From the June 8th Numismatic News E-Newsletter: A year ago silver was near $50 an ounce. Now it’s near $30. Is this a good time to buy bullion silver coins? Here are some answers sent from our e-newsletter readers to Editor Dave Harper.
Silver still has sparkle. While it is down from last year, it is about 55 percent higher than it was two years ago.
While I am not a conspiracy theorist, I do believe there are some that are unnaturally influencing the price of the metal. I feel silver, while not a bargain, is a good buy right now.
The world’s problems have not gone away since the price of silver declined from the highs of last year. The impending euro zone meltdown and the rumors of quantitive easing three (QEIII) here in the U.S. all require printing mass amounts of new cash, thus inflating the money supplies and promoting inflation.
Precious metals are the hedge against this. What are the odds that bombs will start falling in the Middle East (or any where else) some time soon? Precious metals are the “safe haven” in times of uncertainty.
Being in the manufacturing end of the precious metals trade, things have been very slow for the last several months. The same is true at my competitors’ establishments as well due the depressed metals’ prices after the boom of last year.
The metals’ markets are cyclical, and we are in a valley at the moment. It will not last forever.
I monitor things like the U.S. Mint precious metal sales, bullion market reports, etc, and retail sales of bullion are showing signs of life again.
These numbers will most definitely take off if any of the major problems mentioned above comes to fruition. The downward pressure is just not there to keep silver prices this low, and silver will rise again.
Coeur d’Alene, Idaho
The first Chinese gold coins were marked as “redeemable in silver.” This provides a classical view to this metal.
Silver is more affordable as an emergency resource, and is also more usable since not all transactions would require the value of a gold piece. In fact, most transactions for food, clothes and other necessities would be affordable in silver coin or small bars.
As a dealer, I’ve made money in both gold and silver, with a greater ROI and lower risk with silver.
Yes, it is a great opportunity to buy silver before it doubles or more in the next 18 months, give or take. I am very sure about what I say, but I am not going to type all my knowledge here.
I reserve the right to be wrong because only God knows all things and man does not know the future. But we can see what is going on and make good educated guesses.
Thank you for hearing my thoughts.
I believe we will be in a trading range this summer with little or no movement in either direction. The only caveat to this statement is Europe. If the euro continues to fall and the dollar continues to strengthen, then precious metals will continue to fall.
As we get closer to election time, you’ll see some movement. I believe the direction of the movement will depend mightily on whom is perceived to be the winner of the up coming presidential election.
It appears that folks are already holding their cards very close to the vest as bullion sales have slowed from last year.
Michael P. Schiller
Silver shines bright in collectors’ eyes. Mercury and Barber dimes, Standing Liberty and Washington quarters, silver dollars and halves, quality early pieces, these are the sparkling silver collectors desire, not those who have come in for the quick buck.
In a way, the sale of silver has helped and hindered the hobby. Both collectors and bullion sellers will have to live side by side, but true hobbyists drive the market.
Ah. The silver question again.
Trying to figure out when to buy (and sell) silver is akin to being a seer.
World coin dealers, at least those in the Midwest, raise their silver prices, not by repricing their coins, mind you, but rather by simply putting out signs on their tables or at their shops saying they have the right to adjust the prices on their coins due to the increase in the silver price.
Yet, when silver recently dropped to $27 per ounce, those same world coin dealers did not put out signage that said they had the right to adjust the prices on their coins due to the decrease in the silver prices!
I say this: Buy when you can afford it and when it’s a piece you need for a set, or, because the coin calls to you.
Yes, Dave, silver dropped again today to $28 per ounce.
If I were a bullion buyer, would I run out, then, and buy up a bunch of bullion today at $28 per ounce or a little over that?
There is absolutely no way of knowing that silver will, once again, reach $50 an ounce.
In fact, should one of the big four entities who own most of the silver decide to dump it all of a sudden, who knows? Silver may be $8 an ounce again!
Thus, I will continue to purchase silver coins when I need them for my specific sets or when they have eye appeal or when they have historic significance to me, whether bullion is at $28, $8, or even $50 an ounce.
Due to love of silver Eagles, and yes, I’ve placed my order for the two coin set priced at a modest $149.95, it’s always time to buy silver (coins not bars)!
Considering gold is at nearly $1,600 vs silver near $30 an ounce, stop and think: “is gold worth that much more?” To me silver shines darn near as good! Silver gets my vote.
Michael P. Schmeyer
Halsey Valley N.Y.
It’s always a good time to buy silver when it’s down. I’ve been told many times to buy low and sell high. I think today’s market is a buyer’s market.
I have lots of silver, but, now is the time to buy. I am surprised that the price has not gone through the roof with the financial issues in Europe. Silver should have been a safe haven.
This is a volatile market, although I believe that silver is close to its new baseline and it will stick there for a long time.
Personally, I am staying away from the silver Eagles, except for my Christmas presents to family and friends. Instead, I am buying numismatic coins that have always been valued close to the current price of silver, figuring they will retain their value in a down market.
If the spot price of silver goes up significantly, then I can upgrade to something nicer.
In 1972 I was ready to leave Asia, after having been in Okinawa, Japan, for 15 years, and come home to America. My boss offered me a job in the Philippines if I would just stay a year until he could find a replacement for an employee who had to leave for heath reasons.
So I went and stayed for 20 years. When I first arrived the peso was five to one to the dollar. In the coin shops the 1907 peso was the most common .800 fine silver coin available. You could buy them readily for 10 pesos. These have about a half ounce of silver.
I continued to buy them and the price went up finally to 50 pesos each. I was buying them in dollars for half what I had paid 20 years before.
People would talk about the silver peso going up in value and I would say, “No, the current peso is going down.” The mind set of people, who had only valued goods in pesos their whole life, could not grasp that.
Today, I am faced with the same thing. Silver went up to $50 then down to $30. The only reason it is down is the Greeks, Spanish, Irish and Chinese are buying our national debt, the Europeans to get out of the Euro.
Tom Colburn says America is in denial about $131 trillion in debt. Our grandchildren will not pay that and the currency will be devalued. We will not deny the civil service and military retirements, we will devalue the currency.
Buy silver Eagles for your grandchildren. Do not sell when they double in price, just so you can keep score by doubling your money. You have a taxable gain but a economic loss as all the paper money has been devalued.
You know all this, I am just recounting my personal experience. To reassure yourself, look at a 2009 Krause, published in 2008. Silver was $12.50 to $15. If you had converted all your dollar investments to silver then, despite silver being down today, you would be worth twice what you were four years ago.
I knew Filipino military retirees who received peso pensions that were not worth driving to the bank to cash in 1992.
Yes, indeed, silver does still “sparkle.” This venue is still an option for those who can’t afford gold for collecting or investing.
Can bronze coins and bars be close behind as a hedge? Time will tell! I think it might a decade or two from now.
The world seems to be slipping and the allure that silver had in the past few years seems to have tarnished.
Based on the downturn in the world economies, I believe that the short term silver will be stagnant or will declined further in value. I base my prediction on what occurred in the early eighty’s. As history repeats itself, the roller coaster ride in precious metals is not for the faint at heart.
Should there be a global threat, such as another 911 panic, buying will step up, but, I do believe that silver is not supposed to have a dramatic increase absent a catastrophic global event.
William H. Bownstein
I feel now is the time again to buy silver for the short term. The world economic situation is in shambles from Europe to the far east. Having a tangible asset that is recognized all over the world has got to be a good thing! I wouldn’t be surprised if it goes all the way to 70- 80 within three to four years.
Great time to buy. If it drops to $25 you only lose 17 percent, but if it rises to $35 you gain 14 percent. If you bought at $50 and it goes to $35 you only lost 30 percent.
Buying below the top always reduces possible losses and increases possible gains. Simple logic prevails.