What's your take on pure silver coins as an investment ?

Question

Not sure that I'm going to invest.

Although I hear that silver is a good investment for many reasons :

- It is used in industry and cannot be salvaged ,reused.

- It will always have its place in the jewelry world.

- Chances are very good that some countries around the world will once again be making it their basis (standard) for their money.

- There is only so much available and traded=finite amount.

- Right now the ratio of gold to silver is 50 to 1~predictions are for the gap to close to around 5 to 1.

-The prices are so ridiculously low due to world manipulation. That will change due to real supply and demand future activity.

- Silver is not mined alone but w/ other alloys such as gold & zinc, thus making it harder to get organized.Probably to produce sufficient amounts will take about 10-15 years.

It does have alot going for it, it seems. What's your take ?

Answer 1

Silver is kind of heavy relative to its value.  That makes it difficult to store and expensive.  

Much of your information is not correct.  It can be salvaged and reused. It does not have much of a place in the jewelry world other than as a cheap substitute for gold.  There is not a finite amount as such.  More is mined every year.  It is about a million to 1 shot that any country will monetize silver once again.  Countries are too used to inflating their currencies.  5 to 1 ?  Total drival.  

Answer 2

So you think at silver coins because you believe that silver metal will have much higher prices in the future. Then why don't you buy sterling silver as ingots, if it's silver you're looking after?..

Have you ever considered rare metals as investment choice? These metals are also in short supply and have many uses in high-tech industry. The problem is when it comes to convert the metal in cash. That's why coins are better as investment, imho.

I am a coin collector and (small) dealer, so I can tell you that no matter what metal is made of, if a coin is rare and sought after, prices will rise (unless many coins of that kind flood the market). Perhaps as an investment choice it's better to choose numismatic rarities and hold them a few years or until the market is good for that specific kind of coin. There are many important numismatic companies that sell quality coins, and also can help you in re-selling your coins. E-Bay is also an option for buying good coins at low prices, but you have to be trained in numismatics (to avoid forgeries - special discussion groups can help you with that issue) and also be prepared for disappointments (choose sellers that allow for returns). You can 'hunt' good coins in many many place over the Internet, and they don't have to be made of  precious metals.

Anyway, choose only the best available coins, don't waste time and money with low grade coins. Sometimes even extremely common coins can be rare if they have an extraordinary degree of conservation.  

Answer 3

  Gold's heading down and silver will follow. I'd wait for them to go lower. If you want to buy coins, try some old, rare, high grade, US coins.