What do you silver stackers have?

[Admin1]

Which do you prefer to stack? Silver rounds and bars, 1 oz silver eagles or pre '65 junk coins? Or are you like me and have a mix? I even have some 5 and 10 ounce bars.

[Jerry D Young]

Based on my research on pre-1965 circulated 90% silver US coins.
(To get round numbers I used 720 ounces per $1,000 face value of halves, quarters, and dimes. 715 ounces is more accepted, but make calculations much harder, and in the real world, until melting them back into bullion picks up again, I think the microscopic difference per coin won’t be a difference.)

With that disclaimer:

Dimes have 0.0720 ounces of silver or 13.8889 dimes for1 ounce of silver
Quarters have 0.1800 ounces of silver or 5.5556 quarters for1 ounce of silver
Halves have 0.3600 ounces of silver or 2.7778 halves for1 ounce of silver
Dollars have 0.7734 ounces of silver or 1.2930 dollars for1 ounce of silver
Silver Eagles have 1.0000 ounces of silver or 1.0000 Eagle for1 ounce of silver

Using a direct conversion, with silver at $20.00 spot:
A dime is worth $1.44
A quarter is worth $3.60
A half is worth $7.20
A dollar is worth $15.47

With these numbers in mind, and the fact that the conversion ratio of silver to goods will be widely variable at first, before stabilizing, I think dimes will be needed desperately for the small stuff. And halves, because of the fact that there are 40% silver ones out there, and not everyone will know the difference, I don’t plan on using them at all in the PAW. Others that want to, can. Just too much hassle for me. And the same goes for Silver Dollars. Going to be a lot of controversy over their value, as a lot of them are going to be in much better shape than others, and in most cases, very much better shape than dimes and quarters. Even halves.

So I plan to limit my accumulation to dimes, quarters, and Eagles. That isn’t to say I wouldn’t take the others in trade, but only in certain circumstances where the person with those coins understands and agrees to the value.

For up to $500 FRNs in silver, I would do:
50% in dimes
25% in quarters
25% in Eagles

Over $500 up to $2,000 I would do:
40% in dimes
30% in quarters
30% in Eagles

Over $2,000 I would do
25% in dimes
25% in quarters
50% in Eagles

Over $5,000 for PM’s I’d start adding gold with similar ratios to 1/10 ounce, ¼ ounce, and 1 ounce Gold Eagles as used for the silver dimes, quarters and Silver Eagles, keeping the gold/silver ratio at 80% silver / 20% gold up to $10,000, then 50%/50%, and ultimately 25% silver to 75% gold when you get into the big money.

Just my opinion.

[Admin1]

Based on my research on pre-1965 circulated 90% silver US coins.
(To get round numbers I used 720 ounces per $1,000 face value of halves, quarters, and dimes. 715 ounces is more accepted, but make calculations much harder, and in the real world, until melting them back into bullion picks up again, I think the microscopic difference per coin won’t be.


Wow! That's extremely well thought out!

[Jerry D Young]

I have some additional information that some might find useful, but the .pdf file is too large to attach, and .xls files cannot be attached. So anyone that would like a copy of either file version feel free to e-mail me at jerrydyoung@outlook with your e-mail address and I will send the file(s).

Just my opinion.

[Inor]

Jerry -

I noticed the gold to silver ratio is running around 74:1 at the close today. That is even further out of whack than it was in 2008 and 2009 given the historic average is somewhere around 35:1 or 40:1. So my question to you: is silver way undervalued or is gold way overvalued, or somewhere in between?

[Jerry D Young]

I think it is in between. Both prices are being manipulated by TPTB and some people with deep pockets, that between them, huge amounts of profits are being taken, while at the same time, those in the know are accumulating as much of the physical metals as possible, while the general buying public continues to panic and buy high and sell low for the most part, seldom increasing their holdings much, and losing significant amounts of FRNs.

While I would not jump in and buy a bunch at the current prices (12/24/14), if I already had a buying program in place, I would not stop it. Price averaging is a very good way to put a value on what one holds.

Of course, for me, the price I might pay now for any PM is irrelevant to the PAW. Having it or not having it is going to be the key at some point. There will be a time when if you do not have PMs you will not be able to acquire what you need to survive some event or situation.

Just my opinion.

[Inor]

I actually discontinued my buying in 2009 when spot prices rose above roughly where they are now. I have some gold and a lot of silver. But I am thinking with stocks going crazy right now and PMs getting beat down because of it, the time may be approaching to start averaging back into buy mode again. I have not checked recently because as I said I am not presently in the market to buy, yet. But if the broker premiums are coming back into reality again, I think it may soon be time to start stacking again. Thoughts?

[1moretoy]

Where do you guys buy from?