Should I continue to buy silver coins because it contains silver? (Because silver has been dropping a lot lately.....) Do you think silver will continue to drop?????
Buy what you like - do your best to get a fair price for whatever coin you are collecting. I personally would not buy a coin just because it was silver - it would have to be a coin I liked.
It would depend on the coin and condition. Some silver or gold coins are only worth spot because of condition or how common they are.
Well, I like to collect Walking Liberty Haves, Morgans, and Peace Dollars. They are all in XF+ condition..... if silver goes down a lot, will their value go down? If so, how much?
If the numismatic value is worth more than melt then they will not change - in my opinion. I actually talked with the dealer on this on Monday. So an AG common morgan is always worth melt value at least and a MS64 morgan is worth the numismatic value - the price of silver will not normally affect that(at least in todays market). Not sure if I am explaining it real well or not.
I hope that one day silver will drop back down to $5 an ounce or less. That would be wonderful for collectors such as myself as silver coins would be more affordable.
Yes that would make the bulk silver coins more affordable. I want to go back up, that way I can unload some of my excess silver, gold and platinum. Then it can do what ever it want.
Here's a concrete example. Assume silver drops so much that the silver in a dime is worth only 0.20. There are 48 dimes in the Roosevelt silver set. There are maybe 5-10 of those that may have a small premium, but the bulk of those you'll be able to buy for exactly 0.20 each in G/VG condition. As a very, very broad statement, most post World War 2 silver US coins in AG/G/VG condition aren't worth much more than melt - of course, there are the keys and semi-keys, but in general........ I don't think anyone can predict values for MS-xx coins. That is whatever the market will bear - how many collectors there are chasing how many examples. This has much less to do with silver value.
The probability of silver going up in price over the next ten years is probably much greater than the probability of it going down -- but there will be many twists and turns along the way. Yes, if silver drops your coins will go down in value. But if silver goes up [more likely] then the coins will go up in value. That said, I would buy a coin for myself if it contained silver even if there was no other reason to buy it than the fact that it contained silver. Like you, I love circulated coins that have a very high silver content for the price. I think common silver coins are a bargain relative to the very high grade coins. It is my opinion only that collectors overpay for high grade and scarce date coins compared to what these coins were selling for in the past. Many people suggest buying key date coins because they have done better in the past. But to me, this is more of a sign that key date coins are overpriced. It seems highly unlikely that they will forever increase in price at at percentage rate that is greater than their more common brothers.
I do not buy key dates,,because it is the same coin to me as the next year but of course I do pay a lot more money for high grades. In fact, I don't have a coin under the grade of xf!!! P.S. Silver has dropped 4 dollars in the past week....
Silver has always been pretty volitile. The move this week is no big deal in the long term. Although it might seem that $4 is a huge drop, you have to keep in mind that this move only took the price back to where it was near the end of January 2008. So in the long term view, this isn't that significant. I just hope the price of morgan and peace dollar adjust by the same $4, but I suspect they won't.
