Is it worth the silver?

[PanManStan]

Hi all,

I was thinking of starting to do some CRH for the silver. Also maybe investing in some silver maple leaf coins, so I decided to check the rates to see what they might be worth in say 20 years. In 1987 the median rate for an ounce of silver was about $6, with a very short jump to a little over $10 at the end of April. Here is the link:

http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx

The price yesterday was about $14. Barring a spike a couple of months after the investment, like in '87 ($5 in January to $10 in April) it seems like it wouldn't be a very good long term investment. Per se, if you invested $2000 today, in twenty years your investment would only be worth $4000. Thats a $2000 profit, but spread over 20 years. Thats only $100 a year. The only way I could see it being worth the investment is if you invested about $1 million. That would be a return of around $50,000 a year.

I realize the inflation rate won't necessarily follow the same path, but I'm sure it won't vary to much. Does this seem right, or am off base here?

What do you all think? I know alot of you CRH for the pleasure of the coins and/or the hunt, but what's your investing strategy with regards to the silver, if you don't mind me asking?

Stan

 

Amazon Forum Fav 👍

Agony and Death on a Gold Rush Steamer: The Disastrous Sinking of the Side-Wheeler Yankee Blade - Grab it through Amazon!

[Gabev71]

My thing is at least with halves that contain silver are there always going to be at least worth face value if the silver market ever crashed. And that is very unlikely to happen. And i think silver mapleleafs or American eagles are good just because there georgous to look at and coins usually appreciate in value over the years. Bloomberg.com had a article on silver and here is alittle paragraph on why i think silver is really worth saving.

" Demand for silver has outstripped supply every year since 1996, according to the Silver Institute, an industry group. Mine production grew 3 percent to 641.6 million ounces in 2005, less than the 864.4 million ounces used, with the gap filled mostly by silver scrap."

Were clearly using more silver then we can mine and with the population going to be even greater in 20 years then it is now, i really dont see how were going to be able keep up with demand. So i would think silver is definitely worth saving, and i think somewhere along that timeline there is going to be a pretty good jump in the value of silver. So i say save now and reap the benefits down the road.

 

[PanManStan]

I agree with you on the aesthetics of the silver coins, or gold for that matter. Although I think the maple leaf coin is far more beautiful than the American eagle.

Any suggestions on a good place to pick up the maple leaf on the web?. I'm also interested in the bars, 10 oz., but the only places I've found to buy these are sites that require a minimum of $1000 purchase.

 

[TxTim]

I hope your question is geared toward investing in silver at full market value and hoping for a future return.

Coin roll hunting is about immediate return on investment to the tune of 288% profit in the case of 40% silver halves if silver is at $13.13 (Friday's close). This assumes you had to go the bank for unrelated business and and bought it at face value. A 90% half will net you 850% profit.

I believe that coin roll hunting is more about treasure hunting than investing!

 

[coolcash2004]

Lets say it doubles in a month. Then thats 10k in a month.

HH!

-CC

 

[PanManStan]

So how much is a 40% and a 90% half going for?

And as far as the immediate return on your investment, does that mean you sell the halves after accumulating a certain number?

Forgive me if I seem confused, but, it's because I am. What do you do with all the halves you find?

If you sell them: to who?
If you save them: how long?

Thanks for any clarification.
Stan

 

[Gabev71]

for prices on 40% and 90% silver halves this site is great because it gives u that and other metals coinflation.com

As for buying 10oz silver bars or maple leafs give ebay a try. with doing some looking around i've found some great deals on bars and coins. just pay attention to shipping costs, some people try really stick it to u on that part.

for selling halves u can either take them to a coin dealer, or i see them posted on ebay all the time. as for how long u save them it really depends on u, some people like a quick turn around. i on the other hand will probably hold onto mine for a few years just because i'm not needing the money right now and i think i'll even get a bigger profit down the road

 

[mercenary]

A half will always be worth .50, and silver will still net you more than a savings bank's interest will. It's a very safe investment, but not necessarily a high-gain one. In the end at least you can't lose anything.