This past year was one of the most interesting in recent memory for junk silver coins. While the price of silver fell approximately 36% for the year, demand for silver coins, and in particular, junk silver coins, was at unprecedented levels. During much of the second and third quarter, supply was practically non-existent, and the small amount that would occasionally come to market was spoken for before the coins could make their way out on to the showroom floor. As we highlighted in a recent article, premiums rose to as high as 18% – 25% for 90% dimes, quarters and halves in the second and third quarter of 2013.
Fortunately for silver coin investors, and in particular those that prefer 90% U.S. silver coins, prices have moderated and are near their historical average. Considering that the price of silver is only slightly above $19 an ounce, this could potentially be the best time to purchase silver in a few years. As the price of silver approaches the cost to mine the metal, we’ll likely see shortages, which should help bolster the price. Furthermore, recent economic reports indicate that the economy may not be as stable as initially thought. If that’s the case, we could see continued loose monetary policies by the Federal Reserve, which will likely reduce the value of the dollar and increase the price of gold and silver.
At this time, it’s impossible to know how soon silver prices will rise and if we’ll see a corresponding increase in the premium for junk silver coins, so if you’ve been in the market to acquire silver coins at reasonable prices, we recommend that you take advantage of this opportunity before prices and/or premiums begin to escalate.
We’ve touched briefly on this subject in the past, but we believe that 90% U.S. silver coins are one of the best ways to invest in physical silver. The reason is three fold. 90% silver coins have historically sold at lower premiums than most government issued bullion coins, such as American silver eagles and Canadian silver maple leafs. Cost should always be one of the primary factors before proceeding with any precious metals purchase.
Secondly, junk silver coins are one of the most recognized silver coins the world over. We believe that a broad and liquid market for silver coins may be the most important factor to consider, as you may opt to sell your silver coins in the future when you experience a large unrealized profit or to fund unexpected expenses. Junk silver coins are a commodity that can be sold almost immediately through a number of different outlets; although, a reputable coin dealer is typically your best bet.
Last but not least, a number of our customers are of the opinion that the dollar will eventually collapse and that we could resort to bartering; at least until a new stable currency is established. Some folks believe that 90% silver dimes, quarters and half dollars will be used as a form of currency in the interim, as junk silver coins are widely recognized, liquid, and have a known value. Even if the worst case scenario doesn’t come to fruition, more and more businesses are accepting gold and silver coins as a form of payment. If the trend continues, as we’ve seen with Bitcoin, it’s possible that gold and silver may at one point be used for everyday purchases.
Atlanta Gold & Coin Buyers is pleased to announce that we have a wide variety of 90% silver dimes, quarters and half dollars in stock, and as always, we’re selling our junk silver coins at prices well below our competition. However, we typically sell out of our 90% silver coins in relatively short order, so if you’ve been in the market to add to your silver coin inventory, we recommend that you give us a call today at 404-236-9744 or drop us an e-mail at sales@atlantagoldandcoin.com.
