Junk vs 0.999

[Devil Soundwave]

Hey guys,

Just finished reading "Guide To Investing in Giold & Silver" by Michael Maloney.

Quite a lot of good stuff in teh book but a few things that have raised questions for me.

He states that he thinks you should only ever buy 0.999 fine silver and NOT to buy any other stuff such as sterling, 90%, etc.

His reasoning is that if it is not 0.999 it has to be sent to a refinery, and that between 1979 and 1981 when silver sales where high, the refineries got backed up for over a year an as such people where only getting discounted prices for their junk silver compared to pure silver.

Does this hold any real sway now? Surely now that silver is essentially "rarer" than it was, this will have less impact upon price conversion?

I find it easier to buy used circulation bullion (such as Mexican coins) as i am taxed 17.5% on new bullion here; but if it's gonna mean I'll get shafted down the line, perhaps I shoudl rethink this strategy...

Thoughts?

Ross

[billo]

Good point, but only true for actual refining situation with everyone trying to sell fast. In which case just wait a while if actual price is too low. For non-melt trading, and long-term investment/anti-inflation/buying and selling, I think in most situations you can sell based on full value of the percentage of silver and don't lose out. Good for survival barter too. I like any percentage, only thing I fear is fake coins.

[beauanderos]

Ross,
it's probably more important for you to think about price considerations now rather than then, iow buy whatever forms of silver that you can at the best prices in relation to melt. Wouldn't worry too much about any smelter cuts after the monster run up we're gonna experience in the coming years. Silver will become extremely scarce, and all forms will be tradeable. Buy what you can afford while you can still source it, in a few months current prices will seem cheap!

[Devil Soundwave]

I'll keep fishing for cheap Maria Thalers and 1968 Pesos on eBay then.

[Lemon Thrower]

he is right historically but i think that concern no longer holds. also, .999 has a hefty premium.

when silver is at $100, people are going to weigh their junk, not sell based on FV. so the lack of uniformity is a concern at some point but is made up for by getting more silver instead of a premium.

[totalcount]

Anyone know what the buying discount/premium was for .999 1 ounce rounds at the peak in 1980? I know the reason for the refining of .90 was to make 1000 ounce bars for delivery, but I don't know how that affected the .999, clearly it would have to be melted down and recast at the very least and that would take at least a little time.

[Country]

Anyone know what the buying discount/premium was for .999 1 ounce rounds at the peak in 1980? I know the reason for the refining of .90 was to make 1000 ounce bars for delivery, but I don't know how that affected the .999, clearly it would have to be melted down and recast at the very least and that would take at least a little time.

As I recall, there weren't too many generic rounds for sale at that time, even Engelhard didn't start making SILVER rounds until 1984. 90% was what you bought if you wanted SILVER bullion in the USA in 1980. Quite different from nowadays as rounds are everywhere. Round production truly began in the early 1980's after the many SILVER coins were melted into bars by refiners from 1975-1980.

[Country]

:)

I'll keep fishing for cheap Maria Thalers and 1968 Pesos on eBay then.

I like discount foreign SILVER too. As mentioned earlier, SILVER will be desired in any form soon. So, why not get it at a discount.

[Treetop]

I have about half and half, and think that is best..... half .999 and half 90% and other......

you never know what condition might be present when you want or have to silver your silver. and there HAVE been conditions where having anything less then .999 forced you to take a huge price cut, outpacing the saving you got originally.

there are also many times where the purity meant nothing, and total silver content was the only issue. so in those times, the premiums often on .999 hurt you.

so Ive decided to just play it safe, and go about half and half. Now that ive got a decent stash, (although Im sure its a pittance on this board) i will probably focus mostly on 90 percent stuff. I did just sell a bunch of 90 percent I had, and traded it to get the .999 actually. I broke out about even in the end, with now about half my stash in .999, because of deals i found in 905 while i was doing it)

[coppertone]

Were lots of 1968 Mexican 25 Peso coins available in early September on E-Bay, bought 50 for 10.00/ea and could have bought a 100 more, now they are not that common.

[Devil Soundwave]

Were lots of 1968 Mexican 25 Peso coins available in early September on E-Bay, bought 50 for 10.00/ea and could have bought a 100 more, now they are not that common.

There are hundreds of them about. Fresh rolls turn up regularly.

50 for 10 dollars each was an excellent deal; well bought.

[MO-SILVER!]

What's the composition of those coins? Are there any definitive guides out there for foreign coins online similar to coinflation? I hadn't checked lately as to whether the Mexican and Canadian coins had all been added yet.

[Devil Soundwave]

What's the composition of those coins? Are there any definitive guides out there for foreign coins online similar to coinflation? I hadn't checked lately as to whether the Mexican and Canadian coins had all been added yet.

1968 Mexican 25 Peso are 0.720 silver (72%). Two coins is just over an ounce of pure silver.

Maria Theresia are 0.900 silver (90%).

wikipedia isn't a bad place to find out coin info.

[argent_pur]

What's the composition of those coins? Are there any definitive guides out there for foreign coins online similar to coinflation? I hadn't checked lately as to whether the Mexican and Canadian coins had all been added yet.

The thing I like most about Mexican junk silver is that, unlike their Canadian and American counterparts, Mexican coins very often have their silver weight and/or purity stamped right on the coin. You really don't see that with junk coins...anyone know another country that did that? I think Panama did it with their Balboas...

[argent_pur]

What's the composition of those coins? Are there any definitive guides out there for foreign coins online similar to coinflation? I hadn't checked lately as to whether the Mexican and Canadian coins had all been added yet.

1968 Mexican 25 Peso are 0.720 silver (72%). Two coins is just over an ounce of pure silver.

Maria Theresia are 0.900 silver (90%).

wikipedia isn't a bad place to find out coin info.

I thought the Thalers were .833

[$1000FV]

What's the composition of those coins? Are there any definitive guides out there for foreign coins online similar to coinflation? I hadn't checked lately as to whether the Mexican and Canadian coins had all been added yet.

The thing I like most about Mexican junk silver is that, unlike their Canadian and American counterparts, Mexican coins very often have their silver weight and/or purity stamped right on the coin. You really don't see that with junk coins...anyone know another country that did that? I think Panama did it with their Balboas...

Yes and I believe I have a few Dominican coins that have weight & fineness on 'em. Not sure of any others though.

[stateofmind]

My favorite coins are the ASE's and Maples;
However, if you are investing primarily for monetary reasons, then go with 90%.
Thing is, I don't know whether or not I could part with my .999(9 ) stash. Now 90%, that would go fast.

[RxForPain]

Buy both! When I find a good deal it does not matter if it is 90% or .999. Having each will give you more options depending on how things play out.

[SteelCityCopper]

Diversifying is a good strategy. Consider using a tiered approach. Yea you could have some gold and silver as part of your stash but diversifying your silver/gold even further can come in handy. I like picking up some .999 and 90% on a regular basis and mix up the .999s into bars, coins etc. When I buy 90%, I like to diversify the coin type/size... dimes, quarters, halves, etc. Both forms will be quite liquid/tradeable.

[wagsthadog]

Hi all-

I read somewhere that you should try to buy coins that are native to your country. If you live in the US, that's 90% and ASE's, Europe, (UK specifically) silver pre-decimal coins, etc. I suppose the reasoning is that it lowers the chance of hassle and/or haggling when you go to sell. Sure, you bought 200 Ugandan silver coins for a steal, but who the heck knows how much silver is in them without a catalog? But, as I usually say, buy what you like. Even if you have to buy silver candlesticks, as long as you have silver you'll do alright.

For me- 90% all the way.

wags

[Devil Soundwave]

I thought the Thalers were .833

Just checked, and you are correct sir. My bad.

[Devil Soundwave]

The thing I like most about Mexican junk silver is that, unlike their Canadian and American counterparts, Mexican coins very often have their silver weight and/or purity stamped right on the coin. You really don't see that with junk coins...anyone know another country that did that? I think Panama did it with their Balboas...

Cuba.

[IdahoCopper]

My hoard is 14.59775% junk & sterling and 85.40225% .999 rounds and bars. That is one heck of a spreadsheet I built, lol

[SteelCityCopper]

Yea maybe I need to add some candlesticks to the collection now that's diversification at its best! Haha

[frugalcanuck]

Im pretty stingy so I have more junk than .999 but I would like to start building the .9999 pile up more. It is hard to pass up a good deal though.