Downsides to precious metals?

[Bacchus]

I saw several videos today on YouTube claiming that Costco is now selling Royal Canadian Mint 1-ounce silver dollars, $675 for a 25-coin tube. That's $27 per coin, so $27 per ounce. I was interested in this, but I couldn't find any reference to it on Costco's web site. Several news articles on the Internet about this, though.

Some buyers were quoted as complaining that their coins were scratched. Hey, this is bullion, not coin collecting. They are still getting 2023 or 2024 uncirculated silver dollars. Coins frequently get scratched in the minting.

A month ago Costco was selling gold bars, but I think they sold out after about six weeks.

 

[Alexx1401]

I saw several videos today on YouTube claiming that Costco is now selling Royal Canadian Mint 1-ounce silver dollars, $675 for a 25-coin tube. That's $27 per coin, so $27 per ounce. I was interested in this, but I couldn't find any reference to it on Costco's web site. Several news articles on the Internet about this, though.

Some buyers were quoted as complaining that their coins were scratched. Hey, this is bullion, not coin collecting. They are still getting 2023 or 2024 uncirculated silver dollars. Coins frequently get scratched in the minting.

A month ago Costco was selling gold bars, but I think they sold out after about six weeks.

I have to "guess" this is buyers who want the stuff in what seems to be known as "Proof Like". Apparently it makes a difference when you go to sell. When I was looking at the place I buy from about what they pay to buy back price fluctuated depending on both what kind of bullion it was and condition. Some of them if still in the Proof like condition they were offering over melt to buy back. Same metal, different price so supply vs demand I guess???? Seemed strange to me but I guess some people care. I could see this on actual coins but seems strange to me on just rounds or bars of metal. I have several 10oz bars that came in a plastic protective case. At the time I wondered why they bothered but now I see this must be why. Some are willing to pay more for them with no scratches on them?? Strange to me.

 

[Bacchus]

That's new to me. I thought that bullion is bought and sold a little over melt regardless of condition; old or new, uncirculated or worn. I guess those buyers are hedging their bets a little and thinking their buyers will be more willing to buy if the coin is more pleasing.

Real proof coins are minted a little differently than regular coins. I believe the Mint polishes the dies and strikes them twice, or something like that.

Regular uncirculated American Silver Eagle

Proof uncirculated American Silver Eagle

They are both beautiful coins, and many years ago I collected both. The picture of the proof doesn't do it justice: it's not just smoother, it reflects like a mirror. Back when I was collecting them, the regular was about $10 and the proof was about $30. Everything is much higher now. But the extra cost for the proof is collector value, if you had to sell these two coins for just the silver value, they would both sell the same: they're both just one troy ounce of silver. Even the beater junk silver sells near spot, and some of those are extremely worn down. Having said that, I've seen sellers charge a little more for a roll of 1964 dimes compared to 1946 dimes (Roosevelt dimes), just because the 64s are less worn and might technically have slightly more weight and therefore slightly more silver.

So I'm guessing "proof like" is somebody claiming that they are in extremely good condition, but to really be "proof like", in my opinion, they would have to have the mirror like background (or foreground for a "reverse proof"). I could be wrong, I haven't seen the coins you are referring to.

I'm also guessing that some of the new bullion buyers aren't totally up to speed on this, and have some collector tendencies in addition to just buying bullion for the sake of owning precious metal. I might pay just a little more for a 1916 to 1945 dime because I think the Mercury dimes are much prettier than the Roosevelt dimes, but that would be me showing my collector tendencies when I should be buying only for bullion accumulation.

 

[Alexx1401]

That's new to me. I thought that bullion is bought and sold a little over melt regardless of condition; old or new, uncirculated or worn. I guess those buyers are hedging their bets a little and thinking their buyers will be more willing to buy if the coin is more pleasing.

Real proof coins are minted a little differently than regular coins. I believe the Mint polishes the dies and strikes them twice, or something like that.

Regular uncirculated American Silver Eagle

Proof uncirculated American Silver Eagle

They are both beautiful coins, and many years ago I collected both. The picture of the proof doesn't do it justice: it's not just smoother, it reflects like a mirror. Back when I was collecting them, the regular was about $10 and the proof was about $30. Everything is much higher now. But the extra cost for the proof is collector value, if you had to sell these two coins for just the silver value, they would both sell the same: they're both just one troy ounce of silver. Even the beater junk silver sells near spot, and some of those are extremely worn down. Having said that, I've seen sellers charge a little more for a roll of 1964 dimes compared to 1946 dimes (Roosevelt dimes), just because the 64s are less worn and might technically have slightly more weight and therefore slightly more silver.

So I'm guessing "proof like" is somebody claiming that they are in extremely good condition, but to really be "proof like", in my opinion, they would have to have the mirror like background (or foreground for a "reverse proof"). I could be wrong, I haven't seen the coins you are referring to.

I'm also guessing that some of the new bullion buyers aren't totally up to speed on this, and have some collector tendencies in addition to just buying bullion for the sake of owning precious metal. I might pay just a little more for a 1916 to 1945 dime because I think the Mercury dimes are much prettier than the Roosevelt dimes, but that would be me showing my collector tendencies when I should be buying only for bullion accumulation.

Yep back when I was into coins I remember the proof sets. I have to guess this is why JM calls some stuff "proof like"?? Look at their site and you will see what I mean with both buying from them and then selling back too them. Its the same for them with gold. The cheapest is always random rounds, random years, in random condition. Again seems strange to me but the buyers set the market here. When I first started buying some metal I thought that unless I was buying real currency metal was metal. Some buyers for some reason care about how "pretty" the damn stuff looks
Strange to me indeed, but I will keep those rounds and bars I buy from getting bounced around I guess. Since it may make some difference some day if I go to sell.

 

[SonicBlue03]

My PM investment has been heavy in brass and lead.

 

[billdeserthills]

Yep. The downside to having precious metals is: You can't eat them.

The upside to having precious metals is that you'll probably - maybe - be able to buy food when times get bad.

Is Gold Edible? – The Ultimate Guide To Eating Gold

https://barnabasgold.com/is-gold-edible/

 

[Bacchus]

Is Gold Edible? – The Ultimate Guide To Eating Gold

https://barnabasgold.com/is-gold-edible/

I just remembered: I've seen a lot of western movies where I see somebody biting into a gold coin! Bon appetit !

 

[arakboss]

My PM investment has been heavy in brass and lead.

I am only going to buy proof lead from here on out.

 

[Bacchus]

I just came across a YouTube video today that talks about junk silver for bartering, covering much of what I mentioned. This video contains an interview with Harry, of Harry's Coin Shop, a coin shop in Beaverton. In the video his business card is held up to the camera showing the address.

Bartering with Mercury Dimes

This YT uploader, Silver Dragons, has many videos where he interviews Harry at his shop.

One thing he pointed out is that the Mercury dimes, despite being more worn than Roosevelt dimes, can be a better bet for barter because it will be known that all Mercury dimes (and other "junk silver") are 90% silver, whereas the Roosevelt dimes are only silver if they are 1964 or earlier. If you are bartering Roosevelt dimes, the other party has to look at dates (or the edges for the copper stripe) to determine if the dimes are silver with Roosevelt dimes.

On the other hand, if that distinction isn't known to the other party, you might make out like a bandit by bartering post-1964 Roosevelt dimes.

Just kidding, don't do that.

 

[Burt Gummer]

When cash is no longer good you can buy a loaf of bread with a $2,000 gold piece.

View attachment 1840658

Well in Zimbabwe when hyperinflation hit there you could buy a nice HOME with a $2000 gold piece.

 

[BrentN]

If I were in Haiti right now, I would not want to be sitting on a pile of PM's. As one example.

 

[Jay Walk]

If I were in Haiti right now, I would not want to be sitting on a pile of PM's. As one example.

We'll all be in Haiti soon enough.

 

[Capn Jack]

Heavy Metals, (other than lead) You can't eat it and it won't shoot.

I always wanted to cast up a few Silver Bullets.
You never know who you might meet.

 

[Certaindeaf]

Well in Zimbabwe when hyperinflation hit there you could buy a nice HOME with a $2000 gold piece.

Or a $5 bill. Lol

 

[GrayGoose]

Well in Zimbabwe when hyperinflation hit there you could buy a nice HOME with a $2000 gold piece.

Yeah I've always wanted a nice dream hut in Zimbabwe.

 

[Xaevian]

I just came across a YouTube video today that talks about junk silver for bartering, covering much of what I mentioned. This video contains an interview with Harry, of Harry's Coin Shop, a coin shop in Beaverton. In the video his business card is held up to the camera showing the address.

Bartering with Mercury Dimes

This YT uploader, Silver Dragons, has many videos where he interviews Harry at his shop.

One thing he pointed out is that the Mercury dimes, despite being more worn than Roosevelt dimes, can be a better bet for barter because it will be known that all Mercury dimes (and other "junk silver") are 90% silver, whereas the Roosevelt dimes are only silver if they are 1964 or earlier. If you are bartering Roosevelt dimes, the other party has to look at dates (or the edges for the copper stripe) to determine if the dimes are silver with Roosevelt dimes.

On the other hand, if that distinction isn't known to the other party, you might make out like a bandit by bartering post-1964 Roosevelt dimes.

Just kidding, don't do that.

That's not really bartering, just selling though. Bartering > precious metals. Bartering usually focuses on what one or both parties need over want without the use of money or a monetary system. Without some government or organization telling you a shiny rock is worth x, it is just a shiny rock. But if the world is in that deperate situation, most 9f us wouldn't be around to care.

 

[hongkong2]

I don't need no stinking PM's, I've got this in the safe!

 

[Certaindeaf]

I don't need no stinking PM's, I've got this in the safe!
View attachment 1841603View attachment 1841604

Wasn't the actual name of the president of zimbabwe "good luck charlie brown" or somesuch?

 

[hongkong2]

Wasn't the actual name of the president of zimbabwe "good luck charlie brown" or somesuch?

I think that's the nickname given to every president of Zimbawae.

 

[Certaindeaf]

I think that's the nickname given to every president of Zimbawae.

I just checked, it's goodluck johnathan of nigeria.