Silver investment

[Walkerfan]

If given the choice, right now, with silver at around 30 bucks an ounce, which would you rather have as an investment?

 

1. 250K in 1 ounce bullion coins (roughly 8330 coins)

 

or

 

2. 250K in rare coins (numismatic value) i.e. 50 coins @ 5000 a piece.

 

 

[comicdonna]

Rare coins! (thumbs u

[Keigwin]

3) One $250k rare coin (not conditionally rare).

Lance.

[PerryHall]

Diversify---Gold, silver, rare coins.

[Brol]

Diversify - 90% of the money to buy a house (buy with cash in foreclosure, fix it yourself, rent it), 10% - silver(or gold).

 

I just read an interesting article about gold (the same story is with silver). What I understood:

1) Silver or gold price is rising because people don't trust in current monetary system.

2) People don't trust in US dollar (US bright future) and are afraid of possible second crisis.

3) Pretty much all the World is in debt. Some people even buying food with credit cards.

4) Silver and gold price is rising because majority of people believe what they want to believe or what other people want that they believe.

5) Don't trust peoples expectations and don't think and don't do what majority do.

 

 

[Brian D]

#1.Easy to sell in case of Emergency. I don't forsee a big drop in price. Should continue in the upswing over time.

[Conder101]

#1. The 250K in rare coins probably wouldn't be coins that I wanted. I can sell the silver rounds easier to buy the coins I want.

[jackson64]

if the question is about investment and not as a collector........

 

#1..good upside potential, only minor downside potential and quick turn around to liquid if needed ( I won't say quick turn to Dollars because we may not be wanting dollars if its status as the world's reserve currency gets expunged as is being predicted around the world before the year is over.)

[coinman1794]

Unless you are a dealer, you will likely take a hit of between 20% and 40% when you sell your $250,000 "investment," due to dealer markups, so you would have to gain that much value just to break even. The markup is much lower on bullion, but I don't necessarily see this as a good time to buy if you are going for a long-term investment. It was under $9 an ounce in 2008. It might go up in the short term, though.

[michael]

i would only buy silver 1794 half dimes

 

but only unmolested non-dipped original coins with great eye appeal

 

vf to xf to au

 

and most importantly has to have the right/correct "look" cant explain or tell you what the "look" is but i know it when i see it

 

 

[Old Pueblo]

If the US Dollar is decoupled as the World Reserve currency, then we are in a world of hurt (inflation) and silver/gold will be king again.

 

OP

[Walkerfan]

Thanks, for the responses, I, myself, like the rare coin option. But as we all know, it is all very speculative (both options).

 

I have never lost more than 5% on a rare coin resale and in MANY instances; I have made money (even when selling to dealers) and even in a short time frame 1-5 years.

 

Thanks again. LT, however, is definitely how to make the the big returns on your investments, of course.

[mtnstyne]

I thought I answered on this topic but guess I didn't finish.

 

I would either want one $250k coin, or a complete collection valued at about $250k like a graded Type set at whatever level the money would get me.

 

But if were to go the bullion route I would want bars....and I would sit them on my coffee table to play with like lego's.

[mkman123]

I'd have a mix of both! Diversity.

[Walkerfan]

I have a mix of both as well. The only thing that concerns me about rare coins is counterfeiting. However, both NGC and PCGS have invested a lot of time and money battling this ...

 

I enjoy collecting rare coins, but I invest in metals.

 

Augustus

 

If one of the top 2 TPGS slabbed a counterfeit coin, wouldn't they buy it back? Just as they would a 'problem coin' that had been slabbed and brought to their attention?

[Walkerfan]

Please see these forgeries, as highlighted by another poster: http://www.flickr.com/photos/coinforgeryebay/

 

Augustus

 

Thanks. Those fake slabs are MORE disturbing than the actual fake coins, b/c the SLABS are what we put our faith and trust in.

[Houston Investor]

I would go for a a mix of 25% silver bullion related (slabbed ASE, Mod Commems, some BU ASE raw rolls), 25% gold bullion related, 25% quality silver commems MS64-MS66, and 25% quality Morgan / Peace silver dollars MS63-MS65.

 

Lately I have been buying any mod commems (slabbed or raw) I can find within $10 or less above melt along with the modern silver proofsets. At a recent show I had a case full of this material. Every day silver goes up it increases in value. I also like early Franklins and have put together several nice sets (just for fun) of just Franklin Proofs in 65 or higher, many cameo. One of my clients I have sold to for years just recently bought my nicest set. He also bought a nice Texsas 50c set I had assembled (NGC 65 - 66). He wanted "a truly gem BU set with super luser." Every coin in the set was a brilliant white gem with lots of blast as pristine as the day they left the mint. A couple had just a tad of gold which added to their incredible eye appeal. The set brought all the money.

 

I think silver will easily hit the $40 to $45 level soon if not soar to $50-$100 by year end. I have changed all my spread sheets for my mod silver and world silver coins to BV+ (numismatic value) pricing so prices are updated constantly. For your world gold and silver coins you can take your Krause Catalog, calculate the coins BV (at the silver price the catalog was done at) and extrude the numismatic tackon for your spreadsheet. Then simply add that numiamatic value to its current bullion value to arrive at a conservative market value. A world dealer I see at shows takes this a step further and adds a 25% tackon for each point in grade his slabbed world pieces are above MS63.

[just-john]

I never really carried much in the way of cash money .Mostly use a debit card then on a Friday a friend went with me to camp out and do some prospecting in the desert . Filled my old Toyota

with gas got back in the Land Cruiser not thinking set my wallet on my set of 12 -2 x1 x 1/4 thick Neodymium super magnets and it messed up the strip things ? Each magnet has a pulling force of about 39lbs use them to separate the black sand from my concentrates works good .But not good on debit cards was without a way to get cash or pay for anything till Monday. Luck my friend helped me out until the banks opened. Now i carry a couple hundred bucks tucked in the wallet .Think having

a couple hundred dollars in face value in silver dimes or half is a good idea or at least couldn't hurt most you could loss is 2 grand if silver dropped to $7 O/Z

[Scott Gardener-migration]

I'd take the numismatic valued rarities, though I might sell one or two and have about $10k of bullion.

 

This is assuming that I get a random mix of 50 coins, each worth approximately $5000 in real-world market value. (Nearly every dealer where I go seems to use the Graysheet, not Numismedia or the PCGS price guide; the Graysheet always seems to run a little lower.) I also assume that the coins are certified by NGC or PCGS, possibly with CAC stickers. I also assume that some are more interesting to me personally than others--some would knock the socks off existing coins in my set collections, while others would seem to have nothing to do with what I normally collect--but would be worth their listed price.

 

I would probably from there trade some of them for fewer, more high-end coins.

 

I think a lot of us, if given $250,000, would put together a diverse portfolio. Starting out with $1500, I did an even balance of both by getting a common date Saint Gaudens in MS65 (which one could actually get for $1500 at the time). I felt that MS64-65 was the "sweet spot" between bullion value and numismatic worth. Today, MS65-66 seems to be, since 64s go for a piddly premium over VG-Details or Genuine Not Gradable Saints, which are still made of gold.