Chapter thirty-four. Coins can be a good value in this market

When silver dropped from around thirty-four dollars an ounce to around fifteen recently I noticed (and pointed out elsewhere in the blog) that the certified coins stayed about the same in value. Yes, there was a small drop in prices across the board, however, not even close to going to half price.

The numismatics market held its ground. Coins that were selling for around a hundred dollars each dropped to around ninety-five. A few went down more, but just a few. The coin auctions seemed to have fewer bidders as well. I guessed because the money was going into bullion purchases instead of certified coins.

Even the raw coins didn't take a hit nearly as much as the bullion. An un-certified or raw Morgan dollar which sold for about thirty dollars went down to the mid twenties. A small drop and certainly not 50% less.

Circulated, un-certified raw coin.
So, I have reached a point where I believe the best bang for the buck in silver now is in certified coins. The only risk would be if the dollar crashes and those certified coins loose their numismatic value. I have to bet that never happens. It hasn't happened in this downturn and I need to bet it wont then either.
Certified Morgan dollar. 1921 is one of the most common dates and a "bargain coin".
There is certainly nothing wrong with having a supply of bullion too. It's just that from what I can tell, these coins will fare better for now.

Have a bunch of these too if you can.
This is not to say one should go buy up expensive certified rare coins. As I have said before, the real investment coins are in the common date high production MS64 and MS64+ area. MS65 jumps way up in price. And below MS64 they are just a little less than what the 64s are in current dollar prices.

So my thinking is that when silver goes to a hundred dollars an ounce, about six times what it is today  (and it will) these coins in MS64 and 64+ should go to about six times what they are today or more for a whopping 4 to 6 hundred dollars each. At least I can hope!

As always - just my opinions in here.