Thinking Of Selling My Silver Quarters

http://world.mintnewsblog.com/2015/...icent-seven-and-other-notes-another-key-year/

 

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That chart looks to me like a textbook example of "random walk".

I'm sure a savvy technical analyst could point out all sorts of revealing patterns, and I'm sure a history enthusiast could find world events to tie to each inflection point. If either sort claims the ability to predict where the chart will go next, though, I'll chuckle to myself and keep my hand on my wallet.

 

I understand your position, although I have "contra" thoughts. Your decision should be based entirely on your feelings/objectives. You seem to genuinely value portability. If this is the case, think beyond gold. Gems are much more portable than a "couple of slabs", they can be sewn into your clothing.

I have collected coins since I was a kid in the 1950's. Two years ago, I sold my entire numismatic collection. I am placing the proceeds into PM's for the long term benefit of my grandchildren. With traditional price ratios in mind, I feel that silver has the greatest potential for appreciation. I try to buy silver as close to market prices as possible.

You have a product that is currently very valued with the current "Prepper" crowd. They seem to be in a huge hurry to scoff up pre '64 U.S. silver coins. ebay auctions indicate an absurd price for halves, quarters, and especially dimes. They pay heavily for the barter mentality. Market silver price fluctuations do not seem to have an effect on this element's desire for the product.

You should receive a handsome return for your items, defraying some of the actual cost for your gold. I understand that you find silver's bulk to be unattractive, but just another thought. With U.S. Junk at a sky high premium, you could seriously increase your ASW by investing the proceeds from your U.S. coins into .80 Canadian or .72 Mexican coins. Just a thought.

 

I don't have a complete bag, mostly stuff from parents/grandparents.....a couple of those brownish/red rolls of quarters with a silvery feel. I remember doing an approximation years ago and the value was $2000 but now that I think about it that was when silver was $30/oz. so the value is probably much less.

If someone wants to tell me which quarters are worth SUBSTANTIALLY MORE than the bullion content (~ $4 ???), let me know. I don't mean even a 100% premium because that's only an extra $4. I'm talking like quarters worth at least $20 or more. I don't know the years/dates.

 

Yes, that might be possible.....hate dragging that all over to shows and LCSs, so maybe best to catalog it and see who has interest. Thanks !

 

Hold it.....

$1,000 face value is what....4,000 quarters, right ? Each has...what....1/4 oz. or a bit less of silver ? So that would mean strict silver value would be close to $16,000/bag -- why the discount of almost $3K ?

 

You're right, I meant and implied $2,000 in SILVER VALUE.

I'll try and recount and catalog -- looking for any years/mints you guys tell me to be on the lookout for -- this weekend or next.

The coins are pretty well worn....not gonna be any MS or AUs I think in this bunch.

 

Good chart, Doug.

The Gold/Silver ratio tends to be LOWER when PMs are in fashion as silver, a speculative play, outperforms.

The ratio is lower when prices are dropping.

 

A silver quarter contains .18084 oz. of silver.......slightly less than 1/5th oz.

Chris

 

You guys that are shaky on silver values, www.coinflation.com is your friend. And the articles are excellent, too.

By the way, some people think that a Morgan or Peace Dollar contains an ounce of silver -- FAR from it, it's 0.77344 Troy ounce. Among well-known (bullion) coins, only the ASE, Maple Leaf, Britannia, and Philharmonic contain ONE ounce. There are others from other countries, of course.

 

Thanks Doug and CPM...I was aware of the approximate silver in a MSD but was off on the GW Quarters. Like I said, I'll try and inventory this weekend or next.

 

Here's another shocker for you -- a silver dollar contains about 7% more silver than two half dollars or four quarters or ten dimes. That accounts for part of its premium over 90% junk silver, face vs. face.

Silver dollar = 0.77344 ounce
Four quarters = 4 x 0.18084 = 0.72336 ounce [ 7% difference]

 

I like both gold and silver. Check your mail

 

Silver Holdings:

OK, I went over my holdings and found out a lot of useful stuff. Namely, that keeping track of information about thousands of coins is one big PITA !

OK, I did get some information and do some tallying and here it is:

WALKING LIBERTY HALFS: 4 worn half-dollars, Liberty's dress mostly smooth, ditto eagle's feathers on reverse. Not protected so probably EF or VF, doubt they even make AU grade.

Morgan SDs: 5 of them in 1" plastic squares. 2 of them 'blackish' on obverse, the others have dirt (grease ?) dots here and there. An 1882, an 1887 (with some paper or something sticking to the reverse; looks like bubble-gum on a shoe, so cleaning probably appropriate for this thing. Don't ask me what it is, not sure. Maybe the glue-part of an envelope it was kept in), 2 1921s (one from San Francisco), and an 1886-O (if in MS, would be a $100,000 coin !!! ) which has a few black speckles on the reverse.

SILVER QUARTERS: I have about 8 1/2 tubes of GW Silver Quarters, with most of them dated 1964 or 1963. There are other years, mostly from the 1950's. Also 5 stray Standing Liberty Quarters (SLQs), very worn, can't even make out the date except maybe with an LED loupe. There's a few dozen from the 1930's and 1940's with a 1944, 1939, 1937, and 1935. Worn but 100% legible and dates clear.

Also have about 3 rolls of Bi-centennial quarters, some 1970's and 1980's quarters probably mixed in.

PEACE DOLLARS: I have 4 1922's and a 1923, all probably VF-EF, maybe AU. I'm going from the lowest-rated Morgans I have which are low-60's and these aren't anywhere near as good.

JFK HALF DOLLARS: About 350......about 200 of the Bi-Centennials and late-1970's and beyond (might be an odd late-1970's mixed in to some of the Bi rolls, didn't check coin-by-coin) and about 150 of the 1960's JFKs.

Also 3 1964's and 1 1965 in protective 1" square plastics with some luster/shine and AU or better condition.

IKE DOLLARS: About 75 of them, maybe 70 or so from 1971-74 with a bunch of Bi-centennials in tubes. A 1972 & 1974 in the 1" squares.....two 1971 Proofs in OGP plastic

SAC & SUE: About 110 Susan B. Anthony and 30 Sacagawea dollars...plus maybe 15 or so Presidential quarters.

SETS: Besides the 2 Ike 1971 Proof Dollars, I have 2 1976 quarter/half/dollar Uncirculated Bi-Centennials in worn plastic OGPs (stuff inside untouched).....a 1965 Special Mint Set Proof or Unc. penny/nickel/dime/quarter/JFK Hal in soft plastic wrap (plus OG Treasury envelope from the San Fran Assay Office)...a 1965 Uncirculated set like the 1965, but this one is hard plastic and says "Crystal" in lower right....2 copper coin things for the Bi-Centennial for Thomas Jefferson and Paul Revere (OG envelopes too)....2 more 1974 Uncirculated penny/nickel/dime/quarter/JFK Half/Ike Unc or Proof in soft plastic....and a 1978 Proof set for same coins.

WHEAT PENNIES: 2 rolls of mostly 1950's, with some 1940's also mixed in.

I think the non-1978 sets are certainly only Uncirculated since the 1978 set is proof and is much more reflective.

Well, that's about it....gotta figure out which is mine and which is my brothers and decide what to do with it all. May go through the Wheats, JFKs, and Ikes to see if there's any rare strikes or mintages, but I suspect mostly/all commons in non-MS state. The 1886-O MSD is the closest I have to a 'find.'

 

Depending on where you live, I'd trade them for what you want to avoid taxes (legally, by the way). I've done this often. You get top dollar if you go to a reputable dealer, and you leave with stuff you want. Win/win.

 

In the US, those trading between different commodities can be liable for taxes based on the difference between the basis and current value of the commodity being traded, even if no cash trades hands. The current value of the commodity that you're receiving becomes your new basis.

If that isn't complicated enough, there are different rules for reporting based on the product:

IRS form 1099 EXEMPT silver bullion products
American Silver Eagle - any quantity
Canadian Maple Leaf - any quantity
Austrian Philharmonic - any quantity
Silver bar of any size - less than 1000oz per transaction
Silver round of any size - less than 1000oz per transaction

IRS form 1099 REQUIRED silver bullion products
Silver bar of any size - 1000oz or more per transaction
Silver round of any size - 1000oz or more per transaction

IRS form 1099 EXEMPT gold bullion products
American Gold Eagle - any quantity
American Gold Buffalo - any quantity
Austrian Philharmonic - any quantity
Canadian Maple Leaf - less than 25oz
South African Krugerrand - less than 25oz
Gold bar of any size - less than 32.15oz (1kg) per transaction

IRS form 1099 REQUIRED gold bullion products
Canadian Maple Leaf - 25oz or more per transaction
South African Krugerrand - 25oz or more per transaction
Gold bar of any size - 32.15oz (1kg) or more per transaction

 

The reason this ^^^ taxation occurs is simple: Without it, there would be no income or capital gains taxes on those who use gold and silver to barter instead of using the USD. For example, what's the difference between "trading" silver for gold and "trading" silver for real estate? Or "trading" silver for groceries? Or "trading" silver for labor?

Step 1 - "Trade" silver for guns.
Step 2 - "Trade" guns for more silver than you obtained them for.
Step 3 - "Trade" silver for guns again.
Step 4 - Profit.

 

Blau, let's say I have $1,000 in silver with a face value of $75 in U.S. coinage (let's say about 300 silver quarters)

I add another $1,000 so I can get someone's $20 Saint costing $2,000.

How much if any do I owe in 'taxes' ?

 

It all depends on how much you paid for the coins, how long you held them (short term vs long term gains) and if you have receipts. Of course, it really only matters in the end if you choose to report the trade.

IMHO - It isn't worth the effort to figure out how to report a single trade of this size, and I wouldn't judge people who choose not to, but if you're doing this to earn a living, or supplement your income, then it's probably best to follow the rules.

 

Blaubart, what is your source for the 1099 regulations, so I can bookmark it?