Do any of you experts......

aknow · July 31, 2003 12:57PM

Ever buy silver rounds or 1 ounce silver coins?
Do you think they are a sound investment, as silver could eventually jump in value?
If so, are any of these actually rare, or very collectible?
Thanks,
Dr. Steve

cherrypickincoin · July 31, 2003 1:13PM

I sold all my silver rounds once I heard it went over $4.00. There is just too much silver in the world for it to ever be worth enough money to really make a good profit.

ursabear · July 31, 2003 1:14PM

Hello! I'd like to respond, even though I certainly don't see myself as an expert. I've been around coins for 20+ years, though...

I've not yet seen a silver round or bar that actually had extra value (speaking strictly of selling value) beyond the bullion value. I know that many folks have had rounds that have had sentimental value - in this instance, it is wonderful to have them.

If silver jumps in value, they'll certainly be worth more, but I think Eagles, Maples, and others will do a little better.

I don't know if any have actually reached collectible status or rare status. I'd be interested to see the opinions of the others...

Jimmy Bear

aknow · July 31, 2003 1:26PM

Thanks Jimmy Bear!

BigD5 · July 31, 2003 1:29PM

No silver bullion for me. My nephew and son like the Silver Eagles, and have started albums for those. I think bullion, in general, isn't a good "investment". Money can be put to better use. My opinion of course.

billboat · July 31, 2003 1:30PM

Every so often I see a silver round that I like for some reason or another and think about buying. Haven't so far--and certainly not for an investment.

cladking · July 31, 2003 2:31PM

A cartel bought up silver in '79/80 because they believed it was dramatically
undervalued. The fact that it was one of the relatively few markets which could
be manipulated for relatively little money, no doubt, played a key roll also. It was
seen to be undervalued because of supply/demand fundamentals and because of
silver's use as a high tech and indsustrial metal. There are many millions of ounces
of silver (25 billion) but this is very little supply if uses are found which require sub-
stantial quantities. Not all of this supply is really available at any price. Many millions
of ounces are tied up in museums and collections. It is also tied up in product streams
such as photographs, X-rays and the like.

Silver is one of the most unique of all the elements with its outer electron orbits filled.
It has some nearly unique properties and can not be substituted for in more applica-
tions than probably any other element. The list of theoretical uses is also most impres-
sive.

The supply/demand structure is far better now than it was in 1979 and its cost is about
one quarter of it's average '79 price in constant dollars.

This is not to say that it's going to the moon today or tomorrow, but at some point it's
not unreasonable to expect a price breakout. Silver rounds and bars can often be ob-
tained for very little premium to melt. Some of these are very attractive and were made
in very small numbers. SAE are collected by many Americans in very high grade and have
performed very well from a price perspective. Many silver worls coins can be found at an
actual discount to melt value and these are sometimes scarce due to attrition and heavy
melting. Silver scrap is very inexpensive.

If you think silver is going higher all these can make excellent purchases. If silver fails to
go up then there is still a chance to do well on the numismatic aspects to these.

Dabigkahuna · July 31, 2003 2:43PM

I thought that Warren Buffet took a major stake in silver around 00'-01, if I remember correctly? It may have been from that same cartel. I do know the hedges lean on silver to somehow bring down the price of gold but you would need an expert to tell you how this works.

The Silver and Gold Eagles are great way to go. IMHO. I think gold will hold here for awhile before inching up again but silver is acting much better.

Larry
Dabigkahuna

cladking · July 31, 2003 2:46PM

Bill Gates has also taken a position in silver. This is even more
interesting considering his field of expertise.

aknow · July 31, 2003 3:27PM

Cladking:
Thanks very much for your insight.
Dr. Steve

LucyBop · July 31, 2003 3:36PM

I have many Elvis and Betty Boop Silver rounds!!!! And I ain't ever gonna sell em!

291fifth · July 31, 2003 7:21PM

Can you eat silver? Wear it? Live in it? When it hit $5.00 an ounce I dumped what little bullion I had.
Do you really want to have a substantial investment tied up in something where the main outlet for selling may be an undercapitalized coin dealer? Think about it.

andy007 · July 31, 2003 8:59PM

Gates probably has an interest in silver due to a recommendation from his close friend whom was already mentioned, Warren Buffett.

cointagious · July 31, 2003 9:28PM

<< If so, are any of these actually rare, or very collectible? >>

yes! some early private mintage pieces are very collectible and carry a hefty premium. one early issue that comes to mind has a wholesale value of about $75.00 for a 1 oz round. the market is thin but there are some very zealous collectors out there and the number is growing.

cladking · July 31, 2003 11:59PM

<< 

<< If so, are any of these actually rare, or very collectible? >>

yes! some early private mintage pieces are very collectible and carry a hefty premium. one early issue that comes to mind has a wholesale value of about $75.00 for a 1 oz round. the market is thin but there are some very zealous collectors out there and the number is growing. >>

Good point.

There are also some great Franklin Mint issues. We tend to slam the FM a lot around
here, but when you get right down to it the only real problem with them is that theeir
numismatic products were horrible investments. (and this with the the visual accuity
of hindsight).

They did have some of the best artists and engravers around. The silver medals, in
many cases are simply stunning. They often have themes which appeal to a wide aud-
ience, and are of superb quality. While buying these when silver was $20 per ounce
at triple or quadruple melt value was of dubious wisdom, these all sell for prices based
on $5 silver value today. There are a few of the best ones pulling away from the others
due to their broad appeal and great art, but even these can be only a few dollars over
melt. While none to my knowledge is rare, they were generally made in fairly small quan-
tities of 10,000 or less.

There are a few who collect bars. These come in a wide array of sizes and anything from
before about 1960 can be difficult to locate.

meos1 · August 1, 2003 12:05AM

Keep in mind that there is roughly a 17 to 1 ratio of silver to gold. This means that if you evaluate the price of silver vs. gold either one of two things are true:

1. Silver is undervalued and will experience a price rally.
2. Gold is over valued and will suffer a price retreat.

Take your pick. Collect what you like. Numismatia is not an investment vehicle.

Dan

CarlWohlforth · August 1, 2003 12:12AM

It takes a lot of rounds to make a meaningful investment. To me silver is a commodity. That means its value is based on supply and demand where most of the demand is industrial. Jewlery is the second biggest consumer of silver. Photographs are also a large consumer of silver. I think digital photography will continue to displace the older kind that uses silver.

Supply is strong with Mexico still the largest producer. Like gold silver can and is recycled. If prices go up people can melt their jewlery and rounds. Recylcing already produces a huge amount of silver annually.

So I'm not bullish on silver. If I was I would be more interested in mining stocks rather than rounds.

cladking · August 1, 2003 12:29AM

<< It takes a lot of rounds to make a meaningful investment. To me silver is a commodity. That means its value is based on supply and demand where most of the demand is industrial. Jewlery is the second biggest consumer of silver. Photographs are also a large consumer of silver. I think digital photography will continue to displace the older kind that uses silver.

Supply is strong with Mexico still the largest producer. Like gold silver can and is recycled. If prices go up people can melt their jewlery and rounds. Recylcing already produces a huge amount of silver annually.

So I'm not bullish on silver. If I was I would be more interested in mining stocks rather than rounds. >>

Silver does require a lot of room for storage in any form.

Supply (production) has been strong since the 1880's and this has lulled us into the
belief that silver is too common to be high priced. But demand has been growing very
steadily during this same period and much of this demand is highly inelastic because
in many applications there is no substitute for silver. For the last decade or more this
demand has outstripped the supply. Even last year with the world in recession or the
doldrums the supply was insufficient to the demand. There is a lot of silver above ground
and any price increase will bring it out along with some increased production. Prices are
often set far more by psychology than simple fundamentals simply because this is the ba-
sis on which most individual decisions to buy and sell are made. The perception of this
market could change overnight and if it did there would be a very dramatic readjustment
of price.

Silver mining stocks can make excellent investments but effort is required in their selection.
Many miners nowdays engage in significant forward selling of production. This production
would not benefit the bottom line of the miner and can even cause disruptions if they are
forced out of business by financial problems.

Silver also serves a function as the "poor man's gold" in the event of calamity. Should there
be a currency or financial based panic then silver would likely take on some uses as currency.
In such a situation silver mining stocks may be nearly worthless.

wallstreetman · August 1, 2003 1:03AM

NO!

paigowjohnny · August 1, 2003 1:04AM

I collect the Chinese 1 oz Pandas and the Mexican Libertads....not for investment, though. I just think they're beautiful coins.

Conder101 · August 1, 2003 5:05PM

<< Silver does require a lot of room for storage in any form >>

Shouldn't take up that much space. A 1 cubic foot space will hold around 9,000 ounces.

Do any of you experts......

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