forum.bulliondirect.com

Hi,

I was wondering if there are advantages/disadvantages of buying 90% bulk silver coins as opposed to buying rounds?

Also, what are the advantage/disadvantages between buying generic Bullion Direct rounds vs a a "brand name" round like Engelhard?

Thanks,

Steve

If you can find a "fresh" source and get "lucky" you might be able to buy 90% at or below spot and with some searching, find key dates and errors but don't count on it unless you are sure they are unsearched estate lots or private sellers dumping inherited collections at spot when they don't know or care about collectability.
If silver goes sky high then dimes could be a great form of currency.
Old coins can be worn and loose their weight.
You pay more and get more for premium bars and rounds but silver is silver and becoming a collector takes time and study.
Just decide if you want to be a "collector", a "gatherer" or both.
I'm pretty sure the premium thing is just the fact that major, well known mints are more likely to be genuine so people trust them more = higher $.

I'm relatively new to silver but my consesus is that there is a lower premium on 90%, or junk silver coins. In addition, they also have a face value as currency and the silver content is gaurenteed by the government. The same is true for american silver eagles, however the waking liberties are not legal tender. The englehard bars and rounds are not legal tender either.

Right now, it is hard to beat 90% on 'premium'. You can go to Nucleo and bid below spot, and sometimes get fills. You can even occasionally see asks below spot. This means 'more silver for the dollar'.

Some folks like the fact that 90% is US gov. issue; thus more likely to be 'widely recognized' if there are future SHTF scenarios. Being 'fractional ounces', you can also 'pay more exactly' if you need to barter such coins, rather than a 1 oz T round which may be more silver than you want to hand over.

In non-SHTF, the low premium is still attractive. If you want 'widely recognized' and 'low premium', it is hard to beat right now.

What they said...now to add to that...SAEs, Maples, Phils...they are just really pretty to look at. I know I sound like half a fag right now but... They are pure silver, and feel and sound great. I have thousands of the SAEs and just love holding them. Junk silver looks like junk these are circulated really ugly, dirty, smelly, worn chunks of ex currency. I have lots of them too, but like Senthen mentioned, I only bought them for the ultimate SHTF scenario and because the premiums were actually discounts when I bought.

When I was a total newbie and finally made up my mind to invest in silver, my next decision was to invest in SAEs. I have not regretted either decision. Since then I have branched out into junk, bars, rounds, CMX, generic...etc. I bought a gold eagle and a few tenth o gold eagles, but everything else is in silver.

Hi,
Thanks for the replys. Pardon my ignorance but I have one more question. When BD says 90% silver at 7.15, do they mean silver weight or tota weightl.
Regards,

Steve

SORRY FOR CAPS.

THE COINS ARE 90% SILVER, THEY WEIGH MORE THAN 71.5 T OZ/100FACE
THE SILVER CONTENT IS 71.5 NET OUNCES + THERE ARE ABOUT 7 OZ OF COPPER AND A FEW OTHER TRACES IN THERE THE GROSS WT INCLUDING BASE METATALS IS ABOUT 78-80 TROY OZ.

THE AS MINTED WEIGHT WAS ABOUT 72.5 OR MORE OZ BUT WEAR BRINGS THE STANDARD INDUSTRY ESTIMATE DOWN TO 71.5

SOME PLACES COUNT HALVES AS 72.5

SO YOU ARE GETTING 71.5OZ PURE SILVER MIXED WITH COPPER TO MAKE IT A DURABLE COIN MATERIAL.

One other SHTF scenario that makes sense. If (when) the fiat currency collapses ironically the old currency will become the new currency, i.e. a dollar bill will be worthless and Joe Sixpack who owns the local gas station will not accept them. However, the old silver dimes, quarters and halves will be easily recognized and the difference between clad coins and pre-1965 coins will be easily determined. However, if you were try to pay Joe with a .999+ pure round or even an SAE his eyes may cross since he has never seen anything like them before. It won't take long for the word to get out, but until then you will have the best chance with the junk 90% silver. Another thought is the possibility that rounds might be more easily counterfeited - when times get desperate, the desperate get creative.

For those who are aware of Argentina survivor, FelFAL; His popular book and blog are a great source of info.
Keep in mind that a crisis senario here will have some similarities but will also be different in many characteristics.

From his subject link, Gold http://ferfal.blogspot.com/search/label/gold;
Unless you deal with a specific precious metal dealer you wont get a fair trade so your gold and silver coins will be better sold at those places, you’re not going to be “bartering” them unless you know you’re getting a fair trade, and don’t expect that to happen often in a barter club or street fair after a crisis.
Based on what I’ve seen, they try to take advantage of you, so you’re better off selling it first at a reputable metal trader for whatever amount of funny colored pieces of paper it is worth that day (sell small amounts after the crisis, so as to protect yourself from speeding inflation) . In that case, well recognized bullion coins are accepted for their metal content, so Krugerands, Eagles, Maple Leafs, or Mexicans, its ok.

As for junk silver in pre 1965 dimes, they are a well recognized coin as well, not only in USA but in many parts around the world too. Indeed do get a good amount of them if you find a good deal. The pre 65 dimes are even better than junk gold jewelry in USA, the thing is that junk gold jewelry is plentiful all around the world so that’s what all the “I buy gold” guys are after it.

What does this mean? That today I can drop by a “I buy gold” dealer and offer a few silver dimes, chances are that , here in Argentina, he wont ever bother or offer a serious price for them, while a piece of 18K jewelry, I’ll be losing some money in the trade, but he’s buy whatever amount of weight I’m willing to sell.
To get a better deal on my pre 65 dimes in Argentina I’d have to go to a coin PM dealer.

FelFAL recommends widely recognized forms of PM and that one is going to get a better deal if trading with a reputable dealer. Here, reputable dealers recognize non-government rounds so those may not be an issue if exchanging with a dealer.

excellent advice here!

i'm a newby looking to get started in buying silver
and appreciate hearing what others have to say about
the pm industry.

i can't but help think that the [$u.s.$] is ready to tank,
and i'd rather not have all my money in paper when
that happens.

This precisely why I buy fractional gold. I own a few full ounce coins. But I prefer being able to barter or cash in a 1/10th a week at a time if I have too. The premiums suck, but if the crap ever really hits the fan I dont think the price will be an issue. Getting food and other essentials will be more important than a % point here or there.

My take is that one gets more bang for the buck with 90% silver U.S. coins-- lower premiums if any. I would try to buy by weight as opposed to face value. Any wear on the coins would result in slilghtly less silver content. A decent digital scale can be picked up for less that $20 and is worth the investment. I've seen old junk silver in which the image on the coin is barely visible. I wouldn't want to pay based on face value as the silver content would undoubtedly be reduced. Also buying by weight makes the seller aware that you have more savvy. In the end silver is silver.

checkout the sales of silver eagles for last month...
6,422,000 coins sold, eclipsing the previous monthly
record (4,260,000) of nov, 2010...

http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2011#SilverTotals

I've been buying so many SAE's. I feel like my paychecks aren't coming in fast enough. I'd rather just get paid in silver.

Worn image coin comment.
Several times ive weighed batches of barely recognizeable 90% us silver along with good crisp 90% of equal value. about 10 face at a time.
do the experiment yourself and report here your results.
pick the worst non shaved of course, just used worn heavily
you will be surprised how close the 2 are.
the 71.5 vs 72.5 figures you see are about 1.38% apart
that is a normal alowance for wear.
most places will buy your worn at 71.5 toz/100face.
In my opinion you might look foolish to a vet or pro if you were weighing 90% instead of counting it but Im not sure what east coasters do.
the wear on the image is not all missing metal, some of it is just displaced , same with edge reeds to some extent.
do it yourself , maybe you will rest easier either way.
heck , sell of your worn stuff if you are woried and get all 1964 .
of course maybe some of you got a batch that is so far gone its a one in a million bag.
a refiner may buy large amounts by weight but you are going to miss soem deals if you nitpick 90%.
I expect other opinions , But heres mine anyway. worth what you paid.