Coins/ Silver question

[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.

[z28jd]

Originally Posted by 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.

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]

Bob- do you feel the same way about gold? It's taken quite a hit lately.

[basesareempty]

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.