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Ast
22nd July 2008, 15:31
Hi everyone,

I'm looking for some advise. I'd like to invest about 10k into American Eagle silver coins.

The reason for that, if **** hit the fan, dollar value drops, and there is shortage of jobs and so on, these coins could be used for groceries, or exchanged for currency. I'm not sure if I'm looking at it from a collectors point of view, or maybe should I.

What year should I be looking at? Does it make a difference?

Phaeton
22nd July 2008, 16:34
Hi everyone,

I'm looking for some advise. I'd like to invest about 10k into American Eagle silver coins.

The reason for that, if **** hit the fan, dollar value drops, and there is shortage of jobs and so on, these coins could be used for groceries, or exchanged for currency. I'm not sure if I'm looking at it from a collectors point of view, or maybe should I.

What year should I be looking at? Does it make a difference?


First, welcome to the forum!!

If you are looking to invest your money into Silver, I would recommend not putting it all into American Eagles.

I would suggest mixing it up with the Eagles/Maples, .999 bars (for 10k, I wouldn't do anything over 10 ounce bars) and def. some 90% silver coin. The 90% is great because right now, one dime is worth a little over a dollar. This type of silver allows you to exchange for currency the best (IMO) and if we go back to using Silver for money, this type should be highly sought after. You may want to consider an ounce or two of gold as well.

Hope this helps!

Scrap Metal
22nd July 2008, 18:45
Phaeton is giving you good advice. I mix my bullion up between American Eagles, generic .999 + fine silver ounces, and 90% coins.

90% coins are older US coins that were in circulation before 1965. Up until 1965 all dimes, quarters and halves were made of an alloy that was 90% silver and 10% copper. The copper gave the coins a bit more hardness than pure silver, so they would not wear out in circulation. Your dealer will know what you want if you ask for 90% pre-65 stuff.

Only buy coins from the 1960's, as the older stuff is worn thin. Thus, you get less silver. Old Mercury dimes are neat, but if they are all worn down, you do not want them.

As far as your question about whether you should be looking at the Eagles from a collector's point of view...if you were interested in coin collecting you would be buying books on that and pursuing it for the pleasure of collecting. I do not recommend "investing" in collectible coins, or any other antiques, without first having a desire to pursue the collection as a hobby. Tell your dealer that you are looking for Eagles as bullion and he will sell you the dates that are not priced higher as collectibles. (1996 comes to mind as a date that is key to an Eagle collection.)

clr8ter
22nd July 2008, 18:59
I do agree with the above 2 people, although, in my opinion, standard bullion SE can collect premiums, too, potentially above bullion value. Check out some of the prices for backdates.....see APMEX website. I would also definately buy 90% also, though.

balou2
22nd July 2008, 19:55
All the above, is very good advice.

If you're new to PM, don't drop it all in one type...i.e. Silver Eagles. Do as the above folks mention and mix it up a little. The longer term you anticipate your holding, the heavier PM you can consider buying.

The upside to the SE is the numismatic value, as mentioned. They will always hold their silver value, but numismatists will pay premiums for ASE. As for dates, it strictly depends on why you feel you must buy ASE. If you're buing them for silver, then go for any date. If you're going for investment, then look for items like the 1994 Proof, or the 2006 W Burnished. Personally, I sold all my "expensive" ASE's, and put it back in to 1 oz A-Mark rounds. I started collecting for numismatic value, but quickly learned that the cost of ASE will far out-weigh many other 1oz. bullion options.

That said, there was an article recently by a recognized silver pundit talking about the potential that ASE's have in value AS A RESULT of their silver value AND numismatic qualities, and that long-term, it would be a wise decision for silver holders to diversify their PM with at least 20% ASE. Don't know if I agree with 20%, but if you can get a good deal (which can happen), they certainly won't harm your holdings that's for sure.

If you're hell-bent on spending 10k on ASE for the silver, get a monster box and be done with it. You can get them between $9200 and $10,000 for the whole shebang. In other words, don't worry about the date if you're only getting them for the silver hedge.

easygoing
22nd July 2008, 22:36
I am new here and this first one will be a test to ensure I can post properlt...thanks for understanding.

easygoing
22nd July 2008, 22:49
Ok, here is my question and understand I am new here.

I already bought 40 or so 90% dollars and about 10 SAE's and 20 rounds all in silver.
I am one who just doesn't know too much about silver but does not want to be standing there holding an empty bag if the dollar crashes or silver takes a huge hike.

If things are not looking good for the dollar and silver is at let's say $18 today and people sell it today for that price if not a bit more...if it is such a great investment for dooms day why don't people who have it already just save or hoard it and be that much more ahead of the game?

Another thought...It the economy gets that bad and silver hits let's say $100 like some wish for, won't bread be like $35 a loaf and in reality silver not gain much? If I am being stupid it is not on purpose.

Any help would be appreciated. I was told not to collect bars because they require testing before you sell them and it was not cheap. This came from the guy who was selling me the coins. :confused:

easygoing
22nd July 2008, 22:59
If worst comes to worst, the dollar takes it final breath and the government decides they wanted to confiscate all the privately owned gold and silver, do they "buy it" back or just take it? Sorry if that was another stupid question.:confused:

hiyosilver
23rd July 2008, 00:37
If things are not looking good for the dollar and silver is at let's say $18 today and people sell it today for that price if not a bit more...if it is such a great investment for dooms day why don't people who have it already just save or hoard it and be that much more ahead of the game?

Another thought...It the economy gets that bad and silver hits let's say $100 like some wish for, won't bread be like $35 a loaf and in reality silver not gain much? If I am being stupid it is not on purpose.

To answer your first question, you will realize in time that most the members of this forum do hold their PM long term.

Secondly, if bread did become $35 a loaf, what would be better to have, an ounce of silver that would buy almost 3 loaves, or a $100 federal reserve note that would buy nothing...?....and currently you can get 5 ounces of silver and five loaves of bread for that $100 FRN....soooo, quite a deal, huh? But don't wait too long...

hiyosilver
23rd July 2008, 00:51
If worst comes to worst, the dollar takes it final breath and the government decides they wanted to confiscate all the privately owned gold and silver, do they "buy it" back or just take it? Sorry if that was another stupid question.:confused:

Oh, they'll probably offer a small fraction of it's value before they eventually make it a felony to possess it. Buy discreetly, pay cash, no records of transactions if possible, and tell only your trusted family members you have it. And keep browsing this forum for further education. Alot of smart people here.

Phaeton
23rd July 2008, 01:23
Hey Easygoing,


Ok, here is my question and understand I am new here.

- Welcome to the forum as well!


I already bought 40 or so 90% dollars and about 10 SAE's and 20 rounds all in silver.

- That's about 61 troy ounces you got which is not a bad start at all. You won't be complaining when Silver soares


I am one who just doesn't know too much about silver but does not want to be standing there holding an empty bag if the dollar crashes or silver takes a huge hike.

- You actually know the most important thing...the potential of Silver! The dollar will continue to fail and Silver will take a huge hike.


If things are not looking good for the dollar and silver is at let's say $18 today and people sell it today for that price if not a bit more...if it is such a great investment for dooms day why don't people who have it already just save or hoard it and be that much more ahead of the game?

- There could be a number of reasons why they sell it.

a: they're dumb or don't know what they have.
b: they're ignorant/blinded to the truth about Silvers future and trust the current monetary system.

OR...

c: they know what silver is all about but have to sell some or all of it due to tough times.
d: they purchased some when it was $4-$5/oz or when it was cheaper in general and want to sell some for a GOOD profit.
e: they're not in it for the long haul and throughout the year, they sell when high and buy when low.
f: many other reasons I'm sure. Most people here are in it for the long haul.


Another thought...It the economy gets that bad and silver hits let's say $100 like some wish for, won't bread be like $35 a loaf and in reality silver not gain much? If I am being stupid it is not on purpose.

- Hiyosilver answered this best but I will add that some people who invest in Silver feel that it's true price is being suppressed and that it should be $30-$50 by now. Add the supply/demand factor which supply seems to be getting more and more strained and you could see Silver at $70 before any inflation/hyperinflation catalyst.


Any help would be appreciated. I was told not to collect bars because they require testing before you sell them and it was not cheap. This came from the guy who was selling me the coins. :confused:

- It's good to have a variety of different types of Silver. Bars 50oz or larger MAY require assaying (drilling into the bar) before you sell them to ensure they aren't lead filled. This is why I stick with 1oz / 5oz / 10oz bars only. There is nothing wrong with owning Silver bars.

kingdombuilder
23rd July 2008, 09:20
My advice... don't buy all at once.. be patient and buy dips like today:)

Look for deals and make your $$$ go further........

Silver is silver! buy a few different sizes and types for diversity

Ast
23rd July 2008, 14:41
Thanks for the welcome guys, and thanks for great advise.

Regarding comments about not leaving any trails and using cash.

What exact consequences buying online can have? At this point it seems like my only option.

edit: Found a topic about confiscation, pretty much answered my question.

hiyosilver
23rd July 2008, 23:24
Thanks for the welcome guys, and thanks for great advise.

Regarding comments about not leaving any trails and using cash.

What exact consequences buying online can have? At this point it seems like my only option.

edit: Found a topic about confiscation, pretty much answered my question.

Have you tried any local coin shops? If they don't have any currently, they might be able to get them for you. You would avoid shipping fees that way, and could pay cash with no trail. The situation has more to do than possible confiscation. Look up the definition of Capital Gains Tax..... But, having a trail is still better than not having silver at all.

easygoing
24th July 2008, 08:43
I want to thank everyone for helping me understand the world of silver. I like to ask questions before i jump into something I know nothing about.

I just bought some more silver yesterday. I am selling my junk stuff I have laying around me doing nothing and re-investing it in silver. :smile:

Raven
24th July 2008, 10:44
I want to thank everyone for helping me understand the world of silver. I like to ask questions before i jump into something I know nothing about.
Thats the best way to make life easier...knowledge is your best friend. Always better to learn from others mistakes than have to learn them on your own.

Ast
24th July 2008, 12:01
Have you tried any local coin shops? If they don't have any currently, they might be able to get them for you. You would avoid shipping fees that way, and could pay cash with no trail. The situation has more to do than possible confiscation. Look up the definition of Capital Gains Tax..... But, having a trail is still better than not having silver at all.

some of the local shop prices are over the head, 2.50 over spot, once instance of 2.5k over internet price of 10k.

I however found another local shop off US mint's website, which is located somewhat far but priced about 300-400 more, but will take cash.