Is this a fair price?

[apush]

I had the good fortune of having this past friday off. Mr. Apush and I ran some errands--he helped me with my weekly dump . Total of 5 silvers out of 3 boxes of halves this week. Certainly not impressive, but I am not complaining.

There is a small coin shoppe in our town. Thought I would venture out, and take a look around. The dealer was nice enough, but kept ranting and raving that his shoppe was a coin shoppe not an internet scam or a fly-by night operation . I never mentioned either?

Well, he had a bag sitting on his work desk that had a mixture of 20-90%ers: kennedies, walkers, bens. As I glanced, I notice the coins looked as if they were from coin rolling, metal detecting, etc. The coins were not top grade by any means. I asked him what he wanted for the coins, if I were to buy 10. He said $72.50.

Is that a fair price and something I should consider? I am like most here; that is, I would prefer to find them in the wild, but I would like to obtain a nice small collection for that rainy day.
apush

 

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[Rich Hartford]

RH,

My guess is that Gerald and others who push gold more than silver do so because they believe that if TSHF gold will be more valuable due to its "money" status, where silver is seen as a more of an industrial type of metal whose use may decline if consumers buy less stuff made with it because the economy has tanked??

There are alot of silver pundits out there though. Some say that one day silver be more expensive per ounce than gold and also say there is less above ground silver than gold right now. I don't believe either of these statements to be accurate in my opinion. But, I think as gold rises silver will tag along and might very well make higher percentage gains over time, which would mean a higher return on your investment. For gold to double we would need to see 2400 per ounce, silver just 37 per ounce. I personally think we will see silver double before gold. And I think each could go even higher than these figures if the economy/world currencies keeps tanking.

I generally read as much as I can from different sources and get a gut feeling from everything I have read. I try not to rely on any one person because with so many different people giving different views it is not possible that they will all be 100% right.

I try to keep a 50/50 split between the two for my own stash. Silver's uses have been growing as technology grows. Much of that use involves the silver not being recycled after it is used. I have read that each guided missile or torpedo that is used by the military uses up to 1400 ounces of silver in one shot (no pun intended). I don't know if that is true, but alot of electronic devices need silver. The medical community is using more silver for its proven antibacterial effects. The reason silverware was made from silver was because of silver's efficacy in this regard.

And believe it or not there are some companies using silver fibers in clothing since it reduces bacteria growth and cuts down on BO. They only use very small amounts in each clothing item, but if the idea catches on it will add up to lots of used silver over time, and no way to recycle the silver used in this form.

One interesting note is that for centuries there was a 16 to 1 silver to gold ratio. This was before we had electronics or photograpy, etc. that used silver industrially. It was pretty much all used as money back then. So the silver is not money argument may not be so accurate based on history.

I hedge my PM position by owning some silver instead of all gold. I figure if the silver pundits turn out right my silver stash will skyrocket. If the gold camp is right my silver will probably not go lower than it is now since I believe we will have high inflation someday due to all the bail outs and printing going on and unless an industrial silver replacement is invented silver will always be needed. I see it as a no lose being 50/50.

PS Another interesting twist is that some pundits are saying online that certain big bank(s) are being investigated for allegedly manipulating the silver markets with huge concentrated short positions, etc. I don't know what will come of this, but if somehow this was uncovered during the investigation I think it would have a bullish effect on silver prices in the commodity markets, which in turn would increase the value of physical silver. We will have to wait and see if anything comes from this issue.

But owning just gold would be easier since it is so compact and easy to store.

Jim

Jim,
Thanks,I'm glad I asked you. You provided a lot of information that I was not aware of,especially on some of the industrial uses of silver ,ie military uses. Very interesting !
Thanks again for the time you spent on your reply. It answered a lot of questions.
Best
Rich

 

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[CHAINCHOMP]

 

[Tattooguy67]

Hey there Apush, to me that does not sound to bad, according to; http://www.coinflation.com/ right now with silver at $18.36 that 90% half has $6.64 worth of silver so you are paying a 61 cent premium per coin or another way to think of it is you are paying $72.50 for $66.41 worth or $6.09 over what it is worth, and then you have it in the safe! no muss no fuss and no shipping charges! those ten halfs have 3.617 of silver so to me that does not seem all bad. As far as the ratio of gold to silver to own think of this, gold is always good to have and for larger purchases it can't be beat, but for those smaller items I think silver would be better then gold.

Chuck.

 

[rwb83]

Wow guys!!! Well done! Really gave me an insightful look at the gold vs. silver PM question. Thanks

 

[mts]

I have not had a lot of trouble getting 90% junk silver coins for very little over spot (sometimes under). If you go to a coin dealer then you will surely pay a premium. We have a monthly coin show in my area and I go to the show during the last hour of the day. There is usually someone there who is willing to unload some junk silver for decent prices so that is a good way to buy from my experience.

You will also want to consider the impact of sales tax on that price. If sales tax is included in what you quoted then that is actually a very good price. If it is not then that will make the price even higher so keep that in mind. The dealers at the coin show I go to usually absorb the tax so you don't have to pay it. They pay it at the end of the month and just consider it a cost of doing business at the show. Just be sure that you are clear on whether or not the price quoted by any dealer includes sales tax or not.

As far as the silver vs. gold debate I think you should obviously own both if possible. But I see gold as being slightly overvalued these days. Either that or else silver is undervalued. So either way I buy a lot more silver than gold. I just love the stuff which actually makes it dangerous. You should never fall in love with your investments.

 

[Kauka]

nice point about the coin shows, mts
thanks

 

[quiksilver]

Not a chance would i pay that much at a coin shop. Try going to a coin show with some cash. When silver rises you could try buying silver dollars at a coin shop. I noticed that in my area some of the coin shops delay raising prices on the lower end silver dollars when silver is on the move.

 

[Ju8vP3t]

Fair price? I guess that depends on who you ask I'd Pass on them, familiarize yourself with this site>>>> http://www.coinflation.com it'll help give you understanding