Coins/ Silver question

[z28jd]

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]

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]

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]

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]

Good stuff Barry, thanks. Now just make sure you email me when silver is back near $40 an ounce

[basesareempty]

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.