Silver coins as a Y2K hedge.
In a previous post, I shared some information about purchase of gold bullion coins. Many experts argue that US silver coins (pre-1964 so-called "junk silver") also have a role to play in Y2K preparedness. Gold, they assert, will be used for large purchases, while silver will be necessary for smaller transactions.
Junk silver can be purchased from bullion dealers of all types, from some local coin shops to the large brokerages that advertise on TV. It is usually sold in quantities of $1000.00 face value, often in units of the same coin type, e.g., 2,000 half-dollars, 4,000 quarters, etc. A bag of 4,000 quarters is about as big as a gallon jug, weighs 55 pounds (!), and contains about 760 to 770 Troy ounces of silver depending on wear of the coins.
At tonight's spot price of silver, $5.15/Troy ounce, the melt value of silver in a bag is about $3,900.00. Expect to pay about $4,200.00 to $4,300.00 -- a premium of 8% to 10%, said to be due to rapidly rising Y2K demand.
Every $1.00 face value (i.e., two half dollars, four quarters) contains about 3/4 ounce of silver or roughly $3.80 at the current spot price. |
