Silver alloy coins

[Ichimoku]

Hi everyone, I am interested in your opinion concerning silver alloy coins.

I am from Austria and we pay in addition to the bank fee 20% sales tax on every silverpurchse. As you can imagine the 20% drop in equity is not something you can stand very long, so I have to look for alternatives. Before we got the Euro we had quite a lot of silver Schilling coins in circulation and they are still easy to get and there is no tax. But they are obviously not 999.9 silver. He range from 60 to 80% purity depending on the round.

Now my questions: What do you think about silver alloy coins? Do they have the same potential as 999.9 rounds since, at least so I think it is impossible to separate the mixed metals from each other. (maybe I am wrong an it is possible). Is there a possibility that in the future they will be worthless to there numismatic value since there is no purpose for silver alloy like there is for fine silver? I have added a chart of rounds that would be of interest.

Thanks guys

[AgShaman]

(03-24-2012 11:44 AM)Ichimoku Wrote:  Hi everyone, I am interested in your opinion concerning silver alloy coins.

I am from Austria and we pay in addition to the bank fee 20% sales tax on every silverpurchse. As you can imagine the 20% drop in equity is not something you can stand very long, so I have to look for alternatives. Before we got the Euro we had quite a lot of silver Schilling coins in circulation and they are still easy to get and there is no tax. But they are obviously not 999.9 silver. He range from 60 to 80% purity depending on the round.

Now my questions: What do you think about silver alloy coins? Do they have the same potential as 999.9 rounds since, at least so I think it is impossible to separate the mixed metals from each other. (maybe I am wrong an it is possible). Is there a possibility that in the future they will be worthless to there numismatic value since there is no purpose for silver alloy like there is for fine silver? I have added a chart of rounds that would be of interest.

Thanks guys

I can't speak for the general landscape in Austria...but here in the USA, Constitutional Silver Coinage (90%) is very popular.....(very)

Most stackers will admit to having a good bit of this type of silver coinage within their stack....citing it as being a necessary component in the event of a breakdown in the world's fiat money construct.

I only have about a 100 oz's worth of it myself and reside closer to the "purist" mentality....but if a "barter-world" comes back around and trade is established to allot for partial silver coinage....it would be good to be somewhat prepared.

It hardly exhibits much downside since you could ship it to a refiner and have it melted/converted into a pure offering of some kind...and at a cost that won't be difficult to accept.

From a perspective of future potential....my gut instincts tells me you will very likely realize equivalent gains from your "Sub-.999" coin stack. Mainly because so few within the general population are involved with having some kind of exposure to holding physical gold and silver. I would surmize that you could even "realize" an outperformance in your holdings since there could be many people willing to give you a premium in trade for your coinage when the real scramble for precious metals gets underway and the final phase in the bull market brings about some bubble building via the "late-to-the-party" types.

I know if I lived in a country that had the tax structure designed the way you describe....I would definitely see it as a primary motivator to have this type of coinage make up a larger component within my personal stack. Perhaps you could even "cannonball" it completely and ship a portion of it to a refiner....have it turned into .999 fine bullion....and avoid the tax altogether. It could very well become a break even proposition for you once you've payed the costs to the refiner....to be getting yourself into owning pure silver bullion at "spot" prices with sidestepping the VAT taxation.

As an aside....my favorite Govt. endorsed bullion coin is the Austrian Phils (both gold and silver)....and I'm an Americano born and bred...so "hats off" to your countrymen for putting out a beautiful gold and silver offering.

P.S.S. My other favorite is the 90 Shilling

   

Become your own bank..."Stash n Stockpile Weapons of Stack Construction!"

[Dudesome]

Hey can anyone please share a picture of such coin?

[AgShaman]

(03-24-2012 06:11 PM)Dudesome Wrote:  Hey can anyone please share a picture of such coin?

The OP put the file at the bottom of his post showing the various Austrian coins.

[Ichimoku]

Thanks AgShaman for your very help full answer. I think I will buy everything down to 800/1000 there are lots of coins from all the old European currencies. But there is one thing I very much disagree with you! The Philly is nice but the Silver Eagle looks a lot better as well as the Maple Leaf (at least from one side).
Oh just for confirmation, you guys only pay spot plus the spread for the dealer, right?
that is sooooooo good for you. From my last 2000EUR order I payed 400EUR tax plus the spread and some mintage fee. That really gets to you when almost 30% of your money just disappears.

[Dudesome]

(03-24-2012 06:44 PM)AgShaman Wrote:  

(03-24-2012 06:11 PM)Dudesome Wrote:  Hey can anyone please share a picture of such coin?

The OP put the file at the bottom of his post showing the various Austrian coins.

yeah sorry I missed that one. thanks

[Kapten hörntand]

Hi, Im in Sweden and we have similar conditions regarding ag here, -25% taxes, but its possible to cut that a bit due to private small importers.
Up here we have our version of "const" silver,. 80%(pre1940s) and 40%(1968) I've seen 80percentcoins gain in value over the year, you always got it for well under spot75-80% below, now its harder, you even in good lot's even have to pay above spot. As for any numismatic value's its hard to even guess. I think real numismatics which obviously has a huge value today, wont see their value gets eaten up by an increasing AGprice just directly ,.but who knows. I have been buying very nice coins which i know had some value to them over melt in , say 6-8y ago, but today have had their little numismatic gain totally eaten up by a 30usd/tr oz price.
Just make sure never pay above melt!
Also good to get youre domestic ag-coins if you tend to some day sell them there, as i 've been focusing on swedish coins and a bit morgans/peace(good everywhere in world) As its easier to follow the tiny market.

Agshaman has some good points there, i also think late-to-the-party ppl could stress-up situations, in a future panic market.

Its also way fun to have old coins, hold some old coins and do a little micro meditation 5-10sec., then think about all the history of theese coins, ppl have worked hard for them, paying who knows what,... and now it ended up in your hand. Feel lucky!