#76 - Numismatic VS Bullion - Pros and Cons
<>
Hello Friends,
I have decided to do a post on the value of silver and the expected value of silver in the future. This is by no means the be-all to end all as far as silver pricing or what you should or shouldn't invest in. What I want to do is compare Bullion, Numismatic and just plain junk silver.
First of all that's broken them down into my talking points so you know what I mean when I say a certain categorie.
- BULLION - This will be anything that has a face value or not and is between 0.50 & 0.999 purity
- NUMISMATIC - These are face value coins issued by Governments and are pre-1965 and rare or excellent condition and can be between 0.35 & 0.999 purity
- JUNK SILVER - These are face value coins issued by Governments that is not consider rare and considered poor quality and is between 0.35 & 0.999 purity
Now these may not be your definitions of Silver but for this Post this is how I want to break it down.
Bullion
Pros - Cheapest usually of all the Silver. Comes with many designs and is more or less just purchased for weight. Usually lots of it for sale and usually very easy to unload if needed.
Cons - Tends to only rise in price when the market price of Silver raise. Does not come with any type of certification. Unless the market swings higher then usually there is not much profit to be made. Lots and lots of fakes on the market! Especially on eBay.
Numismatic
Pros - History! Rarity! Craftsmanship! Value!
Cons - Cost-these can run into the big bucks. Fakes especially the Morgan's on eBay. You have to have a lot of knowledge when buying these coins because you can be easily tricked. Selling these coins can be hard by times because of their value and issues with fakes.
Junk Silver
Pros - Can be used for barter in tough times. Cost much less to get a few quarters of 0.90 silver in your hands. Great for beginners.
Cons - Storage of any amount of these to get any amount of Silver takes up space. Resale value is determined by the price of Silver on the Market and rarely see price spikes in junk Silver. They are super common in the Silver circle so demand is usually fairly low.
Please let me know what you think if I am right or wrong and I do plan on making a better post in the future on this subject. Thanks for your comments and support. DR
Great post, I made a similar post a little while ago about your favourite type of silver, I like low mintage new collector coins, they cost about double the spot price, but some of my earlier purchases have already covered that extra cost, without the silver price hardly moving. When the price rises I think these relatively rare coins will skyrocket. Cheers @silverbug
Yes I think they will too or they could go the other way and be worth just the value of Silver. It's a crap shoot when it comes to where their price will end up. If demand for Silver rockets up under demand for physical Silver can not be meet than I think the high valued coins will become worth the price of Silver. Time will tell though. Thanks for commenting.
I agree, but if everyone cashes in there collector coins just for bullion, relatively rare coins will become very rare in the future!
Yes you make a great point and I never thought about it that way. Thanks I feel another Post coming on in the future! Lol
I think I already beat you to it.LOL cheers
Lol it sounds that way my friend
True.
I often look at the cost of the more rare coins and get put off......had I have bought them though I'd have been 'quids' (£) in!!!!
I have a bit of all but mainly buliion.
Great post. Numismatics are always worth more though, if you can afford to stack them. Higher premiums above spot too..
Yes indeed. But smaller market of buyers and if something should happen they could become valued the same as the price of Silver. That being said there is nothing any better than an almost new 1888 Morgan! :)
Devil's advocate, i'll keep my numismatic stack seperate, for while the world is still up&running👍🏻
Oh forsure I agree. I don't have a lot of it but I do have some and it's always nice to find a piece at a decent price my friend. Keep Stacking
Hi DR great post!
Re Bullion I think these have to be 'government issued' with face value and one's which aren't are just referred to as rounds. - Rounds tend to sell for less and they tend (but not all) to have less security features on them.
IMO some bullion do have semi numismatic value such as the 'Somalia Elephant' and so people ought to look at which are likely to give more 'bang for the buck'
Oh yes you are correct. I just group everything together to try to make it as easy to get the most novice person to understand the world of Silver. But I do plan on make a much more extensive Post in the future regarding what you have written about. I want to break down all the different types and so on. Thanks for the comment bud.
Re taking up more space, I think that applies to all silver. That's one argument for gold currently, it has more value per single coin.....
but the day will come when all that changes!
Yes I agree. The problem with government issues currency's is the storage is made up of some other metal that is not Silver.
Like for instance the Canadian 1980's Dollars is 50% Silver. So you are storing 50% Silver and 50% Copper or Coponickel. Just all that extra metal takes up stace and adds a lot of weight. Thanks for the comment
I have some very rare Numismatic Coins... Some Gold and some Silver...
I was window shopping in Prague and found a 1913, $5.00 Indian Gold Coin... I asked how much and they said $182.00 U.S. Dollars... I bought it on the spot...lol... Very high grade...
@pocketechange
Awesome pick up. It's always a good day when you find a great deal! Thanks for the comment.
Nice post... I am sticking to "bullion" or "state" issued 1 oz rounds... more affordable to me, and I expect the price of silver to explode... My only hope is that it stays suppressed longer so I can accumulate more!
Yes it is a good price but for your sake I hope it stays low so you can get more shinny stuff! :)