Bullion Vs Numismatic Value

So is there a price point when you basically say the small premium (several dollars or so) isn't worth the cost associated with selling e.g. ebay, craigs list etc.. vs just selling at bullion price?

Of course if you as a private seller go to your LCS and want to sell common Morgans in good condition you probably will get their bullion value since the LCS owner or the dealer has to make some profit. For you to really make a decent profit on a silver or gold coin either you have to hold them a long time or the price of the metal has to really increase unless you have your own ebay store. If silver bullion price goes from $18 an ounce to make decent money the price probably has to go up 25% for you to make money given transaction costs. This is just my opinion. This is why I think of precious metals as insurance rather than an investment. Consider that your bullion pays no dividends or interest and you usually have to pay to store it. I see where major investment gurus say PM's have no place in modern investment portfolio, but I can see that just as an insurance policy against hyperinflation or economic disaster I would like some gold and silver and plenty of guns and ammo to defend it. Send lawyers, guns and money, but you need money to get the other two. If you could buy silver eagles for a couple of bucks over spot and the price of silver went up 800% due to some disaster then it would be good to have those silver or gold coins in your safe. Before the disaster buy the AR-15 or AK47 and lots of ammo because you will probably need it. Have maximum protected FDIC in a few bank accounts as well and some 30 year bonds. Now I sound like survivalist. I have been watching too many of these "end of the world" movies like "The Way We Live Now". That one really got to me. Have you noticed that the general view of America is that if we had huge disaster every one would revert to dog eat dog and all civilized behavior would go out the window in two weeks?

Crazy, let me know if you want me to pick some up for you at the $20 place. (I'll have to call them tomorrow since silver was a touch lower last time.) It gives me an excuse to lay all of them out on the counter and snap a picture so I can get home and look for desirable dates since I don't know jack about Morgans/Peace dollars. "Of course, sir. I'm taking a picture for a friend who's looking to fill holes in an album."

The second place had a slabbed details coin in the same area as his junk. I didn't ask for price on that specific coin, but I was tempted -- it was an 1880-O ANACS MS60 details that had been polished to heck. I wasn't sure I could even make it look good if I turned it into a pocket piece so I let it be. Did I miss a good deal? PCGS price guide suggests yes, but ebay sold listings suggests no.

Morgan and Peace dollars will almost always sell for a premium over bullion value. Keep in mind that these coins start out with about 0.77 ounces of silver content so at a silver spot price of $18 the bullion value is only (0.77)x($18) = $13.86. Worn coins contain even less silver. Nevertheless, you probably won't find any for less than maybe $20 unless they are really mutilated.

Terry, your last sentence is a good question, one that I ponder as well.