Question for the coin pros

[gunner45]

With the recent drop in silver I am wondering what the affect is on coins that have numismatic values. Obviously keeping silver in mind do you think a swing up or down in the market has much affect other than the silver content?

 

[GMD52]

personally I don't think a lot of the numismatic value of a coin will change significantly. Most of the value is set on mintage, condition, and rarity. Silver content isn't a large factor in my opinion. It may change the way some collectors and dealers act in the market, but I don't see a big up or down change.

 

[Mackaydon]

IMO, the numismatic value of a coin does not rise with variations in the price of silver until the value of silver in a coin rises above the, otherwise, numismatic value of that coin.
Don....

 

[TreasurePirate69]

IMO, the numismatic value of a coin does not rise with variations in the price of silver until the value of silver in a coin rises above the, otherwise, numismatic value of that coin.
Don....

I agree. But doesn't this imply that the prices we currently see on lower grade "almost bullion" coins will go down? These are the coins that had their numismatic value pushed higher due to silver jumping from $16 to over $30. I don't expect graded coins or higher grade raw coins to change much at all. But those lower grade silver coins will probably go down. For example, what about common date walking/standing liberty coins in VF-XF condition?

 

[Mackaydon]

Once the intrinsic value falls below the, otherwise, numismatic value, the numismatic value will prevail; unaffected by further declines in the price of silver in that situation--IMO
Don.......

 

[Generic_Lad]

It doesn't have much if any difference on the numismatic value. There are coins that may regain numismatic premiums if silver drops dramatically (such as circulated common date Barbers) but most don't change, especially the higher end stuff like high grade silver dollars. The stuff being sold for bullion today may or may not be sold for bullion if silver hits like $8 an oz. While undoubtedly coins with little to no numismatic premium will have their price slashed dramatically (40% silver Kennedy halves, 1964 dated dimes, etc.) stuff that generally has a higher premium but is today sold for bullion such as worn Barber coinage will most likely be sold as a collector coin again.

Of course that's assuming this drop in the paper price really affects the physical market, which it really hasn't affected it much dramatically (you're still looking at paying like 30 some odd bucks for an eagle and junk silver is still priced as if silver was at $30/oz in most places that I've seen)

 

[dmaki1988]

i don't think it will have a big effect on coins with low mintage's and rarities, if you are going to invest in silver i would purchase larger currency amounts such as Morgan dollars and certain half dollars, Walkers, Franklins and Barbers, people usually pay a few more dollars an ounce for these coins rather than having an ounce of Roosevelt dimes and Washington quarters. I always tried to get the older coins for spot silver value, little harder to find but its a little better investment i think.