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JT


Registered: 02/28/07
Posts: 7,027
Loc: athens
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coins vs bullion?
#13057913 - 08/16/10 03:19 AM (13 years, 6 months ago) |
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which are better for investment purposes?
say you can get very high quality silver dollars at 90% silver for $21 (.9 ounces silver). on the other hand, you can get 100% silver bullion coins for a little over $18 (1 ounce silver).
now to me, it looks like the bullion is the obvious choice. however, the collectors i know are arguing strongly for coins. the two reasons they give for this are: 1) collectors value 2) US government making bullion illegal again
what's your take on that reasoning?
i don't really buy in to the collectors value idea, because no one is actually going to pay the absurd prices listed in a bunch of the coin value books (like $1,000 for a mint condition 1890 silver dollar).
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ModusPwnd
Stranger
Registered: 07/08/10
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Re: coins vs bullion? [Re: JT]
#13058522 - 08/16/10 09:55 AM (13 years, 6 months ago) |
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If silver goes up alot the premium on numismatic coins will vanish and all silver will be worth the same. If silver goes down, the opposite will happen and the premium on numismatic coins will be a higher percentage than the value of silver bullion. But if you expected that to be the case then you shouldnt buy silver at all!
Bottom line: Dont pay for a premium on numismatic coins if you are buying them for investment purposes.
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Asante
Mage


Registered: 02/06/02
Posts: 87,000
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Re: coins vs bullion? [Re: JT]
#13067811 - 08/18/10 06:31 AM (13 years, 6 months ago) |
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Quote:
say you can get very high quality silver dollars at 90% silver for $21 (.9 ounces silver). on the other hand, you can get 100% silver bullion coins for a little over $18 (1 ounce silver).
now to me, it looks like the bullion is the obvious choice.
You are a smart man.
Quote:
the collectors i know are arguing strongly for coins. the two reasons they give for this are: 1) collectors value 2) US government making bullion illegal again
They are not.
1) collectors value
Thats their thing not yours. You want to hedge against inflation and SHTF. When the Shit does Hit The Fan people won't be buying fancy coins thats for sure, they will be buying ounces.
2) US government making bullion illegal again
Correct me if I'm wrong but I believe it never was illegal in the true sense. It was mostly gold kept at the bank that was seized.
Suppose you have a box at a valuables storage facility that isnt a bank, no ones gonna know what you have. It wont get its assets seized like a bank box would if it defaults. Think of what illegal status does to drug prices. Your silver's gonna fetch a premium in UTC transactions.
If you are worried about the "illegal"argument, simply buy junk silver. Big bags of 90% small silver change. Its the cheapest form of silver you get, and all the smelter has to do is drop a few bars of 999 in the crucible with it and he's got Sterling silver. And hey its ex US tender like those fancy dollars, they are just not fancy.
Lets blow a thousand dollars on silver shall we?
$1000 fancy coins = 42.9 oz $1000 your bullion = 55.6 oz ---------------------------- your choice of silver = +23%
Silly old you are right and your highly impressive friends are flat out wrong. Think ounces.
-------------------- Omnicyclion.org higher knowledge starts here
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ClammyJoe
Azurescen Head



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Re: coins vs bullion? [Re: JT]
#13068013 - 08/18/10 08:38 AM (13 years, 6 months ago) |
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Bullion always wins.
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JT


Registered: 02/28/07
Posts: 7,027
Loc: athens
Last seen: 4 years, 7 months
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Re: coins vs bullion? [Re: ClammyJoe]
#13068303 - 08/18/10 10:28 AM (13 years, 6 months ago) |
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thanks everyone, great advice. i knew i could count on the shroomery
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spirodj
ni hao

Registered: 10/01/10
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Loc: Serbia
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Re: coins vs bullion? [Re: ClammyJoe]
#13275993 - 10/01/10 03:50 PM (13 years, 4 months ago) |
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Did read very well about subject soz  Ok large edit to my post. Historically price ratio silver to gold was always around 12 - 16 to 1. Today ratio is around 60 to 1. Naturally occurring ratio is 17.5 to 1.Don't forget also that silver is industry metal also amount of silver in cirucaltion isnt 17.5 to 1 its much much less (all info you can get more here http://www.gold-eagle.com/editorials_03/sanders030703.html). Is there opportunity for investing in silver I think yes. Price of silver was kept artificially low. JPMorgan was caught short on silver you can read here http://www.nypost.com/p/news/business/feds_probing_jpmorgan_trades_in_gZzMvWBqOJpB55M7Rh9vwM And now totally different look on investment silver/gold. Think about this scenario War or hyperinflation paper money is worthless you need to buy bread, oil or gas etc etc. So when you are buying that stuff for bullion do you think you will get small echange ??? I dont think so. So its always good to have some small coins if you think shit is about to hit fan or if you are paranoid 
Edited by spirodj (10/01/10 04:19 PM)
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