Discussion in 'Bullion Investing' started by 68KennedyHalf, Sep 22, 2018.
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Otherwise I got back to some of my numismatic pursuits -- some Washington quarters from the '40s and '50s, and an 1891-S Morgan that looks to be about MS-62. That brings up another question for stackers.
For those of you who also collect numismatics, have you established a numismatic-to-bullion ratio on your buys? Do you find that it's best to emphasize bullion stacking early on, just to build up your supply? Do you go about 60% bullion to 40% numismatics?
You just touched on one of the trickiest areas for those who are coin collectors and yet also wish to invest in bullion. This is where most fail IMHO. The two things should be COMPLETELY separate.
Most tend to start buying bullion, then get used to "collecting" them. This then justifies ever increasing premiums over melt because they want a particular coin for "the collection". Premiums for collectibility have no place in bullion investing, because it is wasted assets that could have gone to buy more bullion. Most of these premiums for special privy marks, etc will be valueless if bullion goes up. Best to concentrate on most ounces for your money of a readily accepted form to sell. This means you can pay premiums for ASE or similar over bars since you should receive this premium back when you sell because it makes the bullion more recognizable. However, a scarce date ASE is a waste of money for bullion money because if silver spikes to $50 the premium for this date will most likely disappear.
Myself, I collect a lot of coins. My bullion, though, is typically in the form of junk US silver, all denominations. I am not tempted to "collect" it, and concentrate on the most ounces per bullion dollar I can get.
I am not saying its easy to not succumb to the "scarcer" bullion attraction. I stated most do it. It is, in my opinion, at odds with the intent of buying bullion to me. Now, if you tell me that this money is for your coin enjoyment, and you love collecting silver bullion pieces, then by all means go collect and god bless. Just do not lie to yourself and tell yourself you are making an "investment". You aren't, its hobby money.
Ah. Well, I was mainly referring to coins that are separate from bullion -- in my case, Morgans, SLQs, seated quarters, etc --that have numismatic value (though I did buy three privy mark reverse proofs in this latest bullion batch, so this advice is duly noted).
since I do love collecting, I highly doubt I would sell my numismatic gold/silver. I enjoy putting sets together.
If at all possible, don't touch your bullion with your bare hands. The oils in your skin can lead to tarnishing on pure silver. Use felt or cotton gloves if possible.
War nickels and 40% halves are often sold at or near spot ; i dont think ive ever paid a premium for those
Yes, because those two are bought back well below spot. Those two might be the worst type of silver to buy.
You're much better off paying a small premium for 90% or as cheap as possible premium for Maples and Eagles.
I wouldn't suggest only buying those; a nice mix is the best way to go
I buy tubes when i can, 90% when the premium drops under 49 cents or if silver spot drops low enough anyhow (im happy paying sub 120 dollars for 10facevalue)
The 40% and war nickels also offer a different fractional option. Some folks say they ate purchased well below spot and that could be true for LCS but i cant find any to buy below spot lol
Short of it is I would never encourage anyone to invest in silver/gold but to buy some as a means to hedge your wealth (im a stacker not flipper)
I dont plan on ever selling my horde unless silver hits above 30 per ounce then i May consider it
I don't want to be absolutist about it, but I don't want you or anyone else to lose money. The buy back prices are 40% and 35% are well below spot, so you're likely to lose money (or not gain as much money as you could have had you bought 90% or 999+ instead)
Hey chucklenut..... I saw you stated QUOTE I dont plan on ever selling my horde unless silver hits above 30 per ounce then i May consider it UNQUOTE.... I have seen a rapid decline of collectors over the last 2 decades or so. Seeing it from a shopfront, i have noticed the decline of younger generations interested in our hobby. This applies to both philatelics and numismatics. Mobile phones, texting and computer games have taken it over. Even pinball machines are dead now...You can accept or believe it but as i was in the numismatic and philatelic trade for close to 35 years in australia and now retired from it, i saw the lack of interest in our hobby by todays youth from the late 1990's. Many times collections were handed down from parents and grandparents to the children and grandchildren and they had not had it a day and were in my shop trying to sell it. Computer games and the like have destroyed what we were once interested in. Personally i melted down all my silver i had before migrating to the USA in 2011 as no matter how small the profit it is still an earn. I actually sold the coins themselves and let the next person having the cost of making into bullion if he or she wanted to. If i could buy 10 x USA $1 silver eagles for $10 each and sell them for $12 each, that is a 20% earn and 10% under spot that i would be offering to my customer so they can earn as well. That 20% earn is way better than what banks offer nowadays. It also leaves room for the next person to make a bit of profit.... Here is todays spot price. https://www.ngccoin.com/price-guide/coin-melt-values.aspx $14.26 per OZ .. I have melted so many 1000's of kilos of silver in my past that the lower end coins are just about impossible to find nowadays.
Please note that 1 kilo = 2.2 pounds...You do the maths.
I am sure i am not the only one doing it as i have seen many bulk lots of silver that are only good for melting in ebay and they have been won by so called speculators....They dont understand that it also costs money to make it into bullion and therefore comes off the top of what can be earnt. Personally i believe in flicking over any items as quick as possible and as long as i can make a profit...Tell me something, would you prefer to wait for the $30 per ounce or sell 1,000 items each day and make 50c profit on them like i used to do?? By turning them over and making that 50c profit per item, you earn $3000.00 clear each week which is $156,000 per year with no effort, no study but only capital. Who needs a high school diploma...ay?? That $156K is a definate where as your $30 per ounce is a maybe. You have to wait until the market reaches that price. I guess that is why i retired before i turned 55 and am living a lifestyle of luxury with no debts over my head....All this was due to buying items and flicking them off within 1-2 days with only the cost of a phone call. After i opened the shop, i had to keep items for 7 days as it was by law in australia...I started all this at school when i was 10 years old with marbles ( alleys ) and comics. Then when i was 17 , i excelled into stamps and at 30 i went into banknotes and coins...Bullion was a sideline so to speak.... My best investment was in the mid 1990's when frito lay potato chip company introduced Tazos inside packs of crisps etc...
They were really worthless and had no monetry value but i got in on the ground floor... I placed an advert in my local newspaper and bought , sold & swapped with school kids. No money exchanged hands...Naturally i would want their parents present so they could see i was upfront. I also went to flea markets to trade with numbers i needed for stock. Many times at the flea markets, it was kids selling them.... I normally swapped 2 of mine for the ones i needed. There was one time i approached a school principal to buy and sell tazos and 20% of profits made went to the schools funds. I looked at it as rent being paid. The tazos in the long run paid for a 2 car garage, repaved a driveway and refenced my property. There was one that reached a retail price of $15.00 each as due to the machine breaking down when that one was being manufactured..needless to say the mintage of that one was less than 100,000 1000's and not millions. Then i decided to liquidate them all and go onto another venture. So if anyone says they cannot make anything without a high school diploma, they are crazy and totally wrong.
I would sell anything for a profit....Just remember that the young generation generally has no interest so make the profit while you can
I use air-tites for my gold. silver just gets whatever it was shipped in.
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