Should I buy $7000 in 40% and 90% Kennedys at $30 per oz?

[bthomas71chevy]

(The $7000 is a rough est as it could vary by $1000 one way or the other)

Should I buy $7000 in 40% and 90% Kennedys at $30 per oz?
(even though we are at $32-33)

(of the $7000 60 to 70 percent of the total is 40% silvers, while only 30 to 40 percent are 1964's)

How far should I go out of my way to buy in bulk at $30 oz?

 

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[Marchas45]

(The $7000 is a rough est as it could vary by $1000 one way or the other)

Should I buy $7000 in 40% and 90% Kennedys at $30 per oz?
(even though we are at $32-33)

(of the $7000 60 to 70 percent of the total is 40% silvers, while only 30 to 40 percent are 1964's)

How far should I go out of my way to buy in bulk at $30 oz?

I never buy over spot and I stay clear of 40%'s as they are hard to rid off especially at spot. If I was buying bulk I would expect to get it at least 10% below spot or better especially that much money..

 

[blai745]

I dont know why in the world would u put 70% of your investment into 40% silver halves...i buy those everynow and then at half of spot from individuals...either buy 90% coins at or below spot...or 999 bullion

 

[Dave44]

Maybe I did not understand the post. But a 90% dollar is worth 23.19 at silver price of 30.
1 dollar in change (90%) is worth 21.69.. (melt prices)

I would also stay clear of the 40%, unless you get a fantastic deal.

For the 30$/oz you should buy bullion 999.

Or make sure the coins have numismatic value higher than melt value!

 

[jim4silver]

Like the other posters said, stay away from buying 40%ers unless you somehow get a great deal from an individual. If you are planning on buying from a coin dealer, I would say get either 90% halves (late year Franklins or 64 Kennedy) or low cost 999. Right now my local stores are selling 90% for just under spot. I can sometimes get good generic bullion rounds and bars for 50-75 cents over spot. The best way to decide what to buy is to look at the spread- buy/sell. If your local markets pay proportionately more for 999 bullion as compared to junk, then it is worth it to pay 50 cents more per ounce over the junk in my opinion.

Also, I would avoid the old Mexican coinage that has various degrees of silver (not referring to the 999 libertads). I once thought I was getting a deal when a coin shop offered me some of the old Mexican coinage at spot. Some of the coins were 90%, but most were less, like 72% and 50% I think?. Anyway, when I thought about selling it later on nobody wanted to pay anywhere near spot so I kept it. This sort of ties into why US 40% is a bad buy, due to its low purity. The only reason dealers pay what they do now for 40% US junk is that there is some investor demand and they can turn around and sell it to an investor instead of having to send it to the refiner. If the investor demand for the 40%ers ever falls (which it has at various times in the past), you won't get anywhere near its spot value. Also, sterling rounds/bars have lower resale value when you go to sell, I don't know why that is other than lower investor demand and lower purity (92.5%), unlike the 90% junk silver which is actually lower in purity but has a high investor demand so it brings a better resale price.

One advantage to buying old common date US junk dimes, quarters and halves is there is a very low chance it will be counterfeit. People in China (and probably other such nations) are reportedly creating counterfeit US silver dollars (and other old US coinage with numi value) that not only look BU, but also that are made to look somewhat circulated. From what I have read if you carefully weigh and "ping" test the coins you can tell the difference, but they look very real by just examining them. Even some coin dealers have bought them without discovering they were fakes until later. I don't care to pay the higher premiums for silver dollars anyway, and don't feel like weighing each coin in the store if I were to buy a few rolls of them. Better to avoid them unless you take the time to check them out or just want a couple of graded ones for your collection.

For bullion I like the 10 ounce bars. Many coin stores buy them straight from the distributor (no chance of counterfeit) and they are still in the original plastic and are tarnish free. The 10 ouncers stack great. I will buy older "circulated" ones like Engelhard, JM, Sunshine Mint, etc, because I feel confident I could spot a fake and as of yet, have not heard of any fake 10 ounce bars being made. This will undoubtedly change if silver ever gets up past 50 I would imagine. I would avoid any silver bar over 10 ouncers unless you can confirm it is a brand new bar from a reputable mint and you get a great price on it, like some of the nice kilo bars. I would avoid any bar over a kilo (just over 35 ounces) in size due to even a remote chance of counterfeit.

Up till now I have avoided the ASE and Maples due to their high premiums. I don't know if it is just me, it seems that both of these types of coins tend to develop light spots on them (not toning or tarnish) that will not dip out. I have seen this on fairly newer rolls that were kept in the tubes and the coins had no tarnish at all. I have also seen such spots on some rolls of Philharmonics. Around here the dealers don't pay the higher premiums when you sell on these unless they look BU. If they get any of those spots, you lose that extra premium you paid for. I cannot seen any reason to spend 3-4 bucks or so over spot
just to have gov made silver, especially if the coins don't stay BU over time.

Just my opinion.

Jim