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pocketchange150
New Member
3 Posts |
 Posted - 06/16/2010 : 00:51:48
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I have been pondering this for awhile now and would love some insight!! Here is my imaginary scenario:
It's Monday.I have a 1 ounce pure silver coin from 1812 . It is marked as a $5 coin.(back then) silver is currently $25/ounce which makes it a $25 coin (now)(intrinsic). It is in great shape. An MS-65 to be exact which my redbook says is worth $500(numismatic).
I wake up Tuesday and silver is $100/ounce.
Now here is the question: What is the coin worth numismatically now? Yesterday my coin was $25 x 20 (which I like to call the rarity amplifier that gets me to $500.
Does this mean now that silver is 100/ounce x 20(amplifier from yesterday)= $2000? or do things change such as the amplifier?
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HoardCopperByTheTon
Administrator
USA
6807 Posts |
Posted - 06/16/2010 : 02:55:33
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It is worth $400. Everyone is trying to dump their numismatic coins in order to raise capital to take the plunge into the rising bullion market.
There is no rarity multiplier. It is supply and demand. Coins with significant numismatic value are unaffected by the rise in the bullion price. The value of an 1804 dollar is not affected by the price of silver. Low end coins whose numismatic value is roughly equivalent to their bullion value rise and fall with the price of bullion. If the price of copper doubles, will the price of a 1909-S VDB double?  |
If your percentages are low.. just sort more. If your percentages are high.. just sort more.
Now selling Copper pennies. 1.6x plus shipping. Limited amounts available. |
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Roadrunner
Penny Collector Member
USA
413 Posts |
Posted - 06/16/2010 : 08:27:49
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| Sometimes I wish it worked that way, but I don't think so. |
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pocketchange150
New Member
3 Posts |
Posted - 06/16/2010 : 14:42:22
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| hmm..I would've thought it would have atleast been more like this. It was 500. Minus out the 25/ounce it was for a price of 475 over spot. So if silver was 100/ounce add 475 onto that which means it is 575 today. But ur saying demand will go down if silver spikes so it will only be 400? I'm with you i just want to understand the system. |
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AgCollector
Penny Collector Member
USA
266 Posts |
Posted - 06/16/2010 : 14:47:25
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quote:
Originally posted by pocketchange150
hmm..I would've thought it would have atleast been more like this. It was 500. Minus out the 25/ounce it was for a price of 475 over spot. So if silver was 100/ounce add 475 onto that which means it is 575 today. But ur saying demand will go down if silver spikes so it will only be 400? I'm with you i just want to understand the system.
Think of it this way- if it's worth $500 to a collector on Monday, it's still only worth $500 to them on Tuesday. They don't care what the spot price is and they don't price it into a coin's value. |
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AGgressive Metal
Administrator
USA
1937 Posts |
Posted - 06/16/2010 : 15:02:43
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| Think of it this way, would you rather have 5 coins with a numi value of $100 each or 50 coins with a silver value of $10 each while silver is at $20/oz, if you know its going to $100/oz? A huge spike in silver will mean staying in numi coins will have an opportunity cost, so, like HCBTT was saying, people tend to want to sell those and re-invest where the trend is. Historically, in the very long run they outperform bullion (at least the nice coins, like CC Morgans for example), but they do poorly during major gold/silver bulls. |
And he that hath lyberte ought to kepe hit wel / For nothyng is better than lyberte / For lyberte shold not be wel sold for alle the gold and syluer of all the world.
-Caxton's edition of Aesop's Fables, 1484 |
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pocketchange150
New Member
3 Posts |
Posted - 06/16/2010 : 22:42:15
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| you guys are great. Very friendly. My father and I have a lot of coins between us and I know the book value and the grading system but never new what would happen if such an event would occur. Points me in the right direction for when the silver market hits the fan. Ps. Like I said, I have a decent amount of silver coins and am a fairly young investor (28). I know there is no way to tell but I've ready some outlandish theories on what the price of silver and gold could get to. What range could silver/gold be at in say/..50 years? hopefully I will still be kickin by then : ). I just have no plan on selling so want to know how rich i'll be : ). I know it depends on a million things but a high/low would be great!! |
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Cody8404
Penny Hoarding Member
USA
602 Posts |
Posted - 06/23/2010 : 20:01:34
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One area I have focused on in modern commemeratives. With each rise in the price of silver those with little value, 1983 and 1984 olympic and 1982 Washington, have increased to the silver value, but those worth more, 1990 IKE, 1986 Liberty and 1987 Consitution, have stayed until the silver price has caught up and picked them up.
Coins I would not have bought 5 years ago because they were worth twice the silver value are now at the silver value and I am getting them $19-21 each. There are a few in the $25-35 range I expect to stay there until the silver price gets there also. |
Awake, O kings of the earth! Come ye, O, come ye, with your gold and your silver, to the help of my people, to the house of the daughters of Zion, to the help of the people of the God of this Land even Jesus Christ. |
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Nickelless
Administrator
USA
5580 Posts |
Posted - 06/23/2010 : 20:49:34
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quote:
Originally posted by HoardCopperByTheTon
It is worth $400. Everyone is trying to dump their numismatic coins in order to raise capital to take the plunge into the rising bullion market.
I'm guilty as charged. I sold what few numismatic pieces I had some time ago and bought silver with the funds.
quote:
There is no rarity multiplier. It is supply and demand. Coins with significant numismatic value are unaffected by the rise in the bullion price. The value of an 1804 dollar is not affected by the price of silver. Low end coins whose numismatic value is roughly equivalent to their bullion value rise and fall with the price of bullion. If the price of copper doubles, will the price of a 1909-S VDB double?
Great illustration, Chuck. I've been wondering for a while about what will happen to numismatic coins as silver goes up. |
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Numismatic vs. Intrinsic value scenario
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