Stick To Silver Bullion Coins
We just received an email from an online coin dealer that we have done business with in the past offering “part of American History” via Morgan Silver Dollars (1878 – 1921) and Peace Dollars (1921 – 1935).
I’m not buying them.
Now if you want to buy a few “real” Silver dollars to give to the kids and grandkids (“real” as in people actually carried them in their pockets and transacted business with them) then that’s fine.
But as a part of your strategy of protecting wealth via Gold and Silver bullion then I would pass. I think there are better modes of Silver to purchase for your precious metals portfolio.
Why Should You Not Buy These Silver Dollars?
Quite simply, how much are they worth? As you can see from the image there are different “grades” of coins available with different prices. Keep in mind that these Silver dollars do not even have an entire ounce of Silver in them, more like 7/10 of an ounce I think, the exact composition is here.
When it comes time to buy or sell these coins you first have to have each party agree on the “grade” of the coin; then apply some formulas, then agree on a price.
With a straight Silver bullion coin like an American Eagle or Canadian Maple Leaf you know exactly what you have; perhaps more importantly, so does everyone else realize exactly what it is you have when it comes time to sell.
Take the 1 ounce of silver at spot price, add the going premium and voila, you have a price that is easily verified anywhere.
There is MUCH less subjectivity when it comes to pricing – and that is a GOOD thing!
For what it’s worth, should you die and someone need to value the coins in your estate, you’d have to pay an appraiser to evaluate Silver coins like Morgan or Peace Silver dollars whereas the Eagles, Maples, etc you could just look up on the internet at someplace like Texas Precious Metals and see what the buyback price is and multiply by how many you have.
So we are taking a pass on this offer from that dealer, next time he emails that he has 1/2 ounce Gold American Eagles at 4% over spot or lower we’ll give him a call.
We just took advantage of some Fed-Speak-Fear today to buy Silver at GoldMoney and let someone else worry about handling and storing it.