What about 40% silver coins?

As of today (10/2/10), the silver metal value in a 40% silver Kennedy half is $3.27 and $6.99 in a 40% silver Ike dollar. However, these coins can often be purchased close to melt or for a very modest premium (especially compared to ASEs). What are your thoughts on 40% silver coinage as a bullion product? Thanks, TC

 

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I used to roll hunt for 40% halves before it became unrewarding. Over the years I put about 200 aside. Dunno if I'd want to buy them for spot, refining costs make them less desirable than 90% coins.

 

I collected enough of them to fill a couple of folders, then sold the duplicates. There is a market for them right now.

 

The 40% Ikes may turn out to be a bargain.

 

Anyone selling them for spot is a rip off, that said if you can get them for a reasonable price sometimes as low as 50% of spot and you are planing on holding long term then i say go for it.

 

I get them for $0.50 each at the bank...I would just roll search for themand save the money for other silver that is more desirable as an investment.

 

once you figure the gas and time is it worse it? I know its a hobby all that matters is fun, but here for people that are looking to invest its not that practical...

 

I have ten rolls of 40% I picked roll searching. I'm tempted to trade them in for ASE's, or generic rounds at my next coin show. On the other hand, I like having the diversification in my silver holdings and there is a small numismatic value to most of the ones I have. I'm also thinking that if silver hit $50 an ounce (it might) a lot of common "junk" silver coins are going to perish in the smelter. This could make them not so common any more and increase their numismatic premium. However, I'm guessing 40% won't be anywhere near as popular as 90% when you're talking about melting them down. Seems like it would be the same amount of cost to get less than half the amount of silver in return.

What would you guys do? Sit on them, or sell them (assuming a good price - I don't expect spot, but I wouldn't give them away, either.)

 

@tommybee.....I trade all of mine for other bullion including ASE`s. I don`t think We`ll live to see the day when the 40% junk will be scarce due to smelting......too many people are already wise to that scenario. But nonetheless, if one can pick up 40% junk for a good price....load up on it. : )

 

What would people buying it consider a fair price? I'm always curious since when you call or stop into dealers they're offering peanuts and selling it for spot or over. Seems easier, and cheaper, to deal with other collectors.

 

I find the same thing. I went to a show and was offered $1.50 for mine, but they were selling them for $3. Seems like a very wide markup percentage. this was when the silver in them was worth $3.

 

I was at a show on Saturday and the bullion guy was buying them for 2.55. Melt is 3.26.

I get really fair prices from him on everything else. He was busy selling stuff, so I didnt' get to speak to him about what seems to be a low price. My guess is that it costs just as much to melt down 40% as it does 90% and with the 40%ers you're getting less than half as much silver.

 

I have been roll searching halves for about five months now. I have had some good runs and some bad ones. I went through six boxes this weekend and did not find any silver. The amount I have been finding has been going way down. I would get about 50 silver halves when I first started then it started to dwindle. I'm quitting after my last run of nothing. I have pulled in $980 face in 40% halves so far. That's enough. I am keeping five rolls of each date and I'm selling the rest. I did find about $70 in 90% halves along the way. I'm keeping all of those. I got half of them last Friday. My bank had saved five rolls of halves that had been turned in and I got 29 40%, 59 90%, and 12 clads. With luck like that it makes roll searching (by ordering boxes) hardly worth it.

 

Fifty, you've had some really great finds compared to most of us who are roll searching. Searching 6 boxes and finding nothing isn't all that uncommon, at least not here in the northeast.

 

Honestly, I think 2.50 is a price I would be ok taking. Although I realize there is 0.75 per coin in room for the dealer, I'm fine with that. its when they're buying for 1-1.75 and selling for double.

 

Fifty - I've never had very good luck with boxes. In my best box, I think I got 4 40% and a Frankie. I've done better just picking up CWR and loose from small town banks. However, most of the time, I get nothing. However, I didn hit it big in a small town in the Upper Penisula. I bought about $480 in loose halves. I got 92 40% ers out of that bag. The teller was totally put out when I bought them because she had to count them. She said "these are all clad you know..." However, I was seeing plenty of silver edges as she stacked them up. She obviously didn't know that the 65-70 are 40%.

 

im bringing this one back because the 40% market still looks like a buyers market, even more so now that its over $30. there is very little competition on ebay and they can easily be had for under melt with rebates. i just snagged 3 rolls for $4.30 a pop with melt at $4.94.

you can save 6% on ebay with this site, just register and link to ebay through their site.

 

that link isn't working for me...can you redo it?

 

40% Silver coins are good to collect for mainly, barter and short cash transactions IMO.

 

http://www.mrr***********?refid=439907

im still stacking them, i just snagged another 3 rolls today for $4.52 a pop