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Re: Deflation Not Done -- Then ???
Here's my $0.02... Go with generic bullion, 1-oz rounds to 10-oz bars. Premiums on coins are too high, IMO, just for the "status" of coming from the government mint. Those premiums have a tendency to diminish when it's time to sell, if there's a lot of people trying to sell at once. If you believe a barter system will evolve, some people might recognize an American Silver Eagle better than a generic art "Merry Christmas" round, but I think people would learn fast.
Generic silver comes as unbranded "art" rounds, and in different brands. The brands are more respected than the "art" rounds, and some people will only buy branded silver, but personally I think silver is just silver. As long as it says ".999" silver, I'm OK with it. I'll buy whatever costs the least. Some well-recognized brands are A-mark, Sunshine, Johnson Matthey, Engelhard, and Silvertown.
At some point in the future, maybe 10-20 years out, silver is going to be in high demand from industry, and in very short supply. If you can buy and hold until then, then generic bullion will be at a premium to be sold for melt value. No sense paying a premium for minted coins now, if they're just going to be sold for their melt value.
Silver is more easily used than gold for day-to-day transactions. That's why I recommend staying away from anything larger than 10-oz. bars. Personally, I can't wrap my mind around a SHTF barter economy happening in the USA. What I can imagine happening is that inflation will become so extreme that one could take some silver to a coin shop to exchange for enough dollars to get that day's groceries and pay that day's bills. In that case, silver is just silver, so why pay the high premiums for coinage?
If you can afford to buy 500 oz. or more, check out the prices at Tulving (he also has good prices on gold): http://www.tulving.com
I'd stay away from the bags of 90% sold at face value. Unless you hand-pick it, most junk silver is pretty worn and has lost a lot of weight. One exception: If you can find 1964 Kennedy halves, they are almost all nearly uncirculated and have their full weight. This was the only year they were coined at 90% silver, so people hoarded them. If people start trading in silver, dimes and quarters could be useful for making change. Most coin shops will let you pick through their junk silver.
Cultivate a good relationship with a local coin shop owner. These guys usually want to see you coming in and buying several times before they'll give you the time of day. But if you do that, and show respect, chat with them when they aren't busy, you can end up learning a lot. Buy a little from him even on the high days. This may be the guy to whom you will want to sell someday. Best if he already knows and likes you when or if that time comes.
Originally posted by jiimbergin
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Generic silver comes as unbranded "art" rounds, and in different brands. The brands are more respected than the "art" rounds, and some people will only buy branded silver, but personally I think silver is just silver. As long as it says ".999" silver, I'm OK with it. I'll buy whatever costs the least. Some well-recognized brands are A-mark, Sunshine, Johnson Matthey, Engelhard, and Silvertown.
At some point in the future, maybe 10-20 years out, silver is going to be in high demand from industry, and in very short supply. If you can buy and hold until then, then generic bullion will be at a premium to be sold for melt value. No sense paying a premium for minted coins now, if they're just going to be sold for their melt value.
Silver is more easily used than gold for day-to-day transactions. That's why I recommend staying away from anything larger than 10-oz. bars. Personally, I can't wrap my mind around a SHTF barter economy happening in the USA. What I can imagine happening is that inflation will become so extreme that one could take some silver to a coin shop to exchange for enough dollars to get that day's groceries and pay that day's bills. In that case, silver is just silver, so why pay the high premiums for coinage?
If you can afford to buy 500 oz. or more, check out the prices at Tulving (he also has good prices on gold): http://www.tulving.com
I'd stay away from the bags of 90% sold at face value. Unless you hand-pick it, most junk silver is pretty worn and has lost a lot of weight. One exception: If you can find 1964 Kennedy halves, they are almost all nearly uncirculated and have their full weight. This was the only year they were coined at 90% silver, so people hoarded them. If people start trading in silver, dimes and quarters could be useful for making change. Most coin shops will let you pick through their junk silver.
Cultivate a good relationship with a local coin shop owner. These guys usually want to see you coming in and buying several times before they'll give you the time of day. But if you do that, and show respect, chat with them when they aren't busy, you can end up learning a lot. Buy a little from him even on the high days. This may be the guy to whom you will want to sell someday. Best if he already knows and likes you when or if that time comes.
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