This is interesting. I was at a coin shop yesterday where most of the Benjamins were going for about a dollar less than a back-dated SAE ($17-$20 for Benjamins in F+-VF, and $20.50/$21 for SAEs 2014 and older from a tube). I actually like all of them, and my buying practice is simple: What's the best bang for my buck? Okay, not really all that simple once one starts to factor in all the variables. For instance, I can sell this same shop Benjamins for a fair price than a newer SAE that is in MS condition. So, the profit margin is slightly better there when selling Benjamins than SAEs currently. They'll put the screws to you on Morgans in good really good condition, too. They wouldn't even give me an offer on two graded SAEs I took in. One was an 1987 PR69 DCAM and the other a 2008 PF70 DCAM. They claimed there is no market for them. Maybe that's true. Since I haven't sold but 4 coins in the 20+ years I've been collecting off an on, I wouldn't know, except I do know that people buy and sell them on
ebay all the time. However, if I had taken in my 1880-s MS65 Morgan, they would have likely made an offer, as they have nothing on their shelves above an MS63. It would have been a horrible offer, since they wanted to buy 2014 and 2015 Canadian MLs at spot, and offered $17 for the 1921 Morgan, so I imagine that it might fetch an offer from them of $100. lol Of course, I'm just talking about one B&M shop I've visited. I had taken an assortment of gold and silver world and
US coins to test them out, since they claimed they would buy your entire collection, and not cherry-pick. They cherry-picked, I had a good laugh. I left with my coins. I just wanted to go through the process of selling to see what it's like. I also manage my mother's coin collection, and she has quite a few Benjamins and silver half dollars. She wants to have a look around the shops up here since we come from a small town with none. I'm going to take a few of her best-looking Benjamins to that same shop and see how they react, and since I can compare to what they're selling, see if "junk silver" is truly holding its own around here. Obviously won't be selling to those people. But if Benjamins continue to perform well, I won't discourage her from buying them, since she's more familiar with them, and would probably feel more comfortable negotiating a sell than she would with newer rounds.
TBH, I kind of take a German view when it comes to older coins with .90 silver content, which is that first, they should be valued based on content. Condition comes second, and while it can, and should, have an effect on value, though unless a coin is in pristine condition, PM content and market factors should be driving the price. Fiat or not, the PM content should be key, and I see no reason why a person shouldn't receive, at a minimum, a few points over spot for the PM content. That's just me, though.
Since I move back and forth between the US and Germany every few years, I've also begun noticing that I'm having to develop two mentalities towards collecting. My
US coins, with the exception of gold - fractional or otherwise, simply do not perform as well. I'll leave those here and sell them when I'm visiting, I guess, since in two years it looks like I'll be leaving the US for good. This thread offers food for thought for someone like me, though, and perhaps I should pick up some Benjamins when I find a good deal. At worst it seems like a good low-risk investment. If I'm wrong, or you disagree, please let me know. Although I state my opinions...at length...I'm still very much in the learning process. I've always tended to buy bullion when prices are low or I find an auction, virtual or otherwise, where I can pick up bullion at prices between a dollar below spot or a dollar above. With the rare exception of a few graded and ungraded collectible coins, I tend not to deviate from that. As with any other investment, however, I think diversification is a smart move When done wisely. Maybe it wouldn't hurt to have a few hundred dollars invested in some Benjamins or other older US silver.
Thanks for starting the thread. It gives me something to think about and a new angle I hadn't really considered, as my view so far has been rather myopic, and geared towards bullion rounds and bars.
@wmc1982: I am an adjunct and also run a small company that offers various types of language services, or in other words, I don't make a lot of money. I primarily hold silver because it's what I can usually afford. When I do buy gold, I buy fractional. I think you can make you money back, but simply have to be prepared to hold onto it longer and wait for gold to hit the right price. Also have to buy at the right price. That said, I have a 1997 1/4 ounce Krugerrand proof that I get the feeling won't be easy to sell. Fortunately, I picked it up for a very good price several years ago when the price of gold was much lower. But, I question whether I'll ever come close to book value, since it's one of only 1440 proofs from that year, and the few shops I've taken it to to see if there was any interest have looked at me funny because they've not seen one before. You'll probably have better luck and an easier time of making a reasonable profit off a fractional Gold Eagle than some other fractionals. If it's what you can afford, and you're patient, I don't see why you couldn't profit. I've read in a few coin blogs where the authors suggest US fractional gold for people just getting started with gold or are on a budget which makes buying 1 ounce gold coins difficult. Imagine you save and save and just when you want to buy, the price jumps up out of your reach. I'm on a budget, so tend to prefer fractional. I have a few friend who also collect and won't touch anything under an ounce, though. But, they also have the cash which affords them the luxury to have that opinion. I also see it as better than having no gold.
Posted 05/19/2015 7:09 pm
with everything.
