Silver Eagle markup

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I've been using the rule of thumb to pay no more than $2.50 over spot for a common silver eagle. That would be the total cost including postage, sales tax, etc... The Maple Leafs from Canada usually seem to be a little cheaper. If the goal is investment and the accumulation of silver rather than collecting coins, silver rounds are a good alternative and the more well known "brands" should be easy to resell. Here is an example:

http://www.nwtmintbullion.com/silver_panam.php

 

"I expect the greenback to become worthless soon (like it isn't already) and I think the silver eagles will be useful as currency. Being minted by the government, people will be more likely to accept them, I assume."

"But it's easier to go to the grocery store with a $12+ silver coin than a $600+ gold coin. I mean, what are they going to give you as change for your gold?"

"Anybody got any comments? Is my thinking screwy? What do you think would be most likely to replace the greenback as currency?"

A couple of questions?

When do you see Silver eagles being used as currency in the US? Do you have a time frame in mind or this going to occur after the end of civilization as we know it. I'm curious because if it's gonna happin in the next 10-15 years, I need to stock up.

I would imagine that silver eagles would only be used as currency to buy groceries only after the US governement is a functioning entity. It would be a lawless society and if it comes to stone age barting with precious metals,what does it matter who minted the coin?

How is the grocery store going to know how much your silver eagle is worth? It only has a 1 dollar face value. Most grocery store owners don't know that the new presidential dollars are legal tender.

Interesting scenarois but if anything we are moving away from a cash based society. In 10-15 years currency will evolve and slowly disappear as we move to debit cards and fobs that you scan, like you can get for the Mobil gas stations. It will all become electronic. Ofcourse those in the hinterland and wilderness areas might still be using siver eagles to buy a loaf of bread but the rest of the country will have moved on.

 

It is a very low probability bet to think that gold and silver coins are going to be used as currency in the forseeable future. But is is a very high probability bet that they will provide significant protection against the inflation [more accurately called devaluation of the dollar] that seems all but certain to occur. If the greenback ever needs to be replaced, it will be replaced by another fiat currency just as has been happening in other nations with similar problems over the past 50 years. Nobody is going to walk around with pockets full of silver eagles. You're going to have to exchange them back into whatever currency is used at the time before spending the money.

My gues is that we will never be a completely electronic society as long as politicians need a way to accept bribes in a manner that cannot be traced. I don't think the people who make that decision are ready for it.

 

My only comment on the site is that it leans to far in one direction. If I'm looking to buy some silver, I'll read it, but I keep that in mind. There are a lot of conspiracy theories floating around over there, and everyone is talking about the end of the world.

 

I hear ya...

I read many forums on various topics/Hobbies/Intrests...

So, I view forums like a Giant Buffet.... Look it over, take what you want pass on the rest...

 

I also don't get any of this thread. Silver Eagles as an investment, hedge against inflation, etc., OK. As a financial instrument to replace the dollar, no.

 

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ATTN MODERATORS...feel free to edit or remove this post. I am trying to make a point, not pushing for a sale here.

Silver Eagles are a screwy market and it seems like I'm often getting hammered by the wild spreads. When I NEED them for a customer etc other dealers try to charge me $1.50 over spot...that's for common date BU coins...not 07's, 96's, 86's, etc. But when I have some for sale I'm consistently offered spot or less. It's very aggravating and unpredictable so honestly I usually just try to avoid them. I can't be a fair buyer when the spreads change with the wind.

If you're paying $3 over spot for common dates...you're overpaying! Stop it! lol. In this market unless you have special order even $1 over spot isn't a bargain. I have a group of 100 and I've been asking less than that and guess what? No takers.
I disagree with the theory that local coin shops are automatically higher than mail order etc. I generally sell for less (sometimes far less) than Coast to Coast and the others, but if a customer comes to me and specifically wants something I have to ORDER, the cost will certainly be more.

Lastly, don't buy into the fearmongers stories about the end of society...conspiracy theroies existed long before any of us were born. I personally was selling to doomsayers in the 70's (bicentennial), the 80's (double digit inflation), the 90's (runaway stock market and y2k) and rumors of the impending birth of anarchy and chaos STILL abound...yet the world is still here, unchanged for the most part. Some people will always look for a reason to claim the sky is falling.
Yes precious metals should be included in anyones investment strategy but anyone who owns ONLY silver/gold, canned foods and shotguns needs therapy.

imho,
tradernick