Silver Rounds or Junk Silver?

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twig_oak's picture
twig_oak
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Silver Rounds or Junk Silver?

Hi all. New to forum and this will be my first post. I have bought both gold and silver. All the silver I have purchased has been 1 oz. rounds with a small amount of 1 oz. bars. After browsing the site and reading the gold and silver section I was wondering if this may have been a mistake. Should I have bought junk silver? What are the advantages and disadvantages of both? Thank you in advance for your advice. It is nice to have a forum of like minded individuals with such a vast amount of knowledge and information to share. I have attempted to share my beliefs and concerns with my family and co-workers, with the exception of my brother most others label me a nut.

 

MD

Tycer's picture
Tycer
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Re: Silver Rounds or Junk Silver?

Welcome.

 

IMO, you are fine. Silver rounds, bars and pre-65 coins will all be well known as far as value goes if there is a need for them to be used as currency. Gold also. Only if your gold is in large chunks that are too big to use will it be a problem. 

Morpheus's picture
Morpheus
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Re: Silver Rounds or Junk Silver?

My two cents for what it's worth. If you have rounds or bars with .999 fine silver stamped on them, and the weight, then I think that they'll be more widely accepted than junk silver. First,  if I were exchanging goods for junk silver, I'd want to assay (test) it. And given two competing offers, I'd take  a Sunshine Mint or Amark round or Pan American bar over the junk silver.

I know what I am getting.

That's why I have a set number of US silver eagles. Universal acceptance in a SHTF situation.

I personally don't buy junk silver, but there are advantages. Price is the biggest one. Plus some shaddy dealers will offer you the same exchange for investment grade as junk.

Since I have a decent amount of silver and other essential items, I'd probably be a dealer so that's not an issue with me. And an honest dealer too. That said, I am not sure that it'd be worth my time to assay junk silver so I'd be less likely to accept it.

Pre-65 coins have a known silver content. I'd take those, BUT...

a lot of chinese silver can mimic them so my first preference would be coins, bars, rounds, ect..

twig_oak's picture
twig_oak
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Posts: 11
Re: Silver Rounds or Junk Silver?

Thank you Morpheus. I should be alright then. All my rounds and bars are distinctly marked. I do not have many silver eagles though, maybe I should try aquiring more but they are a bit more over spot than the basic rounds.

twig_oak's picture
twig_oak
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Re: Silver Rounds or Junk Silver?

Thank you Tycer. I have mostly 1 oz. gold eagles but have 1/4 oz. gold eagles as well.

Morpheus's picture
Morpheus
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Re: Silver Rounds or Junk Silver?
matt31nancy wrote:

Thank you Morpheus. I should be alright then. All my rounds and bars are distinctly marked. I do not have many silver eagles though, maybe I should try aquiring more but they are a bit more over spot than the basic rounds.

On the flip side though. Some folks do buy junk silver but they are carefully weighing risk/reward. If you pay less for it, and sell it for less than as long as the sell/buy ratio is similar to that of investment grade PM's I'd think that you wouldn't lose out in the end. Just the sticking point for me is transactibility.

Morpheus's picture
Morpheus
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Re: Silver Rounds or Junk Silver?
matt31nancy wrote:

Thank you Morpheus. I should be alright then. All my rounds and bars are distinctly marked. I do not have many silver eagles though, maybe I should try aquiring more but they are a bit more over spot than the basic rounds.

Eagles are pricey Matt/Nancy. That's the disadvantage. You pay for ready convertibility. Most of my stash are Northwest Territorial Mint, AMark, PanAm. Wall Street Mint, Sunshine, Johnson Matthey (the silver standard for silver, LOL), and Kitcos. All of which are so well known and trusted among folks that know silver that they are for the most part very convertible.

And I think if money ever replaces currency (hee hee) in a post SHTF situation then folks may get to know those names very well. And real quick.

 

BTW. Sunshine provides the Ag blanks to the US Mint for minting of Silver Eagles.

twig_oak's picture
twig_oak
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Joined: Aug 29 2009
Posts: 11
Re: Silver Rounds or Junk Silver?

Eagles are pricey Matt/Nancy. That's the disadvantage. You pay for ready convertibility. Most of my stash are Northwest Territorial Mint, AMark, PanAm. Wall Street Mint, Sunshine, Johnson Matthey (the silver standard for silver, LOL), and Kitcos. All of which are so well known and trusted among folks that know silver that they are for the most part very convertible.

And I think if money ever replaces currency (hee hee) in a post SHTF situation then folks may get to know those names very well. And real quick.

I will have to go through my collection. I know about 20% are buffalo rounds and the rest are a mix. I'm not even sure of where they were minted. I will have to go through them and do a little research. Thanks again.

Kurosawa's picture
Kurosawa
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Posts: 43
Re: Silver Rounds or Junk Silver?

 I think that Silver Eagles are the best.  They are widely known in contrast to silver rounds.  As far as junk silver I understand it is cheaper but since I'm sure it's more expensive to extract the precious part of the coin that it will be in less demand.

Kind of off subject but Peter Schiff mentioned he believed that by the end of Obama's term that gold would be @ 5000 and silver around 500.  Though these are very rough figures, I would think that silver would be the better investment in contrast to gold.  One being that silver is used in manufacturing WAY more than gold and the return will be much greater according to Schiff.  What's weird to me is why is he advocating gold so much if he feels silver will out perform it?  Who knows...

Kurosawa's picture
Kurosawa
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Joined: Jul 2 2008
Posts: 43
Re: Silver Rounds or Junk Silver?

This article suggests what to between silver and junk:

http://the-moneychanger.com/commandments.phtml

Another link containing gold vs silver

http://www.lewrockwell.com/north/north436.html

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