Spot Price Silver

barefootjuan

I just started my collection and def a newbie. When I graduated from collage back in '94 and got my first 'real' job in an accounting firm, We all setup 401K's. One guys whispered to me... got some advice for you.... always invest in gold! of course I didn't take his advice and put 10% straight into my 401K. Now, 15 year later, my 401K isn't doing so hot! but gold has jumped from $350 per z to $1000!!! A few month ago, I decided to start investing in silver. I bought some '09 Eagle bullions, a few rolls of '64 kennedys, some PCGS 70 lincoln commemeratives and silver dollars. Yes, I bought the 5 rolls of LP2 lincolns hoping to make a few quick bucks. With the price of silver reaching $15.67 per z today, what are your thought for buying now in this market? do you feel the trend is going up or down? Also, If I stick with silver and not gold... I would be looking at spending 100-200 per month... should i stick with bullion or go for some morgans?

SirAnthonyAC

Honestly, Morgan silver dollars have a silver content of 0.77344 troy ounces (24.057 grams) per coin.

If you want to invest in silver, you can stick to the common Morgans and they should hold their value better than bullion due to the collectability of the coin.

If Silver drops down to $5 you’ll still have the collectable coin, if silver jumps to $18 as it did last year or, $20 to $25, there’s should be enough silver in the Morgan to push the value up along with the spot price.

It’s hard to go wrong with an extremely popular coin such as the Morgan.

Robb

If your sole purpose is to make money off of the spot price trends then you need to avoid anything slabbed (the PCGS 70 Lincoln Comm.) Generally you would be looking at melt bin cull silver regardless of denomination up to the dollars. That is to say, cull Morgans and Peace dollars will still bring a little bit of a premium over the spot buffer but WLH tend to sell for the same as Fanklins and '64 Kennedys.

Welcome to the boards.

cladking

Welcome aboard.

In the short term silver is almost impossible to predict. Of course, the
same applies to the long term but it's tremendously undervalued relative
everything else so it just might do exceedingly well.

If you want a long term investment in the ingenuity of man then there's
probably nothing better than silver and the best way to acquire it, (for
the long term) is probably coins that are worth nearly their metallic val-
ue in terms of their numismatic premium. This way you'll have protect-
ion on the downside in the event you are forced to sell before the price
of silver has rationalized.

I prefer more modern forms which present a more limited choice but any
numismatic or collectible silver is sufficient.

Barndog

welcome.

funny how you spelled "college" -- anyway, there are some die-hard precious metals fans in the precious metals forum, poke around in there and you will surely get additional input.

DorkGirl

barefootjuan

<< <i>welcome.

funny how you spelled "college" -- anyway, there are some die-hard precious metals fans in the precious metals forum, poke around in there and you will surely get additional input. >>



thanks! my wife is a photographer so... I've been thinking more about collages then college. anyway, thanks for everyone's input. I am not in it just for the silver, i like the idea of collectible coins. so far, the early Morgans have caught my eye... i kind of like the 'worn' look of grade XF better then AU. am i wrong? shouldn't i get the highest grade possible?

70md

You guys neglected to mention an important fact- buy bars!!!! Preferably 100oz and if you cannot afford it then 10oz generic silver bars. Ebay, these forums, and NWT (like the last one a lot) are the best places to get the most bang for your buck. You don't want to get devoured in the ask and buy spreads as will certainly happen with coins!

Robb

You should buy whatever appeals to you and not worry about what others think.

barefootjuan

<< <i>

<< <i>welcome.

funny how you spelled "college" -- anyway, there are some die-hard precious metals fans in the precious metals forum, poke around in there and you will surely get additional input. >>



thanks! my wife is a photographer so... I've been thinking more about collages then college. anyway, thanks for everyone's input. I am not in it just for the silver, i like the idea of collectible coins. so far, the early Morgans have caught my eye... i kind of like the 'worn' look of grade XF better then AU. am i wrong? shouldn't i get the highest grade possible? >>



Sorry, I meant to say that I like the 'worn' look of XF better then BU's not AU's. I guess an XF could be an AU? Sorry for being such a newbie.

BBQnBLUES

<< <i>If you want to invest in silver, you can stick to the common Morgans and they should hold their value better than bullion due to the collectability of the coin.

It’s hard to go wrong with an extremely popular coin such as the Morgan. >>


EXCELLANT ADVICE !!!!!
I Also like to hoard XF-AU Morgans

MsMorrisine

just because of the recent American Eagle and Silver Commem discussion lately, I was going to find an Eagle or Lincoln Commem thread to post this into.

But, you gave me a Precious Metal posting in this Coin forum. Now those that care about both can read here and I won't bother to find another thread.


CNBC has been talking about the commodity markets a lot today. I've been out and forgotten all the figures, but one:
this month has been the best month for Silver in 22 years.
that includes the 2006-2007 and down into 2008 bubble and crash!


they also talked about gold gains and even oil gains. The monthly oil gain for this May was also remarkable in a multi-year way.

I'm calling bubble.

The end to a bubble is really hard to call. However, since we recently burst a commodity bubble, there should be more selling into the strength than there was last time.


But.... back then many experts were citing demand for one big reason for the run up, as well as the falling dollar.


Now? Falling dollar and increasing demand are being cited as the reason for the newest run-up.

Hello? A dollar, falling but not near new lows, and a Recession, even with recovery, can't satisfy me that multi-year month-over-month increases in commodity prices are purely due to exchange rate and demand.

Bulls**t.

My take is that this is a new bubble folks.



What's going to happen? I've no clue. Personally, I'm apprehensive about buying the strength and will likely be selling the strength soon.


{last bubble, silver hit $20 then fell back to the $8-$9 area.}

DieClash

The recent runup in oil futures has nothing to do with demand. The big banks, fattened with newly found tax payer TARP money as well has the big hedge funds have been speculating on commodities lately. They've moved their targets from PMs to oil. At a time when the U.S. refining capacity is at 85% and demand is down, oil has risen 70% per barrel! The only explanation is the speculative investor market.

Now, assuming that this is true and speculators are withdrawing from PMs, then there will be downward pressure on the price of PMs in the short-term

EDITED: Friends of mine who don't collect coins but are interested in investing in bullion want to own the gold, so I recommend the bullion coins produced by the U.S. Mint. These cannot be purchased directly from the mint but through select distributors approved by the Mint. Google Bullion and peruse the hits for some good dealers. APMEX comes to mind.

Also, to the boards.

Constantine

Welcome! I have to say that if you are truly looking to commit $100-$200 a month then decide if you want to build a collection or make an investment. If you want to make an investment then start or continue to contribute to your 401(k) or other retirement account. You are a young guy and historically the equity markets have proven a sound investment over the long-term. Your guess is as good as mine what silver will be in 1, 5, or 20 years. I buy silver every once in a while because I like to own it and like the feel of having a few ounces of silver in my hands. If you want to own silver then Morgans are a good choice, but remember that a common Morgan will always be a common Morgan. My advice is that if you have $100 or so a month to invest, then do it soundly and for the long-term, so stick with your financial investments. But if you want to build a collection, pick something or focus on an area that appeals to you and have fun. I think you should always buy the best that you can afford and not just amass a hoard of common date silver coins. I can think of many great collections you can start with a $100 a month budget. But it all depends on what you like and what appeals to you.

DieClash

Sage advice from Constantine!

If you're still interested in Collector and Investor coins then, buy this book: Expert's Guide to Collecting & Investing in Rare Coins, by Q. David Bowers

MsMorrisine

<< <i>Sage advice from Constantine!

If you're still interested in Collector and Investor coins then, buy this book: Expert's Guide to Collecting & Investing in Rare Coins, by Q. David Bowers >>

illini420

If you're looking to invest in silver, 90% junk silver seems to work for me. It's also fun to look through it all and try to fill albums up with the best pieces of "junk." Relatively easy to buy and sell too as there are always folks buying and selling 90%.

GrumpyEd

<< <i>What's going to happen? I've no clue. Personally, I'm apprehensive about buying the strength and will likely be selling the strength soon.
>>

KentuckyJ

First, there is a lot of very good info and discussion over on the Precious Metals forum. The drop down navigation menu on the upper right of your screen can take you there.

If you're pending 100-200/month then either bullion or old US coinage are Ok. Which do you like most? I started buying a little 'junk silver' US .25¢, .50¢ not too long ago. From what I bring home I've been taking the dirtiest most attractive original circulated coins and slowly filling Dansco coin albums. My duplicates simply go into coin tubes as a silver 'investment.' I've found this is as much fun, numismatically, as the chase and capture of high grade US silver coins, which I'm also into.

Long term, I think we're all agreed both silver and gold are destined to go much higher. I've owned both at various levels since the mid 70's so I've seen many previous ups and downs. Short term, who knows? I trade GLD and SLV and took SLV profits yesterday, wanting to be flat over the weekend.

I do agree with you that nice circulated coins are often more attractive than super high grade condition rarities. I have a little of both in my collection but find the crusty circs, having a nebulous energy of having passed through many hands, very appealing. Those supposedly lesser quality coins built this country while the condition rarities probably only rarely saw the light of day.

BTW, to the forums

Have fun Enjoy!

ProofArtworkonCircs

Welcome.