Junk Silver Premiums

[beauanderos]

Okay, so here's what I'm thinking. Silver is going to explode in price... eventually. Gold ounces sell at a premium as you get into fractionals, the smaller the item the higher percentage premium. It's just the opposite right now in silver. You pay the highest premium for silver dollars, then halves, probably quarters and dimes are about the same. I think at some point in time that this will reverse, say when silver goes up twenty to thirty times in value, for instance. So in order to avoid paying premiums THEN, don't you think it would be wise to accumulate the smallest forms of silver NOW? Whaddya think, guys (and gals)?

[Neckro]

I got too many dimes. I'm sick of throwing them away.

[fasTT]

I think that in the future, we will see much more junk silver being sold by weight than by face.

If that is the case, the dimes would probably lose out, as they wear quicker.

[Country]

This might seem logical, but you have to think about why the premiums are currently the way they are right now. 90% SILVER coin premiums are higher for the halves because in general you have more surface wear on the dimes and quarters, and less wear on the surface area of the halves. Since they are sold by face, you get more SILVER with the halves. Now if they were sold by weight, instead of face, you could make a case for whatever denomination you had preference. The highest SILVER premiums seem to go to the pure SILVER rounds and government issued items currently minted because everyone believes you are getting pure SILVER of the highest quality.

So, my guess is that SILVER coins, after a truly exponential rise, will be sold by weight (according to the fineness of their SILVER) anyway. It will not matter which SILVER coins, but how much the SILVER coins weigh.

[Rodebaugh]

I think that in the future, we will see much more junk silver being sold by weight than by face.

If that is the case, the dimes would probably lose out, as they wear quicker.

There is the answer.

No worries Ray..... your BU dimes will weigh heavy

[MO-SILVER!]

I've seen this already. Some shops around here in st Louis will take the face and multiply it no matter the wear. One shop I know of when I first started out took some money out because of wear to some coins I had. Whether they were screwing me over or not I don't know I won't go back there. If your dimes and qtrs are worn they will offer less at some places around me at least. There were places years ago selling 90% below spot at times and now there is a premium on everything. I think the premiums will just get bigger on everything, some more than others.

[beauanderos]

I think that in the future, we will see much more junk silver being sold by weight than by face.

If that is the case, the dimes would probably lose out, as they wear quicker.

There is the answer.

No worries Ray..... your BU dimes will weigh heavy

My BU dimes will weigh 72.3 ounces per $100 face, not 71.5 But... the point I was trying to make, wear not being a factor, is that people want a form of precious metal that is practical, and that's why there's a premium on 1/10th of an ounce of gold. I do believe that silver will undergo such a radical price transformation in coming years that the dime will become the most practical form of the metal, as quarters halves and dollars will be too expensive for everyday use. And if that damned 1099 reporting kicks in, you'll want smaller forms of precious metals. It may be four or five years off, but you watch, someday (at least as far as unworn BU coins are concerned) the premiums will be highest on the items most in demand, which will be the most affordable ones... dimes.

[Rodebaugh]

I think that in the future, we will see much more junk silver being sold by weight than by face.

If that is the case, the dimes would probably lose out, as they wear quicker.

There is the answer.

No worries Ray..... your BU dimes will weigh heavy

My BU dimes will weigh 72.3 ounces per $100 face, not 71.5 But... the point I was trying to make, wear not being a factor, is that people want a form of precious metal that is practical, and that's why there's a premium on 1/10th of an ounce of gold. I do believe that silver will undergo such a radical price transformation in coming years that the dime will become the most practical form of the metal, as quarters halves and dollars will be too expensive for everyday use. And if that damned 1099 reporting kicks in, you'll want smaller forms of precious metals. It may be four or five years off, but you watch, someday (at least as far as unworn BU coins are concerned) the premiums will be highest on the items most in demand, which will be the most affordable ones... dimes.

I follow the logic and think it could happen.......maybe?

[beauanderos]

Of course, it might require $1000 an ounce silver... so we should give it at least two years (to be conservative )

[Hawkeye]

I can see it both ways. My attitude is that pretty much any silver is good silver, and whatever I can get the cheapest is good for me. I do like bullion coins, but it looks like the premiums are going up on those, so I may switch more to junk silver in the future, and I will keep this thought in mind.

[thedude]

Why not war nickels? I know a lot of people don't like them, but I'm stacking these away too.

[Quagmire]

Why not war nickels? I know a lot of people don't like them, but I'm stacking these away too.

The spread is too high.

[beauanderos]

If you can stack them by sorting, fine. Then turn around at some point and sell them for cash to buy into 90 or .999. But I wouldn't buy them outright unless you could get them for about 60% of their coinflation value.