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Investing in old dollars to try and safeguard against dropping silver prices?
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<p>[QUOTE="medoraman, post: 1990892, member: 26302"]True sir, but then you are also taking the PM market risk. The reason they constrict is collectors are not willing to pay the pm premium. </p><p><br /></p><p>Your idea would work best if someone hedged the pm risk. Buying in a high pm market, hedge your downside risk, and if pm went down you gained on the numismatic spread widening.</p><p><br /></p><p>This is why I warn everyone that if they want to invest in PM buy only very low premium coins. Do not get swayed by paying higher and higher premiums, because these premiums will disappear as, (as you hope), pm goes up. Barbers coins used to bring a premium, but at $35 plus silver they were junk. Now that silver is back down they bring premiums again. Well, if you want to maximize your gain in pm, buy the most pm, which means paying the smallest premiums possible.[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1990892, member: 26302"]True sir, but then you are also taking the PM market risk. The reason they constrict is collectors are not willing to pay the pm premium. Your idea would work best if someone hedged the pm risk. Buying in a high pm market, hedge your downside risk, and if pm went down you gained on the numismatic spread widening. This is why I warn everyone that if they want to invest in PM buy only very low premium coins. Do not get swayed by paying higher and higher premiums, because these premiums will disappear as, (as you hope), pm goes up. Barbers coins used to bring a premium, but at $35 plus silver they were junk. Now that silver is back down they bring premiums again. Well, if you want to maximize your gain in pm, buy the most pm, which means paying the smallest premiums possible.[/QUOTE]
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