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90% vs .999 silver

i just read "guide to investing in gold & silver" by michael maloney (part of the rich dad's advisor series).

really good book. i recommend it.

maloney suggests only buying .999 pure silver as opposed to 90% silver.

he says that in the '79 - '81 there was so much selling of junk silver that the refiners got overloaded. as such, the 90% silver MIGHT sell at a significant discount to .999 pure silver.

what do u all think?

(EDIT: changed .9999 to .999)

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junk v. pure

I have both for different circumstances. I’ve used colloidal silver and I think it works for sure, so pure silver wire (which should really be over 0.999) is good to have. Personally, I think there will eventually be a premium for “junk” U.S. silver because it is so easy to trade and so would be better to have in a time of crisis or hyperinflation than bullion or even "pure" rounds. So the way I see it, it is a good time to get a good deal on junk. There is still a big discount on 35% war nickels though.

I don’t know that the silver price won’t drop more, but it is important that individuals have physical ownership of resources like silver and I’m so glad that Libertarians get that kind of thing. I have an article (scroll past the jewelry part) that covers what I’ve found interesting about silver production, its uses, how to make your own colloidal silver, my experience with colloidal silver, etc……http://leonardjewelry.com/blog/analysis-of-the-silver-market-by-kelly-kerr

I would choose .9999 silver because...

with .9999 coins, you can make colloidal silver. Besides having the insurance of having access to colloidal silver (during the swine flu hoax shops were sold out), from a business point of view, colloidal silver could be more valuable than the silver itself. And a valuable bartering item (please don't take advantage of people, especially during a pandemic). Canadian Maples are the only .9999 silver coins I'm aware of. 1988 and later if I remember correctly.

side note: I'm waking up a lot of people on other forums. Great things are happening on this one "progressive" forum believe it or not. People are ready for RP's message now. And right now there's no competition. Take advantage of this moment. I also checked my various postings of WITWATSpraying and some have over 1,000 views. Please consider communicating with others besides those on this forum who are already relatively awake, and who will already vote for Ron Paul. If we spend all our time only monitoring our decent into tyranny here, we might lose. We're really getting close to very bad things happening. Please use your time wisely.

we are the Remnant

Rich Dad/Robert Kiyosaki...

for those who don't remember made his money from the mortgage derivatives scams and flipping houses and also the "word/faith" positive attitude mysticism movement (believe it and it will become real).

After the mortgage scam/fraud system fell apart Kiyosaki all of a sudden jumped on the anti-FED bandwagon. Also, Kiyosaki has admitted that his "Rich Dad" was fictional after claiming many times he was real.

As far as "junk silver", pre-1965 90% silver circulated US coins, they are the most trusted coins in existence while also being durable. Circulated coins are very difficult to fake also. Bullion coins are VERY easy to fake and there may very well be an issue of trust when you go to exchange or barter with them especially if you have bullion coins from smaller metals exchanges.

The "melt value" of the coins does not mean you will EVER want to go get your coins actually melted. It is just an exchange rate to use with merchants and for barter.

Many people talk about how the Govt should allow gold and silver to be money. That is a total false idea. Gold and silver, and especially gold and silver coins, ARE money regardless of whether any government recognizes them as such.

When currencies collapse you want old well-known circulated silver coins. This is really not debatable since currency collapses have occurred like clockwork in modern times and each and every time silver coins have been valuable and desired by merchants and for barter with others.

Here is a nifty live-updated chart of "junk silver" coin melt values for nickels, dimes, quarters, halves and dollars:

http://www.coinflation.com/silver_coin_values.html

("barber" nickels, dimes, quarters have the same melt value as the others in the chart)

.
~wobbles but doesn't fall down~

For Many Years After The California Gold Rush, Placer Gold,,

Was widely used and accepted for money, in the West.
Most people realized that Placer Gold was about 90% Gold.
Therefore, since .999 one ounce Gold coins were valued at $20.00 U.S. dollars at that time in history, shop owners in the West had scales to weigh Placer Gold and set a value of 90% the value of .999 Gold, or $18.00 per ounce.

I imagine some of those old timers knew simple math much better than the generation that has been educated to depend on calculators for doing their math for them!

beesting

Silver is alloyed with copper to make coins durable

http://www.coinflation.com/coins/1878-1921-Silver-Morgan-Dol...

In everyday use this is important. Gold is also alloyed for coins and jewelry for the same reason.

Coin is Cing for daily business.

Or the sign in the old livery stable. In God we trust all others pay Coin.

Free includes debt-free!

Bump!

Silver is about to take flight!

Nickels and copper pennies (pre 1982)

Also have melt value, for the value minded.

Free includes debt-free!

With Copper At Around $4.40 A Pound...

They are worth more as money to me.

Three rolls of pre-62 pennies to buy 5 bucks worth.

I'll take back my scrap copper first. My pennies are coined money by the US Congress, Legal Tender.

Silver is at $480/pound. Near 100:1 with copper 2010
Century avg ratio 67:1

Wasn't The Golden Sacks shorting copper?

Gold is at $22,400/pound Near 46:1 with silver 2010
Century avg ratio 42:1

The future?:
Based on century average ratios Gold $1400/oz, Silver $33/oz, Copper $7.88/pound ?

Free includes debt-free!

Open up the mints to coin US tender again

http://mises.org/daily/4913

"In other words, if prices rise too slowly, we must print more money so things get more expensive faster."

This explains why Silver, Gold and soon Platinum & Copper metals will be rising like a domino effect.
http://www.coinstudy.com/old-coin-value.html
There is no scale for the Reserve note.

that might be true

but the point of junk silver is so you can buy milk, eggs, and bread without having to part with your single .999 oz silver coin and getting no change in return.

there is a good write up from a survivalist who lived in Argentina when the "SHTF." He recounts how, immediately, the only currency that was used became silver. silver coins, silver jewelry, whatever. Says, get a couple guns, get a truck with big wheels (roads are no longer maintained), and get a german shepard. By the way, since Argentina is one of the biggest holder's of US Dollars then may be experiencing SHTF2.

In any case. 90% silver is for the survivalist -- not just for the investor.

The worthless effects of money:

90% vs Everything Else

"90% silver is for the survivalist -- not just for the investor."

got it.

now breaking down 90%... is there a some sense in buying 90%? ie "first make sure you have X dimes, then start buying quarters until you reach
$Y, and then start buying halves, and then start buying dollars..."

naw

dimes are smallest denomination of value so that'll suffice

whatever you can get for cheap is what i recommend.

i like 35% war nickels, for their low spot:

http://www.apmex.com/Product/13023/100_Face_Value_Wartime_Ni...

and .999 eagles when they go on sale because of recognizability

war nickels

interesting.

until now, i'd never heard of the war nickel.

how could they sell the war nickel under spot? seems like they're just throwing money away.

War nickels...

Silver war nickels were only made from 1942-1945. In 1942 both silver and nickel alloy coins were made.

There is a bit of a trust issue with the war nickels because of overlapping production of silver and non-silver coins and because the majority of nickels ever made were not silver. How do you know for sure which ones are silver or not? You really have to go through and look at each coin to be sure. That's why they sell at a small discount.

But the benefit of silver nickels is for use to buy or barter for small low-cost items or to make change. The melt value of a silver nickel is currently $1.73 followed by silver dimes @ $2.23.

Personally I stay away from all coin designs that were silver in some years and not silver in others (eisnehower dollars, kennedy halves, washington quarters, roosevelt dimes, jefferson nickels).

Morgan dollars, peace dollars, walking liberty halves, ben franklin halves, standing liberty quarters and mercury dimes were 90% silver every year of their production so I prefer them to avoid any confusion or trust issues.

.
~wobbles but doesn't fall down~

bravo.. could not have said

bravo.. could not have said it better..

Only for stupid people...

It MELTS.

People will only take so much of a beating before they just melt it and get "melt" value. That is the bottom line on all metal values anyway.

Furthermore, recognized coins are more likely to become standard in barter, from what I understand.

Yesterday, we were in the boondocks and passed a pawn shop... We decided to see what he had. There were 90% half dollars with a price tag of $6.50, so we were going to get one - maybe 2! Well, the guy said they were $15 each and only for sale by the roll... LOL! That is someone who really did not want to part with his silver!

Love or fear? Chose again with every breath.

AAAAANDRE

on top of everything else I do that's a great idea to addd to the educational arsenal....

“The Internet is the first thing that humanity has built that humanity doesn't understand, the largest experiment in anarchy that we have ever had." - Eric Schmidt

what do I think? this guy

what do I think? this guy does not know his facts.. The US government had a 3 billion ounce stockpile of silver and the majority of that silver was old 90% silver coins.. The 3 Billion ounce surplus is now GONE. It has been melted down and consumed. I don't care which kind of silver coin you buy.. Silver is silver. You will not have silver overwhelming the refiners like it did back then.

$1k worth of 90%

I have $1k worth of it just in case the feces hits the fan and I have some smaller denominations to work with. I also use it as a good educational tool to teach others about financial policy.

Normally I get silver rounds.

Re: Educational Tool

I've been carrying around a silver dollar and whenever I need change to pay for something I pull it out and make sure they see it. It's fun to see their eyes bug out and ask about it. Then I give them my "mini lecture" on money (with a plug for Ron Paul). ;-)

junk is only a term in relation to numismatic value.

it has nothing to do with silver content.

Present bullion is not priced for numismatic value any more than 90% coins are. (hence the term "bullion" referencing their content and not perceived value)

90% "junk" coins essentially are old, common, circulating coins that buy and sell based on metal content just at more pure bullion coins do. The bags and rolls have been culled for rarities, less worn specimens, or error strikes. Thus they are simply common circulated coins.

Most silver bullion by the way is not .9999 but rather .999, so I'm not sure what he is after there. (there is some .9999 but it is not in large production)

It "may" sell at a significant discount, but sometimes sells well above spot.

It has its own supply and demand factors as does any other product.

It is also very useful in daily commerce since it is actually dollars and fractions of dollars, and people here are used to thinking in dollars not in troy ounces.

There is also very little in the way of fractional ounce silver other than 90% coins. So making change or smaller purchases will be more difficult if you only have whole ounces or larger.

I used the following rule of thumb:

First, acquire the equivelent in purchasing power of 6 months of your yearly COST of living in 90% coin silver.

Follow this up with bullion purchases for longer term savings/intermediate term trading.

Only add gold when you have more than 1 year of 90% silver for everyday purchases.

Unfortunately, you should skip the 91.67% gold and go straight to bullion, to get more gold for your FRN as the older dollar based gold coins carry a premium far more so than their modern bullion counterparts

You will get more ounces of silver for your FRNs with 90% than you will with "pure." (.999)

Maybe he is Canadian.

I think Canada uses .9999 and
America uses .9993

oops

no... that's my mistake.

i was looking at 9999 gold and just assumed that "pure" silver was 9999 also. guess not.

Its good to learn.

:)

Let's look at this

Let's look at this economically. Obviously, .999 silver is going to command a higher price when you sell it, and so it is going to cost you more to purchase it. So, it really doesn't make much difference.

If you have $1000 or $10,000 to purchase your silver, your return will be similar regardless which you purchase. You will get more 90% silver, or you will pay a little more for .999 fine. But the value of both will remain the same.

I would rather purchase 90% "junk" silver at a bargain than to pay market price for .999 silver. But that's because I am cheap.

good point

i'm cheap too. i like how 90% silver is already divided. i'm going to assume that maloney was wrong, or would have since writing the book, changed his mind.

if i find his email, i'll ask him if he still believes what that part of his book.

in 79-81 there was a 3

in 79-81 there was a 3 billion US government Surplus of silver.. that is non existent today. Silver was nowhere used as much in industry as it is today. Silver is in significant shortage which is just now being realized.
It will not make any difference what "type" of silver you have.

Ted Butler says one of the best ways to own silver is 90% silver. I say any silver is good. Buy all you can.

maloney

SIERRAHPBT, maloney makes that point in his book too (that there is far less silver above ground now than there was in the 80s). i wonder why he said what he did at the end...

have you read his book? sounds like you don't need to, but i wonder what you would think.