Junk Coins vs Silver Bullion

[jt16]

I started collecting silver a few years ago. I run a Money Service Business and started noticing silver quarters and dimes in my change. I started to save it. Then I started buying on ebay and apmex.

I bought off of craigslist and starting buying morgan and peace dollars. Most of my stuff is junk silver coins. No rare dates or high end collectibles. Just regular coins from before 1964.


Which do you prefer to buy and why? Does it matter?

Thanks

[nabzy28]

First off, I'd avoid eBay. If you do buy off feebay, do yourself a favor and get a neodymium magnet. It's a rare earth magnet that is one way to quickly test for authentic silver coins as the metals most often used to fake them will adhere to the magnet. Silver will pull very, very slightly but will not stick.

I started out with .999 or .9999 stuff and ventured into the 90% "junk" afterwards. I actually like the 90% better but I am not certain why. Perhaps because it was (still is) legal tender, just not circulated anymore. I do think that, as it's the most widely recognized form of silver, it will become the most accepted form to the general population again should silver/gold become more mainstream in use.

Both Utah and Arizona have passed legislation to make silver and gold legal for exchange once again. I'm not sure why it was needed as it's still listed as the ONLY form of money in the Constitution but, whatever. I haven't researched it yet but it would seem that the pre-'65 coins would be ideal in that type of situation. As fractional denominations, it's just perfect for transactions, unlike a full 1 oz. bar or even silver eagle.

[HBMC]

For PM, I'd avoid anything that isn't tangible. I mean anything.

As for coins, collector coins are the way to go if you can find a reputable coin dealer who knows what they're doing. I have most of the Morgan Carson City line in MS+ and these will never decrease in value. I can probably turn them in the future for more than I paid for them. I fact, between me and my Dad's collections (he's the one who got me started on coin collection long ago), we have about $20,000 in Morgans (about 40 in total).

[sportzking]

I would have to say collectible coins is the way to go. When I sold my low grade silver coins I got offered pennies for them compared to what I paid. But I got decent offers on the numismatic coins.

[nabzy28]

Yep, I've been selling off some of the semi-numis I picked up in 2011/2012. No problem getting back what I paid for them and putting the funds toward more metals at these lower prices...