What coin offered best silver value to inflation value?

[blindbug]

So, I had this thought today, and thought it might be a fun excersize in thought processing.

What coin offered the best silver content value (today) to face value (at that time) after you take into account inflation?

For instance, if I bought a 1916 Mercury Dime, the inflation value of $0.10 today is $2.18. The silver content value of a Mercury Dime today is $1.28. That means that if I were to have bought mercury dimes in 1916 with the intentions of selling them for their silver value in 2014 that I would be losing $0.90 ($2.18 - $1.28) for every dime that I purchased.

OK, now that I've confused you... what's the best coin you can come up with that would have been a good purchase for metal content at the time? Let's keep numismatic values out of this one!

(This thread will come in handy when the time machine is invented )

 

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[blindbug]

Here's a coin with a positive 'speculation value':

1964 Kennedy Half Dollar:

$0.50 face value

$6.42 silver content value
$3.84 inflation value
$2.58 Total speculation value per coin

 

[cudamark]

I would imaging the late Franklins would be about the same. Have you checked some gold coins with the same formula?

 

[blindbug]

1929 $5 Gold Indian Head:

$5.00 face value

$298.69 gold content value
$69.55 inflation value
$229.14 Total speculation value per coin

Gold coins would have been a great investment for bullion value, assuming you could get them at face value, of course.


1963 $0.50 Franklin Half Dollar:

$0.50 face value

$6.40 silver content value
$3.89 inflation value
$2.51 Total speculation value per coin

It's interesting that a 1964 Kennedy would actually have a speculative value greater than a franklin... to me anyway.

 

[blindbug]

1933 $1 Peace Dollar:

$1.00 face value

$13.68 silver content value
$18.30 inflation value
$-4.62 Total speculation value per coin

I wonder how the speculative value of coins plays into the scarcity? For instance, if I know I can get more out of a coin by melting it than I could get out of it with buying power, I would be more apt to just scrap the piece... thus limiting supply and increasing numismatic value for all others who choose not to scrap.

 

[coinguy*matthew]

I wonder how the speculative value of coins plays into the scarcity? For instance, if I know I can get more out of a coin by melting it than I could get out of it with buying power, I would be more apt to just scrap the piece... thus limiting supply and increasing numismatic value for all others who choose not to scrap.

The comment above has happened before the most notable example has to be the Morgan dollar. Many dates in this series saw high mintage but because of scrapping they can be quite scarce.

 

[TheCoinKid]

<It's interesting that a 1964 Kennedy would actually have a speculative value greater than a franklin... to me anyway.>

Simple math.....Both coins in your example have the same silver composition, but the '64 Ken has one less year of carrying cost (time value of money), thus a greater profit.

TCK

 

[blindbug]

The comment above has happened before the most notable example has to be the Morgan dollar. Many dates in this series saw high mintage but because of scrapping they can be quite scarce.

I wonder if that could play out again? If the US government decides to allow the penny to be melted legally, would there be literally tons and tons of pre-82's being melted for their copper content, and thus driving up the numismatic price of these coins. I know this is not a great example, because there are so many of them, but it's an interesting thought.

 

[usandthem]

I wonder if that could play out again? If the US government decides to allow the penny to be melted legally, would there be literally tons and tons of pre-82's being melted for their copper content, and thus driving up the numismatic price of these coins. I know this is not a great example, because there are so many of them, but it's an interesting thought.

This thought is what got me started collecting pennies.

 

[Twitch]

War Nickels have the best silver content per $1 face. Lot of people frown on them because they're generally less desirable in the market place but they do have more AG per $1 that even Silver Eagles.