Will Platinum Shortages Result in a Spike in Price?

Posted on June 18, 2013 by Tony Davis
American Platinum Eagles

American platinum eagle coin

According to this article from Yahoo Finance, record deficits in the physical supply of platinum and potential unrest in the South African mining industry, are likely to result in an increase in the price of platinum over the next two years before it tops out in 2015. The price of platinum is affected much more by industrial uses than gold. In particular, jewelry and industrial, including auto demand, greatly affects the price. If auto demand exceeds forecasts, we’ll likely to see a spike in the price of platinum.

Even without an increase in auto demand, it’s possible that we’ll still see upward movement in the price of platinum due strictly to the record deficits of physical platinum. Other factors, such as a recently issued ETF that is backed by physical bullion, all point to increased demand in the precious metal.

In addition to the above, all precious metals tend to move somewhat in lockstep, so if we see increased demand for gold later in the year, the price of platinum and silver will likely follow. Of course, if we happen to experience another recession, physical demand will fall, resulting in a decrease in price (at least initially).

In summary, platinum is an interesting precious metal that is primarily affected by demand in the industrial market, but also has its place in the jewelry, coin and bullion market. Platinum coins, including platinum eagles, platinum maple leafs and platinum pandas, are some of the most sought after coins in the coin and bullion market, so some consideration should be made to add platinum coins and bullion to a precious metals investment portfolio.

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Tips on How to Earn More Money When Selling Silver Coins

Posted on June 18, 2013 by Tony Davis
Selling Silver Coins

Various U.S. Silver Coins

Since 1965, dimes and quarters have been composed of nickel and copper.  The same holds true for half dollars minted after 1970.  Prior to this time, dimes, quarters and half dollars were composed of silver and copper.  The silver percentage of dimes, quarters and halves minted in 1964 and earlier is 90%, while half dollars minted from 1965 – 1970 are composed of 40% silver content.  As you would expect, coins composed of silver are more valuable than those composed of nickel/copper due to the intrinsic value of silver.  For this reason, it’s important to separate your silver coins from those composed of nickel and copper. 

There are many potential avenues for selling silver coins at rates substantially more than the face value of the coins.  Furthermore, it may be possible to receive a higher rate for larger quantities of 90% silver coins.  The following tips will help you to identify silver coins, estimate the value of your coins, and find a reputable coin dealer if you wish to sell your silver coins.

Check the dates on the coins. As mentioned above, if your dimes, quarters and half dollars were minted in 1964 or earlier, they are comprised of 90 percent silver. An easy way to identify 90% silver coins is to place them in a tray or stack them up and view the edge of your coins.  If you see a copper stripe, you can be certain that your coins are less than 90% pure.  90% silver coins have a solid silver stripe.  Half dollars, in particular, should be scrutinized a bit further; as 40% silver have dollars can exhibit a trace of copper on the edge of the coin.

Compile your silver change. The silver content of a dollar face value of circulated 90% silver coins is approximately 0.715 ounces of pure silver. This compares to an estimated silver content of .7238 for uncirculated silver coins. Keep these numbers in mind as you accumulate your silver change.

Keep track of the spot silver price. The price of silver fluctuates in the market on a daily basis. The price quoted is for one troy ounce of silver. Since many coin dealers include the dealer’s commission in their rates, the price they offer you will differ from the spot price that you see. For more information on spot silver prices, check your daily newspaper or visit trusted coin websites.

Find a coin dealer. There are a wide variety of local and online coin dealers with whom you can do business. To narrow down your search and find the ideal dealer, conduct a Better Business Bureau search in your area. Look for silver coin dealers that are in good standing with the Better Business Bureau.  It’s recommended that you also check online reviews of coin dealers that you’re considering. Longevity in the business is also a prominent factor, as it demonstrates the business’ trustworthiness and experience. Once you’ve found a dealer, contact him or her to get a quote or check out his or her buying rates online. Also, ask any other questions that you may have regarding your transaction. After establishing contact, arrange to meet with the coin dealer in person to complete the transaction.

In summary, selling silver coins for their metal content is something that can earn you a significant amount of money. Before initiating the selling process, check the dates or the edges of your coins. After this step, compile your silver change, keep track of the spot silver price, estimate the value of your silver coins and find a reputable coin dealer to whom you can sell your coins.

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Record American Silver Eagle Sales for the First Half of 2013

Posted on June 17, 2013 by Tony Davis
American Silver Eagles

American silver eagle coin

The U.S. Mint recorded record sales of American silver eagles during the first half of 2013, even as sales declined in May and thus far in June.  A total of 23.3 million ounces of silver eagles have been sold thus far in 2013, breaking the previous first half record of 22.3 million ounces. Much of the demand for 2013 likely has been as a result of the drop in silver prices this year. April was the second highest month of silver eagle sales, which coincides with a drop in the price of silver of 16% over a two day period. At this point, it’s unknown whether the high demand for American silver eagles will persist, but we would expect for this to be the case if the price of silver remains below $25 an ounce.

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Four Common Issues That Affect the Price of Silver Dollars

Posted on June 17, 2013 by Tony Davis
Price of Silver Dollars

Image of a silver dollar

Silver dollars are some of the most popular silver coins bought, sold and traded in the U.S. today.  The intrigue of these coins is due to a few factors, including the age, the coin’s history, the rarity and the significance of the designs.  Because these coins are condition sensitive, pristine examples of these coins can sell at a significant premium over the silver value of the coins.  On the other hand, when the coins are in less than stellar condition, you should expect to receive less when you sell your silver dollars.  In this article, we’ll highlight some of the most common issues that we see with silver dollars and how the various issues affect the price of silver dollars.  We’ll address each of the issues in ascending order, from least important to most important.

Field Issues

The field of a silver dollar is the blank space between the design or image on the coin and the edge of the coin.  This is typically one of the best places to have an issue, and has less of an impact on the value of your coin than the other issues we’ll described below.   It’s common for coins to have bag marks in the field, even with uncirculated silver dollars.  While it’s preferable to have issues on the reverse side of the coin as opposed to the obverse, or front of the coin, minor issues have relatively little impact on the price of your silver dollars.

High Point Issues

All coins, no matter when they were minted have high points that are more susceptible to damage and wear than other parts of the coin.  With respect to silver dollars, the cheek and hairlines of Lady Liberty on the obverse side of the coin and the eagle’s wings and breast feathers on the reverse side of the coin tend to exhibit the most issues.  Those coins with greater wear and more evident issues, especially on the cheek and hairlines of Lady Liberty, tend to be in less demand than coins with merely field issues.  The aesthetics of a coin is also a contributing factor toward its value, so even if the coin is otherwise in good condition, heavy marks or scratches on the high points can significantly reduce the appeal and value of your coins.

Rim Issues

Generally speaking, the rim of a silver dollar is less important than the high points and field, but rims that have significant issues, such as heavy dents, nicks and gouges are in less demand than silver dollars with the aforementioned issues.  Rim issues can result from general circulation, dropping the coin, a mint error, or intentional defacing of the coin.  If you happen to have a mint error that includes perceived damage to the rim, such as a clipped rim, you may have a rarity on your hands as opposed to a damaged coin, so be sure to have your coin evaluated by a coin dealer.

Cleaning Issues

Even though it’s counterintuitive, you should never clean a coin, as it can significantly reduce its value.  Even coins that have substantial dirt, tarnishing or toning should be kept in their original condition.  The cleaning of coins is frowned upon in the industry; so much so that some third party professional grading services (TPGS) will not grade a coin that has been cleaned, as they consider the coin to be altered.  Other TPGS will grade the coin, but will only do so with a qualifier, that may state that the coin has been cleaned, altered, or “whizzed.”  A whizzed coin is a coin that has been buffed or polished.  Among all of the issues described above, cleaned coins will reduce the overall value of your silver dollars the most.

In conclusion, we’ve described a few common issues with silver dollars that can significantly affect the value of your coins.  The least important issue involves minor issues to the field of the coin, followed by issues to the high points of the coin.  Next are issues with the rim of the coin, and last but not least, are issues arising from cleaning or polishing of the coins.  Whether you’re interested in buying or selling silver dollars, it’s important to know the major factors that affect the price of silver dollars before you do so.

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What You Need to Know Before You Sell Silver Proof Sets

Posted on June 15, 2013 by Tony Davis
Sell Silver Proof Sets

Silver Proof Set

The U.S. Mint has been producing silver proof sets since 1936, and over the past 77 years, there have been millions of silver proof sets minted. During that time, the number of silver proof sets produced has varied substantially, and as you would expect, lower mintage runs tend to sell at a premium over high production years. While the number of silver proof sets produced in any year is one of the primary factors affecting the value of these coins, it’s not the only factor. In this article, we’ll discuss several factors that affect the value of your coins and will highlight the most valuable sets so that you’re well prepared when the time comes to sell silver proof sets.

As mentioned above, the number of silver proof sets produced is the primary factor affecting their value. The lowest produced silver proof sets, and therefore, the most valuable were minted in 1956 and earlier. The lowest mintage silver proof set produced was in the inaugural year of 1936, with a production run of only 3,837. Sealed examples of this set in mint condition can run upwards of $6,000 and are very difficult to come by. After 1956, the U.S. Mint typically produced silver proof sets in the millions; however, a few exceptions exist, which we’ll discuss in further detail.

Examples of valuable silver proof sets produced after 1956 are the 1995-S Prestige set, the 1996-S Prestige set and the 1997-S Prestige set. The rarest of the Prestige sets is the 1996-S with a mintage of only 55,000. In addition to the above mentioned Prestige sets, the 1999-S silver proof set is a highly sought after set. This set had a production run of just over 800,000 sets and is popular amongst silver coin investors and coin collectors alike.

Merely having one of the low mintage silver proof sets in your possession doesn’t necessarily mean that you’ll be able to capitalize on the full value of your set. Other factors that affect the value of your silver coins include the condition of the silver proof envelope (and if your set is sealed), if the original government paperwork is present, the condition of the cellophane packaging and if the coins in your set have any tarnishing, environmental issues, etc.

If you happen to be fortunate enough to have one of the older silver proof sets in a sealed envelope, it’s important to not break the seal. Even though you’re unable to confirm the condition of the coins in a sealed envelope, the assumption is that the coins are in pristine condition and that you’ll be paid accordingly for the sets. If you have a proof set without an envelope, you may have few takers for your item, so it’s important to not separate the coins from the envelope. Damaged envelopes, envelopes with writing, incomplete paperwork in the envelope, and toning/tarnishing of the coins are all factors that can significantly affect the value of your sets.

If you’re not lucky enough to have one of the silver proof sets highlighted above, you should not expect much more than the silver content of your silver proof sets, as modern 90% silver coins (those minted after 1964) are in less demand than 90% silver coins minted in 1964 and earlier. Of course, there are a few exceptions, so it’s important to check with your coin dealer of choice to see if you happen to have a set that sells for more than the silver content of the coins before you sell your silver proof sets.

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How Has Gold Stacked Up Versus Other Assets Over the Past 80 Years?

Posted on June 14, 2013 by Tony Davis

We came across a great chart today on Zerohedge.com, which provides the annual returns and volatility of gold versus other asset classes over the past 80+ years. The mainstream media is typically not a proponent of gold, oftentimes citing extreme volatility as one of the downside risks of investing in gold, but as we can see from the graph, the downside risk of stocks historically has been twice as volatile as gold. The upside potential of gold has also proven to exceed the returns of the other three major asset classes highlighted in the chart.

While there is clearly risk associated with most, if not all investments, this chart may help to dispel the myth that gold is an extremely risky asset class. While there are many different ways to invest in gold, including mutual funds, ETF’s, gold mining stocks, etc., we recommend investing in physical gold bullion in the form of coins, bars and rounds. Not only do we recommend investing in gold bullion, but to also take physical delivery or possession of your items.

If this chart has convinced you to invest in gold coins, bars, or rounds, we recommend that you click this link and read the five attributes that define successful gold and silver coin buyers. This should help you to avoid many of the common pitfalls that plague gold and silver coin investors.

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