When searching eBay or going to estate auctions there will almost always be several items described as "rare" or "valuable" when they are neither.
1) Susan B. Anthony dollars, with the exception of proofs, uncirculated 1982 coins and the 1979-P wide-rim variety (see this site for information) they are only worth face value, even in high grade because they have little to no collector appeal (lets face it, the coin is hideous) but are often sold to the unsuspecting public for more than face. If you really want to get some, go to your local bank, I'm sure they will have some they can't wait to get rid of. No Susan B. Anthony dollar contains silver.
2) Eisenhower dollars, with the exception of those with an "S" mintmark (some of these are 40% silver and others are copper-nickel proofs worth more than $1 to collectors) and the 1972 Type 2 dollar (see this site for more information) are only worth $1. No Eisenhower dollars intended for circulation contain any silver.
3) Copy coins. Any coin bearing the word "COPY", "REPLICA" or anything of the sort is most likely not silver. Of course it is possible for a replica coin to contain silver, gold or any other precious metal, most of them are sold to the public via infomercials and are plated. These coins have no collector appeal and are only worth their metal content.
4) Franklin mint and other private mints. Do not pay any more than silver melt for these coins, rounds and bars. They have little to no collector appeal, but often may be made out of sterling silver but also might be plated. Be sure to know what it is before you bid.
5) $2 Federal Reserve Notes. $2 bills with a green seal are not rare and do not command a premium over face value, even in uncirculated condition. However, $2 bills with a red seal or a series date prior to 1976, do command a premium over face value. Often banks have large amounts of $2 bills (often uncirculated) in stock and are happy to sell them to you.
Saturday, April 28, 2012
Where to buy coins?
Where you buy your coins will determine a lot of your success in finding discounted silver.
The first place you should look is in your pocket change and change jars. You don't want to spend a dime worth ~$2.20 for just 10 cents!
In my experience the worst to best places to get the cheapest silver are:
Antique Malls/Flea Markets -usually overpriced and I've seen lots of fake coins sold as the "real deal" especially Chinese/Japanese coins and US trade dollars. Although, if you know your foreign coins and willing to take a gamble you might get a deal now and then.
Numismatic Coin Shops - while their prices are good for collectible coins and they are a great way to get high grade collectible coins, they simply aren't meant for the investor who wants to get as much silver for the least possible price
Jewelry Shops - Some are great and their prices are close to spot, some simply sell silver dollars and other silver coins as curiosities and charge much more
Bullion Coin Shops - their prices are usually close to spot and they have a wide selection but the chance of finding something underpriced is slim
Garage Sales - they don't always have silver or coins, but when they do, they can be extremely cheap. Always ask if they have any coins because they might not be set out with the other items.
Estate Sales/Auctions - These are great ways to score foreign silver if you know what to look for but heavily advertised auctions bring crowds of people and prices might well exceed what you'd even pay for the same coin at a coin shop but you might score the cheapest silver of your life there it just depends on the luck of the draw.
The first place you should look is in your pocket change and change jars. You don't want to spend a dime worth ~$2.20 for just 10 cents!
In my experience the worst to best places to get the cheapest silver are:
Antique Malls/Flea Markets -usually overpriced and I've seen lots of fake coins sold as the "real deal" especially Chinese/Japanese coins and US trade dollars. Although, if you know your foreign coins and willing to take a gamble you might get a deal now and then.
Numismatic Coin Shops - while their prices are good for collectible coins and they are a great way to get high grade collectible coins, they simply aren't meant for the investor who wants to get as much silver for the least possible price
Jewelry Shops - Some are great and their prices are close to spot, some simply sell silver dollars and other silver coins as curiosities and charge much more
Bullion Coin Shops - their prices are usually close to spot and they have a wide selection but the chance of finding something underpriced is slim
Garage Sales - they don't always have silver or coins, but when they do, they can be extremely cheap. Always ask if they have any coins because they might not be set out with the other items.
Estate Sales/Auctions - These are great ways to score foreign silver if you know what to look for but heavily advertised auctions bring crowds of people and prices might well exceed what you'd even pay for the same coin at a coin shop but you might score the cheapest silver of your life there it just depends on the luck of the draw.
Things to look for in US coins
In the past, US silver coins were in common circulation. Today it is a rarity to find silver in your pocket change but it can still happen! Check your pockets and change jars for silver.
All US dimes dated 1964 and prior are 90% silver and contain .0723 of a troy ounce of silver.
All US quarters dated 1964 and prior are 90% silver and contain .1808 of a troy ounce of silver.
All US half dollars dated 1964 and prior are 90% silver and contain .3617 of a troy ounce of silver.
All US half dollars dated 1965-1970 are 40% silver (keep an eye out for these! Many people falsely believe these coins contain no silver and will spend them for face value!) and contain .1479 of a troy ounce of silver.
US nickels dated 1942-1945 that have a large P, D or S mintmark over the Monticello (called "war nickels" by the collecting community) are 35% silver and contain .0563 of a troy ounce of silver. Nickels dated 1942 without a large mintmark over the Monticello are made out of the standard alloy of 75% nickel and 25% copper and contain no silver.
US silver dollars dated 1935 (the last year of the Peace Dollar) and earlier are 90% silver and contain .7735 of a troy ounce of silver. However, most silver dollars have numismatic (collectible) value and sell for more than just their silver content except for common dates and well worn coins.
Date checking for these coins is time consuming, and although searching by date is the only way to be 100% accurate searching by edge is much more efficient. If you look at the edge of any modern US dime or quarter you will see that it is comprised of 2 layers, a shiny silvery nickel layer and a brown copper layer. However a 90% silver coin will have a single color on the edge it will be a white color on untoned coins but may look "dirty" on coins that have toned. Uncirculated 40% silver half dollars will look nearly identical to a 1971 or later half dollar but the coin quickly tarnishes in circulation and obtains a dirty greenish tone, it is hard to describe but sticks out enough to be identifiable in a roll. Uncirculated 35% silver war nickels will look identical to the copper nickel ones on the edge but in circulation the war nickels will quickly gain a dirty green look to them.
All US dimes dated 1964 and prior are 90% silver and contain .0723 of a troy ounce of silver.
All US quarters dated 1964 and prior are 90% silver and contain .1808 of a troy ounce of silver.
All US half dollars dated 1964 and prior are 90% silver and contain .3617 of a troy ounce of silver.
All US half dollars dated 1965-1970 are 40% silver (keep an eye out for these! Many people falsely believe these coins contain no silver and will spend them for face value!) and contain .1479 of a troy ounce of silver.
US nickels dated 1942-1945 that have a large P, D or S mintmark over the Monticello (called "war nickels" by the collecting community) are 35% silver and contain .0563 of a troy ounce of silver. Nickels dated 1942 without a large mintmark over the Monticello are made out of the standard alloy of 75% nickel and 25% copper and contain no silver.
US silver dollars dated 1935 (the last year of the Peace Dollar) and earlier are 90% silver and contain .7735 of a troy ounce of silver. However, most silver dollars have numismatic (collectible) value and sell for more than just their silver content except for common dates and well worn coins.
Date checking for these coins is time consuming, and although searching by date is the only way to be 100% accurate searching by edge is much more efficient. If you look at the edge of any modern US dime or quarter you will see that it is comprised of 2 layers, a shiny silvery nickel layer and a brown copper layer. However a 90% silver coin will have a single color on the edge it will be a white color on untoned coins but may look "dirty" on coins that have toned. Uncirculated 40% silver half dollars will look nearly identical to a 1971 or later half dollar but the coin quickly tarnishes in circulation and obtains a dirty greenish tone, it is hard to describe but sticks out enough to be identifiable in a roll. Uncirculated 35% silver war nickels will look identical to the copper nickel ones on the edge but in circulation the war nickels will quickly gain a dirty green look to them.
Introduction
Hello all, this site is designed to be a "how to" guide on obtaining silver for less than spot because I firmly believe that knowledge is power, the more you know, the better off you will be when it comes to buying/selling silver.
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