What would you do!??

[Beginner'sfindings]

I have found plenty of 40% Silver Kennedy Half Dollars while coin roll hunting. I am debating on trading them in for 90%. If I do this with a dealer/coin shop then then will buy at spot and sell 90% at a premium. Or I could sell my 40% at a premium and then buy from the dealers. What do y'all recommend? Or should I just keep my 40% since I basically got each coin for 50 cent front the bank.

 

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[jcole77]

Unless you're able to trade them for coins with more numismatic value than what you currently have, I would hold on to them for now, especially with silver down a little of late. The only 40% coins you're usually able to sell for a premium would be BU coins, proofs, and any 1970-D that you may have been lucky enough to find.

As for dealing with a coin dealer, if you can get better date coins such as pre-1934 Walkers, lower mintage Franklins in exchange for only a small premium over spot then go ahead... but if you're only going to be able to get stuff like 1964 Kennedys and common date Walkers and Franklins for said premium, then I wouldn't.

 

[Liu21]

Trade them in try to get the most out of your 40%, then go get some Chinese panda or Australian kookaburra/koalas. Those coins gain a very high premium each year. Now mind you, this route is not for shtf, this is a investment where a year or two your investment gains 30% in value.

 

[Beginner'sfindings]

Thank you for the advice! Why do they gain a premium every year?

 

[Liu21]

Thank you for the advice! Why do they gain a premium every year?

Lower mintage than other Gov. bullion coins, they change designs every year, and people like them. So they increase in value over spot every year by 2-3$ or so. If you get ASE, you pay for a higher premium now, but when you go to sell back to dealers, you'll get spot or maybe just very little over spot, compared to pandas and the perth mint coins.

 

[ArkieBassMan]

If you have a coin shop that pays spot, you have a very rare thing.

Whether or not you should trade 40% for "better" stuff has been debated many times on this forum. As with most everything, there are pros and cons to the exchange. Unless you have a buyer that pays very well for 40% and a source to buy the "better" at a discount, you will lose silver and overall value. Whether or not that is acceptable is entirely your decision to make. If you're happy at the end of the deal, then it was a good deal...regardless of what you traded and what you received.

 

[BuffaloBoy]

The most I can get out of my 40% silver halves is about 92% of their melt value. For example, right now silver is at $17.40/per ounce. That means that each 40%er has $2.57 worth of silver. Take $2.57 x 92% and I would expect to get about $2.36 for each coin. You won't get 90% silver coins for below melt value unless you get super lucky so chances are you will take a good hit. However, if you are happy with the trade that's what matters. It might also be nice to consider diversifying your collection a bit and getting a small gold coin.

 

[Beginner'sfindings]

So you would recommend selling and taking the small hit so I can get gold? I'm indifferent about trading. Don't want to take a hit but I did get the coins for .50 a piece due to coin roll hunting

 

[ArkieBassMan]

... Don't want to take a hit but I did get the coins for .50 a piece due to coin roll hunting

Don't fall into this mindset. Its completely irrelevant. Tomorrow I could find a $100 bill walking to the mailbox. I could then trade that $100 bill for 10 $5 bills. By your rationale above, since the $100 bill cost me exactly nothing, I now have 10 free $5 biils. In reality, I just gave away $50 in value.

 

[Beginner'sfindings]

VERY true! I've just been reading that 40% in the long run aren't really work it

 

[TheMastermind]

I have found plenty of 40% Silver Kennedy Half Dollars while coin roll hunting. I am debating on trading them in for 90%. If I do this with a dealer/coin shop then then will buy at spot and sell 90% at a premium. Or I could sell my 40% at a premium and then buy from the dealers. What do y'all recommend? Or should I just keep my 40% since I basically got each coin for 50 cent front the bank.

No they won't.

 

[jcole77]

VERY true! I've just been reading that 40% in the long run aren't really work it

Yes, because other than the 1970-D and the proofs, their only value is in their silver content.

 

[TheMastermind]

The most honest and fair coin shop in my area gave me $2.25 per 40%er when spot was $20.29.

I got $2.40 per 40%er through a private sale I made through Craigslist when spot slipped just under $19 a couple weeks ago.

Just this passed weekend I got $2.00 per 40%er from the above mentioned coin shop when no one on Craigslist wanted to buy, spot was $17.50-something.

No shop in their right mind is going to pay spot for 40%ers.

 

[Avago]

I was able to sell 40% privately for a small premium over spot, but I had to work hard to do it. It's unlikely that you'll find 90% at spot at a dealer or privately unless you purchase a very large amount.

If you wanted to trade 40% for 90% straight up, you want to get as close to 2.45 40% halves for each 90% half... That is the ratio of silver content in each (0.3617 oz in a 90% / 0.1479 oz in a 40% = 2.45 40% per 90%). A higher ratio will reduce your silver position and a lower ratio will increase your silver position.

For example, if you traded at a ratio of 3.00 40% for one 90% half you will lose .082 ounces; However, if you traded 2.00 40% for one 90% half you would gain .066 ounces. It doesn't seem like a lot but if you extrapolate it out to 300 40% for 100 90% that's an 8.2 ounce loss (-$142 today) or 200 x 40% for 100 90% that's a 6.6 ounce gain (+$115 today).

That would be my approach to a trade, which you could likely execute through any coin dealer. In my opinion, you would likely come out with less silver than you started... the amount of silver you're willing to sacrifice to trade up to what many do view as "superior" silver coinage is up to you.

 

[BuffaloBoy]

I am not saying to take a big hit... I am just saying that you will not be able to sell your 40%ers for over spot and chances are you will pay above melt for 90% silver or gold. I recommend shopping around, don't bite the bullet too fast, see what deals there are out there then make the move.

On the other hand, 40% halves do take up a lot of space and a gold coin is very dense and small, so its all about preference, do you like staring at a big pile of coins, or would you like one or two small nice coins?

 

[ArkieBassMan]

I have found plenty of 40% Silver Kennedy Half Dollars while coin roll hunting. I am debating on trading them in for 90%. If I do this with a dealer/coin shop then then will buy at spot and sell 90% at a premium. Or I could sell my 40% at a premium and then buy from the dealers. What do y'all recommend? Or should I just keep my 40% since I basically got each coin for 50 cent front the bank.

You have received some good advice. Just remember that there is NO wrong answer. They are your 40%ers to do with as you see fit. Take all of the advice into consideration, but in the end make your own decision. If you decide to sell/swap, you will come out better dollar-wise by selling your 40% directly to a collector and paying cash wherever you buy. If you simply trade with a dealer, he will make money off you on both ends just like a car dealer. However, it is very convenient. You can walk in with what you have and walk out with what you want. Again, that is one of those decisions you have to make on whether the time and trouble is worth saving the added expense, as its your time, trouble and expense.

I got into CRH way back when the price if silver had first climbed out of the single digits and was somewhere around where it is now. My sole goal, at first, was to see if I could find enough 40%ers to obtain one of the old US gold coins, for "free", that has eluded my metal detector for all of these years. I had no desire whatsoever to hoard those 40% silver halves. Then a funny thing happened. The price kept going up, and my feelings toward the 40% changed. In the end, I never sold or swapped the first coin. My only regret is not having the intelligence to sell it all when the price peaked in the high $40's and began to come back down.

 

[jcole77]

You could also try eBay, but just remember to make sure your shipping costs make up for any eBay/PayPal/USPS charges. And, as always, you always have rogue buyers to think about along with people at the USPS who steal coins.

 

[LooseChange]

Hold all of your junk silver until the Gold to Silver ratio is in the 50's. Then trade all of your junk silver for gold bullion.
Then, when the gold to silver ratio is in the 70's (like it is now), trade all of your gold bullion for silver bullion.

Follow that strategy and your holdings of physical PM grows for free. The junk silver that you get for face value supplements the total.

 

[Hawgpharm]

I recently came across some 40% halves for $2 each and some 90% halves for $5.50 each that a guy was trying to sell. I realize that is a little below the current melt price, but would you consider that a good deal? I have read and learned a lot on this forum but I am new to silver coins.


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[Beginner'sfindings]

Hold all of your junk silver until the Gold to Silver ratio is in the 50's. Then trade all of your junk silver for gold bullion.
Then, when the gold to silver ratio is in the 70's (like it is now), trade all of your gold bullion for silver bullion.

Follow that strategy and your holdings of physical PM grows for free. The junk silver that you get for face value supplements the total.

Could you please break that down a little more?