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 Replies: 9 / Views: 1,846 |
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Valued Member
United States
53 Posts |
I've seen people complain that the prices of silver coins and gold coins have not dropped as rapidly as the metal content of the coins. This slow decline has been attributed to the numismatic premium.
What do you think will happen to the prices when/if gold/silver rebound?
Will the numismatic premium over metal stay steady?
Example:
Silver dollar with $23 silver content selling at $35 due to numismatic premium.
If silver jumps to $50, will the new price of the coin
a.) match the $50 metal content
b.) keep premium of $12 over spot so increase to $62
c.) have an increased premium over spot so maybe $75?
Obviously this is pure speculation, but would do you think might happen?
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Pillar of the Community
United States
4901 Posts |
The numismatic premium of common coins usually shrinks as the intrinsic value increases but, dependent on grade, will always have some premium over the base metal
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Bedrock of the Community
13014 Posts |
Theres a fine line of how much people are willing to pay for things. Common coins will lose all their numismatic premium like weve seen with gold coins. Its one thing to pay 35 for a common morgan another to pay twice that
The rarer coins keep their premiums but their value is generally way over spot anyway and their price isn't affected unless where talking never before seen metal jumps.
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Pillar of the Community
United States
2311 Posts |
Quote:
The rarer coins keep their premiums This is VERY true. Common coins will drop in value. Perhaps, the 1/10 ouch gold coins will drop in value no matter what grade. Unless they're a key date. |
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Valued Member
 United States
53 Posts |
I'm just trying to find a way to justify the hobby as an investment. It seems like quality rare coins may be the safest bet. Unless I buy a ton of silver or gold and the price happens to skyrocket.
The quality rare route would at least still feel like a hobby.
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Bedrock of the Community
13014 Posts |
Quality coins and numismatic coins give you by far the most protection from the price of silver. Quality coins always seem to have a market as well. For instance key dates lose less value in down markets than common ones.
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Pillar of the Community
United States
2734 Posts |
Silver peaked at $49/oz. around April 2011, and at that point numismatic premiums had been obliterated on many common-date silver coins, such as Proof ASE's and 1940's Walking Libertys/Mercurys. Numismaster (March 2011) Scarcity Premiums Drop as Silver Soars $60/oz. silver, I have two AG-3 Carson City Morgans that would be "melt value", at least at what I paid for them. Edited by DNA
05/27/2013 01:26 am
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Pillar of the Community
United States
5205 Posts |
What is a coin worth? The only true market value is what is a buyer willing to pay. What is the most up to date price of said formula? ebayPhysical silver is still trading at $32+ oz while paper silver is at $22 oz. Buyer ignorance or buyer insight? |
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Bedrock of the Community
13014 Posts |
ebay is great for buying a lot of things and I love it, but it is the worst place to buy bullion
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Pillar of the Community
United States
4901 Posts |
Re: ebay and physical vs paper silver ($22.39) Provident metals 10 ounce silver bar: $236.90 ebay 10 ounce silver bar: $262, $288, $274 (last 3 sales yesterday) |
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Replies: 9 / Views: 1,846 |
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Posted 05/26/2013 3:28 pm
