silver coin - what value legal tender vs junk ?
 

Forgive the newbie question, but what value is there for me to buy $1 silver eagles, as opposed to 1 oz junk silver coins ?

Re: silver coin - what value legal tender vs junk ?
 

Some here will answer "none", because the premium is so steep. Percentage-wise, you're starting out in a deeper hole with the Eagle. But as erichtops has pointed out, you have to figure out the additional premium you get at sell time. This is the hard part to anticipate.

If Eagles become treated more as straight bullion (versus numismatic) as prices increase, then the junk will end up a better investment. However, if spot silver soars and the new people coming into the market are more comfortable buying shiny, attractive, legal tender, collectible-quality coins, then you may more than re-coup their premium at sell time. Junk would probably do better in the doomsday collapse scenario, while Eagles may do better in the long-term stagflation scenario.

My opinion is that all forms of silver have their selling points: Eagles, pre-1965 junk coins, 1-oz rounds, 10-oz bars, 100-oz bars, etc. I say diversify across a few of these, going heavy on what comforts you most, and lighter on what you don't like. Since the future premium on the Eagles is the biggest wild card, I would tend to go light on them, but not ignore them entirely. I am least comfortable with the big investment-grade bars (100+ oz) because they are non-divisible and may need to be assayed for purity. I like everything else.

Re: silver coin - what value legal tender vs junk ?
 

thanks for that info. im kinda settled on buying 1 oz junk coins and bar stock. the coins are just to have some smaller/handier amounts and the bar stock for long term holding.

Re: silver coin - what value legal tender vs junk ?
 

One clarification: I'm not sure what you mean by "1 oz junk coins".

There is 90% silver pre-1965 U.S. coins, that is referred to as junk silver. But none of it comes in "1 oz".

Then, there are "1 oz rounds", which are not really coins, but pure silver bullion "medallions" (like what Ponce has a gazillion of!).

Both are good, in my opinion. Which did you mean?

Re: silver coin - what value legal tender vs junk ?
 

oops, yes i was referring to the bullion "medallions", marked "1oz fine silver"

Re: silver coin - what value legal tender vs junk ?
 

I haven't seen every silver round out there, but the Silver Eagles are much nicer looking than some Engelhard Prospector rounds I have. I've heard Prospector's are carrying a premium now? I happened to buy them close to spot recently, they're '82s.

Anyway, yeah the Silver Eagles glisten like a full moon! I think they're worth the premium, they carry the premium on resale too. Plus the Eagles and Maple Leafs are backed by their respective governments, guaranteed to be 1 oz. of pure silver.

I really like 10 oz. bars, most of my silver is in that form. I'm not really into the 90 or 40% "junk" silver. I know you get more for your money, but I prefer fine silver, and so does industry if they melt silver.

Re: silver coin - what value legal tender vs junk ?
 

Good idea for quite a few reasons, including the fact that bars will be easier to handle than bags of rounds, eagles, or junk; and as you said the rounds will be for smaller amounts that you want to sell.

Bad idea for a few reasons too, the main being:
-Bars are easily counterfieted and dealers will most likely be very suspisious of people with a bunch of bars in a price rise - I would not put all of your eggs in one basket, but I would put very few in this one.

Junk silver has shown to carry a big premium in times of high silver prices, whereas Eagles have about kept - or lowered - their premium. During high prices most people will be getting into silver for investment/survival purposes, not for numismatics.

Whatever you buy it will be a good investment. ^This sort of stuff is just deciding wether you make $20 or $30, ya know?

Happy buying,
Louis

Re: silver coin - what value legal tender vs junk ?
 

In a deflation scenario the best silver would be a Maple Leaf. It has a five dollar (Canadian currently about $4.00 American)) face value and as legal tender would loose the least in purchasing power. Silver bullion would sell at the going rate, the Eagle would stop loss at one dollar (American, currently about $1.20 Canadian).

Food for thought with a two direction market possible.

Re: silver coin - what value legal tender vs junk ?
 

A silver eagle would go down to a buck or one eighth the current price and 40% clad would go from the 2 dollar range to maybe a buck or more