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JoeyA
04-05-2008, 03:22 PM
I`ve been purchasing 1 oz. silver eagles for a couple of months.Today I have been browsing apmex.com to check out their prices and came across this:

http://www.apmex.com/Category/161/Cull___Off_Quality_Silver_Dollars.aspx

These are much cheaper then the mint conditions.Are they still a great deal?Has the silver lost value in the coins even though they are damaged?If not then paying $4-$7 less for an once of silver seems to be a great deal!

Kalifornia
04-05-2008, 03:34 PM
Obviously Im no expert, but I would think that an oz of silver is an oz of silver. I know that people tend to prefer prettier coins, but will that really matter wtshtf? In my opinion, no.

JoeyA
04-05-2008, 03:38 PM
Obviously Im no expert, but I would think that an oz of silver is an oz of silver. I know that people tend to prefer prettier coins, but will that really matter wtshtf? In my opinion, no.

That`s what I am thinking/hoping.:)

Dr.3D
04-05-2008, 03:41 PM
Just remember, those are only 90% silver. Other than that, they are fine. Silver is silver. If you by a bar of silver, it doesn't usually matter if it is tarnished or dented, it is still worth it's weight in silver.

davver
04-05-2008, 04:10 PM
Some old silver dollars are made of less then an ounce of silver. And I'm not just talking 90%, some might be 0.77xx ounces or something. The description of the item should tell you otherwise try and internet search. If it says 1.69 over melt then the silver content of the coin is worth 1.69 less then they are charging.

As far as bang for your buck goes eagles and generic are your best bet. The old coins have numastic value.

micahnelson
04-05-2008, 04:12 PM
If you are dealing with intelligent people who understand silver, they will deal will cull coinage. If you need to convince someone to barter who doesn't understand coinage, use the shiny stuff- but less of it.

Zippyjuan
04-05-2008, 08:00 PM
For investment coins, quality is everything. The better the quality, the higher the markup over the spot price of the silver in them. Try to compare what they are asking for for these coins vs bulk or bar silver.

JosephTheLibertarian
04-05-2008, 08:02 PM
Just remember, those are only 90% silver. Other than that, they are fine. Silver is silver. If you by a bar of silver, it doesn't usually matter if it is tarnished or dented, it is still worth it's weight in silver.

and 10% of what else?

Corydoras
04-05-2008, 08:29 PM
and 10% of what else?

Copper.

JosephTheLibertarian
04-05-2008, 08:30 PM
Copper.

can you get the copper out of it somehow?

Kalifornia
04-05-2008, 09:04 PM
can you get the copper out of it somehow?


90% silver coins are known as 'junk silver' and valued by the weight of the silver in them. The copper firms them up (quarters and dimes are kinda thin). Im sure you can melt them down, but why bother? they have .9x weight silver. In fact, it seems to be a benefit, since you arent always going to need a whole oz worth of a product.

NMCB3
04-05-2008, 09:37 PM
I`vie been purchasing 1 oz. silver eagles for a couple of months.Today I have been browsing apmex.com to check out their prices and came across this:

http://www.apmex.com/Category/161/Cull___Off_Quality_Silver_Dollars.aspx

These are much cheaper then the mint conditions.Are they still a great deal?Has the silver lost value in the coins even though they are damaged?If not then paying $4-$7 less for an once of silver seems to be a great deal!They contain .7734 oz of silver per coin. I looked at the APMEX site the other day and concluded that at the current spot price those coins will cost you 20.36 per ounce. Buying 1964 Kennedy half's will run you 18.96 per ounce. I do buy Morgans and Peace dollars on occasion, but this time around I went with the Kennedy half's. Either way is cheaper than paying the 6 dollars over spot they want for ASE`s. Thats too rich for my blood. :)

DrCap
04-05-2008, 09:41 PM
90% silver coins are known as 'junk silver' and valued by the weight of the silver in them. The copper firms them up (quarters and dimes are kinda thin). Im sure you can melt them down, but why bother? they have .9x weight silver. In fact, it seems to be a benefit, since you arent always going to need a whole oz worth of a product.

I think the so called 'junk silver' is very good in and of itself- most people know a silver dime or quarter- it would be easily recognizable in a currency collapse, and would probably be readily accepted- I think the general public would like it more than a 100% pure silver bar even- because they would assume it's not counterfeit. If you melted it down and then pulled out the copper, and tried to use it as currency as pure silver it would probably be less accepted. Also too, keep in mind that these are regular coins, so, although the government could make it illegal to hold, they would be less likely probably to confiscate money minted by the US mint than confiscation of bullion.

It's all speculation about what people and the government would do however.

buffalokid777
04-05-2008, 11:54 PM
Junk Silver is A fine way to store value if you think silver is going up......and you will reap profits if it does.....

Fine .999 silver like eagles that is in Mint uncirculated condition kind of hedges your losses if silver goes down.

The people I know who have hoarded silver since before the 70s seem to prefer silver with some numismatic value as the ones I know got burnt in the 80s when the price of silver fell.....they took much more in losses on the junk silver than with the silver that had numismatic value and that is why they feel that way.

But I personally feel the current market is much different than the late 70s and early eighties.......

If you feel the bull market of silver that has been in progress will continue....Junk silver is a fine choice.....

If you feel there is a chance that silver might revert to a bear market...it seems fine silver with numismatic value would be the better choice to cut losses if in the unlikely event silver takes a huge drop in the next few years.....

Although I think silver is on the rise for at very least the next two years overall...but that is just my opinion.........

Dave Pedersen
04-06-2008, 02:17 AM
Junk is junk and silver is silver and nary tha twain do meet. There is nothing "junky" about 90% U.S. minted silver coinage. It is in keeping with our constitution and in keeping with just and open governance. The only junk money around today are fed notes and other fiat currencies.

A silver dollar contains .77344 troy ounces of silver and the coin is 90% silver by weight. Instead of weighing out the coin and multiplying by .9 why not just use the .77344 figure which represents the actual silver content?

Use the bullion content figures and forget about the 90% by weight and you will have an easy time translating melt value according to current spot price.


face = .72338

Wartime Nickel .05626

Dime .07234

Quarter .18084

Half .36169

SilverCladHalf .14792

Silver Dollar .77344

********

Gold Dollar .04837

$2.5 .12094

$5 .24187

$10 .48375

$20 .96750

dlm1968
04-06-2008, 05:01 AM
http://www.coinflation.com/coins/silver_coin_calculator.html

The above site is great. Will tell you exactly what 90% is worth at current spot price and how much silver they contain.

Libertytree
04-06-2008, 07:55 AM
This may be a stupid question and I could very well be missing something somewhere but...here goes

I recently priced a roll of 90% silver dimes at $48.50, that makes each dime worth 97.

Now, let's say that the dollar collapses and I need to spend some of this junk silver to buy whatever. The seller of X item, not being versed in PM's still only sees a dime, whereas I know its worth to be 97. How do I keep from losing 87 on the transaction?

Corydoras
04-06-2008, 10:10 AM
let's say that the dollar collapses and I need to spend some of this junk silver to buy whatever. The seller of X item, not being versed in PM's still only sees a dime, whereas I know its worth to be 97. How do I keep from losing 87 on the transaction?

You'll just have to persuade him. If you can.

This is the biggest reason why I don't buy precious metals in small coins. I don't think it will be any good in an economic collapse. Ordinary everyday people are so used to plastic money and paper money that they won't care if something is made of silver or gold.

DrCap
04-06-2008, 03:41 PM
This may be a stupid question and I could very well be missing something somewhere but...here goes

I recently priced a roll of 90% silver dimes at $48.50, that makes each dime worth 97.

Now, let's say that the dollar collapses and I need to spend some of this junk silver to buy whatever. The seller of X item, not being versed in PM's still only sees a dime, whereas I know its worth to be 97. How do I keep from losing 87 on the transaction?

If he wants to sell you an egg for one of the 'new dimes' then we wouldn't have a currency collapse- he would still be accepting the federal reserve notes essentially. Once the currency collapses no one will be interested in taking any of the new money for purchase of anything. So you won't be able to buy an egg with that new dime. Instead some other currency would have to replace the current currency we use. Now that could be silver or gold, or perhaps it would be alcohol and cigarettes or bushels of grain or gallons of gas. I believe that historically whenever currencies have collapsed people find substitutes to use for exchange. Most recently these substitutes have been the US dollar - but PM's would probably fill the void in a currency collapse.
So you show him the silver dime, tell him you want a dozen eggs, and he says it's only enough to buy one egg, then just give him a new dime or shop someplace else.
When the currency collapsed in Ecuador about 9 years ago people who could not read had no problem using substitute currencies- gold/silver and US dollars - everyone knew very quickly what the new currency was worth- it really would be very important for people to learn fast (or they'd get burned).
I've been to Ecuador twice and the people are often extremely nice, happy and pleasant- but I don't think they are more savvy financially than Americans in general and they certainly don't have the resources to learn as fast as we do- so I think the American public would learn almost instantly.
In a currency collpase there'd be a run on banks, retail stores, grocery stores, gas stations, - everyone would try to stock up, store owners would stop taking plastic, stop taking federal reserve notes, and start taking something else, or they'd suddenly find their shelves bare, have a stack of FRN's that neither their employees nor their suppliers want- these stores would then be out of business.

In short I think it's a good idea to be diversified even in precious metals, and even diversified within the silver that you buy etc- otherwise you may find that you are stuck buying 40 dozen eggs from me if all you have is that 1 ounce of silver and I don't have change (assuming the price of silver would also jump markedly in a currency collapse).

davver
04-07-2008, 10:08 AM
BTW, one of the reason people collect peace dollars and such is that they have been declared collectors items for thier numastic value and therefore are not subject to confiscation in the same way bullion coins are.

Libertytree
04-07-2008, 11:44 AM
Thanks Cap,

Your explanation helped firm up my assumptions and you put in practicable language.

My next question is based on curiosity and your knowledge of Central/South American culture. How would one use PM's in that environment? In a scenario where the leading currency in the world (U.S) collapsed and other currencies were still viable.

Libertytree
04-08-2008, 10:47 AM
Inquiring minds..........

ARealConservative
04-08-2008, 11:23 AM
BTW, one of the reason people collect peace dollars and such is that they have been declared collectors items for thier numastic value and therefore are not subject to confiscation in the same way bullion coins are.

this is pure bullshit.

If a government is going to steal property in the name of security or prosperity, or whatever reason they feel like giving, then they will.

Libertytree
04-08-2008, 04:54 PM
Still curious.

Libertytree
04-08-2008, 07:20 PM
Bumping again for an answer, without starting a new thread.