I was going through my safe last week, and found this heavy bag of coins. Wondering what they were, I opened it up, and sure enough, going back in time, I realized that I had what we used to call, a “bag” of U.S. silver coins, which I’m sure has been there for a few decades. In this case, U.S. silver quarters. A “bag” of U.S. silver coins, is $1,000 face value, or in this case, 4,000 U.S. silver quarters.
Remember, I have been dealing in precious metals since November of 1977, and ‘bags’ then, were common. There were no Silver Eagles, Buffalos, or Maple Leafs. Only different one ounce ‘rounds,’ as various one ounce silver coins were known. I cannot remember what ‘bags’ sold for then, but I am sure it wasn’t much. These bags are heavy, and not popular. Today, U.S. Silver Eagles, are a couple of bucks per ounce over our silver “Buffalos,” which are hugely popular. The Silver Eagles are more expensive, because they are made by unionized employees of the U.S. Mint at West Point, New York, and naturally, when the U.S. Government gets involved in anything, inefficiency is the normal modus operandi. U.S. silver eagles, as well as our Buffalos, come in tubes of 20. Silver Maple Leafs come in tubes of 25. Since the U.S. has a trademark on dollars, the Silver Eagle has $1.00 stamped on it.
When I started doing this, I met Bunker Hunt, who lost his shirt betting on siler futures. He had so many, that when he tried to sell his at a huge profit, he couldn’t find anyone to buy them, which taught me to never gamble on anything. I helped counting the huge amount of physical silver he bought. Bunker Hunt, was a big, fat, sloppy dude, who was very friendly.
Silver spot, as I compose this, is $22.95, and each U.S. silver quarter now would sell for $5.00, or twenty times its value in 1964, when production of 90% silver dimes, quarters and halves ceased. Silver was too expensive to be wasted on coins, was the excuse.
This reminds me of current TV ads, which proclaim that “rates will never go up,” in whatever life insurance policy is being advertised. Is that a good sales point? I think not. Why not? Because, as the monthly premiums may not go up, how about what can be bought, if you die or make a claim? Since the rate will ‘never go up,’ the payoff in U.S. dollars, as the policy stipulates, dollar values will never go up either. In 1964, or 60 years ago, you probably figured that 60 years hence, you might be about ready to retire, and your policy would make you have a lovely old age. A life insurance policy 60 years old, wouldn’t fix you for much of anything today, and especially since you had been paying premiums for 60 years. Not having retirement money from a life insurance policy, was the furthest thing from your mind. Sixty years ago, had you bought silver, with no monthly payments, it would be worth sixty times what it was then, your life insurance policy would be worth a sixtieth, and you had been paying premiums for 60 years! The silver just sat there in your safe, dozing and collecting dust. Boring. It never got heavier, or purer. Just sat there, and if it had a brain, just laughing at what was going on around it. “Jeez, I haven’t changed. I guess the dollars required to buy me have changed value, huh?” That’s what inflation does.
If the same thing happens to silver, 60 years from now, a $25 silver buffalo today, will be $1,500, or if inflation took it to 600 times, that once ounce silver buffalo, would cost $15,000. In 1964, if I told you that a quarter would be worth $5.00 in 2024, you’d have thought I’d lost my mind. As example of runaway inflation, which always happens to every nation in history, and has partially happened here, I have a $20 trillion dollar bank note from Zimbabwe.
Doesn’t it make sense to store your surplus assets in silver and gold?
Don Stott- don@coloradogold.com