Bags of 90% Silver Coins?

[jimmygu3]

I am considering buying a bag of pre-1964 US 90% silver coins. However I am starting to wonder if these will ever really be a medium of exchange again. If not, why not just hold bullion?

Am I supposed to picture myself in a post-dollar world paying somebody with antique coins that need to each be carefully scrutinized so as not to confuse them with the billions of "counterfeit" ones that have been produced by the mint for the last 40+ years? Seems like at that point, loose change of all stripes would be generally shunned, except maybe Franklin halves, which are all 90% silver. Even so, they cost about the same as an eagle, but have less silver content so bullion wins there too.

My thought is that in a SHTF scenario, people will either be bartering, quantizing most purchases to the nearest silver ounce, or a new currency will emerge. Maybe having a small bag of silver change would be useful, just as dollar bills and fives are today. But can you imagine somebody paying you with 100 coins that you had to check the date on? Screw that.

OK, I think I've talked myself out of it. Anybody have a good reason to buy 40 pounds of old coins instead of mostly bullion and maybe a $10 face value bag of 90% silver coins?

Jimmy

[sn1p3r]

I've considered this many times and I always ended up with the conclusion that bullion and bullets was the way to go...after the groceries are secured of course. Like you said barter will be common but in the LIKELY event of a new money emerging your bullion will convert easily and your bullets will help you hold onto it :)

[raja]

I am considering buying a bag of pre-1964 US 90% silver coins. However I am starting to wonder if these will ever really be a medium of exchange again. If not, why not just hold bullion?

Am I supposed to picture myself in a post-dollar world paying somebody with antique coins that need to each be carefully scrutinized so as not to confuse them with the billions of "counterfeit" ones that have been produced by the mint for the last 40+ years? Seems like at that point, loose change of all stripes would be generally shunned, except maybe Franklin halves, which are all 90% silver. Even so, they cost about the same as an eagle, but have less silver content so bullion wins there too.

My thought is that in a SHTF scenario, people will either be bartering, quantizing most purchases to the nearest silver ounce, or a new currency will emerge. Maybe having a small bag of silver change would be useful, just as dollar bills and fives are today. But can you imagine somebody paying you with 100 coins that you had to check the date on? Screw that.

OK, I think I've talked myself out of it. Anybody have a good reason to buy 40 pounds of old coins instead of mostly bullion and maybe a $10 face value bag of 90% silver coins?

Jimmy
If you came to buy something from me using bullion, how would I know it's real silver? It would have to be tested and weighed. On the other hand, it's easy to identify coins and hard to fake them, so I'd be much more inclined to take them.
For big purchases, I'd accept recognizable gold coins cut into sections . . . .

[jimmygu3]

If you came to buy something from me using bullion, how would I know it's real silver? It would have to be tested and weighed. On the other hand, it's easy to identify coins and hard to fake them, so I'd be much more inclined to take them.
For big purchases, I'd accept recognizable gold coins cut into sections . . . .

I was referring to bullion coins, namely gold and silver American Eagles. I can see how bars would be less widely accepted.

[Andreuccio]

I am considering buying a bag of pre-1964 US 90% silver coins. However I am starting to wonder if these will ever really be a medium of exchange again. If not, why not just hold bullion?

Am I supposed to picture myself in a post-dollar world paying somebody with antique coins that need to each be carefully scrutinized so as not to confuse them with the billions of "counterfeit" ones that have been produced by the mint for the last 40+ years? Seems like at that point, loose change of all stripes would be generally shunned, except maybe Franklin halves, which are all 90% silver. Even so, they cost about the same as an eagle, but have less silver content so bullion wins there too.

My thought is that in a SHTF scenario, people will either be bartering, quantizing most purchases to the nearest silver ounce, or a new currency will emerge. Maybe having a small bag of silver change would be useful, just as dollar bills and fives are today. But can you imagine somebody paying you with 100 coins that you had to check the date on? Screw that.

OK, I think I've talked myself out of it. Anybody have a good reason to buy 40 pounds of old coins instead of mostly bullion and maybe a $10 face value bag of 90% silver coins?

Jimmy

I've bought the 90% coins a few times. They're about the same price per ounce as the generic bullion bars, maybe a bit cheaper depending on what premium vs. spot is being charged. The 90% coins are significantly cheaper than the bullion 1 oz coins I see. They're currently selling for about $1 per ounce less, although I could be looking at the wrong dealers.

To me the advantage of 90% coins is they provide a relatively small denomination currency in any SHTF scenario. I would think in that scenario you would want something to exchange for small purchases, and for change. The 90% quarters are 5.625 grams of silver, and the dimes are 2.25 grams, whereas the 1 oz coins are about 31 grams.

As to differentiating them from non-silver containing coins, it's pretty easy: just look at the date. Any US dime or quarter that's pre-1964 is 90% silver. (I guess there are probably fake pre-1964 coins out there.)

At some point, you would have enough coins that you feel it would take you through any possible disaster. (Who knows how much is enough. I doubt $10 face value would take you through anything lasting more than a couple of days, but who knows. It's all speculative anyway.) Once you hit that threshold, in my view, the bars might be more convenient. But for the extra utility provided by the coins, at what is really no extra cost, I prefer the coins.

I really don't see why you would buy the 1oz coins, since they sell at a premium to both 90% coins and bullion bars. I imagine the buy back price in normal scenarios would include a refund of that premium, so it would be a wash, but in SHTF scenarios I imagine it would just melt value, so you would have saved on the 90% coins by not paying the premium up front.

I'd love to hear other opinions.

[LargoWinch]

The Argentina guy's blog indicated that gold rings would have been a godsend.

For my part, I believe Silver coins are your best bet as you can resell them much easier than gold rings if troubles are averted.

In the unlikely event of a SHTF scenario, you will have lots of them (Silver rounds) compared to a lot gold coins, so much easier to trade.

It is however more difficult to store/secure and resell silver coins compared to gold.

So in the end: mix it up, with an emphasis on silver eagles/maples.

[sn1p3r]

Sorry I should have clarified...I store only eagles and maples...agree completely on bullion and haven't thought about junk gold rings but that might appeal more to joe 6 pack in exchange for a few gallons of gas :)

[c1ue]

I'm not a gold bug, but I have a pretty big stash of well circulated silver coins pulled from years of loose change (and slot machine cycling back in the day).

If you really think Mad Max is coming, then several hundred bucks worth of silver circulated coins will be useful.

People tend to forget that even back in the day - a gold Eagle coin was a lot of money.

Carrying around Kruggerands and other 1 oz. gold coins is an invitation to get hit by a gang. After all, $700 = 1 Kruggerand = 10 tanks of gasoline.

In Mad Max, people were getting whacked for a lot less than that! And after you change the first one, everyone who is involved with it is going to wonder how many more you've got.

On the other hand, a couple of silver quarters or half dollars is still worth something but isn't extremely exceptional.

As for the guns - it is interesting that most gun nut survivalists assume they will only be assaulted by individuals or small groups.

From historical examples where societies did break down - that assumption has never held up.

Think of the Schermerhorns in their house towards the end of "Gangs of New York".