Seeking opinions on selling 100 oz Silver / buying high grade 20$ gold piece ?

[Argentium]

Hey heavy metal fans ! I would like to tap your expertise here - I have a 100 oz. Englehardt fine silver bar , and I'm
considering selling it and buying a higher grade Liberty or St. Gaudens twenty dollar gold piece - Is this a good idea?
I welcome your opinions ! Thank You !!!

 

[Argentium]

Anybody .... (maybe I'd do better with this thread over at the general discussion forum )

 

[ClayDigger]

Hey heavy metal fans ! I would like to tap your expertise here - I have a 100 oz. Englehardt fine silver bar , and I'm
considering selling it and buying a higher grade Liberty or St. Gaudens twenty dollar gold piece - Is this a good idea?
I welcome your opinions ! Thank You !!!

Argentium,
I was having the very same thoughts. I have a few silver bars and was wondering about switching to gold. I am sure someone out there has a hunch about which is the better one to hold for now. I am hoping that both will make a run up in the next few months.

 

[jim4silver]

Hey heavy metal fans ! I would like to tap your expertise here - I have a 100 oz. Englehardt fine silver bar , and I'm
considering selling it and buying a higher grade Liberty or St. Gaudens twenty dollar gold piece - Is this a good idea?
I welcome your opinions ! Thank You !!!

With the silver to gold ratio at 66 to 1, you should be trading your gold for silver, not the other way around. If silver ever does go back up it will outpace gold percentage wise at least for a while, just like it falls farther percentage wise when prices fall.

Just my opinion.

Jim

 

[Marchas45]

Second that with Jim. Buy Silver now not gold. When the ratio starts getting closer to each other then it will be time to buy gold. I actually sold and oz of gold last week for 70 oz's of Silver which was a great deal IMO. Charlie Keep Stacking

 

[Argentium]

My thinking regarding the "high Grade " twenty dollar gold piece had to do with getting into a collectible beyond bullion -
Say Mint State 64, 65 - might cost about what I could get for the 100 OZ. bar . Would these obsolete twenties in high
grade condition maintain their desirability in fluctuating bullion markets ? I thank the few of you who bothered to reply !
I actually thought it was an interesting thread - most did not .

 

[pronghorn]

I thank the few of you who bothered to reply !
I actually thought it was an interesting thread - most did not .

check the frequency of posts in this section, I'd say it was close to average replies
to your post. It sometimes goes for days without a post.

 

[Argentium]

You're probably right , there are very few people browsing this forum at any given time - I sounded rather bitter in my complaint ,
I will try to run this topic again in a week or two on General Discussion forum because of the greater number of browsers .

 

[jim4silver]

My thinking regarding the "high Grade " twenty dollar gold piece had to do with getting into a collectible beyond bullion -
Say Mint State 64, 65 - might cost about what I could get for the 100 OZ. bar . Would these obsolete twenties in high
grade condition maintain their desirability in fluctuating bullion markets ? I thank the few of you who bothered to reply !
I actually thought it was an interesting thread - most did not .

If you are buying common year Saints and Libs even in MS 64 to 65 they are quite common and don't really have much numismatic value per se. The premium over their gold value fluctuates. I used to be really into old US gold and would watch the wholesale premiums and when they dropped a lot I would get some good deals. The premiums have held up well with respect to spot on the MS 65 and 64 Saints and 64 and 63 Libs relatively speaking over the past several months as gold has dropped.

But if you like the coins for their great beauty and want one NOW (I get that way) then do the trade. Remember though stashes of unc double eagles are uncovered from time to time in vaults here and in Europe. So the population of these coins can change. Like those really nice old Libs they found on the shipwreck and now they say more found (see article). So even if you shelled out much for a more rare coin you never know when more will be found.


More Sunken Treasure Recovered; 13,500 Gold, Silver Coins Found At 1857 Shipwreck - Forbes


Just my opinion.

Jim

 

[Argentium]

Jim4silver , Thank You for your thoughtful responses ! If the choice here (100 OZ bar / 20$ gold piece ) is at all close ,I might be
wanting to do the deal - The coin shops here in Tucson tend to look down on the large format bars in favor of the higher liquidity
of the smaller 1, 5, or 10 OZ units . If I go with a higher grade (MS 65) I'll pay for a certified/slabbed coin so there is no argument if
should have to sell . A fair question is should I consider a bullion gold piece instead of a numismatic piece ? I thought the MS 65 ,
would hold value in a down bullion market because surviving population of these in this grade or better will be rarer than MS 60, 63
etc. As you pointed out there really is no way to account for market fluctuation due to a hoard being uncovered - but it's not like
I'm moving big bucks around here -( $1700- $2000 )

 

[Barton]

I will give folk's my 2 cents worth:

In the 1920's with a 20 dollar gold piece ( one ounce of gold ) you could buy a very nice rifle.
With 35 of these 20 dollar gold pieces you could buy a nice car.

With 20 dollars in paper money--in 1920's you could make the same purchases.

The US government / The Federal Reserve--has a deliberate policy--which is a matter of public record of officially
causing at LEAST 2 % inflation so this effectively destroys your purchasing power of the US dollar.
The official rate of inflation is Bullshit--it is actually about 10 % --just look at the prices in restaurant's
or the price of a new vehicle or auto insurance.

In 1978 I purchased a new pick up truck from the dealer--for $ 4,000 including tax, title and license!
MY auto insurance--GEICO cost $ 200 A YEAR--FULL COVERAGE!
McDonalds advertised you could buy sandwich, fries and a coke--and get change back from your dollar.

Can you tell me what a new pickup truck cost now? Or where I buy a new truck for 4,000 ?

Now lets go back to what has held it's value over the last 100 ( 96 ) years
Let's see what the 20 dollar gold piece will get you --or if your looking at vehicles what 35 --$ 20 dollar gold pieces
will buy you!!

If you want to compare silver dollars-- go ahead. I would not sell my / your silver dollars but gold is certainly
what Jim Rickards ( see you tube videos ) would recommend holding.

If you see the European Union start to come apart ( in my opinion ) like Greece, Spain, Italy, Portugal---vote to leave
or simply stop paying back their loans--then it is likely the EURO will collapse. The US paper dollar and you bank
accounts will be in grave danger. For the Secretary of the US Treasury to suggest--like he did this year--it is now
safe to invest in Greek Bonds--is simply foolish--you might as well use your US dollars as toilet paper is lend money
to Greece and expect it to ever be paid back. Because the world is so interconnected--information--flows rapidly--
the entire world is interconnected. If the Chinese economy collapsed / stock marked crashed--Europe's stock market
would be reacting before you even get out of bed!

When the last time the big banks in the US were in danger of failing--the US tax payers bailed them out--then the
bankers wrote the "REFORM" act--if they are in danger of failing--they will seize the DEPOSITORS ACCOUNTS--
TO BAIL OUT THE US BANKS --SO YOU CAN BE SURE LIKE IN THE LAST BAIL OUT THEY WILL STILL GET THEIR
$ 100,000'S BONUS FROM YOUR MONEY!

What I am saying the big banks like Goldman Sach's and others will look out for them selves first--they will not
cover depositors / investors who invest in or with their bank and lose money.

You have to protect yourself and US gold coins like the American Eagles is the best way to do so.

Barton

 

[billjustbill]

Barton,

I can agree that what "Used To Be" isn't there anymore. What could be counted on, based on our National History of how right and wrong was handled, and what one could plan on for future days isn't there anymore. The illusion is there, but not the core values nor the resources of either a Nation or even a Neighborhood....

Now, the only things that can be counted on if/when the economy hits bottom are the food/water/life insuring items like ammo, guns, tools, heat, limited/reduced power, and a safe place to stay and sleep at night. Trading chickens for a doctor's visit is on the way down and at the bottom of the the bad times. So, having whatever size PM bullion you have put back to insure the basics, and maybe a chance of some prosperity, can/will be confiscated from you by the reigning leaders to fund their lifestyle and military and law enforcement muscle.

Let's carry this gold/silver thing another step. If the national powers deem that holding gold or silver bullion is illegal as both were, how are you going to use the bullion coins or bars in the worst of times if it's against the law to own PMs? The biggest issue of "another piece of the puzzle" will be refining the metals to 99.9 levels. Maybe, here is where Sterling silver and the Karat-ed Gold levels in jewelry can keep it away from the bad government guys. I supposed it's going to depend on how badly they need/want it. Even "Rolled Gold" and Gold-Filled jewelry would become well worth refining into legal purity used for wealth or commerce.

So, a part of a person's PM slice of their net worth portfolio should be in jewelry. It may offer protection as well as options for the worst of times when bartering or "wealth status" become powerful hedges against the loss of the basic needs and needed services you'll need because you don't possess the skills or tooling to do them.

Bill

 

[Lucky Eddie]

I don't personally see a big recovery in silver demand any time soon.

Sure it makes nice table wear, is used in some electronics & silver solder - jewellery, coinage, BUT - these days there's less and less such traditional demand for silver.

Mate of mine manages a copper mine.
He was telling me they gave up crushing ore to extract copper and these days they leach the ore with chemicals to extract the copper into a slurry that they then truck for processing to separate the copper from Silver & gold.
The silver & gold are byproducts from the copper mining process but they don't waste it they recover it.

So back in the day when there was whatever ratio of ounces of silver to ounces of Gold price wise... that was when people mined specifically for silver, and crushed ore etc to get it..

These days Silver is a by product of other profitable copper & gold mining moreso than a few guys who owned a silver mine.

Silvers just another industrial metal really and its more of a by product, every miner has a bit of silver... its not as rare as it once was & the demand is reducing not increasing.

I just don't see the day, anyday soon, when silver will suddenly be worth a huge amount again, UNLESS for e.g. there,s a new technological use found for it (like Lithium Ion batterys have made lithium worth a small fortune for new Iphones technology!).

Call me crazy but I would swap the silver for gold!.

Back in the late 1960's wen I was just a kid, my ol man and grandfather took me on a boys trip away - up to a mining area because they had an offer to buy a tantalite mine!.

The owner of the lease had a couple 55 gallon drums of tantalite ore, that he had mined off the lease that was worth a small fortune!. You see the USA had a space race on and were using tantalite to make a metal for rocket nose cones that could withstand the heat of re entry to earths atmosphere!.

Tantalite was worth more per once than gold (The tantalite lease was in a well known gold mining area)...but the lease holder was selling the lease based on its tantalite potential not its gold potential - in essence he was kicking the gold nuggets aside to get at the tantalite coz them Crazy Yanks would pay anything to get hold of it!.

Then some fool made these heat proof ceramic tiles for the space shuttles, and you couldn't give tantalite away any more!. No more tantalum metal nose cones on rockets!.

So Silver is a little bit the same..

Once it was necessary for coins as was copper.

These days we have given away copper coins (silver 5c is the smallest denomination coin here & we round up to the nearest 5c).

So next we will likely see silver coins likewise removed from circulation. We no longer have $1 or $2 paper or ploymer bank notes - now we have fake gold (brass alloy?) $1 & $2 coins..

So how long s it before silver stops being used in coinage (or electronics or jewellery)?.

Like I said - barring some new technological use where cars can run on water using silver as a a catalyst & theres a huge world wide demand for silver I just don't see the day where a silver dollar will be worth even a dollar in silver value!

I think personally that silvers days as a precious metal are done - silver is a by product of mining other essential metals like copper - there's little left that precious about it any more - because the world has moved on UNLESS there's a technological advancement (Tesla Power Wall Batterys?) that causes a hge industrial upturn n demand for it -beyond what the worlds miners already can meet!.

I could be wrong, it wouldnt be the first (or last) time probably.

 

[NHBandit]

With the silver to gold ratio at 66 to 1, you should be trading your gold for silver, not the other way around. If silver ever does go back up it will outpace gold percentage wise at least for a while, just like it falls farther percentage wise when prices fall.

Just my opinion.

Jim

This ^^^^^^ is the correct answer in my humble opinion