommend what you would do if it was your silver.
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Bedrock of the Community
13014 Posts |
Theres never any sure bet, but I agree theres no point in transferring the silver into other coins whose only real value is there silver.
Buying some gold would be one way to diversify.
The other option would be to put it into some real valuable coins. Their value may not rise much if at all but if hes worried about silver going down and losing a lot of money true collector coins will hold their price much better if silver does crash.
Nothings a sure thing though.
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Bedrock of the Community
United States
20753 Posts |
Investment advise is really simple. All you have to do is say attempt to sell any of whatever your thinking about as an investment. No you don't have to really sell or buy anything. Just pretend you purchased a pile of dirt. Where could you sell it and for how much and to whom. Same with any coins. So you have a bunch of Silver Coins and need cash. Where could you sell them? At what loss or gain? How long would it take you to do that? In other words just sit down and say regardless of what I have my money in, how fast can I get cash for that? Would I loose or gain? What would it cost me to get rid of it all? Where would I have to go to get rid of it all? AND you just might find that the Dirt is the easiest stuff to get rid of fast. No profit but easy to get rid of.  |
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Pillar of the Community
United States
3540 Posts |
Personally, I would do nothing. Your biz partner is just trying to convert. He will pay something to convert. As indicated by another poster, try to minimize the loss.
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Pillar of the Community
 United States
1370 Posts |
Yes I agree with the sitting on the silver thing as I believe silver will outperform gold.....my business partner reads too much....if that makes sense....one says buy silver, the other says buy gold. He's one of the few that has taken a bath in the gold commodity's over the last 2 years.....listening to the wrong people and buying the wrong stuff. If it were me personally I'd say take the 15k and build a Morgan dollar set, however he does not see the investment in purchasing an 1893-S morgan or any other silver coinage that has a significant premium over melt. The last thing I told him today was I believed he should just sit on the silver and if he wants some gold take 10 - 20k and buy some gold. |
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Bedrock of the Community
Australia
21788 Posts |
Does your buiness partner have a strong feeling that the silver price is going to trend lower, or is he just looking for a slightly differnt area to invest in?
The previous posts in this thread are all good re conversion costs. It may be better to just diversify into other areas that interest him.
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Bedrock of the Community
13014 Posts |
Quote:Yes I agree with the sitting on the silver thing as I believe silver will outperform gold.....my business partner reads too much....if that makes sense....one says buy silver, the other says buy gold. He's one of the few that has taken a bath in the gold commodity's over the last 2 years.....listening to the wrong people and buying the wrong stuff. If it were me personally I'd say take the 15k and build a Morgan dollar set, however he does not see the investment in purchasing an 1893-S morgan or any other silver coinage that has a significant premium over melt. The last thing I told him today was I believed he should just sit on the silver and if he wants some gold take 10 - 20k and buy some gold.  Personally I think well see both gold and silver come down again before it spiked if its going too or at the very least in the next couple years where you could really load up then, gold just has to much to lose for my personal tastes right now. Gold going to absolutely flood the market too if we see it start sliding back down towards 1000 would be my guess as well. No one wants to lose all their money if they bought high, and the people that had it low will probably want to protect potential profit. I didnt have any gold but if I did I would have sold it all when it hit 2k an ounce |
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Bedrock of the Community
Australia
21788 Posts |
If you are going into rare coins, just make sure that you research EACH item for authenticity, condition and rarity against the price.
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Bedrock of the Community
United States
17884 Posts |
So where do RARE coins fit into this? :) Quote:
however he does not see the investment in purchasing an 1893-S morgan or any other silver coinage that has a significant premium over melt. In that case just leave him in bullion. It isn't worth the losses/expense of converting him from bullion into basically another form of bullion, and one that has a higher price spread. If he can't see an advantage to other gold and silver coins that have a significant premium over melt you probably won't be able to convince him, or if you do he will end up buying stuff with no understanding of what he is buying and he will lose even more. It takes real knowledge and understanding of coins and grading to successfully invest in coins. Going on someone else's recommendations isn't investing, it's gambling. If he really wants to diversify into older coins or bulk dollars just do it with new money and not by reducing the value of what you already have. The only real reason to get out of the silver bullion he already has is if he thinks that silver is going to drop. And if he believe that then bulk dollars would not be a good choice because they will fall with silver as well. Edited by Conder101
07/17/2012 10:15 am
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Pillar of the Community
United States
863 Posts |
just keep the silver and slowely buy some gold coins. now is not really a time to sell if you dont have to
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Pillar of the Community
United States
613 Posts |
I believe the man should invest in something he understands and has a comfort factor for, which does not seem to be the case with numismatic coins or the gold market.
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Pillar of the Community
United States
1370 Posts |
@billymac11 .....I couldn't agree more haha.
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Replies: 16 / Views: 3,042 |
Posted 07/13/2012 1:35 pm
