Silver - spot vs numismatic ?

Discussion in 'Bullion Investing' started by crazyd, Dec 18, 2014.

  1. crazyd

    crazyd Active Member

    I am still new to collecting/investing. I am asking more experienced folks here. I was not sure if my question belonged in bullion or collecting, but since I see all the talk about drop in silver prices.

    How much does spot price affect the more in demand/limited proof or graded coins? For example the 2013 West Point Silver Eagle set, or Standing Liberties?
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  3. Mojavedave

    Mojavedave Senior Member

    Numismatic value is subjective, most collectors will pay what they think is reasonable for a coin they want no matter what the ups and downs are on the market spot prices, IMHO.
  4. green18

    green18 Unknown member Sweet on Commemorative Coins Supporter

    The only time it really affected things was when silver was at $35-$40......

    Dealers would chisel you a little extra on modern commems. devil.gif
  5. Jwt708

    Jwt708 Well-Known Member

    What I saw when silver spiked was certain coins lost their numismatic value when the price of silver exceeded the numismatic value, then the coins sold at melt prices.
  6. Mr. Flute

    Mr. Flute Well-Known Member

    Standing Liberty quarters is a good reference point for this question.

    Common circulated ones with legible dates generally sell for $7-$9. When silver spot was pushing their melt values to that price point the numismatic value was effectively zero, but now that spot/melt is around $2.80 per quarter, the numismatic value has gone back to $7+.

    Though APMEX has rolls of for sale at about $4.50 per coin. Not bad.
    isaiah58 likes this.
  7. TreasureSlugN1851

    TreasureSlugN1851 Active Member

    Lets put it this way... true rare numismatic coinage/artifacts have out performed bullion on every level for the last 50 years... with that being said.

    the MS65 GSA Morgan dollars were $$480-525 two years ago... when silver was $48-$50/ounce. Now that silver is trading $14-17 these Morgan dollars are going for $600-700... go figure...

    Now as far as newer... less numismatic rare historical numismatic coins... we calls these SPEC coins... because lots of speckies... or speculators acquire these thinking they are going to gain in value based on their rarity... NOT the case, most modern coins they make millions and millions of and will on a rare occurance will detach from they basil weight in metal.

    If you want to buy bullion... buy bullion knowing its very volatile. You should not pay attention to the everyday fluctuation of it... set a time period to give yourself or hold it forever...

    a second market is Generics... bullion coins mostly that trade at a premium... for instance the $20 gold St Gaudens double eagle... the common dates in MS63 have a 10 year trading average of 38% over spot gold... when that spread narrows... 19-24% its buying time... because these St Gaudens when gold spikes in the past have seen 60-80% over spot value. Sling shot affect. Generics trade at a premium over spot and are certified... I wouldnt buy them non certified... as with Numismatics as well.. buy the rarest pieces in the highest quality you can afford, and hang onto it!

    numismatics... 3 key ingredients. Rarity, popularity, and historical significance!
    those 3 key ingredients= good wealth preservation.

    some of these artifacts/coins/bars that are historical see incredible appreciation!

    If you are a doomsdayer i would advise acquiring maybe 20% of your portfolio just for junk silver/gold you can barter with... but dont base your entire PM portfolio on this... you wont get anywhere near the juice squeezed as you would see buying good quality lemons!
    chromerunner likes this.
  8. xCoin-Hoarder'92x

    xCoin-Hoarder'92x Storm Tracker

    If bullion eventually exceeds coin collector value, perhaps it's best to stack common date Morgans and such. I have yet to buy a single slabbed coin still, and may never do so. It's the best of both worlds this way, you have what you like collecting, and they're not worth a whole lot more than the metal content at the same time.
  9. TreasureSlugN1851

    TreasureSlugN1851 Active Member

    Yea... you can buy lots of common date stuff... hoping one day that bullion will exceed collecting value... but with coins trading for tens of thousands and millions of dollars... I dont think that will ever happen...

    Historically significant, rare, popular coins only become more... well historically significant and rare as time goes on... very strict supply vs. demand. when coins go from $3100 to $24000 or $80k to $550k like the 1854o double eagle... you cant deny that the best wealth preservation is in the older rare coins in the highest conditions. You then only have the top guys trying to acquire what you have... and numismatics only gets more popular with millions of people catching on every year.

    My opinion... have fun with common date stuff... for your war-chest of a portfolio however... acquire the rarest stuff you aren't going to sell and hang onto it as long as you can!
  10. TreasureSlugN1851

    TreasureSlugN1851 Active Member

    The biggest picture I can paint is... why do you want to spend real money and trade real tangibles just for you personal pleasure if it wont add wealth??? you are putting hard earned worked for money into this... might as well acquire quality... and get some good appreciation out of the money you are investing into this.
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