Bullion investing, graded or not? or a little of both?

Red Book Value on the Morgan 91.20 on the Peace 64.80, while I am sure the owner of the local shop made a profit and I might have gotten it off ebay for $5-10 less I don't think I took it up the backside purchasing something almost 100 years old with a pricetag $27 over spot.

Everything in this world is perception...the bullion of today becomes the collectable 50+ years later. A Morgan silver dollar is junk silver that was at one time bullion and currency...If you took a 100 year old Morgan that was mint and a mint 2011 Eagle put it in front of somebody which one would they take? I don't see much use in buying graded modern bullion (except I personally love the cameo eagles). Most everything that comes out of the mint this year is near perfect...all this MS or PF 70 stuff is nothing more then a marketing gimmick; however the older something get's and the better condition it is in the higher the perceived value will be.

I suppose the obvious trick is to find older bullion selling as close to spot price as possible as perhaps it might hold value a bit more than the actual spot value. I do know the difference between the two as I have just plain old maple leafs and eagles, I just look at it as a way to be a bit more open to all the markets as I do not know when I go to retire if spot value will be in the drivers seat or premium items will be in the lead.

I figure that versus blowing money on bricabrac that will make its way to the garbage dump 10 years later I will be in better shape taking that money and buying silver in various forms once I go to retire.

 

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I am not disagreeing with your intentions sir, simply pointing out many get "caught in the middle", wanting to invest in PM bu then paying premiums which could have bought more ounces. Your investment decision is yours, I am simply pointing these things out for you to think about what you wish to invest in and why. Whatever you decide like I said is your call.

Chris

 

I do appreciate the input Chris and understand your logic. Keep up the good posting.


Erik

 

The Morgan and Peace Dollars are 90% silver so the spot value with silver @$40 is approx. $36.

I looked at collecting these, and decided that I really didn't know enough to make informed decisions. There are lots of small things that make a big difference in value. Therefore I have stayed with ASE Bullion and ASE Graded coins.

My experience is that local dealers stay in business by having a good understanding of the market value of their inventory. Yes, they sometimes get over stocked and let things go at low retail value, but you are more likely to find a "deal" on eBay. The local dealer has lots of overhead to pay to keep that shop open.

Last week I got a 2007 W NGC MS69 ASE on eBay for $48.52 before deducting the $3.40 (7% eBay Bucks Discount), with free shipping and no sales tax, for a net cost of $45.12. This is approx. $4 over spot for a certified coin. My local dealer's premium on ASE are $3.50 on 2011 bullion ASE. The current NGC/ PCGS market value for this coin is approx. $65

When it comes time to sell my silver, I probably will not need to find a coin collector in order to find someone who will pay me spot or above for ASE silver.

I'm primarily buying silver not collecting old coins.

 

Good decision, because Morgan and Peace dollars contain .77344 ounces of silver making the spot value about $30.94 per coin at $40 silver.

 

Good catch! Thank you

90% content / 77% weight
[TABLE="class: infobox, width: 1"]

Value1 United States dollar

Mass 26.73 g (412½ gr)

Diameter 38.1 mm (1.5 in)

EdgeReeded

Composition90.0% Silver
10.0% Copper
[/TABLE]

 

Apmex lists its "buy" prices:


Buy 1 oz Gold American Eagle +45.00 1 oz Gold American Buffalo +45.00 1 oz Gold African Krugerrand +17.00 1 oz Gold Canadian Maple Leaf +18.00 1 oz Gold Austrian Philharmonic +15.00 1 oz Gold Australian Lunar Series I +35.00 1 oz Gold Chinese Panda in Plastic +30.00 1 oz Gold Bar - Pamp/Credit in Card +12.00 1 oz Silver American Eagles (Random) +1.80 1 oz Silver Canadian Maple Leafs +1.40 100 oz Silver Bars JM/Engelhard +0.05 100 oz Silver Bars - Sunshine (Struck)+ .40 $1,000 Face Value Bag of 40% Silver -2.25 $1,000 Face Value Bag of 90% Silver -1.50 1 oz Silver Chinese Pandas in plastic +7.00 1 oz Silver Englehard Bars +1.00 10 oz Silver Bars - Any Brand Name +0.10 1 oz Silver Bars - Brand Name +0.30 1 oz Silver Rounds - Brand Name +0.20 Prices are indications only and subject to change. All transactions and pricing are based off of the APMEX spot price, which can be found at www.apmex.com.

Its time that local buyers upped their "buy" prices; either they do or we ship our coins to Apmex or another top buyer.

Another thing to keep in mind on hidden precious metal content. The US eagle gold oz. has a significant amount of silver.