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How does the silver spot price effect the coin market?

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Not too significantly usually however the spike in the 80s did cause prices to jump significantly. Most good price guides will list their prices as being at a certain spot level. If a silver coin were listed as being worth $25 at a spot of $7.75 and silver is now worth $8.34 then you would divide the $25 by the $7.75 = 3.2258 (or there abouts) and then multiply that result by the new spot 3.2258x8.34=$26.90. The trouble with this theory is... A coin, any coin, is only worth what someone else is willing to pay for it.

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When it comes to silver, the swings in prices will be seen in the lower market value coins, either circ or uncirc. In other words junk silver at melt. At $8 an oz, a Morgan dollar's silver content is worth $6.18. At present, a 1881-S Morgan in VG is listed at 11.50 - 12.50. If silver reaches a price where the melt for a Morgan is $20, the 81-S VG $ will probably be listed at between just below melt to a dollar above melt. In other words, the only "real" value for it (81-S $ VG) will be it's silver content.


However, take the NGC MS68 1889-CC Morgan. It wouldn't matter, at least in today's climate, if silver reached a point where a Morgan would be worth a $1000 at melt. All of it's market value is derived from it's mintage and actual coins extant, it's grade of MS68, and it being graded by NGC. The last I heard it was valued at $750,000 plus!!!!!!!!!!!!!!!!!!!


Anyway, that's what I think.





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