Silver coin melting and mintages

I just thought I would let you know an interesting conversation I had with my local coin dealer. A few days ago I had seen two sliver proof two pound coins they were in their coin capsules but did not have the case or the certificate at the time I did not have the cash to buy them but when I went back yesterday they were gone the dealer said "They might have been sold or melted down thats why we do not have many silver coins in stock at the moment because of the price of silver we melt them down to sell the silver." I thought this rather interesting because if dealers are melting silver coins I think that some time in the future Those of us who have collections of silver coins could end up with rare coins because most silver proofs have a quit low mintage to start with. It could also play havoc with mintage figures in coin books because over a period of time no one will know how many coins are circulating.  I had already know that older pre-decimal silver coins were melted but I never thought that people would melt modern proof coins.

Its not just silver coins. How many British pre-decimal coins do you see? Compare it with the French pre-Euros. And how about the decimal half penny? They were common as muck, and now you rarely see them. I predict that most current coinage will be quite rare in 100 years. But, ssshhh! don't tell anyone <g>

Matt

It can be both good and bad that coins are melted, it will certainly make their value go up, but to think that someone would melt proofs...well that's just  stupid.

  if a coins is so damaged that it has no numismatic value than in that case it might be good to melt it and make the rest more rare, and if you could keep up with how many get melted that would also be good. From what I hear melting is a huge problem around the world, many country's are loosing their coins to the scrap industry.

  Matt, I think it might be sooner that 100 years.

You need to learn about silver.  The price is in part going up due to the monetary use of the metal, but what makes silver especially different from gold is its industrial uses.  Industrial combined with monetary use is causing silver to skyrocket and numismatic value is being surpassed on common proofs.

In USA right now silver USA coins are worth $32 for each $1 face value.  So coins before 1964 are being melted for their silver. A silver quarter any date is worth $8. The coins mintage numbers have to be way off. Even common coins might be a lot rarer that anyone thinks.

WE ARE PAYING $30.00 ounce for silver content regardless of condition of coin. Buying hundreds of coins per month.

30 dollars an ounce wow last time i checked it was over 40 for a 1 ounce silver coin american eagles could barely be touched for under 50 if your lucky 9 months ago i bought 2 ounce silver lunar goat 50 bucks sold it for 75 three months later now its hard to get for 125 and thats only six months i wonder if i just keep buying one low mintage silver coin till i buy them out then melt them down to make the value go up this could be done the reason the silver goes up is becouse every time a bomb drops it vaporizes the silver never to be seen again how long does it take the earth to make silver? theres only so much then its gone

Quote: redsmithstudiosIt can be both good and bad that coins are melted, it will certainly make their value go up, but to think that someone would melt proofs...well that's just  stupid.

  if a coins is so damaged that it has no numismatic value than in that case it might be good to melt it and make the rest more rare, and if you could keep up with how many get melted that would also be good. From what I hear melting is a huge problem around the world, many country's are loosing their coins to the scrap industry.

  Matt, I think it might be sooner that 100 years.

With regards to melting proof coins, local dealers will just pay the bullion price for silver and gold proofs, I learn't this when doing a house clearance and there was a 2003 set of gold sovereigns and the £2 DNA boxed with certificate when we ask what it was worth bullion value is what was quote we did not sell.

Quote: Davekanebullion value is what was quote we did not sell.

 yea, all my local coin guys are crooks!  

Ogramz, "every time a bomb drops it vaporizes the silver never to be seen again"
  Is this where silver is going? how can we prove that its gone??
  It was my belief that silver will drop back down faster than it went up, that's what it has always done, but if what you say is true... it might not!  

When people are desperate to sell and they are willing to take 75% of spot price, why should I say no. If I do not buy their silver coins, someone else will. I try to resale as much of the better coins as I can at spot price or little more. I only send out absolute junk to be melted.Everyone who handles the coins wants to make a  buck. With silver at $40.00 an ounce, I pay $30.00 an ounce for junk silver. The guy who melts it buys it from me for $35.00 per ounce. He make 5 bucks per ounce and I make 5 bucks per ounce. The original owner got $30.00 an ounce for something he would have got about $15.00 an ounce lat year. Everyone wins.

well gold is worth so much then you step down to silver dont you think silver should be half the price of gold eventually it will be. i dont think silver will ever go down it might freeze around where its at but most likely wont ever go down if it does good i can buy it all up

This is the time to buy silver. 3 months ago would have been much better.

Quote: coinsoldierThis is the time to buy silver. 3 months ago would have been much better.

30 months ago would been even better.

But I can hardly complain about the silver I bought 6 months ago having doubled in value.

I bought a whack of 1oz maples @ $17 an ounce  
I wouldnt think of buying any now... too scary these prices.

Coin Hoarder
Are you considering selling some of those silver maple leafs now that you can get over $50.00 each which would triple your investment?

Quote: coinsoldierCoin Hoarder
Are you considering selling some of those silver maple leafs now that you can get over $50.00 each which would triple your investment?

Are you interested in buying some?
If so how many would you like to buy?

I have been selling them off this week and they are moving super fast!
The world has silver fever right now,  I love it.

Let me know.
Cheers!!

I wanted to but I bought 10 yesterday at what seems a good price for those "silver fever" days. How much are you asking anyway?

Quote: zymotechYou need to learn about silver.  The price is in part going up due to the monetary use of the metal, but what makes silver especially different from gold is its industrial uses.  Industrial combined with monetary use is causing silver to skyrocket and numismatic value is being surpassed on common proofs.

Yes, you are correct, but let us not forget, about 80+% of ALL Silver EVER mined is GONE! Photographs, and electronics are to blame mostly, as Silver was so cheap, it was not cost effective to re-claim the metal! There is a HUGE shortage of Silver currently, ALSO, the investment companies sold too much Silver on PAPER, and now they can not back it up! Silver should go up more than $100/oz in the next 5-10 years, in my opinion!!!!!!  

Also, Silver mining will increase in the next 5-10 years, as the cost of Silver goes up, so this could level the price of Silver for awhile once production equalizes with demand AFTER Silver has gone up enough to make it economically feasible to mine , currently Silver is mostly mined in Gold Mines, only in 3rd world countries do you see pure silver mines, so there is a lot to consider, but in a nutshell, Silver is THE best investment for the future in my opinion, as Gold fluctuates so much, it's a roller coaster ride, and Silver has more potential to make you money than Gold, considering the above facts! :)

Mike,
I hope you are correct because I invested heavily in silver when it was spot price between $30 and $33 dollars per ounce. I was very excited when it reached over $48.00 an ounce. Could have sold then but held it. Nervous since the slide over last week or so.

Quote: coinsoldierMike,
I hope you are correct because I invested heavily in silver when it was spot price between $30 and $33 dollars per ounce. I was very excited when it reached over $48.00 an ounce. Could have sold then but held it. Nervous since the slide over last week or so.

John, don't even think twice about the "slide" in Silver price, it will go back up, and slide, but continue to go up overall. Right now, a lot of people are selling Silver for vacation/holiday money, remember, JUNE is the BEST time (historically anyway......) for BUYING Gold and Silver! :)

Mike

p.s.- As mentioned, June is the best time historically for buying Gold and Silver, but keep in mind, with the global economy ever changing and dynamic, there could be slight shifts in buying/selling patterns, visit Kitco.com for current/historic records and charts! :)

Thanks, I will take a look.

It is time to BUY Silver! Since Silver hit the $48/oz mark, the market knows it can reach such a higher level, and so people are not so scared to invest, that is one of the many factors in considering investment in a metal, CAN it go higher? :)

John, the thing is, you might see slow and/or weird "progress" in Silver prices between now and September or so, a lot of people will be going on vacations for the next few months, some will start businesses, but big manufacturing will slow for awhile, prices will be fun to watch! You MIGHT even see Silver go below $25!

You had the guts to buy heavy in Silver and had even more guts to hold it when it reached $48, DO NOT SELL!!!!!!!!!!!!!!!!!!!!! BUY MORE!!!!!!!!!!!!!!!!!

I think the first quarter of the year was good to the market this year, so by September, you should see it start to go up on a steady basis again, a lot of manufacturing will go on for Christmas commerce, Silver makes a great gift! ;)

It will be fun to watch, hang in there!!!!!!! :)

Mike

Keep in mind folks, NOTHING HAS CHANGED! It is understandable that some of us may worry about Silver reaching a bubble, and now it is going to fall so low it may be a long time for it to go back up, but keep in mind, nothing has changed! The US Gov is still so freaking far in debt, that they almost wish the US $ to de-valuate so they can print more money, and pay more debt! (see: http://www.kitco.com/ind/Mladjenovic/may032011.html )

Silver is STILL in huge demand around the world as well! Cell phones, SOLAR panels, etc will STILL be manufactured and needed! Certain economies STILL stock up on Silver to back up their banks and money! There is STILL a LOSS of 80% or more of Silver from the over all EARTH SUPPLY, as I mentioned a few posts ago!

There are also many "new" uses for Silver, especially in the MEDICAL markets! Did you know Silver is used in ANTI-MICROBIAL markets, such as skin ointments and relief? Back in the day, pioneers knew that Silver helped keep water cleaner for awhile, they would toss a Silver coin in to the rain barrel, to help keep little critters from multiplying! (BACTERIA)

MORE TO CONSIDER?!?!?!?!?!?!?!?
Think about this, the US GOV wants to, and will, TAX us on hobby investing, any thing over $600 will be reported by sellers, and you! Well, Gold is too risky to invest in for poor people, and would obviously be reported more than Silver (Gold costs a hell of a lot more per oz!). You could buy and sell smaller fractions of Silver all day long and NOT have to report it! there are TONS of 1/2oz silver coins, medallions, tokens, bars, etc for sale, can you buy small fraction gold all day long and NOT have to report it? :)

BOTTOM LINE? Silver has HUGE industrial demand, and of course, investment demand, Gold only has "romantic lure", people buy it because it makes them feel "wealthy", OR shows off their wealth! WHAT INDUSTRIAL demand does it have???????????????

Nothing has changed folks, SILVER IS STILL A GREAT INVESTMENT! When the price goes down, BUY MORE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

ARTICLE EXCERPT:
"The advantages of silver over gold as an inflation hedge are numerous and need to be considered:

The silver market is much smaller, and it doesn’t take as much money moving into silver as an investment to move the market up. Silver has outperformed gold dramatically over the last few years, going from $3 an ounce to over $40 an ounce. Silver is also a very important industrial metal with over 3,000 industrial uses. The government has never seized silver, although they have seized gold. If that worries you (it doesn’t worry me much), you would feel safer with silver rather than gold. The government actually has no stockpile of silver to unload. There is now more gold above ground than silver because of the silver industrial usage. I look upon silver as money. Throughout history more silver has been used more for money than gold. Historically, silver coins became the common denominator for money in more places and more times than gold."


SEE: http://www.kitco.com/ind/Ruff/ruff_apr272011.html