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 Replies: 19 / Views: 5,573 |
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Pillar of the Community
United States
2424 Posts |
Ok so a lot of talk here lately about PM prices and investment strategies... so my question or questions if not already asked here once or twice before: Since the price of silver is rising, I have some money to spend. I know there are different types of silver: bullion, 90%, high grade MS coins with numismatic value, low mintage coins. I have narrowed my options to high grade MS+ coins, quarters, Franklin halves, dimes, commemorative coins that still have more numismatic value than silver value. So is it safe to assume that purchasing those MS+ coins will hold if not increase more than a bullion coin? For example a BU/MS 1955 Franklin would be worth around, what, $20-50? I dont feel as comfortable buying 10oz of ASE's at $35 each when the price of silver may fluctuate over time and if silver gets below that over time, which it MIGHT... or buy high grade lower mintage coins that will hold their value and increase more numismatically... So how does the value of those coins flucuate when silver is on the rise? Will a coins that is MS65 worth $40 be worth less when the price of silver hits $40 becuase its numismatic value is the same as the spot value? or will the numismatic value also rise slightly? Any or all help here is needed greatly! I want to make the smartest investment and also be able to add some coins to my collection at the same time...i know, two different palying fields but I two can be done at once. I hope I made sense... thanks |
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Valued Member
United States
463 Posts |
I personally like the 1955p franklins as I feel they are so undervalued, being the key of the circulated series it seems funny bu and up can be had for 15-20 dollars. One day I think they may have value so I have three rolls of bu and unc for the future. Another thing to consider is as silver continue to rise more and more people will continue to melt silver coins and make them into .999 bars and rounds which may make some common coins one day be rarer as who wants a 1959 quarter now. I personally dont like .999 bullion as it really doesn't have any history behind it plus I like to play in two markets and thats why I sold all my ASE when silver was at 27 for 2-3 dollars over spot and bought a whole bunch of 90% with the proceeds. The more silver goes up and goes across numismatic value I would assume price would follow suit on certain series such as morgans but most others wont imo. If I didnt put all my money into 90% after I sold the eagles, I would of bought a few more rolls of the 2011 silver wolves as there the only bullion coin that I liked and saw potential in them with 1 million mintage. I'm still buying and selling but I'm in it for the long hold still especially the rolls of morgans as they always will have value regardless of silver prices |
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Pillar of the Community
United States
7191 Posts |
With the spot price of silver rising I have found the common dates in MS or Proof are easily snached up at or near spot. I would, and have purchaced many modern commemerotives, and franklins of quality that are being sold. Great raw coins are being sold for near silver value and the prices for quality will increase with stabilasition of the bulion market.
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Bedrock of the Community
Australia
21786 Posts |
Really, you are looking at two different markets:
The numismatic market and
The bullion market.
Obvoiusly, there must be some connection between the two as a result of the bullion content.
I am a coin collector, and I couldn't really care what the bullion value of my low value silver coins are.
From the comments about bullion prices over recent months, I get the impression that those who hoard silver are really having a bit of an investment gamble. That's OK, I guess that there is at least a bit of a gambling instinct in all of us. Just don't spend beyond your means. That applies irrespective of the fact that is either bullion or numismatic investment. (or both together).
I bought a 1oz. platinum bullion Koala back in 1996. It is the only bullion coin I have owned. I still have it.
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Pillar of the Community
 United States
2424 Posts |
No offense, but I still dont feel my questions were answered.
i collect coins. not so much into the investment of it.
but if you HAD to CHOOSE some silver, which, and explain why, types of silver would be a better investment for that coin to appreciate and its value hold firm against a very volatile silver market?
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Valued Member
Canada
442 Posts |
I think in the end, silver is silver. Whatever you paid above spot is going to just be passed down to whoever you sell it to. I'm fairly new to coin collecting and I still don't understand how some coins have more numismatic value than others. Example, the 1999 silver proof set. So I guess what I'm trying to say is that IMO the metal value will always come first before the numismatic value(unless you have something really rare), and would not consider numismatic items as an "investment".
If I had to chose? I actually have a bit of everything. Bullion bars I bought at spot. Pandas and lunar coins I bought at a much higher premium, although I believe its due more to supply and demand rather than Numis. I even have a 5 1oz WWII set from perth that I paid almost 65/oz for. I guess it really depends how much others would want to buy my silver for.
Dunno if that answered your question
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Bedrock of the Community
United States
14454 Posts |
the numismatic silver is not really considered investment silver. I would never buy a coin as an investment even though you can make money on coins at times, it just isn't a good investment vehicle in my opinion. You pay a premium for numismatic items so you could possibly get quite a few ounces of silver in other forms for what you are paying for a coin. The other form of silver will never carry a numismatic premium but will always be worth what ever the silver is worth which sometimes thats all the coins are worth no matter how much of a premium you paid
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Pillar of the Community
United States
2424 Posts |
i understand that there will always be the two separate markets. I understand that buying numismatic coins as investments probably isn't the best vehicle to do so. but lets say for example you did buy collectible numismatic coins for coin collecting and the silver market rose sharply. would those numismatic premiums follow suite with the price of silver? and likewise with a sharp decline in silver, would the numismatic premiums fall drastically with it as well?
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Valued Member
United States
310 Posts |
I don't know, I bought 7 roosies I needed to finish off a silver set this weekend below spot. They weren't real junk either. If you buy an ingot, bar, ASE, or key coins you'll pay a premium to spot. I think if you're just investing in silver, the unpopular coins, or junk silver would be the cheapest way to acquire it. You could buy mid rares for a premium and speculate on numismatic value, but since the numismatic value of mid rares haven't really changed, I see them pretty much following spot. IE, I don't see their numismatic value changing much, but their intrinsic value will change along with spot. If you just want silver, I'd buy junk silver. If you're collecting coins, I think you take more risk of silver dropping. A 1955 P Franklin may be $15-20 now, but if silver falls back to say $15 an once, that 1955-P will probably fall back to $9-12. Only wild card is melting and demand. I know a lot of dealers are just melting their junk silver, so things are becoming rarer. How many dealers are melting 1955-P's? would they consider them junk? I think if it's already a mid rare, they may stash those, but there are other dates that could become mid rares because of the melting that's happening now. |
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Pillar of the Community
United States
3592 Posts |
SDCoinguy, I see what you are asking  ...but to answer your question I think you should try to find a 1 year bar chart of say PCGS prices of MS65 silver dollars and compare to silver prices for the same time period.Easy enough and now that I've said it, maybe somebody has that info ? |
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Valued Member
United States
341 Posts |
SD, I have also wondered the same. I think if and when silver drops, values will also but not right away. Right now silver is high people have the fever. Once it drops I think it will take 3 to 6 months before junk silver comes down.
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Pillar of the Community
United States
511 Posts |
Junk silver is definitely the way to go today. The premiums and spreads are incredibly low, it's far more divisible than rounds and bars, and (based on past performance) the premiums are very capable of rising in the future.
I'm a picky buyer of pre-1965, so I try to cherrypick Merc dimes and decent-looking Franklins and Walkers. It fills the collecting urge at bullion prices.
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Valued Member
India
265 Posts |
invest in silver coins which have more silver content. Probably they would fetch more money in later years. Also look out for rarity and unique pieces for your collection.
warm wishes.
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Pillar of the Community
United States
2424 Posts |
we are getting warmer with the answers. main man is the closest right now to reading my mind.
that is what I am after. for example about 2 months ago, around christmas time I went in with 100 bucks or so to the coin shop looking to buy the highest grade franklins I could for my set... I spent around $15-20 for common franklins. even $30 for a 48 or 49. I forget. the dealer told me "i havent had to change those prices in months. heck they looked like they had sat there for 6 months; I mean I see them everytime I walk in. all the coins I bought looked around MS63/64. he even let a slabbed MS64 go for $20, I think it was a 62-d...anyway. at that time silver was jumping also but the prices of ms64+ coins did not seem to be affected.
what I am getting at with all of this is that I want to get the most with my money and get the highest quality grade possible and not have to worry about what silver is doing to the price of that particular coin. so if I went out and bought a MS65 FBL 48-s, chances are I would pay a nice premium, but my point is that premium would stay that way even if silver rose or fell. get it? I would totally go buy junk if it was just for investment sake. but I want to collect and add to my MS collection.
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Pillar of the Community
United States
3670 Posts |
I am novice at this as I often mention first, and probably not knowledgeable enough to give you the answers you seek, but I can tell you what I like.... 1.It needs to be sought after. For example if I see a good silver 1 oz comm coin set for a long time at a good price, I loose interest, even if I like the item in question.... 2. You can't go wrong in my novice opinion again, in the Australian lunar silver. It seems so sought after, and it takes twelve years to complete a set like 1999 through 2010. I think anything with a nice complete set factor (the work is already done by me, you to enjoy) is attractive to buyers. Again I buy an sell on ebay, and DO I NOT get emotionally attached to items, as really none of us own anything in this world, we are just renting space an items for a period of time. For example I bought the king of the set in most opinions, the 2000 Dragon coin for 91 total, and saw another setting at 150 recently with days to go, ungraded. I put many of the lunar coins of various sizes gold and silver in research with hope to buy, and they are bought within two days generally if not priced ridiculously.... 3. History or important people will always be sought after, presidents, world war II images, planes from world war II, famous people like Elvis, you name it, there is a collector angle, doubled edged being sliver, an the image on coin, like Disney mouse, tons of Disney collectors.... Now then, would it be correct to say that I am collecting bullion coins, not numismatic coins thus far? That sounds like dumb question I am sure, but again I am just trying to understand much, and there is much to learn. Being all that I have bought is a replica, and I bought mainly for the pure silver content, and secondly for the image or minting.... I have looked at gold coins from Belgium in 1915 for example, real graded coin, the numbering system up to 70, I suppose that being mint, usually with ware in most cases. Would this be considered the numismatic side? |
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Pillar of the Community
United States
3184 Posts |
You do know that you can get bu or proof 90% coins for melt nowadays that silver is so high right? Search around you can find them!
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Replies: 19 / Views: 5,573 |
Posted 02/22/2011 04:53 am
