Would you put your money where your mouth is for 40% at 8x face?

Mercfan

I have the opportunity to purchase quite a few rolls of lovely '65 - '69-D Kennedy halves (VERY lightly circulated but mostly in MS condition) for 8x face value. It's a local deal with no shipping costs or other overhead--8x face would be my out-the-door cost.

Would you make this buy with silver at its current lofty level?

PerryHall

I don't care for 400 fine silver but the price seems fair.

scrapman1077

In a heart beat !!!

zrlevin

I wouldn't. Not when 90% can be had for melt or close. 40% tends to be very difficult to liquidate.

DrBuster

Only if I had a 90% turn credit lined up.

taxmad

<< <i>I wouldn't. Not when 90% can be had for melt or close. 40% tends to be very difficult to liquidate. >>





A dealer offered me Walker halves (no culls, holed, etc) - $200 face at melt. No market in the 90% right now, so stick with what will sell when you need to sell

AUandAG

That price is pretty much retail. I'd be calling your local dealer an see what they
are paying and then be offering about the same. My local guy was paying $8.09
Thursday for UNC's and I didn't ask about AU's, but it would be less.

bob

OnlyGoldIsMoney

I won't buy 400 fine silver. Like others have said I find it too awkward to liquidate. No such problem with 999.

Mercfan

Thanks, everyone, for your replies! I appreciate hearing your judgments on this!

jmski52

I've tried a couple of times to respond to your question and each time, I came to the realization that I wouldn't buy 40% silver in a straight bullion deal. I just wouldn't do it. I have bought 40% silver in a couple of instances - once, I took a flyer in buying some original rolls of 40% silver Kennedy Halves, and just recently, I bought a few Blue Ikes and Brown Ikes in original packaging simply because I liked them. But generic 40% bullion - I couldn't bring myself to spend money on it when so many other alternatives are out there.

Weiss

<< <i>I've tried a couple of times to respond to your question and each time, I came to the realization that I wouldn't buy 40% silver in a straight bullion deal. I just wouldn't do it. I have bought 40% silver in a couple of instances - once, I took a flyer in buying some original rolls of 40% silver Kennedy Halves, and just recently, I bought a few Blue Ikes and Brown Ikes in original packaging simply because I liked them. But generic 40% bullion - I couldn't bring myself to spend money on it when so many other alternatives are out there. >>



Exactly. I would never consider buying 14k gold as a "bullion" play. And 40% is considerably less pure than 14k.

The only time I can ever see buying 40% is if silver drops dramatically. At less than $5 an ounce and dropping, 40% becomes a safety net. Each clad half contains .14792 oz of silver. So it takes 7 coins, or $3.50 face, to make an ounce of silver. Therefore your silver in the form of 40% will never be worth less than $3.50 an ounce because if it falls below that level you can simply spend it for face value.

If you believe there is a strong chance that silver might fall well below $5 an ounce, then 40% is a good move. Otherwise it's terrible.

57loaded

nice thoughts...3.50? well that is correct!

i dunno...i'd rather get 90% but that price is barely okay. if have you the powder for it, go ahead. i doubt you will be kicking yourself.

percyb

I'd pass on the opportunity and wait for something in the 90% market. Never be in a hurry is my motto.