What’s The Best Way To Invest-Speculate In Silver Coins ?

[ownyourfuture]

I'm ‘not’ looking to amass hundreds of pounds of silver, & I'm not a doomsday prepper.
I just want to have a small percentage of my total assets in this metal. I'd like to amass at least 500 ounces.
*No political comments please*

I decided to go with 90.00% silver 50 cent pieces. I started buying ‘lots’ on eBay in early March. I'm up to 292 coins consisting of around 70.00% 1964 Kennedy’s, 20.00% Franklins & 10.00% Walking Liberties. As far as the condition of the coins, the Franklin & the WL’s I'm buying are in circulated condition, & the Kennedy’s are mostly circulated as well, although there's probably about 20 that would be very close to brilliant uncirculated, & another 40 near mint.

At this point, my ‘total’ cost for the 292 coins is $2,122.84 or $7.27 apiece.
90.00% 50 cent pieces have 0.362 Troy oz. silver.
0.362 x 3 = 1.086 Troy oz. Translation: 3 halves = just over 1 ounce silver.

To get a total of 500 oz, I’d have to buy 1,382.00 of them.
1,382.00 x 0.362 = 500.284 oz

If my cost basis per coin stayed at $7.27, I’d spend $10,047.14 for the 500 ounces. ($20.09 per oz)
1,382.00 x 7.27 = $10,047.14

I'm beginning to wonder if it wouldn't be a lot easier to go this route ?
https://www.usmoneyreserve.com/shop/bullion/silver-american-eagle-500-coin-monster-box/

$10,111.46 for 500 1-ounce 99.9% pure silver American Eagle Coins. ($20.22 per oz)


Or this.
https://www.jmbullion.com/1-oz-sunshine-silver-round/

$9,020.00 for 500 1 oz Sunshine silver rounds, version V2 with anti-counterfeit technology. ($18.04 per oz)


It’s my understanding that there is no sales tax on these transactions. And I don't believe the government is informed in anyway, unless the transaction is $10,000.00 or more ?
This would make option 3 even more attractive in my opinion.

Look forward to any & all, suggestions/tips, opinions, etc

 

[97guns]

Eagles cost more but you get more when you sell, doesn't really matter, all options will result in the same thing, protecting your wealth.

 

[Blue Collar Guy]

when you sell them u will get about the melt price, sooo....

I'm ‘not’ looking to amass hundreds of pounds of silver, & I'm not a doomsday prepper.
I just want to have a small percentage of my total assets in this metal. I'd like to amass at least 500 ounces.
*No political comments please*

I decided to go with 90.00% silver 50 cent pieces. I started buying ‘lots’ on eBay in early March. I'm up to 292 coins consisting of around 70.00% 1964 Kennedy’s, 20.00% Franklins & 10.00% Walking Liberties. As far as the condition of the coins, the Franklin & the WL’s I'm buying are in circulated condition, & the Kennedy’s are mostly circulated as well, although there's probably about 20 that would be very close to brilliant uncirculated, & another 40 near mint.

At this point, my ‘total’ cost for the 292 coins is $2,122.84 or $7.27 apiece.
90.00% 50 cent pieces have 0.362 Troy oz. silver.
0.362 x 3 = 1.086 Troy oz. Translation: 3 halves = just over 1 ounce silver.

To get a total of 500 oz, I’d have to buy 1,382.00 of them.
1,382.00 x 0.362 = 500.284 oz

If my cost basis per coin stayed at $7.27, I’d spend $10,047.14 for the 500 ounces. ($20.09 per oz)
1,382.00 x 7.27 = $10,047.14

I'm beginning to wonder if it wouldn't be a lot easier to go this route ?
https://www.usmoneyreserve.com/shop/bullion/silver-american-eagle-500-coin-monster-box/

$10,111.46 for 500 1-ounce 99.9% pure silver American Eagle Coins. ($20.22 per oz)


Or this.
https://www.jmbullion.com/1-oz-sunshine-silver-round/

$9,020.00 for 500 1 oz Sunshine silver rounds, version V2 with anti-counterfeit technology. ($18.04 per oz)


It’s my understanding that there is no sales tax on these transactions. And I don't believe the government is informed in anyway, unless the transaction is $10,000.00 or more ?
This would make option 3 even more attractive in my opinion.

Look forward to any & all, suggestions/tips, opinions, etc

buy the 18.04 silver coins, unless you get lucky when you go to sell them they will give u about 95 % of the spot melt, i went this route with a gold bar, i converted the bar to 50 dollar us gold pieces , i think i paid 5 % above melt when i bought them, same reason as u, protect my family in case of disaster. i turned a 1998 $50 gold coin into an awesome money clip.

 

[brewer12345]

In case of disaster I expect a different heavy metal than gold would be more valuable, but YMMV.

 

[Svensk Anga]

I had considered the silver rounds as the low-margin way to buy silver, but I wonder how well they would be accepted if it got to the point that metal was spending money again. More Americans will recognize pre-1965 coins as silver and perhaps value them more highly than the rounds of vague origin and composition. There might be more trust in the silver eagles, but few would have experience with them. If you are just going to sell back to a precious metal dealer, any of these should work. Presumably the relative mark-ups wont change much.

For how much longer will most folks recognize that pre-'65 coinage is a different animal from the current version? When was the last time you found silver in your change? I think it has been pretty well vacuumed out of circulation by now, save for some ignorant kids occasionally spending some old coins at face value. I recently went through my change jar to see if there was any silver I had overlooked. I found just one "war nickel".

 

[ownyourfuture]

In case of disaster I expect a different heavy metal than gold would be more valuable, but YMMV.

Well that was certainly helpful.
I'm guessing you're talking about ammunition ?

 

[ownyourfuture]

save for some ignorant kids occasionally spending some old coins at face value.

It's funny you mention that, because just last week I found a 2014 Shenandoah
proof quarter in my change.

Thanks for your opinion/input

 

[ownyourfuture]

buy the 18.04 silver coins, unless you get lucky when you go to sell them they will give u about 95 % of the spot melt, i went this route with a gold bar, i converted the bar to 50 dollar us gold pieces , i think i paid 5 % above melt when i bought them, same reason as u, protect my family in case of disaster. i turned a 1998 $50 gold coin into an awesome money clip.

I was sort of leaning that way.

But I suppose it's like 97Guns said.
"One costs more, but you get more, another costs less, but you also get less"

That does sound like one awesome money clip!
Thanks for the reply/input

 

[Texas Proud]

Not being political with this post... but I had a boss who was always talking about silver and gold... and how it would protect him etc. etc....


So my question to you is.... how is $10K of silver going to change your life in any way if everything goes to heck


Also, buying real gold and silver has a high commission on it... you lose big time in the exchange.... you are looking to buy at $20+ per coin and silver is just around $17 per ounce... that is a HUGE markup...


If you want silver to be able to spend it then yes you need coins... but, you can buy bars at a cheaper price...


Me, I bought the silver fund... bought at less than $20 and sold when it went over $40.... bought again when it went down, but sold at a loss... I do not think it is a good investment...

 

[cooch96]

I prefer the 1oz rounds. Easy to carry and divisible. I got a couple of bars once, for the novelty I guess, but I won't do that again. Actually, I'm not buying anymore bullion at all; my little pot is enough for the sake of diversity and its hard to consider silver an investment since bullion doesn't pay dividends.

 

[brewer12345]

Well that was certainly helpful.
I'm guessing you're talking about ammunition ?

What I am hinting at is: what set of circumstances do you envision under which a pile of silver will be helpful and things will not have descended to the point where someone will not simply take it from you?

 

[ownyourfuture]

What I am hinting at is: what set of circumstances do you envision under which a pile of silver will be helpful and things will not have descended to the point where someone will not simply take it from you?

I didn't start this thread to get into a debate. I did say I welcomed all opinions, & you certainly stated yours.

Let's just leave it at that.

 

[97guns]

I've been accumulating silver and gold since 2009 and topped out at 16000oz of silver before finding myself in need of funds for a project, I've sold off around 5000oz in a year or so,. It is my savings account and it has done just as well and better than money in the bank and it's almost as easy as going to the ATM for money, all forms are very liquid

 

[calmloki]

What I am hinting at is: what set of circumstances do you envision under which a pile of silver will be helpful and things will not have descended to the point where someone will not simply take it from you?

You know - werewolfs. or new career as the lone stranger

Had hopes for this site, but the bullets lack push:
Silver Bullets for Sale | Silver Bullet Bullion | APMEX Ammo

We went with a bit of gold back when 1999 was drawing to a close and the world was about to end. Not enough to sustain us for long periods of time, but maybe enough to bribe our way across a border or something. Decided if the world got that bad we were all screwed anyway, so while we haven't sold we didn't add anything (until this Christmas, when I got the gal a bunch of indian head nickles to maybe use as buttons and a gold indian to match.

 

[ownyourfuture]

You know - werewolfs. or new career as the lone stranger

Had hopes for this site, but the bullets lack push:
Silver Bullets for Sale | Silver Bullet Bullion | APMEX Ammo

We went with a bit of gold back when 1999 was drawing to a close and the world was about to end. Not enough to sustain us for long periods of time, but maybe enough to bribe our way across a border or something. Decided if the world got that bad we were all screwed anyway, so while we haven't sold we didn't add anything (until this Christmas, when I got the gal a bunch of indian head nickles to maybe use as buttons and a gold indian to match.

I suppose it's my fault, asking for everyone's opinion.
So if the reply you gave, somehow makes you feel better about yourself, I say good for you!

 

[Blue Collar Guy]

u needed like a bazillion German reichsmarks to buy bread

Not being political with this post... but I had a boss who was always talking about silver and gold... and how it would protect him etc. etc....


So my question to you is.... how is $10K of silver going to change your life in any way if everything goes to heck


Also, buying real gold and silver has a high commission on it... you lose big time in the exchange.... you are looking to buy at $20+ per coin and silver is just around $17 per ounce... that is a HUGE markup...


If you want silver to be able to spend it then yes you need coins... but, you can buy bars at a cheaper price...


Me, I bought the silver fund... bought at less than $20 and sold when it went over $40.... bought again when it went down, but sold at a loss... I do not think it is a good investment...

since i had extra dough(pun intended) i bought some gold,if hyperinflation happens ill feed my family for a few weeks till i regroup, and figure out what to do. if im dead wrong i slept better since 1999 because of this. turns out it was a terrible investment either, i paid mid to high 200 an ounce im thinking 285?

 

[Al in Ohio]

I have both nusmatic coins (your current method) and bullion. If you just want 500 troy ounces of silver, it's easier to buy 1 oz silver eagles, or even cheaper to buy 1oz bullion coins from (rounds) private mints. Canadian maple leafs are another good option.

Sorry your plea to keep answers relevent to just your specific concern went ignored. What your doing has merit and many good wealth plans include covering this option as well. Most folks really don't understand how liquid gold and silver can be nor how it is bought or sold on the spot market with small fees over spot price.

 

[Texas Proud]

This is much cheaper...


Buy 50 oz Silver Bullion Bars (.999+) Online - Silver.com

Ten bars for $9075 ... easier to stack...

 

[Blue Collar Guy]

the coins are a better deal

This is much cheaper...


Buy 50 oz Silver Bullion Bars (.999+) Online - Silver.com

Ten bars for $9075 ... easier to stack...

i had bullion, its a pain to sell, the 1 oz coins are a quick trade

 

[brucethebroker]

Pros for 1964/earlier silver US coins:
Easy to id. Hard to counterfeit (is anyone going to give them that worn look?). Some are really beautiful: walking liberty, and merc dime.

Cons: Some are so worn they could be discounted if sold since their weight is less.

Also, congrats on buying 50 cent pieces. 2 seem much cheaper than a silver dollar, which have been hoarded for years.

Some nice deals on 99.99 one ounce "special occasion" silver rounds out there (baby's first coin, happy anniversary, Merry Christmas, Peanuts characters, etc.)

When I was a teen, in mid-60's, a quarter would buy a gallon of gas, or, a soda and a candy bar. Today at $3.10 melt value, the math is still about the same for those silver quarters. Sure, no dividends, but not a bad return on an "insurance" investment.

 

[brucethebroker]

BTW, plastic RX bottles with screw on lids are a cheap way to organize and store the coins. Also keeps pill bottles out of the dumpster.

 

[traineeinvestor]

FWIW, I decided that physical silver was not for me. Storage costs, risk of theft, limited local market for physical and high bid-ask spread steered me towards putting the money into notional silver with a major bank. I decided I was comfortable with the credit risk and found the lower costs attractive.

My position in silver is only about 0.5% of household net assets so I suppose I should ask why I have it at all.

 

[brewer12345]

I suppose it's my fault, asking for everyone's opinion.
So if the reply you gave, somehow makes you feel better about yourself, I say good for you!

You asked a question and, as happens on this forum, related questions got asked. Is your skin so thin that you cannot answer reasonable questions?

I don't personally feel the need to own gold or silver in physical form to protect me from inflation. If that is why you want to do so, come out and say it rather than throwing a tantrum. There are other ways to hedge inflation and maybe you would learn something by other posters' suggestions. Often I ask a question here and hear of options or solutions that never would have occurred to me. Other times it is the wrong peanut gallery to be asking and I realize the question would have been better asked elsewhere.

I personally hedge inflation by (among other things) keeping a 30 year fixed mortgage outstanding. If you think a hyperinflation scenario is a real risk, you should be worried about confiscation and I am not sure there s a good hedge except perhaps by turning into a homesteader in a nation that will not be affected (Switzerland?). Go poke around what is happening in Venezuela and get an idea of what happens to careful hoarded physical resources as a country spirals into hyperinflation.

 

[MichaelB]

How to acquire a portfolio asset depends in part on its intended purpose, which leads to a second discussion on the asset itself. So, what role do silver coins play in the asset allocation and what alternatives are available is part of the thread topic.

If you have decided to acquire the coins and don't care to discuss this in the thread, there's no need to respond to posts that raise that question. Just focus on the posts you find helpful.

 

[W2R]

I suppose it's my fault, asking for everyone's opinion.
So if the reply you gave, somehow makes you feel better about yourself, I say good for you!

No need to be rude. Basically, my conclusion after reading the thread thus far, is that it appears that most of us are not wildly enthusiastic about your approach to investing.

If you have confidence in your plans, go right ahead. There's no reason to get upset if/when others do not break out in enthusiastic applause.

My opinion? I tend to agree with brewer12345 on this one, in that I wouldn't put money in precious metals for all the tea in China. In my case, I'm more of a very broad index fund, buy-and-hold type of gal.