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 Replies: 44 / Views: 4,702 |
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Valued Member
Canada
235 Posts |
I go to various coin shows and shops in the last few months and it seems like EVERYONE is looking for SILVER. I understand why silver is hot for an investment (I hoard it myself when I can) but I worry that all this speculation and silver hoarding is actually taking away interest in the actual coin itself. Its kind of sad. It seems that coin collecting for the beauty of the coin, even if it is just an old copper coin, is falling by the wayside with all this speculation in PM coins. Anyways, just my two (copper-zinc) cents.
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Valued Member
United States
123 Posts |
I agree. It is so common to see remarks after prices such as "$5 over melt." That being said, it seems that silver coins sell for more (per ounce) than say silverware or a silver plate, which is an indication that buyers are appreciating the coins above just their precious metal value.
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Pillar of the Community
Canada
627 Posts |
I wouldn't call it harming it. When I think harmful, I think negativity. There is nothing negative being attributed to coin collecting as a result of the rising metal prices. I would certainly agree that coin collecting has been pushed to the back burner (or even off the table). Almost everything in life is cyclical and right now coin collecting is near the bottom. As been discussed before, this is a good time to pick up some of those key dates or high grade stuff. I've also been picking up some long desired bank notes I've been wanting.
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Pillar of the Community
United States
7840 Posts |
How much of the PM is going into the melting pot?
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Pillar of the Community
Canada
1442 Posts |
Rare coin collecting has taken a huge hit from gold and silver bullion speculation. 95% of money spent on ebay on Canadian coins, goes to bullion. When the bubble pops in second quarter of 2011, some of that money will trickle back into coin collecting. |
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Bedrock of the Community
United States
10045 Posts |
I would think some silver US/Canada/world coins will be made scarcer because high bullion values push these coins to the smelter. While it may have little effect on the quantity of recent BV coins, some of older silver coins may face the smelter too. Down the road, there will be fewer of these coins available to collectors.
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Pillar of the Community
United States
1745 Posts |
I have never heard of a % that actually makes it to the smelter. Does any one know how many US silver coins are melted each year?
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Valued Member
United States
304 Posts |
Quote:
I have never heard of a % that actually makes it to the smelter. Does any one know how many US silver coins are melted each year? Isn't it illegal to melt US currency? Assuming this is the case, anyone with knowledge as to how much of it was occurring would be required to report it to the Feds. |
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Pillar of the Community
United States
1391 Posts |
"...would be required to report it to the Feds." Yes, let me look that number up and give them a call: http://en.wikipedia.org/wiki/The_Melted_Coins Like everybody says, it is only worth what somebody will pay for it. And no, it is not illegal to melt down the old coinage. It is currently illegal to melt down pennies and nickels. But that will probably only last until they change the content of the nickels because they are worried that there will be a coin shortage if people start sending them off. Edited by allranger
08/04/2011 4:04 pm
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Pillar of the Community
United States
619 Posts |
I was in a pawn shop recently when a PM dealer walked in. He was telling the owner that he just melted about 500 Walkers and Franklin halves "because they're not worth keeping". In his defense, he said he does keep the really rare coins... |
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Pillar of the Community
Canada
677 Posts |
The last dealer I talked to said he and his wife spent half the day with scissors cutting up PL sets.
He said with price of silver 9 or 10 bags were going to melt shortly. I almost cry'd.
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Valued Member
Canada
272 Posts |
For what its worth, hang on to any silver coins you can, sometime down the road even the ratty ones will have a collectable value as the melt will make them harder to find.
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Valued Member
 Canada
235 Posts |
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Pillar of the Community
United States
3402 Posts |
With the PM bullion market, as for any commodity, what goes up must come down. Many of these numismatic coins may not have been melted, but surely they've been banged around in bags. Hopefully Numismatics will return to silver and gold coins. Sooner than later.
KK
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Pillar of the Community
Canada
1581 Posts |
> When the bubble pops in second quarter of 2011, some of that money will trickle back into coin collecting.
Aren't we in the Q3 2011?
If you meant the second half, what is the basis for it to pop? None of the factors that pushed it so high are anywhere near being solved. If anything, things have gotten much, much worse. There is nowhere liquid to hide except gold and silver.
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Pillar of the Community
United States
1064 Posts |
I don't believe melting coins (except copper cents?) is illegal, and I've always figured there were two possible advantages to silver (and to some extent, gold) prices rising to the point where coins are melted; (1) my silver coins are worth more, since silver is worth more (2) my silver coins MAY be worth more, since some of it's brethren will be melted, and the universe will shrink. Downside to that is less collectibles for others, which I do not wish for. I've never sold anything, not do I intend to. barring emergency, so kinda moot...
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Replies: 44 / Views: 4,702 |
Posted 08/04/2011 2:23 pm
