Silver still down - Ugh!

[GarouLady]

Been watching the stockmarket for weeks and its same old same old. Silver is still around 26-27 mark. Oh for the good old days of 34 an ounce! Got the itch for silver and went to the LCS and bought some silver. He was totally wiped out of quarters, All he had some halves, dimes and a couple of beaten up ASE. Big mistake but I bought one very tarnished ASE for 32 bucks. Won't be doing that again at his shop and I picked up some halves. I ordered 2 boxes of nickels from work and I plan on going into town tuesday to dump my other nickels and coinage. And taking my cat to the vet. Using my coin hunting stash to pay for her bill. She's my girl and sits next to me when I am going through coins. Can't abandon a CRHing buddy!!



Don't worry Annie. I'll take care of ya. =)

See ya,

GarouLady

 

[gsxraddict]

now is the time to buy, we will see silver over $100 oz in our lifetime.

 

[Wilmingtonsilver]

If you are going to keep buying silver along with CRH, then you want silver to keep going down. $10 an ounce would be ideal for me. You don't want it high until you are ready to sell.

 

[fistfulladirt]

I agree, I've been buying all along since $34, and I will keep buying, and crh'ing.

 

[ArkieBassMan]

If you are going to keep buying silver along with CRH, then you want silver to keep going down. $10 an ounce would be ideal for me. You don't want it high until you are ready to sell.

Yep, you've got it backwards GarouLady. While it is in a way disappointing to see the overall value of your stash decreasing, while you are in what I call the "accumulation phase" of building a stash, you want it to be as cheap as possible. That way you can build a bigger stash for the same amount of money thereby in the future when the price (hopefully) rises, you have more to sell.

 

[CoinFetcher]

I am selling all my crap unwanted silver. 50%ers, ect., and buying maples and ASE. provident metals is still a really good price. I Can get them from my LCS for about the same price. ~ 30.

Just sold 16 silver dollars for 464 dollars. I am going to parlay that back in 9999 fine.

Work it both ways people!

 

[Bad Wolf]

I agree, I've been buying all along since $34, and I will keep buying, and crh'ing.

Dollar-cost averaging works just as well for silver as anything else!

 

[BuffaloBoy]

I wish my LCS sold junk silver... they "ship them out" and don't sell anything to customers except over-priced crapy grade coins.
Hope everything is well with you, GarouLady.

 

[cdickrun64]

I agree with bad wolf....dollar cost averaging is the way to go....but I am waiting for $22/oz. or lower before I start buying. I do not see any reason for silver to go up right now....but am keeping an eye on JP Morgue.....lol.

 

[Wilmingtonsilver]

I am selling all my crap unwanted silver. 50%ers, ect., and buying maples and ASE. provident metals is still a really good price. I Can get them from my LCS for about the same price. ~ 30.

Just sold 16 silver dollars for 464 dollars. I am going to parlay that back in 9999 fine.

Work it both ways people!

I don't understand how you can sell one version of a PM and make money off of another version of the same PM. Wouldn't it make more sense to keep all of the PM, but spend fiat to buy new PM?

 

[baddbluff]

I want it to go up so I can sell my 40s and buy certified Morgan $s. I keep all my 90s tho for long term. I am a coin collector first & investor second.

 

[GarouLady]

99% of my silver stash is bullion that I had bought when silver was 6-7 dollars an ounce, or I have bought at face value from my till or coinstars, so as long as it stays above 7 bucks I am still making money. 50 dollars here and there buying coinage isn't going to wreck me. I do understand buying silver when its low. that's why my LCS has run out of quarters and was almost out of dimes. They only had 1 bar ounce and some rounds. I probably won't buy any more ASEs from them because their premiums are just too high. I have another source for ASEs, a LCS that recently moved that I just need to find the phone number for and I am back in business with a cheaper store. But I do appreciate the feedback and the well wishing.

Sincerely, Garoulady

 

[mercury1]

I don't understand how you can sell one version of a PM and make money off of another version of the same PM. Wouldn't it make more sense to keep all of the PM, but spend fiat to buy new PM?

I agree with you Wilmington. I think some people don't have the extra cash to buy what they desire so they sell their lower purity coin to buy the ASE or similar. Also some like to condense their stash to make storage easier. My SDB is pretty full.

 

[CoinFetcher]

I don't understand how you can sell one version of a PM and make money off of another version of the same PM. Wouldn't it make more sense to keep all of the PM, but spend fiat to buy new PM?

I have fun with silver. I CRH and get loads of 40%. IF and when the price spikes, and I want to get some fiat FRNs, my ASEs will be easier to unload than a pile of 68 kennedy.

Also, I get to handle more items this way. I also get a really good price from craigslist. So I can buy from provident metals, and then make 100 in profit off one visit from someone who wants a tube for $700 - Or someone who wants to spen 29 for craptacular morgans I get for around 22 bucks. Selling a tube of those is easy money also.

So, with this Fiat I earn, I then can turn it into Neat Maple Lead wildlife bullion for 30.45 each. If I get board, these coins sell for a bit of a premium on ebay, my LCS, and craigslist. All the while, hoarding more and more everyday.

Just to reiterate, I like to practice selling bullion and coins so I can cash in when the time is right.

 

[ArkieBassMan]

I have fun with silver. I CRH and get loads of 40%. IF and when the price spikes, and I want to get some fiat FRNs, my ASEs will be easier to unload than a pile of 68 kennedy.

Also, I get to handle more items this way. I also get a really good price from craigslist. So I can buy from provident metals, and then make 100 in profit off one visit from someone who wants a tube for $700 - Or someone who wants to spen 29 for craptacular morgans I get for around 22 bucks. Selling a tube of those is easy money also.

So, with this Fiat I earn, I then can turn it into Neat Maple Lead wildlife bullion for 30.45 each. If I get board, these coins sell for a bit of a premium on ebay, my LCS, and craigslist. All the while, hoarding more and more everyday.

Just to reiterate, I like to practice selling bullion and coins so I can cash in when the time is right.

I think you may be the exception in this case CoinFetcher. You can make money by "swapping" 40% for 90% or .999. But, you have to be very diligent and have buyers willing to pay your prices. The "average" CRHer/silver hoarder isn't that diligent nor do they have a multitude of buyers willing to pay the amounts you're quoting. Your post got me curious so I did a little calling around this morning. I called my local LCS. They're currently paying 8X face for junk 90%, "up to" $15 for Morgans/Peace dollars, and "up to" $20 for ASE's. I have seen slightly/moderately overpriced silver on my local Craigslist listings. They typically get relisted many times, so I assume they never sold, but I do know if they sold it wasn't a quick "easy" sale. The average CRHer/hoarder is going to buy and sell at the same place whether that is eBay, Provident, APMEX, etc. For them, the only way "swapping up" would be profitable would be if the price of silver plummets. They'd still lose money, but with a low silver price, the Morgans, ASE's, etc. will carry a higher premium and they'll lose less than they would have had they just held onto the 40%.

Also, I disagree that 40% will be harder to sell than ASE's if the price of silver spikes. However, they will be harder to sell if the price falls, so "swapping up" can easily be used as a "hedge" against falling prices. I distinctly remember (because I was seriously considering selling some 40% and checked frequently) back when silver took its latest climb to nearly $50, 40%ers sold like hotcakes on ebay. Regardless if it was 10 coins or 1000, 110%, and occasionally as much as 120% of melt was common in the many auctions that I followed. The premium on ASE's was still the same $3-$5 that it is now. Silver was selling, and selling easily...regardless of type or purity. I think that you'd find that if the price of silver really spikes, the premiums on Morgans and ASE's will all but, if not completely disappear. At the very minimum, the premium will not increase in direct proportion to the increase in the price of silver. For example, at today's price of ~$27/oz. ASE's usually carry ~$4-$5 premium. If the price of silver jumps to ~$54, I'll all but guarantee you that ASE's won't carry a $8-$10 premium. IMO, 40%ers may be the best "bang for your buck" out there for the "average" CRHer/hoarder. At today's prices, they can be bought for around spot. If the price spikes, past experience has shown me that they will sell easily and almost always even carry a premium. Whereas ASE's and Morgans require a premium to buy at todays prices, and that premium does NOT increase when the price of silver increases.

I'm very happy that "swapping up" works for you. I'm not suggesting in the least that you shouldn't continue to do so. But for myself - and I suspect many other "average" CRHers/hoarders - it really doesn't make any sense for us to attempt to do the same. What makes perfect financial sense for you, doesn't for me. Again, I'm not knocking you in the least. I just didn't want everyone out there to think that "swapping up" is always a sound idea. I just merely offered a different viewpoint so that they can make their own decisions on what to do with their own stashes.

 

[GarouLady]

I will say I have been wondering what to do with my lower purity coinage. the non-numistic coins I have are 1967 canadian proof set, some more canadian, and 4-40% half pieces. The one LCS that I go to wont take the 40% and their quotes for my other silver is a joke. I think there is a currency exchange/gold/silver store downtown but I have to do some more research. I am hopeing that my sources get more bar silver. I don't know but as a kid, I liked the rounds and now that I am older for some unknown reason I like the bars better. Hmmm, go figure.

Sincerely, Garoulady

 

[FloridaFinder]

Silver is making a rally this morning. Went over $28 shortly ago.

 

[CoinFetcher]

I have never sold to a LCS - they have overhead, I understand that.

Craigslist of a great place to unload morgan and peace dollars. I bought them in the low at 23 each - pulled the 1 or two that were in good shape, and literally, flipped the rest of them.

My thoughts are this: When silver spikes, the premiums will be down across the board.

My only point is this: the premium, per OZT, will be higher for ASEs. That is it.

I also sold many many commemoratives, and us mint stuff recently on ebay. I turned this into my metal of choice - and that was 999 fine rounds. They are easier to store.

I am into numismatics - but I perfer US type sets. gold and silver. and all the world and us mint bullion products. Modern proofs, not so much.

 

[minkybodl]

I think that the 10 oz bars are the best buy there is. I was paying 1 dollar over spot per oz when I bought them so 10 extra and when I sold them I got spot for them. As long as they are a good name brand, they sell easy. It was a lot easier buying them when silver was between 8 and 16 but even in the 20's isn't bad. I like how they don't need to use a calculator to figure out what they will pay for them. Even with the rounds you still have that oz of pure silver with no 90 or 40 per cent. Free silver is fun to find but if I'm buying I like pure 99.9 the best.

 

[Sleepy Holow]

A lot of good input by many on this thread. Thanks to ABM and CF for the "moving up" discussion.