The past few months have been rather quiet for precious metals with gold prices hovering comfortably at the $1,250 to $1,350 an ounce level for most of the past two months. Silver has been equally sleepy, hovering at the $19 to $22 level in February and March.
This relative stability has made some people more comfortable investing in gold and silver, but where’s a good place to start?
For silver, many find bags of pre-1965 bags of 90 percent silver coins a good way to combine bullion and numismatics. These bags most often contain $1,000 in face value of common-date Winged Liberty Head (Mercury) and Roosevelt dimes, Washington quarter dollars, along with Walking Liberty, Franklin and 1964 Kennedy half dollars.
Dealers generally buy and sell these for a multiple of face value. For example, with silver at $20 an ounce, a dealer may pay 15 times the face value and sell at 16 times the face value. So, a bag of pre-1965 90 percent silver coins might be purchased by a dealer for $15,000 while that same dealer may sell it to a collector or investor for $16,000.
A $1,000 face value bag of 90 percent coins contains about 715 ounces of silver, but smaller bags of $100, $50 and even $10 face value are available from dealers.
Some dealers will place a modest premium on bags containing mostly Winged Liberty Head (Mercury) dimes and Walking Liberty half dollars, and a small premium may be placed on bags containing Mint State coins.
To many, owning silver in via classic U.S. coins is more fun than owning it in bar form, and bags of 90 percent silver coins are generally just as easy as bars to trade at coin shops throughout the United States.
Image courtesy Silvertowne.