.999, .925 or even .500??

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Gibboslv
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.999, .925 or even .500??

Hi, I have been stacking .999 rounds and bars for the last year and have a bit now.  I was just wondering what peoples thoughts are on the .925 (pre 1920) and .500 (pre 1947) UK coins i have looked on the bay and you pay less premiums on the <1920 and far less on the <1947.  I was wondering what peoples thoughts on reselling the .500 when the prices go much higher.  Will there be huge demand for .500 or will it be seen as real junk, as .500 is very very cheap per 1 oz pure silver quantity.

Edited by admin on 11/08/2014 - 06:09
silversalmon
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I'm no expert, but stick with

I'm no expert, but stick with the .999 stuff in my opinion. It's what the refiners want, and what the public wants. For example, in the 80's during the 50 dollar silver run up, refiners left a lot of 90% bag holders, literally holding thier bags. It's more cost efficient to refine the pure .999 stuff. Many refiners, wouldn't even accept the 40% silver or the war nickels, which are 35% silver, because of the higher refining costs. This is something to think about as oil prices continue rising. Just my humble opinion.

The only coin I would consider outside of .999 are the .925 silver Brittannias because they have a strong following. But I would would only buy them for fun, no expectations on numismatic value increasing over time.

other coins I would consider for fun are:

BU Ben Franklin Halfs (Nothing more than 100 face dollar bag)

Maybe some mercs

Peace dollars

That's about it, but not until i get my core position where I want it. .999 is the way to go! The price is only a bargain if you can liquidate it. Otherwise you're stuck trying to find a BIGGER sucker than you. Peace.

Gibboslv wrote:

Hi, I have been stacking .999 rounds and bars for the last year and have a bit now.  I was just wondering what peoples thoughts are on the .925 (pre 1920) and .500 (pre 1947) UK coins i have looked on the bay and you pay less premiums on the <1920 and far less on the <1947.  I was wondering what peoples thoughts on reselling the .500 when the prices go much higher.  Will there be huge demand for .500 or will it be seen as real junk, as .500 is very very cheap per 1 oz pure silver quantity.

cris
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A contrarian point of view

Have been stacking Eagles since I can remember, but just invested in my first few bags of "junk" silver -- specifically US coins.

My thought is that as silver prices go higher (and higher!), the allure of the fractional value of a  half dollar, or quarter or even dime will go higher as well.  Let's face it, in hard times, people may not be able to plunk down three digits for a Silver Eagle.  And if TSHTF, the fractional coins will be useful in trade as currency (I predict).

And I beloieve the imprint of the US Mint is always helpful -- which is why I gladly pay the premium for Eagles.

To be honest, I hope old US coins are NEVER useful as currency or barter, but it seems like that is what's coming.

So as a "diversification", I think junk has a place.  But my core is still Eagles, and to a lesser extent Maple Leafs.

Dr Durden
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If silver is silver is

If silver is silver is silver, than sterling (.925) can be a great investment because no one seems to want it and therefore there's less premium. I bought 10 sterling rounds last year for under spot. 

I agree on the diversification bit; I like to have a little of everything out there.

No one knows the future. If you really want to honestly gauge demand for silver an any form, carry any coin you want in your pocket and ask random people if they a) have any idea what it is b) what they think it's worth. This will put SHTF bartering for coins into perspective for you.

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Desert Fox
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Observation

I bought a bunch of those Franklin Mint Sterling coin/bar sets because of the lack of premium and under spot costs.

I am now steadily converting them into .999 bars after "sensing" that the Sterling Market is much weaker than the 90% or the .999 Market.

It seemed like a good deal at the time but when it comes to a resale situation the Sterling Market is much smaller and not worth the trouble in my view unless you are really going full blown wholesale. A couple coins, tea sets, albums, etc. here and there and you'll probably wish you just got the .999 right off the bat.

My 2 cents. Good Luck!

GuerrillaCapitalist
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Another Contrarian Viewpoint

I'm certainly a fan of ASEs Maple Leaves, etc and have my fair share. However most of my stash, (before the tragic boating accident) consists of US junk coins. I am looking long term and feel the universal recognition of these coins will stand the test of time. I also think if the used oats really do hit the fan, smaller units such as dimes, war nickels and 40% Kennedys will prove quite useful. I have become addicted to the lure of numismatistics and am carefully buying some pretty coins as long as I can get them close to spot.  I've managed to fall into some amazing deals on 90% state quarters that are simply stunning, all bought below Red Book price.

I've also been buying scrap sterling far below spot just because silver is silver and I'll figure what to do with it later. My son and I are going to melt it and make our own ingots for fun and ease of storage.

My whole point is to get out of fiat as quickly as possible and into silver. No matter what happens I have every confidence the value will hold.

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