U.S. Constitutional 90% Silver Coins

[MrUpwardlyMobile]

Hello folks, I’m a novice stacker. My strong preference is to stack U.S. constitutional silver 90% coins.  It’s fractional, widely recognized, and among the least likely forms of silver to be faked.  Ive been trying to keep my overall price per ounce as low as possible. Unfortunately, I’ve still averaged $19.55 per Troy ounce.  

In buying silver, I’ve found online dealers to have enormous premiums such that it’s not really possible to buy silver for less than $20.50 per ounce unless I’m buying like $500 face value, which is a whole lot of silver to buy at once.  Local coin shops are only slightly better priced. Retail gold and silver buy/pawn shops have been more reliable about selling for under $20 per ounce I’ve ranged from $19.55 to $20.14 per ounce there.  My best luck thus far was $15 face value of silver dimes (mostly mercury with some Roosevelt) at $18.76 per ounce, which I Won in a Rural estate sale auction.  

In all candor, I’ve not seen any silver actually for sale at spot since I started stacking a month ago.  It seems like spot is pretty untethered to the actual price to buy or sell. Is there anywhere you all might recommend for better pricing on silver in general?  Do you all have any tips for buying US constitutional silver?
 

[Chicagodogs]

Congratulations on you stacking for the first time. The best deals I've found has been on Ebay for 90% silver. The silver paper spot price has definitely dislocated from the physical price. Just got off the phone with my LCS. $8 over spot on 2020 ASEs. $7 over spot for any other year ASEs. Will pay $3 over spot for any year ASE. Ebay is better than my LCS, but Ebay isn't part of my local economy. Good luck with your stacking.

[MrUpwardlyMobile]

Thank you.  I tend to agree that the spot price isn’t connected to the actual price of silver.  An enormous estate auction with over 1500 ounces of silver for sale in different lots that I was participating in this week had silver that was selling (including the buyer’s premium) for well beyond $20/ounce. Proof ASEs we’re selling between $35-50/ounce. Tubes of bullion ASEs are selling consistently for above $400 each.   When I saw 10 ounce ingots selling for above $22/ounce, I basically abandoned the auction.  I’ll probably end up getting $14.50 face value in silver Roosevelt and mercury dimes for just under $20/ounce.  From my math, that’ll be the cheapest pricing at the entire auction.

 

seems like physical silver is in very high demand.

[RacerCool]

Congrats on starting your stacking journey!  My favorite to stack these days is also US 90% silver, though I usually just buy uncirculated rolls.  Which means more over spot than circulated but to me it's worth it.

Also, don't forget to add gold to your stack!  Don't spend it all on silver.

[Chicagodogs]

Just went on Ebay. 1 circulated silver dime, the cheapest is $2.25!

[MrUpwardlyMobile]

Yeah, eBay does not look good for constitutional silver. In fact, etsy and eBay seem to show the highest prices for silver coins. $23 per Troy ounce for constitutional silver is not very enticing.

[Alex944]

The reason the prices are currently high relate to the pandemic. Early march there was a crash, silver down to 11 EUR/oz or something. Shortly after that, the prices all increased massively by added premiums, because so many countries went on lockdown. Dealers were unable to reliable source and producers were not able to mint their product.
 

Now that we are couple of months past that, things have slowly been reducing as countries reopen and all that, but you'll still find most bullion grade silver (which in ''usual'' times don't hold much of a premium) hitting 20-30% over spot at the moment. I do believe that in the coming 3-6 months or so, it will go back to a more reasonable price between spot and purchase price. I feel (and I think many others) that now is not a good time to purchase bullion grade silver because it is unlikely that the current premiums on it will hold. 

Of course, you should definitely do what makes sense to you and what fits your strategy. I would probably purchase less for a couple of months, maybe stacking some cash to front load for a bigger purchase once prices are reasonable again. You can also look into some higher premium coins, as those values have not increased as drastically and are more likely to hold their premium over a longer period of time.

Again, what ever feels right for you and fits your strategy. Best of luck!

[Robb]

On 20/06/2020 at 16:13, MrUpwardlyMobile said:

Hello folks, I’m a novice stacker. My strong preference is to stack U.S. constitutional silver 90% coins.  It’s fractional, widely recognized

Constitutional silver is no more recognized than any other silver.  John Q. Public has no idea the difference between a 1964 dime and 2020 dime.  Same with the quarters.  I would say that constitutional fractional silver is widely recognized by those that recognize constitutional fractional silver and leave it at that 😉

 

[Robb]

6 hours ago, Chicagodogs said:

Just went on Ebay. 1 circulated silver dime, the cheapest is $2.25!

Buy a roll....about $1.50-1.60 each including shipping. 

Singles are selling for about $1.75 but the shipping makes it a stupid buy.

Look at Sold prices, not Buy prices