What you would get for your silver depends on what the $ is worth, maybe you would not want dollars in two years time... Sell your silver to whoever wants it and has the ability to pay for it.

It's scarcity that causes the high premiums.

 

If the spot price is $24.74 in two years, expect to get between $22.00 and $24.50 provided things get back on a normal track. You typically buy at a bit more than spot and sell for a bit less. This is how bullion dealers profit.

PMs typically convey wealth. This means that as the dollar devalues, the silver holds steady. Sure it should be worth more dollars but the dollar is worth less.

Compare this to plain cash. If you have $10,000 dollars worth of silver and $10,000 in cash. You place them both in your safe for 3 years.

Current data from the Producer Price Index for savings institutions for the past 3 years shows an index rate of 94.7 for Jan 2018 and 91.9 for Jan 2020. 94.7/91.9 = 1.0304 or a yearly average of 3.04%.

Using this historical data to equate to the next three years, 1.0304^(3)= 1.09400 or 9.4%.

Assuming silver is a base commodity and has just kept up with inflation, it is now worth $10,000*1.094= $10,940. The cash is still only $10,000.

So if you could buy a soda today for $2, you could get 5000 cans of soda. In three years that soda will be $2.188 each. This means the silver has kept up with inflation and you can still buy 5,000 cans of soda. If you kept the cash you would get 4,570 cans because the cost went up.

PMs are not a stock that is typically a buy low, sell high thing. It is a way to convey wealth. Sure there are fluctuations like now giving a jump that is larger than inflation. But in reality even if you bought at $12 and sold at $24, you need to sell 8,333 ounces to profit $100k. That's 569 pounds of silver. If you trade that much weight, you are in a different league.

 

Why pick those three years exactly ?

 

@Hound Dog: Thank you for your generous response.

 

As an investment, I think you may be a little behind. If for a hedge against a dollar collapse, do it now!

 

As a hedge against a dollar collapse is why I'm interested.

I have to do some research into the chance the dollar may collapse in the future.

 

is your coin a 1 oz. American Silver Eagle, or is it a 1 oz. generic silver round? There’s a difference in price when buying and selling, the ASE carries a premium over spot price.

You can sell to your local dealer, online vendor, Craigslist, coin show even neighbor, friends or relatives.

 

I didn't purchase them yet. I was leaning towards 1 oz Australian coin or the 1 oz block of silver from jmbullion.com.

Thank you for your post.

 

My LCS pay spot for silver. Some will give you a certain amount under spot. Places online buy it too, but I prefer to sell locally. Check out the LCS's in your area to see what their prices & policies are. If it looks like they are overpriced on stuff they are selling, they'll probably screw you when trying to sell it to them as well.

 

If your LCS is paying spot I would never have to leave home.

 

Just be careful where you buy silver coins. The market is flooded with Chinese counterfeit gold and silver coins. A lot of bars are also counterfeit. Counterfeits are frequently silver-plated tungsten because that approximates the correct weight.

Learn how to detect counterfeits. There are tons of videos on YouTube showing how to do this.

 

Thanks. I know nothing about judging counterfeit. The outfit I'm considering buying from is www.jmbullion.com. One of the prepper sites on YouTube recommends it.

 

XRF analyzer. I would think that most shops own one.

 

A lot of you fellas on here are a great bunch.

 

I just learned a person has to pay tax when buying.

 

Depends on the state. Some states don't have sales tax period, a few others that do don't have it on PM's.

 

Here’s a link to APMEX’s web site page, they show where and what taxes are collected on. Varies by state.

https://www.apmex.com/state-sales-tax-information

 

BW, in regard to your original question I don't think you can know for sure what the buying price will be. Simply put some buyers might be willing to pay more than others. I would think you would get spot minus a few percent.

Just to test the waters call a few coin dealers around your home town and ask them what they are selling Morgans for. I bet you get a variety of prices. Selling to them would be the same. They will have different prices.

It would benefit you to develop a working relations ship with several dealers in your area. And the more you have to sell the better you are apt to do. Simply put most dealers aren't going to get too excited about buying 4 or 5 ASE's but if you were selling 100 or more they could probably come up with a better price.

Good luck.

 

And if you bought into silver in 2011 at $45, you'd have lost money every day for the last 9 years and still be down 50%.

Meanwhile, a monkey could have thrown a dart at a wall and made money on an investment in housing, stocks, guns, ammo, classic cars, real estate, bitcoin, etc. since then.

 

I bought at $6 and stopped at $12.

 

And if you bought silver at $4 an ozt you are doing great. You can use the highs of nearly anything to show a loss at one point or another.

 

Literally laughing out loud. Silver hasn't been $4 this century.

If you're going to cherry pick market timing perfection, PMs would have gotten SMOKED by stocks, cryptos, housing, land, energy, etc. Heck, even guns and ammo did as well while also having practical uses. I've got guns and ammo that are up close to 5x what I paid.

Even cherry picking, PMs suck compared to any other useful investments.

 

We should buy new gold and silver coins while we can. But you should also buy a few rolls each of the junk silver coins. And understand the melt value without even having to think about it.
When the SHTF, and you have to go to the 'trading square' looking for any type of epi pen for your child, you will want a couple of those old silver dollars along with a couple of the new ones. Problem will be, if the hoodlums see you pulling out some shiney new silver dollars, they will know that you have more. But if you start pulling out well circulated dimes, quarters and etc trying to 'feel out' the trader, then those goons will probably have lost interest.
When the event happens that we are prepping for, most of the populace will not survive. Many because of robbery. The hoodlums will not understand the value of old coins, but hopefully the traders will.

Don't ignore the trees in search of the forest. There are a lot of people out there, on this site as well, that are destined to be "bear bait". Your prep gear should contain a little bit of everything. We aren't talking investments, we are talking SHTF, end of the world, barter items in order to survive.

Good luck to you OP.

 

“ The junk silver has 90% until 1965, and 40% silver until 1972.“ Curious how you came up with the 1972 date, ‘cause they didn’t stop there for 40% silver.

 

While it can be a store of value, the difference between the purchase price and the selling price is an instant hit. Spot is $22.89, JM Bullion generic rounds are $28.69. If you sell you will get a little below spot... This is a 25% hit from the start. If you buy in bulk you can reduce the gap but it still seems like a big gap.

 

The spot price you listed is too low, JM’s website lists spot at around $24.50. Second, JM isn’t twisting your arm to sell. Premiums the last few years always have a high spread when supply goes down and demand is up. Buy low, sell high, right?

 

Historically, silver has been valued by wieght in commerce, not face value due to debasement and shaving. Traders often carried a small set of weights and a hand scale. Given the modern SHTF we are having right now, its not the roadwarrior but its not the grapes of wrath either.

The most dependible silver is pre-1964 junk silver because content and manufacture is standardized and not potentially debased like private coinage. Second best are dealers like JM Bullion at al. Third best are local dealers. All have premiums attached to the price.

Interpretations vary.

 

Buy lead instead (ammo)! It will pay off better. I regret investing in too much silver at $30 then selling recently at $20. I will never do that again.

I would rather have lots of cash (and ammo) on hand, it is difficult to buy gas or food with silver unless you accept face value.

 

Buy lead instead (ammo)! It will pay off better. I regret investing in too much silver at $30 then selling recently at $20. I will never do that again.

I would rather have lots of cash (and ammo) on hand, it is difficult to buy gas or food with silver unless you accept face value.

Difficult to buy gas or food with ammo too.

Doesn't mean ammo isn't a valuable asset.

 

I’m just going to have to accept the fact that everyone says “pre-1964” but it still drives me nuts.

 

And I have had nothing but good experiences with PM's. I have traded them for vehicles, weapons, food and etc. Even bought a new set of tires a few years ago with a.s.e. Weekly we trade eggs for silver dimes and quarters. It's not rocket science. It's also not for everyone. Just like crypto and stocks. You do have to use a little intelligence with them, or anything else. I really don't see why so many people just rail on anyone who is successful with metals. You typically don't see the negativity put out towards people who buy stocks, cryptocurrencies and etc.

 

Lead wasn't anti PM till he recently found he couldn't buy them at the price he wanted.
He's been carrying a chip ever since.

There's several other "sour grapes" people I could mention, but I'll pass on it.
(He's used to me and him agreeing and butting heads within the space of 5 min, so I'm pretty sure I can get away with it.) :

 

Once the GSR falls a bunch more I may trade some of my existing silver stash for gold taking advantage of buying silver at the higher ratios and trading at the lower ratios. I am not in any hurry and I do not think anyone has really 'missed the boat' but they just will not see as much appreciation as those who have already gotten in.

 

https://www.zerohedge.com/markets/bank-america-silver-could-hit-50-near-term

 

Like any commodity, there is a time and place for everything. Real estate, precious metals, gems, guns, ammo, tools, real world skills, food, fuel, conveyance, repair parts, building materials etc. Some are more perishable, useful, transportable, durable, recognizable than others. I'm not a genius so have some in each basket helps (I don't own gems).

Gun value would rely on commonality of parts, rounds, utility. IMO a .270 hunting rifle in rural areas would be more valuable than a Swiss straight pull with uncommon ammo. A handgun would be more valuable than a rifle in urban. Situation will vary.

 

Any property manager can tell you that the cash price is cheaper than the credit pprice. Even cheaper is the totally off books girlfriend money price. Only the credit price is a tax deduction. Thats what rumors say. Silver is the cash price, maybe, definitely the girlfriend money price. Silver prices are paid by wieght at an agreed upon exchange rate determined by silver content.