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Junk silver or .999? What's a better option?

Submitted by Stray on Thu, 01/10/2013 - 13:50
in

I own some silver, had to sell a lot of it. I'm looking to "trade" for more. I have always bought bullion or bars. I'm curious to know from those that may have more experience in this field, what is the better option? Junk or .999. Or should I diversify and get both? I'm looking to spend a few grand and I'm looking for serious thoughts and discussion. Thanks in advance.


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It depends on the price

Submitted by RxN3ST1 on Thu, 01/10/2013 - 15:29.

If you can get .999 for less than a a buck above spot , I would buy the bullion. Yes I know that ASE are not ever less than a buck above spot, I am happy with generic rounds.

If you can get the junk for less than 22 X face or less than you should buy the junk. Both of these are prices that are hard to find at low volume but occasionally they can be had in my area. Portland OR metro area.

Hope that helps -

peAce

—

Liberty = Responsibility

I'd like to add that I'm a

Submitted by Stray on Thu, 01/10/2013 - 15:04.

I'd like to add that I'm a bit leary right now due to volatility. How does everybody feel about the value going up/down? When I first started buying it was around 15 an ounce. I haven't seen much movement which makes me wonder when it's going to break and where it's going to go. Of course one assumes the risk on their own.

It is costing miners almost

Submitted by John C on Thu, 01/10/2013 - 15:25.

It is costing miners almost $30 to get silver out of the ground. I watched a video the other day that broke down the balance sheets for many of the top miners. Anything much under $30 and they are going deep into the red.

The cartels may try to crash PAPER silver, but you'll likely never again see physical silver trading for any long period under $30...that's my opinion.

Even in the 2008 crash when precious metals fell with the rest of the markets, you couldn't buy physical silver for the paper price. I think the paper price got as low as $10, but physical was selling in the $15+ neighborhood...down from $20. It recovered fairly quickly too.

If Gold is now being considered a "Tier 1" asset, it won't fall when markets crash and people in the past would sell gold to raise cash (money)...because as a Tier 1...gold is money.

50/50 is what I

Submitted by John C on Thu, 01/10/2013 - 14:12.

50/50 is what I recommend.

One thing I like about Silver Eagles...they are given special treatment when it comes to 1099 tax forms.

nobody around here talks about this...

http://goldsilver.com/new/privacy-facts-on-selling-gold-silv...

I read this

Submitted by jaded41 on Thu, 01/10/2013 - 14:16.

but I'm still missing how junk silver is treated by comparison. Maybe I missed it. I admit that I tend to skim.

Nevermind

Submitted by jaded41 on Thu, 01/10/2013 - 14:18.

I'm dense. I think I get it now.

WWII era nickels are 35% silver

Submitted by chris cudnoski on Thu, 01/10/2013 - 14:06.

http://www.coinflation.com/coins/1942-1945-Silver-War-Nickel...

worth about $1.75 each...

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You don't know what the future holds

Submitted by anothernobody on Thu, 01/10/2013 - 13:59.

so diversify.