Hi guys, I've been stacking for a year now and have picked up a few of the popular 1966 50's along the way (actually looking for another 15 to fill a second tube). I find them interesting but am wondering why they are so popular. From my experience a very good price for a coin is $8 (that's what I pay when they pop up at the LCS), my understanding is also that 3 form an ounce of silver, so that's $24 for an ounce at a good price through this method. For the same price I can generally get a new generic round or bar that is clearly identified as pure silver. If a financial situation occurs where I can benefit through the sale of my silver, wouldn't it be preferable to have an asset that is recognised for its value by all, as opposed to just the small proportion of people who recognise it as actually being 80% silver? Even if you had the proof that they are 80% silver, would they have the same appeal as a pure coin to the average punter with whom you might be dealing? I have probably missed something obvious, it's just a thought that I have had and it would be good to get some advice so that I can continue picking them up, or not. Cheers!
Food, fuel etc would be more easily tradeable if that situation occurred. I wouldn't rely on trading/bartering with silver but could easily happen. Main reason I like them is; Easily recognisable Cheap to buy compared to PM 1oz Less chance of counterfeit due to smaller value Great size coin - not too big, not too small. Divisible for smaller trades. Don't need to treat them carefully, chuck them round & still maintain their value. Great to throw in a few when someone has bought something of value from me Similar threads- http://forums.silverstackers.com/topic-42608-round-50c-please-explain.html http://forums.silverstackers.com/message-467021.html#p467021
That particular point was my moment of enlightenment with round 50s. Clean or dirty, they're worth the same. No fiddling around to avoid capsule scuffing or worrying about milk spots. Just dump them in a tube or any container really. No one cares if they are rattling around and rubbing against each other.
There is no reason as to why they are popular, they just are. There are many different features that people look for in their silver and the 1966 50 cent just happens to tick a lot of the boxes, which means that although they are not the 'perfect' form of silver for everybody, they are 'pretty close' for most stackers. Sure there are 3 to a Troy ounce which makes the math easier if you are good at dividing by 3. If it is just divisibility you are after there is a wide range of 'fractional' silver 1/10, 1/4, 1/2 etc., Rarely have I seen a 1/3 round for sale. Stackers can recognise them but I doubt many other Australians have even seen one, despite 35 Million of them being made. If you give them a 50 cent without the flat sides they will probably think it is fake. The are low premium, but if you want lower premium you can get it with other 'junk' silver coins, if you buy them in bulk you can get them at spot. If you are looking for security, they are government minted, which gives you some security, but they have no flashy security features such as a certicard or laser engraving or radial lines etc. Not only does it not matter if they get a bit scratched but they also polish up really nice and shiny, they can be made to look fresh out of the mint. They have a face value of 50 cents, so in the unlikely event of silver becoming worthless you can still buy 1/6 of a loaf of bread with one! Or another scenario is you can account for your stack of 50s at face value, and not the value of the coin, a good way of hiding money in plain sight. They are great for hammering home your conspiracy theories to people who have absolutely no interest in finance, you can wave it in their face and say "Back in 1966 this was worth 50 cents, now this same coin is worth $8!!!! Which is proof that Elvis was taken by aliens!" Or you can just use it to illustrate the evils of fiat!
I didn't like them but I'm coming around. I think as long as everyone still wants them and he premium is maintained then they are great. I habe to say though the premium is getting smaller as spot rises which makes me like them more and more. When spot was $19aud getting them for $7.50 wasn't as attractive as getting them at $22.5 spot for $8.10. It's only a small difference but a dollar an ounce adds up, just look how excited everyone gets when the spot jumps that much. Certainly they are convenient as far as fractional silver goes. I have a few Scottsdale quartets but the premium is similar without the recognition or toughness of the round 50.
At some stage I was buying them for $12.50 each but it was off a mate who was keen to cash in on the sudden rise of silver, the fool, if only he had waited another decade he could easily have made $13 each!
On the last short-lived trip to da moon! As silver was heading towards $50/troy oz a lot of silver came out of the back of cupboards and onto the market. I was offering $11 a coin and getting knocked back more often than not. In my defense, I started buying them for off eBay for $4-$5 back in 2008 so no one was more surprised than me by the change in price, it wasn't that gradual. I did manage to swap a small stack of them for a couple of 10oz Dragons (32x 50s per 10oz dragon if memory serves me well), so even though the prices were all over the place they were still in high demand and held a decent premium.
At roughly $2 over spot now, when silver was $49 , at $4.50 over spot (using the same ratio), $54 divide by 3 was almost $18ea. Mind you thats in US$ , not sure what the AU$ was doing at that time. Can anybody remember what a round 66 coin was worth back then?
Street price is usually spot + 10% for a few, spot plus a dollar for ones and twoesies. Bulk is usually a bit cheaper with retail a bit more expensive.
