News For Noobs; Silver 715 Convention Slowly Changing

[beauanderos]

Has silver reached its peak? Not on your life, says Michael Checkan, president of Asset Strategies International. In fact, silver would have to triple from here just to match its old highs.

We’re convinced the best way to own it is with so-called “junk silver” coins – the 90% silver coins made by the U.S. Mint prior to 1965. And if you order some this week, we’ll include a free “Walking Liberty” silver dollar with every order. Call ASI at 800-831-0007 or 301-881-8600 to place your order and receive your free silver coin.

Of all the forms of precious metals you can own, here’s why we believe your very next purchase should be at least a bag or two of the 90% silver coins that were minted by the U.S. Treasury prior to 1965.

These coins are commonly referred to as “junk silver,” but there’s nothing junky about them. They got that designation because they’ve been in circulation so long, they have no value to collectors. Numismatists may not like them, but we love them. We think they are the single most practical way to own precious metals today. Here’s why:

#1. They’re the real thing. The dimes, quarters and half-dollars made by the U.S. Mint prior to 1965 are instantly recognized as “the real thing.” They don’t need to be assayed to determine their precious metals’ content; they don’t need to be appraised by an expert to tell you what grade they are. Virtually anywhere you go, you can find a buyer who knows that a $100 face-value bag of these coins contains 71.2 ounces of pure silver and will pay you accordingly.

#2. They are readily divisible. A bag of these coins is easily and instantly divisible. Need just a few bucks to clinch a deal? A handful of silver dimes will do the job. These 90% pure silver coins really can work as “pocket change.” Try doing that with a one-ounce gold coin or 100-ounce bar of silver.

#3. They’ve never been confiscated. For anyone who worries that the U.S. government may once again try to confiscate all of the gold in the United States – as Franklin Roosevelt did back in 1933 – here’s a reassuring fact: silver coins have never been subject to confiscation. You don’t need to lie about owning them. (Of course, you should never brag to anyone – a neighbor or a government bureaucrat – about any precious metals you own.)

#4. They are extra convenient. Most dealers sell these coins in $1,000 face-value bags. We do too, of course. But at today’s prices, those 712 ounces of silver will cost you around $26,000. We break these bags down into 10 bags of $100 face-value coins, making them easier to store and, when it comes time to sell, easier to liquidate. We recommend that every family member own at least one bag.

However, if 712 ounces of silver is a larger purchase than you had in mind, we also sell $100 face value bags. These bags contain 71.2 ounces of silver and cost around $2,600. We market these bags so you can initiate your own silver accumulation program by periodically purchasing smaller bags until you have reached your desired silver position.

#5. The premiums are low. Because there is a very active market for these pre-1965 silver coins, premiums tend to be low. You shouldn’t have to pay more than 6-9% above the spot price of silver. Of course, if there’s another “run” on junk silver bags, as there was a few years ago, the premiums can skyrocket overnight.

Here at ASI, we take pride in having some of the lowest premiums in the country. But always shop around to get the very best deal you can. When you do, be sure you’re comparing apples and apples, not apples and oranges. Insist that your coins are shipped to you by U.S. Post Office insured registered mail, with a return receipt requested. And that the price you’re quoted includes everything, including shipping and insurance. Never, ever fall for a “buy below spot and we’ll store it free” pitch. If you ever hear that, run, don’t walk, to the nearest exit.

More Profitable Than Gold!

And now we come to our top reason for believing that silver is an even better investment than gold right now: It is far more undervalued than gold.

There are trillions of reasons to invest in precious metals today. I’m referring to the flood of paper dollars being cranked out non-stop by the U.S. Treasury. With federal deficits projected to hit $10 trillion over the next decade, every one of those dollars is going to fall in value.

When the value of the dollar drops, it costs more to buy anything. But gold and silver go up! They are an excellent way to protect the purchasing power of your savings.

Based on historic ratios, silver could triple from here and still be undervalued compared to gold. In fact, if silver simply matched its previous highs in inflation-adjusted dollars, it would be over $130 an ounce. When that happens, wouldn’t you like to have a few bags of junk silver coins hidden somewhere in your house, stored in a safe deposit box, or buried in your yard?

The Supply-Demand Equation

Unlike gold, silver has a ton of industrial applications. And here’s the important thing to know: When silver is used to make a computer or cell phone or take an X-ray, it’s gone. It can’t be recovered. At least not easily.

Of all the silver mined over the past 5,000 years, more than 90% of it has been used up. It’s gone forever.

For many years, the U.S. government maintained a stockpile of silver. It had millions of ounces of the stuff hidden away in caves somewhere. The original reason was to back up our paper money. Today, hardly anyone remembers when “silver certificates” were the legal tender of this country.

Now, every ounce of that silver is gone, too.

Meanwhile, demand for silver is taking off. Industrial uses have been exploding from new technology to “infection control” in hospitals. Investors are snapping up every “Walking Liberty” silver dollar the U.S. Mint produces. And new ways to invest in silver, such as exchange traded funds, have removed millions of ounces from the marketplace.

Higher demand and lower supplies add up to only one thing: Higher prices! But as we’ve pointed out many times, this is just beginning to happen. You can still buy silver for about half of its previous highs – while gold, by comparison, has reached and passed its all-time highs. When is the best time to buy silver? We believe it is now.

DISCLAIMER I have no ties to this company, I am not promoting nor recommending them, merely posting info that may be new to some

[68Camaro]

Sounds like someone that has decided to unilaterally change the "convention" for the uninformed, so they can save 3 oz of silver per bag.

[beauanderos]

It would be only natural for firms selling silver to slowly lower the convention as they adapt to the realization that bag weights are creeping lower. Gresham's Law will exert its influence on the gram weight of worn junk silver that is up for trade, rather than held tightly by it's holders. I'd be willing to bet that if anyone did a comprehensive survey, they would discover that the number of Kennedy's was diminishing in mixed halves bags, and that the proportion of coins minted in 1964, found in mixed bags of dimes or quarters, was dropping off as well. This will be countered, to some extent, by the fact that lower grade material is constantly being smelted, but the fact is, unless you are buying Franklin or Kennedy halves, Washington quarters, or Rosie dimes... you aren't getting your "money's worth" if you're expecting 715 and buying online. On the other hand, with Franklins... you're pretty much getting 717 or 718, and I've yet to see a Kennedy roll under 720. Presently, those one or two ounces don't matter much, but that story will change when you begin pricing silver in triple and quadruple digits.

[cuag]

They have to recoup the cost of the "Walking Liberty" silver dollar. I'd love to get my hands on one of those, it has to be very rare.

[wagsthadog]

Hi there-

Playing Devil's advocate, it could be a way for the company to sell their beat up, worn coins...it still doesn't say, "Each bag is weighed and then calculated to be 712 ounces." They might be buying bags in bulk, keeping for better condition stuff, and letting the more worn coins go into their bags for sale and just covering their butt with the 712 ounce gimmick.

BUT, I'm not a pro, and I've never bought from them, so I do not know for sure to badmouth them. But, if I could think it up, anyone could, lol. Group buy and test, anyone??

JMO
wags

[mflugher]

recently bought a $100 face bag from provident, was rather upset that it came in weighing about 1.6 oz short (pure silver weight), the count was 1 coin over, but the weight was off. I tried rolling the coins using a coin rolling tube but found that it gave counts 5 to 6 coins over so I had to count manually... I don't have the exact #'s handy, but if you are going to sell based on spot price, weight should be the convention not face value. I complained and they said there was nothing they could do, but offered a price reduction on my next purchase.