The Inconvenient Truth about Junk Silver
Hey everyone!
I wanted to talk a little bit tonight about Junk Silver.
Don't get me wrong, I love my Junk, I fondle it, I hoard it, and I treat it right.
But what are the potential pit-falls of Junk Silver? What could be the achilles heel of Junk?
Education.
Let me hear your thoughts!
As always, I'm here for questions, clarification, and am up for a juicy discussion!
+1 Point for the Oxford Comma.
If you have a lot of junk silver and have to flee because Shit hit the Fan (it is why most people hoard it) it will be heavy and you won't be able to take it all.
I love my junk silver too
Great point! I only have about $100 face in Junk, and that is THE LOUDEST bag of shinies I've ever heard! Plus it's always spilling all over the place, and is quite cumbersome (As a silver fanatic these are also positive points - but in a SHTF scenario they stop being so fun, and start becoming quite the annoyance I'm sure!) I appreciate you stopping by @tecnosgirl - your input is appreciated!
Hey, great post! Resteemed.
@bi5h0p I appreciate it so much!
Its definitely nice to be able to handle it. But I suppose when it comes to handling silver for "spiritual" purposes, .999 would be better.
You're absolutely right, but handing it for "kid in a candy store" purposes, junk will do just fine =P
I have alot of half dollar junk silver, the only down side that i have seen over the years, is proper calculation of it. Most people are not good at math so it may be a issue during a global crash. 1oz is easy to calculate.
@raybrockman another great point! This is simply a failure of our educational system - we tend to forget how we got where we are today! I've found that telling people $1.40 = 1ozt is much easier than saying $1 face = 0.715ozt - but still, the process is still an annoyance and requires people to trust your word. Thank for stopping by my friend!
I was saving money up to buy some junk silver for my stack. I basically only see it as a way for barter, especially during a financial crisis. I agree, many people do not even recognize the value in these coins. And the silver coins have varying purities and weights, so that adds a big layer of complication. If the fiat banking system collapses, as I think it might do in the coming years, silver and gold will explode. During such an event it will be wise to have junk silver on hand to make small transactions. Why use your big coins and bars first? But I totally agree, there is going to be a lot of barriers with average people who are not financially intelligent. How the hell do I prove that 1964 was really the last year coins were made of silver, or that nickels are nickel and not silver unless you have a wartime? Such deals will result in headaches.
Can you explain how capital gains taxes do not apply to junk silver? I have never heard of that before.
Thanks
@voice-of-apollo I agree! This isn't stopping me from stacking the stuff, because I really do believe it is going to explode if an economic crisis ever happens. As for the capital gains tax - there are two trains of thought here. First, many states (including my own , CO) have laws that US minted silver cannot be subject to taxes (I believe - and don't quote me on this - that American Silver Eagles also apply). Second, there is the idea that you can BUY something using these coins, with their silver value - but claim them as spending the face value. (For example I could buy a car with 500 Morgan dollars, and claim I bought the car for 500 dollars) - This circumvents the $10,000 capital gains tax laws
That's very interesting. I'll definitely look into the tax consequences. I was of the simple belief that, besides barter, any capital gains need to be reported.
If you find anything out, let me know! I am always hungry to learn more - and spreading valid and valuable information is my only intent!
Wish I could find somewhere to buy some close to spot. All my local coin shops want an arm and a leg. I'm kind of trying to stack for weight If I'm going to pay a premium I can get like a pampe or poured bar you know?
Yea I hear ya, I know many places aren't that fortunate to have a good LCS nearby - especially if you live in a state that has sales tax on PMs - I would just buy whatever is on sale on the major online retailer's sites if I was going to be paying a premium anyways ... thats frustrating. Sometimes I see Apmex and other sites having decent sales on Junk silver, but the downside is that Apmex doesn't accept bitcoin (yet!) I wish you luck my friend, in today's market I wouldn't be comfortable spending more than 13.5x face on Junk
Yeah that is crazy. Ive never bought online through apmex do they really ever have deals on junk silver? Using crypto to buy isn't really a big deal to me. Id rather send them fiat. I do make purchase from jmbullion with btc though when I get scared or pissed off from watching btc go up and down and hearing all the politics. lol its a weird space.
The only real perk about paying with crypto is you get a small discount (like 3% or something) - Otherwise I agree, I'll just pay with fiat. I do see junk go on sale on provident quite a bit !