Slabbed Silver
 

Greetings All
I have a small collection PMs. I have been thinking of adding some common date and lower grade (ms60) PCGS slabbed silver coins to my collection.
My reasoning is when the silver rocket is launched these coins would have a greater return than 90% silver that I already hold. At any point in time I could sell the slabbed stuff and buy more 90% or more BBB (Beans, Bullets, Booze) Is this sound reasonings?
I was thinking of starting with Franklin Half Dollars.
Thanks for your input.

Re: Slabbed Silver
 

Franklin halves would be a great place to start for slabbed silver. They were only around for 15 years, giving them one of the shortest life spans of coins in the US, and a real potential for uptrend in prices. You can still get reasonable prices for them as well, sometimes for less than double melt value for MS-60 or higher - I see MS-60 Franklins that commonly go for less than $10 each! The only downside, and this goes for all numismatics, and you will only hear it here at GIM, is that if S really does HTF, then you are left with bullion. However, I think that low cost mint state slabbed coins are a good investment, and I wouldn't hesitate to add them to my collection if I were you.

Re: Slabbed Silver
 

I'll throw in my two cents, so that you can get some diversity in opinion, and see things from a different perspective than you will get from most GIMmers.

I wouldn't buy slabbed MS-60 coins. If silver goes to $50, those type of coins are going to be bought and sold at spot value. Their collector value will not rise in a linear fashion based on spot price, the collector value and spot price will eventually intersect, and rise in tandem after that point.

There is a LOT of money floating around the US chasing nice coins. Key dates and condition-rare pieces are always sought after. What I am getting at is that (in my opinion) you are better off to quantify whether you want bullion or numismatics. Lower grade slabbed common silver coins are a bridge between the two, yet do not offer an especially good prospect for either in the long run. They are initially more expensive than bullion coins, and will not be in enough demand to draw strong buy prices from serious collectors.

Re: Slabbed Silver
 

I would add to the last post that if you are going to add slabbed silver to your mix, buy coins slabbed by PCGS or NGC only. And then guy the highest grade of coin you can afford. Avoid coins under MS63. Those will get melted for spot and you will lose all of your premium. (As was stated in the above post.) MS65 and above will fare better, as their rarity will keep most of them from the crucible.

Re: Slabbed Silver
 

Well said, and I agree with the points made here.

It sounds like the OP needs to decide if he wants bullion or numismatic stuff. If he wants bullion, then why bother with the slab? In a true SHTF scenario, no one is going to care that PCGS deemed the coin to be a MS-60. In other words, that slab wont get you any more in barter value than an unslabbed raw coin in an economic collapse.

If he wants numismatic, then go with stuff graded MS-64 or better for the long haul.