silver dollars

All coins made of precious metals have value based on a couple of criteria. The least value that any precious-metal coin has (unless you're foolish enough to hand the Wall-mart clerk a Morgan silver dollar to pay for your candy bar) is whatever that amount of precious metal is worth. For example and I'm pulling these numbers out of my rear, if your silver dollar weighed 0.25 Troy ounces (silver is usually weighed in Troy ounces), was made from sterling silver, and the current market value for sterling silver was $400 per troy ounce, then your silver dollar would be worth no less than $100.

Depending on what type of coin you have, it could be worth much, much, more. If the coin is a particularly rare coin, it will be worth much more than the going rate for the metal from which it is minted. If it is in very good condition, it can be worth even more to collectors.

If you don't care about the future state of the financial system and are looking for something to invest in, precious metal coins are an interesting way to do so. This forum is not the place to learn about it but there are many books, clubs, and probably forums on collectible coins to learn about it.

If you are looking for just a hedge against a financial collapse, non-collectible silver and gold coins are a great way to do so. They will always have the intrinsic value of their metal while not having collectible value which will diminish rapidly in a financial collapse situation.

LeveeBreak said:

How much are silver dollars worth?

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The more common dates trade according to supply and demand. They contain .77 oz of silver, and currently should run in the $16-18 range. The premium is higher than for other silver coins, such as the 90% coins dated 1964 and earlier, and the current American Eagle, Canadian Maple and other govt. issued bullion coins, and private made 1 oz 'rounds.' They are high right now, and have been for some time. I recommend to my customers to have some of them, for barter purposes, but to buy whatever is cheaper at the time. I have seen the silver market flat and dollars jump up, drop or sell just over melt. For barter use, 90%, Eagles and rounds are probably your best bet.

Stay away from numismatic coins, coins that are rarer and sell for a collector price, unless you want to take the time and energy to learn about the FIRST before buying. DON'T buy from a telemarketer hawking the 'best buy on the market' or other such drivel. I do have numismatic holdings but keep in mind that during a total SHTF situation, they won't do anything for you that 'cheaper' coins will do cheaper.

Gold and silver do have a 6000 year history of always maintaining value, but I would put food, guns and ammo aside first.

G

Lowdown3 said:

I feel bad for the folks that bought gold at $1,000. an ounce and silver at $20. thinking they would make some money off of it. Silver closed $9.00 today.

Both will likely go back up, but as to them being "investments", I can think of better.

Lowdown3

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Yup, the SPOT price closed in these ranges for the last few weeks, but go out and buy some at that price. I don't mean paper, I mean the real, physical metal. Gold eagles are bring close to 1k, silver eagles are bring 20, even 100 oz bars, ones that could have been bought for as little as ten cents UNDER spot earlier this year are bringing 16 to 18 an oz.

Due to the wild swings in the stock market, many traders and funds are getting HUGH margin calls, and they have been dumping PAPER assets by the truck full to come up with cash. This has driven the SPOT price down to the basement. I have metals funds in my IRA, and the P to E is now down around 8 to 1, something unheard of in recent years. This has been caused by dumping of the paper stocks in these companies.

We are seeing how irrelevant the spot market is to the real world. People are VERY nervous about paper assets, banks, stocks etc, and the rush is and has been to 'have and to hold.' The US mint made twice as many gold, silver and platinum eagles this years over last year, and they are sold out. Flat out of gold and silver. I get calls and emails every day from all over the country from people looking to buy gold and silver coins. I have none. Neither does anyone else, at least in quantity or regularly. 90% coins that had been trading at melt price are now bringing 30 to 50% OVER melt value, due to supply and demand. Common silver dollars are rising as spot drops. One oz silver rounds bring fantastic premiums over spot. So tell me again just how the spot prices mean anything anymore?

Yes, I could sell out my holdings (which were bought far below the top of the SPOT market) and I can still realize prices equal to or close to what I would have gotten at the top of the market. Sorry, not for sale.

Precious metals have ALWAYS held value in troubled times, and as we sit here on the verge of record inflation, this is still holding. Inflation of course is the increase in the money supply without the corresponding increase in goods and services produced. It has nothing to do with rising prices - they are just a result of inflation. The US money supply has been about $15 trillion, up from $3 trillion in 2001. Are we producing five fold as much as we did then? Nope. Now the kicker is what has been going on the past few weeks. Add up all of the bank bailouts, bank cash infusions, purchasing of toxic loans etc etc, and it adds up into the $1 to $3 trillion range. Add in what the worlds banks are doing as well, and the trend continues. So, cash is watered down faster than it ever has been before. The fed lowers the interest rate to next to nothing and encourages banks to borrow as much as they can and come back for more when you need it. And they are. This is the scenario that happened in 1922-23 Germany and present day Zimbabwa (or however you spell what they did to Rhodesia) Take a look at the same things done recently in South America. The results are always the same - massive devaluation, troubled times.

You look at all of the spending programs urged by ALL of the politicans from both sides of the aisle and you have to realize there are only two ways to fund it all, aside from taking everything from your check - create it out of thin air and lower the value of the 'dollar' and make it worth less, borrow and pay it back with 'dollars' that cost less, or.... wait, that IS the only way they can do it.

Gold and silver isn't for everyone I guess. Not a problem. I never look at the day to day price to see if I feel good or bad about my choices. But if anyone asks, I think it is just as important as food, clothing, firearms, ammo and other survival gear.

Remember gold and silver AREN'T backed by 'full faith and CONfidence in the US Gov't' Just thousands of years of a track record. Paper money.....well it is just a few hundred years old and has never lasted very long before no one wants it.

G