Anyone gone from coin collecting to "bullion collecting"?

I'm kinda at a dead end for coin collecting. I have a nice example of the coins that appeal to me, and I have no desire to complete any sets (morgan dollars, wheat cents, ect). Most of the nicer coins I can afford are common dates - that pretty much just follow the path of bullion. So, I've been considering just buying 90% silver and maybe a little gold.

I have a CD coming due soon and instead of rolling it over for a whopping 1.75% (less income taxes), I've been considering a "face bag". With the recent dip in silver prices, is this a good move? Anyone else in the same boat?

 

Log in or Sign up to hide this ad.

I already took a good portion of my CDs and converted to gold eagles and Pamp gold bars. Banks pay nothing on CDs in interest of coarse gold doesn't pay interest either but I like having less paper money. I hope the gold price drops down into the 800s this summer an I will buy more!

 

Yeah, dropping 10 grand on a $1,000 face value bag sounds like a lot of fun.

With 10 grand though, I'd just buy a green monster box of ASE's or 6 100 oz bars.

I just dropped 4 grand of some AGEs when gold dipped to $912 last week. Now I'm waiting for the next dip.

 

For me, collecting ASEs and other bullion coins today is much like people collecting Morgan and Peace dollars when they were issued. I don't have much interest in bags of junk silver. ASEs cost a bit more, but have a hidden numismatic potential. Someday the US Mint will stop making ASEs, and almost immediately the series will begin to develop [possibly significant] numismatic value because the supply will be fixed but demand will continue. It wouldn't surprise me if common uncirculated ASEs sold for $10 or more over spot a year after they are discontinued.

 

I don't think its a bad idea. Alot of people prefer the Eagles. But I like the 90% bags myself. Less of a premium over spot.

 

That would be a nice world if that was true but sadly no ..past year BU ASEs are only worth a couple dollars over spot just like the current year issues. It brings folks back to reality real fast when they realize that they are bullion and not Morgan or Peace dollars.

https://www.apmex.com/Product/23331/1_oz_Silver_American_Eagles___Brilliant_Uncirculated.aspx

 

I am generally an exclusive collector (not investor, big difference) of bullion coins, specifically US coins but Mexican as well. What few non-bullion pieces I do collect are the 90% silver proofs and the occasional commemoratives.

In the end, it's the raw beauty of coins that hook me and the US Mint's bullion products are among the greatest designs on earth for my tastes.

Gotta go with what appeals to you in this thing.

 

argento said, "In the end, it's the raw beauty of coins that hook me"

I agree, and I noticed that you collect mexican coins, I think that the silver libertad is one of the most beautiful designs ever.

 

Hmmm, thanks for the ideas. I really haven't considered the ASE, because of the higher premiums over spot. I think the idea of a $500 face bag to sift through seems kinda fun.

 

I agree, she's a real piece of art.

 

I do a little bit of both, but I'm mostly into the bullion collecting as a form of investment. Plus I like the canadian maples and the mexican libertads, so I try to collect them

 

"It wouldn't surprise me if common uncirculated ASEs sold for $10 or more over spot a year after they are discontinued."

I also forsee the potential of the US bullion coin programs hidden value as well. A lot of people think slabbed MS bullion ASEs or slabbed Gold Eagles, Commems, etc. are a waste. I don't because I don't look at them for slab value and grades with premiums, but in time and esp. if these coin programs are stopped, changed or bullion becomes unavailable, I think the hidden numismatic value will blossom overnight.

I collect (never hoard) old coins not for investment but for personal aesthetic, historical and intrinsic value to me. I buy US bullion and commem. coins for the same reasons, appreciating design and quality. I don't foresee making a shift from collecting to bullion buying. They are not the same thing to me. I typically buy a couple of each gold and silver coin design from the US Mint in Proof state but I personally don't place any importance or value in PR coins, esp. when 'slabbed and slapped' with a premium. There have gotten to be just too many PR coins out there to make these special to me. I buy US bullion in their unc. state for bullion value/investment because they hold that value and are graced with excellent designs that are pleasing to me while holding them for investment or collecting them. There's nothing wrong with holding foreign bullion, bars, nuggets, etc. It's just up to you what you love/want/need/use/choose. I will buy coins when I find nice attractive ones that I want to own and keep buying bullion at a normal pace.

 

I agree completely. Many people can't seem to make the mental jump from what is to what could or will be. Bags of junk silver will always be junk, but ASEs have a hidden numismatic potential that is difficult to comprehend because it currently doesn't exist. There will be a rush to buy them when they are discontinued, and the nicest specimens will command a premium to the dinged up bullion.

 

didn't people use to call G-VG barbers as "junk silver" some years back? now they are worth $7-$12 each in G-VG. So I don't really believe in the "junk silver" will always be "junk silver".

 

I like the image from the years 1996 to present date.

 

I never recall a time when Barbers were junk silver. For a series to become junk, it is necessary for there to be a fairly abundant quantity of high grade examples to satisfy collectors. I don't think that was ever true for Barbers.

 

I am and have been a gold bug PM are what keeps you safe when evenone else is screamming the sky is falling. History always repeats it self....1930 Europe compared to the late 1990's yugoslava... hard money is always good to hold it will never go to ZERO! @ 1.75% pass book savings or CD's is not going to increase your wealth. If and when history cycles again in a bad way all your papper money is worthless! I don't care if the note is 1000 years old Unc. crisp EPQ one of a kind with a star on it....it won't save your hoo ha when the spam hits the fan! go for the PM ! In 1964 I was buying ice cream cones with 90% silver coins @ 5 cents a cone just think if I had of put the pre 64 dimes , quarters halfs in my piggy bank and never touched them.......My advise is go for the PM they may never make you rich ....but you'll never be broke! Paddy

 

To the original post.....I would go with the monster box of the Eagles...

 

I abamdoned my 'proof silver euro coincollection' a year ago as the release prices of these coins went sky-high (for a face value of 10 Euro you easily pay 35 Euro !!) and started to collect Silver Art Bars. These little pieces of art i discovered are having the most beautiful and different themes i've ever seen, and you can find them at spot price or slightly higher.
If there comes a moment that you really have to sell your collection, there's nobody who will look at the 'proof' value of the coins, they only pay you spot price plus some premium (or it has to be an extremely rare coin to get what you'd paid for it at the mint). So IMO it's better to collect pure silver bars than those expensive 'collector' coins i was buying (and they even look nicer in designs)

 

I agree with your way of thinking. Not enough people think about how they can actually sell what they buy before they buy it.