If silver hits $1,000 an ounce (I don't think it will, but theoretically speaking), would high grade morgan dollars and other coins with a current value of $300 each be cracked out of their slab and sent off to the melt? When silver get's that high, would the coin be worth melt, or more than melt due to it's rarity?
I would think people would still hold onto those higher grade coins in hopes that others are sending them off to get melted and thus increasing the value. But I could definitely see the lower to mid grade coins being melted.
They would remain in the coin community, traded -bought and sold. I have no faith in the masses they will sell to overnight buyers and alot would be destoyed.
It didn't happen with rare gold coins when gold went from $300 to over $1,900 per ounce in a relatively short time. Doubt it will happen with any other metals either. The whole point of "collectible value" is that it goes beyond melt value. As melt value increases, collectible premiums will remain.
I posted this in mid december on another thread about this Its value would stay the same regardless of melt, when gold was 2000/oz people could buy common $20 in 63/64, this is also why you will see people finding ms quarters, dimes, etc, in a coin shops "junk bin" Read more: http://www.cointalk.com/t196347/#ixzz1ktgtvGsA
Premiums go down as the price goes up, just look at what happend to Silver Pandas when silver hit 50 in 2011. 2009 Pandas that had a 100% premium in Jan of 2011 only had about a 50% premium over spot in may.....It also depends on how quick the spike in price happens. I bought all kinds of silver at junk prices last may that sold for more than junk price when silver was still $20.
