Collector’s value or numismatic value is another factor that needs to be considered when investing in or acquiring silver, physical silver that is. The reason being is because the successful silver investor wants to pay as little as possible for collector’s value, and if he/she can, avoid paying for any collector’s value at all. Yes, in some instances, depending on the price and the true value of the silver content, the silver investor don’t mind to pay a premium as high as 50% of the silver value if there is a collector’s value attached to the relevant item(s). This is however more an exception to the rule than anything else, especially if your purpose of buying silver is for survival. The reason being is because chances are very slight that anyone is going to compensate you for collector’s value when society breaks down and it’s all about the survival of the fittest (or the smartest for that matter!).
Silver Bullion, like some other players in the silver market, is of the opinion that items with collector’s value, especially numismatic coins and/or rare silver coins, are 6 times out of 10 bad investments for the average silver investor. Like stated above, this is especially true when it is bought for survival purposes.
While many silver investors are willing to pay relatively high premiums purely based on the expected future value of the silver content, most avoid buying silver items with a high or any collector’s value attached to it. The reason being is because factors that determine collector’s or numismatic value, factors such as age, rarity, scarcity, fascination, mintage, condition, etc., tend to push up the price of an item unnecessarily from a silver investor’s perspective. These are all factors that have little or nothing to do with the value of the silver content, at least not when it comes to a consideration of the rarity, scarcity, condition and mintage of a silver item such as a silver coin. It’s thus best for the silver investor, who goes for the value of the silver content alone, to avoid buying a silver item which has a high collector’s or numismatic value attached to it. However, if such an investor can buy such item(s) at a price which doesn’t present a substantial premium to the value of the silver content, then he/she should go for it. Nevertheless, when the intention is to reap the benefits of an investment that’s purely anchored in silver, the collector’s value should never over shadow the value of the silver content.
When disaster strikes…
In addition to the above, many silver investors, especially those who invest in or buy silver for survival purposes, are of the opinion that numismatic or collector’s value will carry little if any value when disaster strikes.
The time may come again that we will have no choice, but to use silver items such as silver coins as money or to barter for goods and services. If you go to the market during such time, chances are very slim that a trader will sell his/her goods and services to you based on the numismatic or collector’s value of the silver coins offered for payment. It can be expected that most traders will only be interested in the worth of your silver coins based on its silver content. This is not to say that you will not find a trader that would be willing to pay a little extra based on the numismatic value, but chances are that you will have a tough time finding one.