Opinions on my first purchase

[MrsX]

 

I've been reading about silver the past two weeks and made my first purchase yesterday of a walking liberty half dollar. I bought it from a lcs which was my very first time and didn't know what to expect. He was selling it for 14x fv. According to my math, the silver content was worth $5.65, I paid $7.00 so "premium" was $1.35 (24% over spot). Is that a fair price or a bit steep?

 

I love the look of the walking liberties and plan on stacking ASE if this interest grows. I do plan on going to the other lcs in the area to compare prices as well whenever I have the time. But any guidance about buying 90% silver would be extremely helpful for future purchases. Being a newbie, I am quite afraid of getting ripped off.

 

[metallica73]

I'd actually say that isn't bullion but a nice numismatic collectable piece in a high grade.

All I can say is i'm in the UK and I wish we could buy Walking Liberty Half Dollars in that condition for £5.50! ($7) - I would expect to pay $15-16 for one in that condition so you've done well.

 

 

[gavinfry]

check out www.coinstudy.com there is some good advice on walking libs

[MrsX]

I'd actually say that isn't bullion but a nice numismatic collectable piece in a high grade.
All I can say is i'm in the UK and I wish we could buy Walking Liberty Half Dollars in that condition for £5.50! ($7) - I would expect to pay $15-16 for one in that condition so you've done well.
 
 

Thank you. That makes me feel a lot better about my purchase. Now, if only I had more to spend, I would go back and get more.

[MrsX]

check out www.coinstudy.com there is some good advice on walking libs

Thanks for the link. Learned a whole lot more tonight!

[daz]

As has been said, on older coins it's all about the condition rather than the silver content . If the condition is high then the price can be many times the actual silver content price .

Nice coin to start with . I would happily buy it off you for what you paid for it !

[ApisMellifera]

Welcome to the forum.

• Be happy with your first purchase  My first silver coins is a Britannia and an ASE, I think I paid a high premium at the time but I will always keep them with me and as a good reminder to have.
• From now on do your research and look/ask for the best and reputable dealer. If you plan to buy on E-bay, Make sure that the seller has excellent feedback. (Search the forum and don't hesitate to ask).
• Work out your monthly budget first and have patience to build your stack. The ASE is good choice for you.
• Again, do your research where you can get the best value before you start spending and don't panic that you will miss the boat on price. Gold and Silver prices will always fluctuate. Focus on your Oz first over the price. Yes don't crazy on the premiums.
• At one point you will get lured by other shiny objects and designs called numismatic coins aka collector coins. Don't get distracted by them and stay focused on your stacking plan. Ok ok yes, every now and then you can buy a nice numismatic or collector coin as long you do your DUE DILIGENCE and PLAN that in your BUDGET.
• Do consider to save a bit longer and purchase Gold. Yes it cost a bit more and may take a bit longer to save but gold premiums are usually way lower.

So yeah this your first coin and I think it's an good choice.

Here is great thread compiled by @Kman with forum discussions for new people

http://thesilverforum.com/topic/9122-new-to-silver-stackingprecious-metals-what-should-i-buy-help-thread/

and don't worry to ask a questions, we've all been there and there is no such thing as a 'stupid' question.

Here are 2 of my fav stacking video's of one my fav PM youtuber, based on what I described above.
(PM = Precious Metal)

Keep on stackin'

 

 

 

[MrsX]

As has been said, on older coins it's all about the condition rather than the silver content . If the condition is high then the price can be many times the actual silver content price .
Nice coin to start with . I would happily buy it off you for what you paid for it !

Thanks for your input. Again, that makes me quite satisfied with my purchase. I've searched around the forums to see what others were paying for "junk silver" at their lcs and I keep reading that they paid at spot or even below spot so it made me think I might have spent more than I should. I do understand premiums may be higher when spot prices are low like now.

I think I am leaning towards the mindset of a stacker rather than a collector which is probably why I was curious about the price over spot. That, I have yet to determine. But this will be a special coin to me.

[MrsX]

Welcome to the forum.

• Be happy with your first purchase  My first silver coins is a Britannia and an ASE, I think I paid a high premium at the time but I will always keep them with me and as a good reminder to have.
• From now on do your research and look/ask for the best and reputable dealer. If you plan to buy on E-bay, Make sure that the seller has excellent feedback. (Search the forum and don't hesitate to ask).
• Work out your monthly budget first and have patience to build your stack. The ASE is good choice for you.
• Again, do your research where you can get the best value before you start spending and don't panic that you will miss the boat on price. Gold and Silver prices will always fluctuate. Focus on your Oz first over the price. Yes don't crazy on the premiums.
• At one point you will get lured by other shiny objects and designs called numismatic coins aka collector coins. Don't get distracted by them and stay focused on your stacking plan. Ok ok yes, every now and then you can buy a nice numismatic or collector coin as long you do your DUE DILIGENCE and PLAN that in your BUDGET.
• Do consider to save a bit longer and purchase Gold. Yes it cost a bit more and may take a bit longer to save but gold premiums are usually way lower.

So yeah this your first coin and I think it's an good choice. Here is great thread compiled by [mention=144]Kman[/mention] with forum discussions for new people

http://thesilverforum.com/topic/9122-new-to-silver-stackingprecious-metals-what-should-i-buy-help-thread/

and don't worry to ask a questions, we've all been there and there is no such thing as a 'stupid' question.

Here are 2 of my fav stacking video's of one my fav PM youtuber, based on what I described above.

(PM = Precious Metal)

Keep on stackin'

 

 

 

Thank you for the advice! I really enjoyed watching those videos and others he had to offer. It helped clear up some gray areas I had about stacking PM to build wealth. His analogies and messages made a lot of sense to me.

 

Yes, patience. It's hard to steer away from instant gratification. That's why debt is so easily built up in this modern world. But to live a better life doesn't happen over night. This new interest is definitely motivating me to straighten my personal finance and have a goal for the future and beyond.

 

I agree gold has some advantages over silver and I do hope to add it to my portfolio.

 

 

[vand]

13 hours ago, MrsX said:

I think I am leaning towards the mindset of a stacker rather than a collector which is probably why I was curious about the price over spot. That, I have yet to determine. But this will be a special coin to me.

 

 

The key to being a good stacker is not to get too hung up on what you've just bought.. whether it is your 1st oz or your 10000th. It's all just silver. Get on with life while in the background you accumulate many ounces over many years. By contrast the terrible stackers are those who are always checking the price, hoping for the moonshot and disappointed when it doesn't happen.

 

[MrsX]

 
The key to being a good stacker is not to get too hung up on what you've just bought.. whether it is your 1st oz or your 10000th. It's all just silver. Get on with life while in the background you accumulate many ounces over many years. By contrast the terrible stackers are those who are always checking the price, hoping for the moonshot and disappointed when it doesn't happen.
 

Yes, very true. Slow and steady.

[longislandsilver]

Long time stacker first time to the forum.  figure this is a good thread to chine in on. 

Stack what you like. Go to as many different coin stores, Jewelry stores, pawn shops, coin shows as you can. learn what's out there and who charges what.  Every place charges a different premium.  if you buy 1 walker at a time you will pay more than you should.  Often stores have a break on $10 face value of junk silver.  The more you know the better deal you can get. 

If you want to be a stacker vs a collector stay away from coins with a high premium.  end of the day silver is silver and when you go back to sell it to a store that's what they will pay you on.  Get what you can when you can , I personally go through waves of what I like to buy.  rite now im on a 90% and 10oz bar kick...at the end of the year you will be shocked as to how fast it adds up. also believe it or not I have found a great community of stacker/collectors in Instagram.  I actually do a lot of buying selling and trades with IG. give me a follow lol.

[tbone]

Hi MrsX

Sorry in advance for the long ramble, I'm up early and for some reason find myself on the silver forum! I'm no financial advisor, but here's my opinion:

14x face for Constitutional silver is about what Apmex charges if you use a card ( a bit cheaper for cash).  However, that looks much better condition that average circulated, so I think you did very well.  One piece of advise I would give is to have a good relationship with your lcs (assuming you're being treated fairly there and also assuming they have some history there and not some fly by night place, you'll need to do some homework on the lcs options in your area).  If you have multiple lcs options that's great, try them all out.  You might even buy from one and sell to another.  You'll get a better buy back price once they know you over time, but you can also ease any fears of being ripped off or getting fake coins.

I will warn you that stacking or collecting is habit forming (more that smoking I think, but better for you!).  If you're like I was when I was stacking and using my lcs a lot, you'll find you want to go back often.  Maybe to chat once you know the people there, or maybe just to see what's in the junk bin.  It was fun for me, but it can also lead to buying randomly and without discipline, and also quickly expand any stacking budget you might currently have.  Some random purchases are fun, and in the beginning you're still figuring out what you like so its actually a good thing.  Just don't throw a lot of money at stacking in the beginning.  As others have said, slow and steady is much better.

Speaking of budgets, you might want to start asking yourself what percentage of your spendable income (or maybe a monthly $ number) you want to dedicate for PMs (ballpark).  Then try to keep to your budget! (I failed at this big time in the beginning).  Sounds like obvious advice, but it is hard if you get bit by the PM bug.  I would say treat PMs like a hobby (especially in the beginning), and don't overspend.  Don't justify overspending by telling yourself doomsday is around the corner, or the dollar is about to collapse and you need to load up, or whatever other reason some people go overboard.  To me anyway, PM accumulation is about building long term savings.  It works for me because its fun for me.  Just don't get carried away like I did.  And don't worry about small changes in spot price. 

As for what coins to buy, that's a big topic.  In the US as a beginning stacker, I'd say 90% is a great option, but only if the premiums are reasonable.  I always liked the coins that were discernible as 90% by looking at them rather than reading dates (Franklin halves over 64 Kennedy halves for example, or Merc dimes over Roosevelt).  But now I think these are slightly higher premium.  Silver eagles are good too, you can get back some of the premium when you sell, and you can liquidate them quickly and easily if needed (lcs or online).  Also, I'm no tax expert, but I believe selling any amount of eagles won't trigger automatic irs forms, whereas selling a large amount (10k?) of, say, generic rounds might.  I found this link from JM Bullion which explains more.  You won't need to worry about this in the beginning, but you may someday need to liquidate a large amount.

Anyway, have fun with it and share more photos of your pickups!