Dealers buy under spot and sell over spot. Well known coins, rounds, and bars will also have a "premium" over obscure metals. When I've wanted to sell silver, I put it on Craigslist and sell it at spot; a good deal for both of us. Stick to well known coins, rounds, or bars to inspire more confidence in buyers.
The equivalent spot value of $1 face value of junk silver coins (10 dimes, 4 quarters, or 2 halves) is $23.35. That is, the silver in $1 face value of junk silver coins, at spot price, is $23.35.
If you ever try to convert a large silver bar back to Federal Reserve Notes you will probably have to have it assayed (unless your buyer likes to gamble which rules out pretty much everyone), which is an added hassle cost. Generic rounds will be lucky to fetch spot price if you convert. The dealer I use will only give you ~80% of spot value for junk coins, straight spot for silver rounds or ...
Gold is insanely priced right now! Its in record high territory and rising as I monitor the Gold Silver Spot price daily. But hey, if you got the money honey dont let me hold you back. Precious metals is a great way to preserve ones wealth in a country were inflation is out of control and the government has little interest in doing anything ...
The canadian silver, and even the other foreign stuff is cheaper over spot than american most of the time. For example, 1 oz. silver maples are at least a buck cheaper than american silver eagles.
So, for circulated silver coins, $1 face value is ($30.50) x .715, or $21.81. The $1 FV price at SDBullion (for comparison purposes at this writing) is $24.29, so there's a premium over spot of 24.29 21.81 or 11.4 Percent. Of course, dealers used those multipliers a decade or more ago, then premiums started to be attached.
The 1999 2019 average gold silver price ratio is 65:1, currently the gold silver price ratio is 77.55:1. If the metals revert to their recent average price ratio, silver seems like the better buy for your dollar.
Peace & Morgan dollars are probably the most recognizable of the silver coins, so would they bring a better value in trade then the same combined silver weight of lesser coins? Would one be better to buy a mixed bag of junk silver or specific ones such as quarters or dimes? Consider this as...
Silver for barter, gold for wealth preservation Now, getting back to the question about silver for barter. Silver is what you use for barter, because silver is a small denominated coin that you can use on a day to day basis to get the things you need. Say, for example, in our scenario, that after the dollar collapses, silver gets to $50 an ounce.
Gold is not so bad, running 5 9% over spot depending on the type of gold one buys. So I'd expect Silver to increase in price, on a percentage basis, much more than gold would increase in price (this for "spot" price). But the question is whether the physical price would increase along with the spot rise, or whether the premium would shrink.
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