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 Replies: 10 / Views: 1,240 |
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Valued Member
United States
71 Posts |
Do graded classic coins follow the spot silver chart? Specifically for me I am looking at Peace dollars currently. But have not really been it in long enough to know. Is this a good time to buy? Or do they really follow their own line or something that I do not know about. Thanks for your input |
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Moderator
 United States
23522 Posts |
That's a strict function of value in grade. The closer the coin's street value is to melt, the closer that value will track melt. Once your grade value exceeds $100 or so, the coin essentially divorces itself from silver price and owns value because of demand/supply.
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Valued Member
United States
194 Posts |
Interesting question, I've wondered the same myself. I'm pretty new to this and I've been buying up Peace dollars like crazy lately. I used to buy just silver eagles mostly but now I've moved on to classics. I like coins in the AU range due to price, and if they are cheap right now simply because silver is cheap, ill buy even more! Interested to hear more opinions on this.... |
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Bedrock of the Community
United States
11951 Posts |
Depends on the grade.
I would think common date Morgan/Peace dollars in grades
MS 62 or 63 and lower would have prices affected by bigger
swings in silver prices.
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Valued Member
United States
194 Posts |
In reference to Peace dollars, what has surprised me is how little differential there is between say an AU coin and a cull. Its not hard to find a good AU coin on ebay for 23-26 dollars if you look around and bid, but a toasted cull coin will go for 20 bucks minimum all day. Seems kinda weird to me. Not trying to thread jack you OP, just wondering if this has to do with the price of silver possibly. |
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Moderator
United States
23522 Posts |
Look up the staggering production of Peace dollars and all will be clear. They're essentially bullion in circulated condition. Aside keys, of course. |
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Pillar of the Community
United States
7390 Posts |
Rarity first by demand, then condition effects price. a common coin in au will only go so far above spot, maubergine doubleish tops. That same coin in cull grade will go for only a few dollars over spot while key dates or low mintage coins that everyone wants will have a much higher price that is not effected by the swings of its precious metals content
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Pillar of the Community
United States
3343 Posts |
You'll never buy them as cheaply as you should because all dollars carry a premium over other 90%. But they do track bullion unless they're above MS. Not only is Peace mintage high, the slabbing of common dates runs into the hundreds of thousands, so you can get certified coins for small premiums over raw. I like common Peace dollars that are well struck. 1925-P's AU and up. "Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
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Bedrock of the Community
Australia
21786 Posts |
For lower value coins that have a significant proportion of bullion value,
I split the price into two components
a) The current ASW priced against the spot value,
b) the remainder of the value (premium) relative it's grade, making up to the total value of the coin as noted in a current value catalog.
Both components can vary according to the bullion market and the numismatic market. There is a disconnect in the pricing, where the numismatic value component is high.
If a coin is available for sale, I compare the sum total of the components against the price for which the coin is offered.
This system works reasonably well for coins where the numismatic premium is less than say, $50. The system does not work well for coins above a total value of say, $100, or for ancient and medieval coins.
Obviously if the bullion component has a high percentage, the price of the coin closely tracks the current spot price.
Easy access to spot prices via the CCF website is a very useful pricing tool.
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Valued Member
 United States
71 Posts |
Great info, really appreciate the responses and also tyler20c no problems on more questions within the thread. It is great to have a place where questions get answered!
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Pillar of the Community
United States
5854 Posts |
Coins where the bullion value makes up a significant portion will be most affected but even coins where the bullion value is negligible can be affected. A lot of dealers deal in both bullion and classic coins and when the cash flow from their bullion side of the business is good, it makes it easier for them to pay higher prices for your rare coins.
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Replies: 10 / Views: 1,240 |
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Posted 03/15/2015 1:11 pm
