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z28jd
09-30-2011, 03:44 PM
Hoping for some advice from people who know what they're doing. Assuming you had a coin collection filled with pre-1964 silver coins and you don't need the money right away, would it be wise to hold onto the collection or is the price of silver at some crazy high that drives these coins up so it would make sense to strike while the iron(in this case,silver) is hot. I personally don't collect coins to the point that I would need more than one of each example but I also don't mind holding on to them, so basically what is the smart thing to do now? Thanks for any help

barrysloate
09-30-2011, 04:01 PM
Silver is a commodity and lately both gold and silver have been fluctuating wildly. Silver was at about $40 an ounce until recently but lost about 20% of its value in a few days. To decide whether to sell now, or hold longer, is really about making a bet on which way silver is heading. Of course, none of us know.

For the record, if silver is $30 an ounce, your coins are worth about 22 times face value. At $35 about 25 times face value, and at $40 about 29 times. Your guess of where it's heading is as good as anyone else's.

z28jd
09-30-2011, 04:14 PM
Am I right in assuming some people are buying these old coins for their melted value so even if the price of silver drops they could have potential long-term value due to scarcity plus the silver content? Or is that not really a big issue.

Like I said, I'm not a big coin collector, they have no stats or cigarette advertisement on the back so I have no problem getting rid of them if someone thinks this is just a high point. Maybe you know Barry, has silver reached this level before?

One of the good things about selling is I don't follow stuff like silver prices at all so if the prices skyrocketed after I sold I probably wouldn't even know :)

barrysloate
09-30-2011, 05:09 PM
People buy, sell, and hold onto these coins purely for their silver content. Virtually none of them has numismatic value. Silver has been over $40 an ounce quite a bit lately, and that is the highest it's been in about 30 years. A year ago it was like $17 an ounce. It closed today at $29.97. I can tell you that on Monday it will either go up or down. I just don't know which one.

Precious metals are often a haven during turbulent times, and things sure are rocky today. So there is a reason to think it may go up again.

z28jd
09-30-2011, 05:16 PM
Good stuff Barry, thanks. Now just make sure you email me when silver is back near $40 an ounce :)

basesareempty
09-30-2011, 05:53 PM
I follow this market a little more closely then some here. I have slowly bought silver over the last 3 years or so and have about 350 oz of silver bullion and another $400 of 90% junk silver. Late last week Silver went from just under $40/oz to where it ended today at just under $30. At some point I believe one of the overseas markets the price was down to $26/oz before rebounding. I know many experts say that silver will hit $50/oz by early next year. China and India have been stong buyers of precious metals which should keep prices going up. Also the industrial demand for silver is on the rise. I see this 25% downswing as a buying opportunity. I would hold on to your silver if I were you.

z28jd
09-30-2011, 06:09 PM
I follow this market a little more closely then some here. I have slowly bought silver over the last 3 years or so and have about 350 oz of silver bullion and another $400 of 90% junk silver. Late last week Silver went from just under $40/oz to where it ended today at just under $30. At some point I believe one of the overseas markets the price was down to $26/oz before rebounding. I know many experts say that silver will hit $50/oz by early next year. China and India have been stong buyers of precious metals which should keep prices going up. Also the industrial demand for silver is on the rise. I see this 25% downswing as a buying opportunity. I would hold on to your silver if I were you.

Thanks, I guess I will keep them for now but if I see the price go anywhere near $50 an ounce then I would have to sell. I guess I should start following the price of silver.

barrysloate
09-30-2011, 06:10 PM
Bob- do you feel the same way about gold? It's taken quite a hit lately.

basesareempty
09-30-2011, 06:20 PM
Barry- Since most of my purchases are small ( Usually under $400 at a time) I do not follow that as closely but I believe the so called "experts" are bullish on gold for many of the same reasons as silver, with many saying that $2000 gold is not out of the question.

Tsaiko
09-30-2011, 07:48 PM
Here's an easy way to keep track of precious metal prices.
http://www.monex.com/liveprices

Silver spiked to over $48 an ounce in April, then this happened:
http://dont-tread-on.me/rumor-no-forex-trading-of-gold-and-silver-in-us/

That was the highest price since 1980, when the Hunt brothers tried to corner the market and the price actually hit over $50 for a few minutes.

In the early 90's I bought a lot of silver in the three to six dollar range and thought that I would make a quick buck, but it was stuck in that range for over a decade. I had my chance to pull the rigger this year, but let the opportunity slip away thinking that $50 was he magic number. Oh well, maybe next year.

My grandfather gave me a silver dollar for each birthday until I was 18. Most are dated around 1903, so he must have kept them for a while himself, which makes them as hard to get rid of as my grandmother's cards. I have no idea how much they are worth.

z28jd
09-30-2011, 08:28 PM
Thanks for that link. I see it also has the 90% and 40% coin prices which is good because the collection also had 141 of the 40% Kennedy half dollars. For once I'd like to sell high on something and buy low on something else, especially since I don't really collect coins, I basically just have a collection of pennies missing just that key 1909 s vdb and some odds and ends that I liked such as 2 and 3 cent pieces.

Leon
10-01-2011, 08:00 AM
Hey John
As I said, I know there are a few collectors on the board. Glad you are getting a little help from some good guys. I am sure there are quite a few more too but as Barry said yesterday, most times folks are too lazy (well, I am saying that) to simply click over here and see what is going on. They would rather just post in the wrong place. Oh well....at any rate good luck with your coins.

bbcard1
10-01-2011, 08:00 AM
I usually get $100 travel reimbursement every couple of weeks. For the last couple of months, I have been buying a silver round each time...sometimes it costs 30, sometimes it's 40, maybe some day it will be 20 or 50. I just don't worry about it. I particularlly like the Australian coins. I do think, for the average person, holding 5 to 10% of their savings in precious metals or other hard assets (some would say stones, but I think that is nuts) is probably sensible. Physical, not paper, of course.

Over the past year, I bought a little gold and haven't done bad or great....bought at $1500...saw it go over $2000 briefly, then back to $1600. I think Platinum may be a decent play (at parity with gold but much rarer), silver is fun but will always be volatile. I would not be shocked to see $100 or $15 silver.

If CDs were still paying 6% of if the stock market was not an absolute crap shoot, I would have probably never even thought about metal...and still don't in a significant way. .

OTOH, if I was that smart, I'd be rich by now.

barrysloate
10-01-2011, 09:36 AM
If CD's were paying 6%, most of America would be leaving the stock market. Volatility may be great for the day traders, but for the average American who is trying to build a nest egg for retirement, it really sucks.

basesareempty
10-01-2011, 10:27 AM
Not that I am some doomsdayer but if we ever have a full economic collapse in the US, paper currency will be almost worthless as it is backed by nothing. Inflation will go through the roof like WWII era Germany where you needed a wheel barrow full of German Marks to buy a loaf of bread. In this senario 90% silver coinage will have a lot of value and purchasing power.

barrysloate
10-01-2011, 10:46 AM
And that's exactly why people are speculating in precious metals. However, doomsday scenarios rarely ever occur.

bbcard1
10-01-2011, 06:34 PM
Personally, and I am no economist..in fact, every thing I do investment wise seems to be kind of wrong timing...but I think a deflation scenario is as likely as an inflation scenario. Our economy is a wreck, which would be very troubling if it were not stronger than most of the others worldwide.

vintagechris
10-02-2011, 08:37 AM
As a person who stumbled into investing in silver and gold(my Dad's neighbor wanted me to sell some of his 90% silver on ebay in 2007) I can say have have done more than average research on it.

The advice you see in the thread is all good advice. I would say if you don't need the money, just hold it but I am also a person that believes everyone should have some gold and silver as an investment.

Silver was recently at $40 and then dropped to around $30, I consider that a good buying opportunity. There seems to be at least one sizeable correction each year, use it to buy.

If it goes to $50, it wouldn't be a bad idea to sell as there will probably be another correction to buy. Silver never just goes straight up or down and I doubt it ever will.

Exhibitman
10-02-2011, 12:29 PM
Good advice all around. Having a small allocation in on-hand metals isn't a bad idea for us average joes, as a stop-gap against runaway inflation. That plus real estate [housing] and well-thought-out card collections :D will be enough hard assets for most people.

Barry, totally agree that if there was a 6% ROI w/o risks out there most people would be in it. That's why there won't be. Me, I'm devoting what I would have stuck into 'investments' to paying down my existing debts. I know the guaranteed ROI on that investment.

bbcard1
10-02-2011, 02:37 PM
Historically, we have enjoyed 6% ROI investment vehicles, but it has only been during times of 10% inflation. I have a banker friend who calls the Certificates of Depreciation, which would be clever if he were not trying to sell some other brand of snake oil at the time.

barrysloate
10-02-2011, 04:15 PM
I'm not sure we will ever see any substantial interest offered again, certainly not in the foreseeable future. And that is exactly what most people want, especially those who are thinking about retirement- a safe haven to earn a modest return. I think there are more than a few people fed up with the wild gyrations of the stock market.