priorities in buying 90% silver cons

Nice halves, BU quarters, and EF or better mercury dimes are worth a few extra % vs melt, so I think being able to cherry pick at a LCS, is worth about melt +5% (including tax) To me it's better than generic circulated or unknown denominations with some slicks, at melt. (and that is out there, but it is not always easy to find) The nice coins are more enjoyable to own, and would be easier to sell, maybe for a better price too. How much work is worth it to save a few %? A little, yes. A lot, I don't think so. Time is money too, especially for those of us with busy schedules.

The big online dealers are increasing their margins and/or selling out many items. For example, I bought some Franklin halves at melt + 2.2% a few months ago. Now that would be melt + 6.6%, AND they are sold out.

Silver dollars are not worth the extra money IMHO!

It is interesting to think about how value, availability, beauty, and time all are factors.

What are your thoughts?

 

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Back in the 1990s when silver was real cheap, like $4.50 an ounce was when I did most of my hoarding. I have literally rolls of early date Mercs and even some 1890s Barbers as they were still fairly common. Now you might be lucky to find even later Mercs but probably just Roosies.

Just a note that starting a few years ago even halves started getting a bit of a premium on them like silver dollars do. Now it is becoming much more common. The only way to get halves now is with a large buy - and request that a certain percentage be in halves. Most people want coin in the largest denomination possible - being halves usually since dollars have long had a premium.

 

Unless it is a key date, I don't think it is worth it to buy dollars with a premium. Common dates and ones that are worn down are only worth melt and dealers won't even buy them for melt. I buy dollars from people on craigslist when they will sell for melt or below, but I won't pay a premium. And this doesn't inclue high graded dollars or key dates, I just buy for bullion value.

 

Even bullion collecting has a hobby aspect to it, so if you enjoy searching for the better quality silver coins, it is worth the effort and may pay off some day.

 

that is it, Cloudsweeper.

Some like ASE's. I may pick up a few at some point, but prefer the lower premiums of 90%

It makes sense to pay a LITTLE more to get 'what you like'

Roosevelt dimes are probably a good value, but small for my taste

My faves: BU quarters, '64 Kennedys, Franklins. Maybe a few decent mercuries, walkers, or standing liberties. 5% or less over melt.

Kudos to the people who track down deals under melt on Ebay and Craiglist, roll hunting etc. So far for me, not worth the extra time and effort.

 

Don't forget current 90% items like the state quarters also - they're quite nice to look at and the same 90% silver as the older issues. Granted there's no real history behind them, but it still does the job. It's actually easier for me to consider those "junk" silver since there are so many being minted and I don't feel as bad as an 50+ year-old coin.. Being patient you can pick up a SQ silver proof set for under $30, I just landed 3 this past week in that range, including shipping, just above current melt. And for me, it's not too time consuming, usually when i'm having my coffee in the morning, lunchtime or relaxing at night taking a few minute browse of eBay.

 

Try flea markets too, you can find junk for under melt if you buy out what someone has. I have had some good luck buying in small bulk lots at one in my area for well under melt.

 

I like this idea, in fact i just went to my LCS and got one for $37 out the door. I really really like this idea (did i say that already?), High grade full weight silver coinage that doesnt feel like youre stacking 'old' items, still retains face value, and beautiful, changing coins within a series to look at.

Yep im sold!

 

I've always been a proponent of buying average circulated common date Peace and Morgan dollars. if you're looking to maximize the value of a bullion investment, I really believe US silver dollars are the way to go. You pay a lot less of a premium than ASEs, or other bullion coins. There are often cherry picking opportunities in the bulk silver dollar drawer as well.

My LCS offers them for a dollar or two over melt if you buy in bulk(at least 20). I see the same type of coins routinely selling on eBay individually for up to $10 over melt. Even after paying 12% in sellers fees and paypal fees, plus shipping, you can turn a small profit. If you can hold onto them until silver spikes again, you can make even more. Granted it takes a lot of work to photograph, list, and ship them individually. But if you're looking to maximize the value of a bullion investment, I would recommend common Morgan and Peace dollars.

 

Agreed! I have never sold or bought anything on ebay, but I spend alot of time looking at listings for silver dollars and they always go much higher than melt, even for common dates.

 

About the only year I don't consider stackable at the moment is the 1999's since they are at a premium in general with the low mintage. My goal is to one day be able to claim I have a full 40-quarter roll of each issue and date of these, as well as the current ATB series. One set at a time...

Race, to your point as well, melt value Peace/Morgan are also good and you can indeed find them for good value, again just putting in some legwork. Something also just "feels right" about that size silver dollar, it's got heft and you actually feel like you're carrying something of worth around.

 

So true! I love holding my silver dollars compaired to my other silver coins.

 

One more thing I found - the current melt value of US Mint sets:

http://silvercoinmeltvalues.net/sets/

One of the things that I found difficult is remembering how much these sets are worth for their silver content when I'm hunting for them. This way if you find a mint silver set around or under these prices, you know you've found a good deal for the simple melt value of all the coins.

The bonus of buying the mint sets along with the silver content is that you have the cent and nickel which you can search for errors and at the end turn around and resell them for more than face value to recoup some of your original investment.

 

Silver dollars contain more silver, and deliver it in a bigger package, so the premium is a little higher. If you buy common Peace Dollars you can get a better deal, and they are bound to go up. I don't know how you can do too wrong buying a few every couple of weeks. I have a hard time resisting them at under $30 nowadays. It used to shock me, but now I am used to the higher prices. I think the best deal in 90% silver is in half dollars. The Franklins are what I tell people to get, since you can't go wrong with them. You can mess up the dates on the JFK's and you can get expensive walking libs, but most Frankies are going for around $13.00 or so nowadays.

 

I did this a little while back when buying some proof sets with the 40% half. I thought I was getting a great deal for the set at $3 under spot but it was $3 over instead when I remembered it was a 40% Kennedy, not a 90%. Oh well, that learned me real quick...

 

BTW - not a bad starting price for 4 Peace dollars:

http://www.ebay.com/itm/4-Peace-Sil...50?pt=Coins_US_Individual&hash=item20cea403d2

And, if no one else bids on these, this guy has some silver quarter proof sets that are reasonably priced at $5-6 over melt with free shipping:

http://www.ebay.com/itm/2005-U-S-Mi...30?pt=Coins_US_Individual&hash=item3ccdf3eaee

I'd consider trying to get them, but my budget is about run out for this month...

 

In my experience halves have had a premium for years. All of the dealers in the 90's I dealt with charged premiums for them. If regular junk was 3.2 face, halves would be 3.4 face. I always thought maybe the premium would be because the cumulative loss might be less on halves versus other coins of silver in them.

Silver dollars have always had stronger premiums. Back when silver was 3.2 face, silver dollars were $5 for really crummy ones, $6 for decent circulated ones, and $8-10 for run of the mill BU ones, (on up of course, this was the lowest, like 1921 baggy BU morgans). The "greedy" dealers were trying to get $7 for regular circulated dollars, lol.

In my experience, the best buys in bullion are in person at shows or LCS's. You may not have the selection, but usually lower prices. The only good bullion buys on Ebay the last 6 years I have gotten are in world coins where people don't wish to do the math.

 

Flea markets! - Good idea rockyyaknow. Maybe even sell there someday too.
I am glad this thread is getting good feedback. Lots of different approaches, and tastes.
I am becoming a believer in LCS over the big companies, because you can pick
what you want and the margins are very reasonable.
About 6 months ago I offered to buy out a group of about 100 mercury dimes for 20 x face, from an antique shop that was selling them for 30 x face. They said no, but I am glad I tried. Next time, it just might work!

 

If you can find them for a $1-2 over melt I agree, unfortunately I don't think many people have as good a dealer as you nearby. (myself included)

 

I still prefer dimes and quarters. If the crunch comes, and you spend a silver dollar on a silver-quarter item, and get three silver quarters "in change," you've already taken a major hit.

4 quarters = 4 x 0.18084 = 0.72336 Troy oz
3 quarters = 3 x 0.18084 = 0.54252 Troy oz
1 silver dollar = 0.77344 Troy oz

You exchanged a 0.77344 coin for an "item" plus 0.54252 in coins. The "item" cost you 0.23092 Troy oz. If you had had a silver quarter to begin with, the "item" would have cost you 0.18084 Troy oz.

You paid a premium of .05008/.18084 = 27%

Now that you have three quarters, you will not get screwed again for the next three silver-25c deals, at which time you will have to spend another silver dollar.