Poll Question: Have you tried taking advantage of the rising spot prices? What happened?

As silver has spiked in recent weeks, I have traded some junk silver (90 percent Roosevelt dimes and Washington quarters, along with some 80 percent Canadian) and used the value as trade for some semi-key coins for my collection. Precious metal prices surge and fall, but collectible value tends to remain stable so long as the rarity value exceeds the metal spot value. Current spot price indicates to me it is a good time to trade quantity for quality.

Dale W. Maple, Michigan

I had a small silver hoard (a total of about 15 ounces), went to a couple of shops this week when the spot was $105 and $110. Basically a non-starter in my area. Called some more shops, and everyone had stopped buying because of a refinery backlog.

 Bullion is not as liquid as people have been told all these years. A dealer did offer 110 for a slabbed ASE, which was fair, but I did not want to sell just one piece. 85 now. I am wanting to reduce the bullion I have and focus on scarce numismatic coins that are appropriately graded. My prediction is that silver will settle at about 80, and then the refiners can catch up with supply.

Ed Whittenburg, Address withheld

I was very lucky to sell some silver before the market dropped today. Came close to doubling my investment. Have one more still on auction. It’s a little above spot right now. 

Frank Tucker, Address withheld

Climbing like crazy. Not taking advantage... let it ride. 

Tk, Mech, Pa.

No. It's a hobby, not an investment vehicle.

David Nederostek, Meadowbrook, Pa.

The current environment is to be expected - big discounts to spot and slow pay.  

Refining capacity is stagnant, but the amount of product to be reclaimed has vastly increased. The backlog causes delays. For silver, refiners choose to process .999 first - think bars for COMEX and other exchanges - and Sterling or 90 percent later, only then poor, lowly 40 percent. For those old enough, this is the same situation as 1980.

Today, the fact is that with gold near $5,000 per ounce, it takes two times the amount of capital to purchase the same amount of gold as when spot was $2,500. For silver, it is even more dramatic - five times compared to when silver was $20 per ounce.  Most secondary buyers and even the market makers have financial limits. I have had several dealers say they are being 'cautious' (against a price pullback) and trying to 'keep some powder dry (liquidity.)

Discounts to spot provide some market decline protection and a small compensation to slow payment from up-market refiners, but it can be frustrating to collectors and small sellers, who then wonder if they have been cheated.

Gary Burhop, Address withheld

I took a large amount of circulated Morgans to my favorite local dealer and was surprised to be offered substantially below melt for them. Some of them were actually not too bad and should have sold above melt. I then took a second group to a local gold-silver dealer, who didn’t care about coins beyond their silver value, and received 70 percent of melt from them. I realize that there are significant costs for coin dealers and challenges at refineries that are overwhelmed by silver of all kinds. But it is certainly a wake-up moment to learn that circulated Morgans really aren’t going to get close to melt! I still came out way ahead of what I paid for most of these, including some that I bought for under $5 decades ago!

Name and Address withheld

Yes, I took advantage of the higher price of silver. When it hit $100, I felt it was a good time to sell. There was a coin show this last weekend that I attended, and I sold one coin to a dealer there. The silver value of the coin at the time (ounce=$103) was $157, and I sold it for $125, which I thought was fair for both of us. I sold this particular coin because it was too big to fit into a 2x2, and I had no place to put it. It was a $25 coin from the Cayman Islands, commemorating the 25th wedding anniversary of Queen Elizabeth in 1972.

David Eagle, Address withheld