It ain't about the silver!

Does anyone else have an issue with the trend that's developed in recent years/months where private sellers are simply pushing the issue of silver content to jack up the price of collectible coins? In my opinion, those are two different markets. There's people who buy coins because they believe silver is a precious metal that acts as an inflation hedge. But there are other buyers who are simply "coin collectors" in the classic sense and could care less about the silver content. But when you look at ads on eBay, craigslist, etc., many sellers are simply touting the silver as the saleable quality. This seems like a terrible trend for collectors! Make it stop!

 

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I don't see that trend.

 

That may be because you're buying bullion and not collectible coins . . . or one might infer.

 

What if the coin has more value as bullion than as a collectible? It seems reasonable to me to ask for the silver value.

 

Only if you plan to hold it as such. If a coin is of a low grade, it doesn't hold the same value to a collector, no matter how much silver it contains.

 

Silver is silver to a bullion collector (yes, they are collectors too.)

 

And it means nothing to coin collectors.

 

To "jack up" the price? Seriously? So people should ignore silver value and sell for whatever you believe is a fair "collector" price? Also, there are just as many people out there who try to claim interest only in silver when it comes to coins with high numismatic value. Point is that it works both ways and both are nonsense. If one wants coins with a silver value higher than the collectible, that is just too bad. If one wants silver value, look at junk or bullion and not expect someone to hand you a quick flip.

 

So... if it's something you, as a coin collector, have no interest in, why are whining about it being more expensive that you think it should be? Sounds like a good chance for you, as a coin collector, to unload all of your low grade silver for a huge profit to roll over into higher grade stuff.

 

Sounds like the tactic the hucksters on the HSN coin shows use. "Buy this commonly had $10 coin for $59.99 today because it has valuable silver in it." They prey on the uninformed and gullible.

 

First off, making a valid point is no more "whining" than your explaining your opinion. Get over yourself.

Second, it matters because there are those of us trying to build collections of older coins -- from pre-1964 Washington quarters to Peace Dollars -- that are being faced with a false premium because of silver content. As stated, I'm more concerned about grade than this silver content. But there are sellers who try to charge an excess asking price for older coins based on this silver argument.

It's a free market and anyone can ask what they like. But it's been hard dealing with these sellers who are blinded by a premium that, in many cases, simply doesn't exist.

 

Your point is not valid, and it is whining about the price of silver. The coins have intrinsic value based on their silver content, something you clearly need to get over.

As you stated above, low grade coins have minimal collector value, and high grade coins typically have a price premium over their melt value. What's the problem? Are you trying to build collections of low grade Washington quarters?

 

It is valid. If you can't understand it, that's your problem. I know all about the role of "intrinsic value." But it doesn't mean I have to agree with that manner of valuation.

 

Why should someone sell you a coin for less than it's intrinsic value? They shouldn't.

 

Please contact me when Edited ~ although I think you were just being somewhat sarcastic, any buy/sell/trade comments to another member must be in the appropriate subforums.


Thanks
Dave

 

Here’s why your argument is flawed. So how do you put an actual figure on “intrinsic value?” Are you revaluing these coins on a daily basis to match the spot price of silver? Are you actually tracking commodities and anticipating (with help from your crystal ball) a prospective increase in the price of silver? Most people who price their coins on this basis set the mark artificially high. They use a price that matches either a recent high in the silver market, or worse, they incorrectly believe they can forecast where silver prices are going and attach an even higher premium to their pieces.

These values are often far beyond what the collector market would assign to the coins (this may not be true of bullion markets because much of that is strictly based upon speculation - though if you look back, I have not been referring to the effects on the bullion market; only the collector market). As I said, you’re free to charge (or pay) as much as you want for a coin. But attaching an inflated premium to the asking price hurts the market as a whole and slows the exchange of goods. In the end, that’s harmful to any open market.

 

When I'm looking to buy low grade coins, yes, I do base what I'm willing to pay on current spot value (not the highest or lowest spot value has been in the last month, or anything like that), and it's fair. Pricing things based on current market value of a commodity is fair. It's the same thing a jeweler would do with rings, a lumber yard would do with building materials, convenience stores do with gas, and farmers do with corn. It's the way the world works. It's just wrecking your day because the intrinsic value of the item you like to collect is higher than it's collector value. Time to come to terms with it - the price of the commodity that makes up low grade or common silver and gold coins is now higher than their collector value.

 

That's what you do. It's not what most sellers do. See previous post for what they do.

 

A quick browse of the buy and sell forum right here on cointalk says your wrong. Most true collector coins have prices unrelated to the price of silver, and the low grade and common coins are priced relative to spot.

Edit:

If that's not what most sellers do, then what the heck are you complaining about? You should have no trouble buying coins for what you consider a "fair" price if most people don't tie their prices in some sense to spot value.

 

I just paid $75.00 for a 1908 S Indian. Wow, that seller made a killing on his $.025 worth of copper.