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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[Beginner'sfindings]

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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I always buy silver when it's below melt value so long as the price for silver in general is less that 17.50 an ounce

 

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[ArkieBassMan]

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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Its a much better than average price. If you think that its a good time to buy with the price of silver where it currently is, then I believe you'll be hard pressed to find a better price.

 

[LooseChange]

Could you please break that down a little more?

It doesn't matter what the spot price of gold or silver is. They can be compared to each other regardless of the currency. That comparison is the gold-to-silver ratio and is reported by Kitco https://www.kitco.com/Gold_Silver_Ratio_Charts/gold-silver-ratio-charts.html .

Right now, the spot price of gold is 70 times as high as the spot price of silver. That means that you would get 70oz of silver for 1oz of gold (ignoring premiums and wholesale-to-retail spread). Sometimes, the spot price of gold is only 50 times as high as the spot price of silver. That means that you would get 1oz of gold for 50oz of silver (ignoring premiums and wholesale-to-retail spread). So, if you did both of those trades (by waiting for the sweet ratios to happen), you would get 20oz of silver for free. In reality, the spread narrows it to [high 60] <-> [low 60] rather than [70] <-> [50].

Towards the end of 2012, I traded 43x Ben Franklin halves (slightly over 17 oz Actual Silver Weight [ASW]) for 3x 1/10 Gold Eagles (0.3 oz of AGE). That was a fantastic deal because there is usually quite a premium on gold eagles. I recently traded those 3 tenth-eagles for a tube of silver rounds. 3 of those ounces were totally free from the trade<->trade of metals. The trade back was a better deal for the dealer than it was for me, but I was OK with it.

It seems to me that the opportunities for big moves only come every couple of years. The beauty of this strategy is that as you wait for the next move, you are holding precious metal. Whatever happens to the fiat currency is a don't-care. If your metal of choice is doing poorly against the dollar, that probably means that it is a good time to switch metals - you never lose if you pay attention to the dealer premiums.

 

[Beginner'sfindings]

It doesn't matter what the spot price of gold or silver is. They can be compared to each other regardless of the currency. That comparison is the gold-to-silver ratio and is reported by Kitco https://www.kitco.com/Gold_Silver_Ratio_Charts/gold-silver-ratio-charts.html .

Right now, the spot price of gold is 70 times as high as the spot price of silver. That means that you would get 70oz of silver for 1oz of gold (ignoring premiums and wholesale-to-retail spread). Sometimes, the spot price of gold is only 50 times as high as the spot price of silver. That means that you would get 1oz of gold for 50oz of silver (ignoring premiums and wholesale-to-retail spread). So, if you did both of those trades (by waiting for the sweet ratios to happen), you would get 20oz of silver for free. In reality, the spread narrows it to [high 60] <-> [low 60] rather than [70] <-> [50].

Towards the end of 2012, I traded 43x Ben Franklin halves (slightly over 17 oz Actual Silver Weight [ASW]) for 3x 1/10 Gold Eagles (0.3 oz of AGE). That was a fantastic deal because there is usually quite a premium on gold eagles. I recently traded those 3 tenth-eagles for a tube of silver rounds. 3 of those ounces were totally free from the trade<->trade of metals. The trade back was a better deal for the dealer than it was for me, but I was OK with it.

It seems to me that the opportunities for big moves only come every couple of years. The beauty of this strategy is that as you wait for the next move, you are holding precious metal. Whatever happens to the fiat currency is a don't-care. If your metal of choice is doing poorly against the dollar, that probably means that it is a good time to switch metals - you never lose if you pay attention to the dealer premiums.

So when the ratio is high like it in now then you want to trade the gold in and get silver and when the ration is low then you trade silver for the gold?

 

[LooseChange]

So when the ratio is high like it in now then you want to trade the gold in and get silver and when the ration is low then you trade silver for the gold?

Exactly.