Gold and silver coins

[gregintenn]

As the stock market enters scary territory, I seem to be gaining a passing interest in precious metals. Gold and silver coins seem to be an east way to quantify an amount and purity of these metals. So far, I'm just trying to buy around spot price with little regard to collectible value.

I know AuEagle is a connoisseur of precious metals. Anybody else here have an interest? If so, I'd like to hear your thoughts on the future of the precious metals market, and coin collecting in general.

[KahrMan]

I always pick up collectible coins when I can. Mainly because I enjoy it. I have been collecting since I was a kid. I figure I will hang onto them and pass them on down to the kids one day. 

[TripleGGG]

Yes. I have collected gold and silver coins and bars since my mid 20s.  Enjoy the scenes on the bars the most! 

[AuEagle]

21 minutes ago, gregintenn said:

As the stock market enters scary territory, I seem to be gaining a passing interest in precious metals. Gold and silver coins seem to be an east way to quantify an amount and purity of these metals. So far, I'm just trying to buy around spot price with little regard to collectible value.

I know AuEagle is a connoisseur of precious metals. Anybody else here have an interest? If so, I'd like to hear your thoughts on the future of the precious metals market, and coin collecting in general.

Thanks for the kind words but I'm no connoisseur, I just stumble along & go with my gut.

I believe that owning PM's, bullion & coins is good insurance against inflation & always has been & always will be a great store of value.

The illustration of buying a gallon of gas with a silver quarter is the same today as it was back in the 60's, actually a silver quarter will buy more than a gallon of gas today. A silver quarter is worth $3.26 @ todays spot price.

I've never been a coin collector & I see that going down in popularity as many collectors are getting old, just like the vintage gun collectors, interest is waning.

[gregintenn]

1 hour ago, AuEagle said:

Thanks for the kind words but I'm no connoisseur, I just stumble along & go with my gut.

I believe that owning PM's, bullion & coins is good insurance against inflation & always has been & always will be a great store of value.

The illustration of buying a gallon of gas with a silver quarter is the same today as it was back in the 60's, actually a silver quarter will buy more than a gallon of gas today. A silver quarter is worth $3.26 @ todays spot price.

I've never been a coin collector & I see that going down in popularity as many collectors are getting old, just like the vintage gun collectors, interest is waning.

I always heard that an ounce of gold would buy a quality tailored suit or a new Colt revolver. Pretty close looking back on history.

If all it does is hedge against inflation, I don't want a large store of it, but some seems prudent.

[AuEagle]

2 hours ago, gregintenn said:

I always heard that an ounce of gold would buy a quality tailored suit or a new Colt revolver. Pretty close looking back on history.

If all it does is hedge against inflation, I don't want a large store of it, but some seems prudent.

You're correct, like my description about the quarter & gas, an ounce of gold could buy that suit or a milk cow many years ago. Two years ago I traded my friend we get our beef from a one ounce Austrian Philharmonic for a 1150# steer, still holds true.

Just think, in 1932 a "dollar" was worth 1/20th of an ounce of gold, today an "FRN" is worth 1/1550th of an ounce of gold @ todays spot.

 

[No_0ne]

There's some validity to using metals as a hedge against inflation, but speculating in metals as a source of investment returns is suspect at best.  The metals markets tend to be highly volatile, and often act irrationally.  Historically, investing in metals long term has been a disaster, at least in comparison to things like stocks and bonds. Sure, there have been some short-term periods in which fortunes have been made in metals speculation, there have been many more in which fortunes have been lost.

Coin collecting is an entirely different subject, where intrinsic value often has little to do with market pricing.  However, in the last few decades, collectible coins have also been victims of "irrational exuberance", to use Alan Greenspan's famous term, for an example see the insane run-up (and subsequent crash) of Morgan dollars in the 80's ...

[Quavodus]

Yeah I agree nothing is 100% reliable but, gold and silver usually hold up good. As far as people losing their _ _ _ , remember the Hunt brothers? 

[hipower]

The only man I ever knew that profited heavily from silver coins was my father. He had collected various coins throughout his life. Morgan Silver Dollars, silver dimes and quarters. He just brought them home and dropped them in old water jug.

When silver prices went sky high, he took roughly 1K of face value silver coins and sold them.

I don't know what he actually got for it all, but he came home with a big grin on his face and a stack of bills.

Then talked my Grandpa into doing the same thing the next day.

I don't have much in "collectible coins", a few silver dimes and quarters, and a couple rolls of Kennedy Half dollars. 

[btq96r]

I've never understood using coins as assets.  You buy them, but then if you ever need to redeem them, where is the market to get the value you think you ought to have?  Back to the coin shop where it's a negotiation, or is there a regulated exchange for them?

[DaveTN]

16 hours ago, gregintenn said:

I seem to be gaining a passing interest in precious metals.

I have thought the same thing. But whatever I invest in, the next day, it will become obsolete, and they will be handing it out on the street corners for free.

[gregintenn]

2 hours ago, btq96r said:

I've never understood using coins as assets.  You buy them, but then if you ever need to redeem them, where is the market to get the value you think you ought to have?  Back to the coin shop where it's a negotiation, or is there a regulated exchange for them?

As I said, I am buying at spot price. There is a market and set price per ounce of both silver and gold. In fact, platinum is really cheap right now, but I do not know enough about it to know why.

I with you regarding anything with collector value above and beyond the value of the melted metal.

[Quavodus]

I just looked up Morgan dollars and they only have a melt value now of $14.08. I thought it would be more.

[AuEagle]

Morgan & Peace Dollars have about 3/4 oz of silver. 

Here's a good site to check silver coin value.

http://coinapps.com/silver/coin/calculator/

Edited January 12, 2020 by AuEagle

[btq96r]

5 hours ago, gregintenn said:

As I said, I am buying at spot price. There is a market and set price per ounce of both silver and gold. In fact, platinum is really cheap right now, but I do not know enough about it to know why.

I with you regarding anything with collector value above and beyond the value of the melted metal.

So, are you buying online and it goes into an account (ie: you never hold a physical item), or are you buying coins that you lock up in your home?

[gregintenn]

1 hour ago, btq96r said:

So, are you buying online and it goes into an account (ie: you never hold a physical item), or are you buying coins that you lock up in your home?

I’ve bought some at a local pawn shop, estate auctions, and eBay. They don’t take up much room in a gun safe.

[i1afli]

10 hours ago, btq96r said:

I've never understood using coins as assets.  You buy them, but then if you ever need to redeem them, where is the market to get the value you think you ought to have?  Back to the coin shop where it's a negotiation, or is there a regulated exchange for them?

This is my concern as well...liquidity.  I bought gold eagles and silver eagles a few years ago just to get into the precious metals game and to have an investment to hold in my hand. I bought them through Apmex.com and they ship them directly to your house.  They will repurchase them at any time at a slight discount from the spot price that changes daily, and people buy/sell them on eBay as well, but in both of those cases you have to put the coins in the mail and arrange for payment. Local “gold buyer” shops will also buy them but, like you said, that would be a negotiation and I expect it would be about like selling something to a pawn shop...not a good price for the seller.  In a SHTF situation I think the smaller weight coins or bars like 1/10 oz and 1/4 oz would be more practical than the 1 oz or larger sizes. 

Edited January 12, 2020 by i1afli

[Garufa]

I’m sure precious metals and coins are fine for bartering if you’re trading with someone of the same mindset. Liquidity on the other hand is an entirely different matter.  If you want to turn it into cash you are not going to get what you think it’s worth.

Edited January 12, 2020 by Garufa

[No_0ne]

12 hours ago, btq96r said:

I've never understood using coins as assets.  You buy them, but then if you ever need to redeem them, where is the market to get the value you think you ought to have?  Back to the coin shop where it's a negotiation, or is there a regulated exchange for them?

A lot of the trade in metals is done "off the books", and in cash only.  People have differing reasons for this, at least some of it is due to tax issues.  When I was most active in trading "junk" silver (older US coins with silver content, whose collectible value is equal to or less than their melt value) the internet as we know it now did not exist.  At that time you traded mostly at coin, stamp and other collectible shows which operated much like gunshows.  There were also known area dealers in metals, coins and other such commodities, most of that was done word of mouth.  With junk silver, we traded mostly in "bags", which was by definition $1000 face value, i.e. 10k dimes, 4k quarters, 2k half-dollars, etc.  The price of a bag of junk silver varied daily by the spot silver price, you had to know both that and the percentage of pure silver contained in each type of coin to correctly price a bag for either buying or selling.  As with other things, the internet has made both pricing and marketing easier, with instant nationwide, or even worldwide exposure.

[gregintenn]

So is now a good time to dump the coins I picked up after starting this thread? Have you seen the prices today??!!? What's going on?

[KahrMan]

34 minutes ago, gregintenn said:

So is now a good time to dump the coins I picked up after starting this thread? Have you seen the prices today??!!? What's going on?

Jeez, gold is up to 1982.  Its hard not to cash in right now.  Thats a 50% increase in the last 7-8 months.

[gregintenn]

2 hours ago, KahrMan said:

Jeez, gold is up to 1982.  Its hard not to cash in right now.  Thats a 50% increase in the last 7-8 months.

$2022.30! I don’t believe it has ever been above 2000.

Silver I s pretty high as well.